The Oregon daily journal., March 26, 1911, Page 21, Image 21

THE OREGON SUNDAY JOURNAL, PORTLAND, SUNDAY MORNING, MARCH 23. 1911.
RESTATE IAW
AND REAL ESTATE
11
Andrew, G. Thompson Sets
Forth, Standard, Partly Le
;gal, Partly Moral,Mor Guld
. ance of Oregon Dealers.
DESCRIBED
There are probably 1000 wen in Port
, land engaged In on form or another In
veiling real estate. These agents and
salesmen came from all over the eoua
. '. try; many of them had been engaged
.. In the realty business In other states
and as a rtsultof this have a confused
Idea of -the law In Oregon governing
the buying and selling of real property.
Many ofjthem came Into the t business
, from other walks of life and havo no
Idea or real ostato law.. The result, as
might b expected, wao ehaos-tn so far
as a uniform understanding of the Ore
gon law affecting the business of the
real estate agent la coiioerned.-f-r-r;
In order , to afford real estate agents
and realty salesmen an opportunity to
gain ' a fair knowledge of th Oregon
law governlngthe .dally business of the
members of the craft, the educational
-r1- department of the Y. M. C. A. -arranged
.; some weeks ago for a aeries of lecture
on real estate law. Attorney Andrew O.
, .Thompson has delivered a number of
f these lecture before a large class, His
lecture on the "Duties of Agent, Seller
: and Purchaser Is conaldered one of the
best and most Instructive of the series.
MrTbompson. said gjptJrtt'V& ?
-1 : iraea of Duty Xsoa Jna.
. " "From' the standpoint of duty we will
find that the agent bears the brunt of
the;burden. He Is holding himself out
. to act for others and It 1s Just that he
, should be compelled to accept this bur-
- den. Whether the agent has placed hlm
self In a position where he can collect
his- commission or whether the agent
has executed a binding contract Of sale
under whjch the purchaser can compel
, the seller to convey, Is determined very
largely by the acts of the agent himself.
. "The" first and most Important duty
" on the part of the agent in order to
earn hts commission Is to bring the sel
ler apd' purchaser together and effect
a sale of the property according to the
terms agreed, on by the seller and the
agent, .A, breach of duty of n agent
to the principal In performing the above
,; act deprives the agent of the right to
collect commission. Thus where the
- seller refuses to sign a contract of sale
and tha agent signs It and puts It on
record, "his breach of duty deprives the
agent of the right to collect the com
mission even though he had" found a
purchaser ready, willing and able to
- buy on the terms proposed, T
, . roll, rait Tacts a aty..
A duty which Is almost a Important
as obeying the Instructions of the prin
cipal la the duty of the agent to com
. munlcate to, the principal, whether he
be a purchaser or a seller, the real facta
and true situation with reference to the
transaction. In-other words he owes
the principal the duty of making a full,
fair and prompt disclosure of all the
clrihnatances affecting the principal's
right . or interests; Whatever ; dvsn
Ugeiaoerues to the agent by the viola
tion o(; that duty, he must make good
r to the principal. For example: If the
"; seller lists property with the agent to
be sold for $6000 and the agent sells
tire Tvoperty for 17000 without inform
v- Ing tits seller of the true facta and ob
taining consent to keep the surplus, the
principal may compel the agent to pay
over the surplus, less a reasonable com.
mlsrslon on the same. Or If the agent,
after entering Into a binding contract
In' the name of the principal to convey
principal's land at an advance price, and
then without Informing the , principal
Induces v the principal to annul the
agency contraot and buys the land him
self si the listed price, whereupon he
conveys to the purchaser at the ad
vanced price, he renders himself liable
to the principal In damages. But the
agent breaches no--duty where, he goes
to the principal and induces him, to take
less foe his land where the agent has
' a purchaser willing to pay the leaser
price for the land.
- Contract aTull - Unless followed.
"The agent must act whhln the scope
of his authority; - a violation of this
duty will render null and void any con
tract which the agent might enter into
for his principal. If the agent was
. authorised to sell "the principal's farm
for iaooo,first payment to e made
on January t and the contract entered
Into by the agent required the first
" paymentto be made on February I this
would be In excess of his authority and
not binding on the principal
-Thr --agent -may-act for botbrbuyer
and the seller but f be undertake to
do so he owes a' duty to Inform both
parties that he Intends so to act This
Information may Je conveyed by acts as
well as by words. If the agent secretly
alts for one party and openly. act for
the other he forfeits his right to col
lect for his services from the person he
deceives. , . ' . .. -
-."Where' a seller has listed his prop
erty with two or more agents, the agent
who finds a purchaser must notify the
v. ?SIIPiWrS; -ill
m
Store and hotel building under construction at Ninth and Dav U streets.;
- 100 fe and will cost about $80,000.
