Real estate broker

“ Real estate brokerage activity defined.—The term "real estate brokerage activity" means any activity that involves offering or providing real estate brokerage services to the public, including— (i) acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property ”

“ There are, in addition, those cases that have found a protectable interest in favor of a real-estate broker who has gained a prospective interest in a commission by introducing a buyer to a seller of property. ”

“ A real estate broker is seldom authorized to do more than find a purchaser or tenant, not being authorized to make the lease or contract of sale. By reason of this limitation generally placed on a real estate broker's authority, many disputes arise over real estate brokers' rights to compensation. A principal may enter into any kind of contract he desires with a real estate broker, and is liable when the broker has performed his contract, and not before. ”

“ Babbitt spoke well—and often—at these orgies of commercial righteousness about the "realtor's function as a seer of the future development of the community, and as a prophetic engineer clearing the pathway for inevitable changes"—which meant that a real-estate broker could make money by guessing which way the town would grow. ”

“ The sale and purchase of real estate in large towns is always effected through house-brokers, but fields change hands very commonly by direct communication between the parties interested. The legal rate of commission to the broker is one per cent of the purchase price of the house, and is paid by the seller. ”

“ Merchandise brokers, unless factors, negotiate for the sale of merchandise without having possession or control of it. Like other agents they must serve faithfully and cannot act for both parties, seller and buyer, in the same transaction, without the knowledge and consent of both. In many transactions he does thus represent both by their express or implied authority, and therefore binding both when signing for them.
A real estate broker in the employ of his principal is bound to act for his principal alone, using his utmost good faith in his behalf. ”

“ Back in 1928, a man bought a comparatively new house and eight acres of land for a sum far below the prevailing prices in the vicinity. The grounds were attractive and the lawn well shaded with fine old maples. He acquired this "bargain" in the late fall without benefit of real estate dealer. In fact, he boasted of his acumen to a broker who had originally shown him several other pieces of property in the section. ”

“ Any snaps?”
“Come off the perch, Phil! You know what I’m gettin’ at. Are you fellows trying to create a slump or some such damned thing?”
“No,––certainly not! That would be poor business for a real-estate agent.”
“Well,––why the devil are you the bear in every transaction you put through? It didn’t used to be that way. Every broker in town’s been buying from you fellows all this year.”
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“Somebody’s got to sell, if there’s to be any buying. Now,––don’t get rattled, Pete. It is up to you. Sell if you want to. Nobody will stop you.” ”

“ The prospective buyer who admits he covets the house but cannot quite meet the purchase [Pg 45] price is much more apt to get the benefit of easier terms.
Real estate buying is still a dicker business. Get your own idea of values and then make an offer—to the broker. It is part of his job to negotiate this difference between asking and actual purchasing price. Theoretically buyer and seller should be able to meet and discuss the little matter of price in sensible and friendly fashion. Actually, there is usually as much need of a diplomat here as between two nations. ”

“ Of the realty companies, the Park Realty Company was organized to 'work, develop, sell, convey, mortgage, or otherwise dispose of real estate; to lease, exchange, hire, or otherwise acquire property; to erect, alter, or improve buildings ”

“ Its conclusion was that the term included 'all occupations in which men are engaged for a livelihood.' We do not intimate an opinion on the correctness of the application of the term to the professions. We have said enough to indicate we would be contracting the scope of the concept of 'trade,' as used in the phrase 'restraint of trade,' in a precedent-breaking manner if we carved out an exemption for real estate brokers. Their activity is commercial and carried on for profit. ”

“ The "realtors" prefer to speak of their trade as a "profession" or "calling," not a business or trade, for they claim that an up-to-date real-estate dealer is a community builder and leader whose preparation requires a good general education and a special training, pointing out that a number of the best colleges in the country are giving courses in the real-estate business. ”

“ They serve the same purpose in locating teachers—and a legitimate purpose it is, that a real estate agent does in buying or selling real estate. The dealer in real estate brings the buyer and the seller together. He serves both, and if a man of honesty and principle, may be of service to both and his business in every way a creditable one. ”

“ The Broadway Realty Company was formed for the purpose of owning, holding, and managing real estate. It owns an office building and certain securities. The office building is let to tenants, to whom light and heat are furnished, and for whom janitor and similar service are performed. ”

“ The quantity in market was enormous. All the real-estate agents had large books filled with descriptions of farms and fancy country-seats for sale, some to be had by paying one-fourth of the purchase-money down, and some which the owners would exchange for merchandise, or traps, or houses in the city. ”

“ The real estate man usually knows who wants to sell property, knows something of the value of property, looks up the title and records, and then brings the buyer and seller together, or takes charge of the details entirely. ”

“ His interest leads to an overestimate of the borrower's ability, and cases are not infrequent where appraisers of real estate have been hired by brokers to misrepresent the value of property, for the sake of securing improper loans. ”

“ Improvement Company. We’ve decided not to confine ourselves to our flat scheme alone. We’re going to handle big real estate schemes wherever we see anything good enough and big enough to make it worth while. ”

“ This mode of selling real estate in the United States is a very common and favorite one, and the principles governing the contract, both in law and equity, are more fully and perfectly settled than in England or any other country. ”