Elegant new home of Martin
seller at once. " If he does not and Jin
the interval the principal or another of
bis agents sells the rend and the sale
1 brought to the knowledge Of the prln.
eipal, the first agent cannot collect a
commission - from the principal. 1 By
neglect of duty he has - forfeited bis
rights. , . , -
Inability foi Zsaotlon.
There, la'no duty on the part of the
agent -- to exercise- diligence in obtain
ing a purchaser and be may terminate
his 'effort without notice to the princi
pal. If for ft valuable consideration the
selleri, has entered Into a binding con
tract With the agent giving him exclu
sive right to find, a purchaser to sell
the property, the agent may do abso
lutely nothing toward disposing of the
property, and although Ihe seller may
be damaged by the. Inaction of the
ggent, yet he will have no right of ac
tion against the agent to recover the
damages suffered. The only resource
the seller would have would be to sell
the property himself, If possible, and
pay the axent the commission -called
for In the contract.
.The agent owes the principal no-duty
to inform " him of :a ' intended pur
chaser when ho goes to the teller to get
a. contract to gall the land. Ho may
have a person ready,, willing and able
to buy the property and the agent vio
lates no duty in not disclosing this fact
The same Is true Where the seller lists
land with the agent, giving him all over
a certain price for his commission.
Here the agent owes no duty to dis
close to the principal the price received
for the property so Jong as the aeller
receives the price he asked,
xmies of Seller, or rrlaelpa!.
"The seller or principal owes a duty
to the agent accurately and truthful
ly to represent his property and If he
does not do so and the agent conveys
the misrepresentation to the purchaser,
the agent will be relieved from resnon-
iblllty in damages to the purchaser
which he may have suffered by reason
of . the misrepresentations. - False rep
resentations to the agent or a mistaken
Idea of the principal will not relieve the
prlnolpal from paying the agent the
commissions he would have earned.
Thus If tha t aeller lists a house v and
lot with an agent believing he owns the
property and can pass a good title and
the agent finds a purchaser ready, will
ing and able to purchase on the terms
stated, the principal roust pay the
agent bis commission even though he
cannot convey. . ,
- ZeUUg XTp $0 rrineipaL
"In event of a sale It becomes the
principal's duty to collect tho pur
chase - money and pay the agent the
oommlaslon earned. If the sale Is for
part Cash and remainder in installments
the agent's duty ceases as soon aa he
has bound the sale and reoelvee a de
posit, and it hi the duty of the principal
to arrange all ether matters and col
lect ia the Installments. If the agent
la oompelled to do extra work as draw
ing up- papers or obtaining information
and affidavits to correct up the title
he la entitled to reasonable compensa
tion for bla labor.. t , .
ICnsi Keep Agent Znformeo.
"If after the principal baa listed his
property with the, agent he sees fit to
recall the contract of employment, be
owes the agent -the duty of acting in
good faith and If ho does not e act the
agent may proceed as If the effort on
the part of the principal had not been
made and. la event of a sale by himself
may collect the commission. The prin
cipal who obtains knowledge from the
agent that aa intended purchaaerrpra.
cured by the agent I the person who
he had learned from another source, aa
the possible purchaser -owes, the agent
the duty either of terminating - the
agency or notifying him that he intends
personally to conduct the future nego
tiations." , -
" .... '.. i ' ' "mi '" :
' A few Albany man continue to get on
sprees, but they are private onea
Democrat How did you find it out,
then?" .i;.-.i'-":vi.i(.-,,!-i ;LUa-.
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Shea at 1211 might avenue, Just
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Eight etory display room and warehouse f the John Deere Plow pompgriy under construction at East Sec-
". -' -, ; " ' ; ' : '' '-' ond-and East Morrison streets.
ST. HELENS TIMBERMAN
LETS I14.TO CONTRACT
C. C. Masten, a wealthy tlmberman
Of St. Helens, Or., has 1st the contract
for a two story structure to be erected
on the quarter block at the northwest
corner of Union avenue and Skldmore
Street. The building is to be a combi
nation store and apartment house, 60
by, 81 feet In ground dimensions, and
will cost approximately H,000. It
will contain ; three store rooms on the
ground floor and the upper story will
be arranged for nine three room apart
ment suites.
- Oround was brolren last week at the
county poor farm for the proposed new
tuberculosis ward. The building la to
be a frame structure, 25 by 1Z feet,
one story high, 'except a short section
in the center of the building, which Is
to be two stories high and which will
be used as Quarters for the attendants.
The building hr so arranged that the
patients may live and sleep practically
out or doors save auring wciemem
weather. -The structure will cost' ap
proximately $7000.
REAL ESTATE DEALERS
REPORT NEW SALES
Charles Rlngler A Co., realty , oper
ators, report the following recent .trans
actions in local real estate; . ' -,
A Swiss chalet hlllalde-home, lo
cated on Ford street and owned by F.
E. Bailey, was sold to W. F. Scott for
IS600; Jot 9, block I, Laurelhurst, to
Elsie Dahm. $1466; tot 10, block , lu
relhurst, to Carl -Rabenteck, . $1400;. lot
1$, block 70, Laure)hurst sold to Wal-
I :v.-:--. . t
mm
Structure is to be five stories, 60 by
'
1
'I
M1
n.
1 '
complotei at a tout oMfOOO.-
ter Hetmback, $1800. Mr. Helmback
plans at once to begin the construc
tion of a $8000 residence of this lot
. Sates of real, estate in and
Epringfleld are numerous.
around
Qieap Fans i the Treasrar e
HOMESEEKERS EXCURSION
.to -
, v MONTANA
VIA
-THE-GHIGAGOrMILWAUICEE-&
The territory covered embraces the famous Gallatin Valley, Smith River Valley (White Sulphur Springs), ; ; ;
the Judith Basin, the Musselshell Valley and the Valley of the Yellowstone. ' " r-; ' ' ' '
A special party is being organized for the first excursion, leaving Seattle and'TacomafTuesday, April 4.'
For fulL particulars address' M. H. WELTON, IMMIGRATION AGENT, C. M. & P. S. RY.;'634;HE1SRY
BUILDING, SEATTLE. Other excursions to follow on April 18, May 2 and 16, and on the first and Ihird Tues
day of every month of the year. . ' ' m". , ' -
ILLUSTRATED LITERATURE FREE FOR THE ASKING ;
:r mmmmwmmmmmmmmmwmmmmmmmmmmHmammmmmmmmmmmwmmmmmmmmmmmmmmKmmmm
For tickets, sleeping-car reservations, etc., apply to any of the company's Station or Ticket Agents in ...
Washington, and to - , ; . " 1
f J. R.VEITCH, CM. & P. S.Ry.t Railway Exchange, Portiand. j V
1 R. U FORD, C. M. & P. S. Ry., 618 Rivenide Avenue, Spokane. : . ,
A W; NASE, C. M. & P. S. Ry., 427 Pender St. W., Vancouver, B. C. 1
V v t F. AVALENTINE,' C.'ML'&'P. S. Ry. 1001 Pacific Avenue, Tacoma
' 'V J. L CRISWELL, C. M. & P. S. Ry., Second and Cherry, Seattle
GEO. We HIBBARD, General Passenger Ancnt, Seattle, Vnshinr.ti
TEH YEAR LEASE
$50,000 Reported Paid ; for
.former Home of German-;
American Bank.
The 10-year lease of the former quar
ters of the German-American bank at
Sixth and Washington streets was sold
last week: by Ashley v Rumelln to
Paul vWesslnger, Both parties to the
transaction declined to state the figure
paid by Mr. Wesslnger for th leasehold,
but it is believed to, have been not far
fromi 150,000, , . f'i ' .":-':
The space occupied by the German
American bank was equal to about S300
square feet and had a 40-foot frontage
on Washington street and 0 feet on
Sixth street. The bank also controlled
the baeement, which la Included In th
Wesalnger lease. f;; Under the original
lease held by the bank, the monthly
rental paid was $80 for the first five
years and I860 for the second. - f
" If Mr. Wesslnser paid a bonus of $60,
000 for the. lease, which is the- figure
commonly reported, it would mean about
11)76 a. month for Jthe . remaining life
of the lease, which Is considerably
less than tho monthly rental to be paid
under the new (ease for the same space
In the Raleigh building acrosa Sixth
street 1 and is only about half the
rental which the tenants are to pay
. PUGET SOUND RAILWAY ; .
THE FIRST AND THIRD TUESDAY OF EVERY MONTH, COMMENCING
Tuesday, April 4tl : 1S 1 1
for a like epaco on the ground floor -of
ine wiicox ouuaipg. , :
Mr. Wessinger Aald yesterday that he
expected to alter thepace, making
several small shops out of the 40 by
SO feet, fix up the basement for ocou
pancy as a restaurant or barber shop
and releaser He also said , that "he
would be much disappointed if he did
not make as much pront out of the
venture as the lease coat him, plus the
interest on the money Invested. .
Twelve feet , of Washington Street
frontage, being a portion of the Mer
chant Trust building at sixth and
Washington, was recently leased for a
period of . three and one-half years at
the- rate or $400 a ' month. This is
believed to bo the highest rental paid
in Portland ror. an inside store room
Several corners, the very choicest loca
tions in the retalav center, bring higher
figures,, notably the Owl drug store,
hlch. It is reported, pays 12000 a
month for 40 by 70 feet at Seventh and
Washington..;,-? :-"V,"-;.."; . : .