“ Under this system, it is customary for landlord and tenant each to receive one-half of all sales. As each owns one-half of all the live stock (teams excepted) , each shares equally in all increase. The landlord pays for the cost of permanent improvements such as new buildings, fences, repairs and drainage. The tenant, in making these improvements, in some cases, agrees to furnish two days’ labor for one day’s pay. The theory is that, while the increased value of the real estate is of advantage only to the landlord, the improved facilities are of some benefit to the tenant. ”

“ For speculation in land, whether in lots on the main street or in homestead holdings on the prairie, and the excitement of real-estate transfers, and the battle for rights in the courts, seem to be the prevailing and ruling passion of the place. Gambling in real estate is as much in the air as is the spirit of the Louisiana State Lottery in New Orleans. Every one in Oklahoma City seems to live, in part at least, by transferring real estate to some one else, and the lawyers and real-estate agents live by helping them to do it. ”

“ Such business organizations as the Homestead Realty Company have met the needs of those wishing to buy on a slender income by a system of selling on the instalment plan, which in large measure takes the place of building and loan associations. The initial payment is small, sometimes as low as $150 for a house of four rooms, the real estate company assumes the obligations for insurance, taxes, and interest on the mortgage, and the buyer pays a monthly instalment large enough to cover all this and make a small reduction on the principal. ”

“ Strengthen the securities market for the purchase of housing, including the provision of first and second mortgages, facilitate the sale of securities issued for housing operations, including common and preferential stock in property development companies, mortgage bonds and debentures, certificates of real estate shareholdings, supplemental letters, promissory notes and other documents related to rentals with an option to buy. ”

“ The scope and character of the firm's business did not extend to the buying and selling of real estate on account of the firm. It had no capital for that purpose, and no arrangements were provided by which it was to be supplied. The profits of the business were drawn and distributed as fast as earned. ”

“ Even in transactions where the Company is really nothing more than a real estate agency, it will temporarily appear as a purchaser, and will be set down as the momentary possessor in the register of landed property. ”

“ Some of the advantages which the banks would derive if they were able to lend on real estate are so evident that they require little more than mere mention. It would give them more of the most profitable kind of business, that which has its origin in the neighborhood of the bank. The immediate return is generally greater than can be secured from the employment of funds in the money centers or in the purchase of paper from note brokers. ”

“ To appreciate the importance of this fact you have but to think of the difficulties and delays that attend the transfer of other forms of property that do not enjoy Exchange facilities. Real estate, for example, is a most excellent form of investment. But suppose the owner of real estate wants to sell in a hurry, what then? There is no large organized market, there is no way by which through competitive bidding, he can place a correct estimate of the importance of current events upon the price of his land. ”

“ The agency through which the purchase is made may be either the real-estate dealer of the same national group, or, more commonly, the building and loan association. The real-estate agents to whom the foreign-speaking immigrants go are like the steamship agents, the immigrant bankers, the keepers of special shops. Those who are honest and intelligent render invaluable services ”

“ I should like to sell the plot if I could get a purchaser."
"If the Northern Pacific Railroad is ever completed, the land will be valuable," replied the other.
"True; but will it ever be completed? That date will be very remote, I fancy."
"I don't think so. I would buy the land myself if I had the money, but just at present I have none to spare. How much did you invest?"
"A thousand dollars."
"You might sell, perhaps, through a real estate agent?"
"The real estate agents here know very little of Western property. I should not know to whom to apply." ”

“ A claimholder who has filed on a quarter of land will have plenty of opportunity to relinquish his claim, for a cash consideration, so that another party may get a filing on it. This is called buying or selling a relinquishment. The amount of the consideration varies with quality of the land, and the eagerness of the buyer or seller, as the case may be.
Relinquishments [Pg 60] are the largest stock in trade of all the real estate dealers, in a new country. ”

“ And although there be no partnership in real estate, the parties being tenants in common, yet if they are common tenants of timber land, and do a lumber business, they are trading partners in the timber cut from the land. ”

“ To buy, sell or otherwise acquire, hold, own, use, manage, improve, maintain, develop, rent, mortgage, or otherwise encumber, and to transfer and to exchange real estate of every kind or any interest therein, to trade real estate of every kind and of any interest therein, and to trade in real property improved and unimproved in the state of California, and elsewhere. ”

“ Much more so is this true when the effort is to ascertain the value of real estate in the country, where sales are few, and where the elements which enter into and determine the value are so varied in character. ”

“ At all events, it is certain that landlords, as a class, are investing more and more every year in business, which looks as if they did not consider land itself sufficiently remunerative. In addition, when you have bought your estate, should you subsequently wish to realise, the difficulties and delays are very trying. You cannot go down to your broker and say, 'Sell me a thousand acres this morning.' Capital in land is locked up. ”

“ Real-estate agents shall pay ten dollars for each license. Every person whose business it is to sell, or offer for sale, real estate for others, or to rent houses, stores, or other buildings or real estate, or to collect rent for others, shall be regarded as a real-estate agent under this act. ”

“ While these institutions loan in the aggregate enormous sums on farm property, their chief field of operations is urban real estate, and particularly the industry of residence, or as we would call it in this country, apartment-house construction. ”

“ A commercial bank should never take a real estate loan, except as additional security for money advanced for some legitimate commercial purpose as distinguished from an investment. The commercial funds should be used for the production of crops, or goods of some kind, and if a real estate mortgage is taken in addition, it should be only within reasonable limits, for it is the easiest thing in the world to tie up all a bank's capital and deposits in real estate loans ”