At r the Intersection -of Fourth and
Burn side streets a syndicate of Wil
lamette valley investors in Portland
realty Is going to build a six story brick
building,' which will probably ' be de
signed for business "-purposes. Th
property belongs - to , Ex-Secretary of
State Harrison R. Klncald, F- E. Dunn
and C. F. Hurlburt the two last belnc
merchants, all of whom live in Eugene.
EUGENE IN TO BUILD
ON BURNS! PROPERTY
The; site of the proposed ' building ialFrank Weathorwax for the purohaao of
76 by 100 feet, with the 100 foot front
age' on Burnelde, The owners of thi
property have formed a company to take
oveiLhe property and put-up the build
ing. . ; -, ' - . '
Mr. Klncald and his associates have
owned the property for the past five
years, having purchased it at a time
when lots In that vicinity could be had
for one third the price now demanded
by owners. At present the property is
leased to the Welnhard estate, but this
lease will expire In a few months, and
at its expiration the old buildings wilt
be torn down, and construction of the
projected structure will begin.
!l
t
Bothfur h Johnston report the saleof
(40 acres of .frulf landdioining the
town of Dufut. The tract la known as
the Johnston A Vanderpoo) ranch and
was sold to Hidden, Fleming and asso
ciates for $50,000.
It Is the intention of the purchasers to
improve this traet at once, planting the
major part of it to commercial orchards.
The part adjoining the,townslte will be
subdivided Into town lots.
The Dufur district la experiencing 'a
great deal of activity this season and
there Is a large amount of development
work In progreaa in the district at the
present time. Several thousand acres
are being planted to orchard this spring.
Eugene is destined to be the greatest
inland , city " in the state of Oregon.
Everything points to that as an absolute
and positive fact, that cannot be gain
said and that time wilt prove. Jhigene
Register, v Now, Salem, Medford, Al
bany, et-al, what doyeu-ai thJnk of
that? - s
640 ACRES OF DUFUR
F I
LAND ARE SOLD
ffllTZ ;
RADESCBE
Martin's Bluff and Castlcrcck
Neighborhoods of Fair
Sized Deals .-fcxi
X. H, Shields, one of Fortland'S most
successful dealers In farm and suburban ,
acreage,- has oold -or--l Redmond a -ranch
located near Caatlereck In Cw
1IU county. Wash., to R. & Relnkey, of
Portland, for $6000. The purchase price
Included farm implements and stock.
Mr. Relnkey acquired the place for a ,
home and will at eac take eoeaeeeton.;
He also sold a Cowllti oounty ranch , T
to s. Portland investor, A. McDonald, '
who took over 140 acres belonging to .
John Nelson and located . near 8ilver
L,ake. This place has 40 acre under'
cultivation and was sold for $4000.
Af-40-aerr- tract-two- miles eouth of"
Castlerock was sold ' through tbe
Shields' agency for E. M. Mull to an' ';
easterner for $10, who will ooeupy it,
ae a home. p '?
The Frank Janlich ranch, located twe, A
miles , west " of Caetlerock, - was pur-"
chased by August Olson, recently from "
Minnesota, for $1101,
I X A. Eastman has closed m deal with
a no-acre rarm tocatea near Martin a
Bluff. In Cowllta county, tho considers- '
tlon Involved amounting to $10,000. Oat- ,
halflthe plaeeiia under-euttlvation mid
contains a flro-aero cherry orchard In K
fulL bearing. Mr. Weatherwax took r'f
part payment a l-room- reatdeaoo andt
quarter block on Bast Sixty-eighth "
street Dear East Stark, yalued at $1000.
El
E
H. CPrudhornme of tho Prudhomma
Realty & Insurance company hao Just
completed and moved Into one of the
most attractive and complete residences
on Portland Heights. The building faces
east on Montgomery drive and com
mands splendid view of the surround
ing country. It Is by 41 feet in di
mensions and contains an unusually
large and elegantly- appointed living
room and dining room. The former Is
20 by S4 feet and the latter 10 by $0.
Both have paneled ;, walls and Celling.
The billiard room and den are also
paneled.- " ' - i--:. '.;-- i:.-
The second floor contains six large
bedrooms, two outside sleeping; porches
and two baths. In tho living room Is a
fine specimen of pressed brick fireplace.
There is aluo a targe fireplace In the
den. In the dining room is also a fire
place and a finely built-in buffet All
the floors In the larger rooms are ;
floored In hardwood.
Lowell is getting ready to celebrate ,
the arrival of the. "Iron Horse" In that
city, which event will beguiled off in ,
a very short , time, says . the Eugene-.
Register, A remarkable transformation .
is taking place In that section of the.,
country, due to advent of the new rall-vw
road. " f
FARES
. -
PRUD1M
SHES
HI
ON HEIGHTS
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