Buyers Duty Real Estate by W. L. Brent President Los Angeles Real Estate Board

8/14/2019 Buyers Duty Real Estate by W. L. Brent President Los Angeles Real Estate Board

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200 Tke Red,ItU,BIue ook of C1Ji.tor"nia

W. L. BnENrl/06 Anqelas Realty Bodr.l


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Tke Raa,buBh& Book of Cahlernit 201

The Buyer'sDutyB, W. L. BRENT

Sel,ect esponsibleAgent Bwer Should,Proj)id,eObnFinatucing-SinceritA T oxoaril,Ag ent-Dis,t eg&ril O! er Sanguine Statemenb-Fuir, Thoughtfttl Deal,itzg.HE questionof a "Buyer's Duty" appearso be an unusualviewlrot new, but unusual. Unusual only because ustomhas trained us to think of the duties of the one sellins or thoseof his_ gAnt.- But there s a duiy which ihe buyer oves n-oc nly tohimself but likewise to those with whom he deals. The lavr of ieal

I t is his dury in thepurchase f proper , and hat, of course.swhat oncems s.1o nvesligatpheproperly.he localityofhis pro_opedy purchase,ls prospectsor development,is valuesiliscosl,s ncl elums l rom rentals,andpossiblencrease f value,

$(atc agenc) laceshebroker n sucha posi l ionharhe mavbeDefitfuom his sewice only under an espec'allyprscribedqu;lity ofagency,which meansthat lo be ablp io claim compensationoi hisoervices he must have written authority. This has to do with thebuyeronly in that it places he agent n a positionwherein he is re-quired o conserve is time, inteliigenceand exDerience.The dutiesot the buyer, rherefore.musube rpgarded n the light of his relation-ship o these actors. This, of course, ntimaies 6at he owesa dutvto he agenl. nd he does. ut lhe duryhe owes o himsell s the pri-mary consrderatron ere_

..CA!'EATXMPTOB"_. . T]le wdttelt law comp]sa buyer to investigate before purchasing.This s -expresspdn the phrase Ccvea! Emptor," in which the laivsa$--"Let rhe buyer beware." The buyer at all times shoulal nowwhathe is dojng.and f he is a(t ing intell jgenjty p wil t know_andthe aw requires hat he shall know... It 1s_ f5 duty- aside from this legal obligation to investigatethoroughlyhat which he is buying, as to its desirability, qualityind. It is his duty l,osurround imsplf$ith suchprotectjon s wil lbest nsure o him whal he desires. He owpq t i,o imself to makea&asonableeffort to avoid bing defrauded.Ii is his dlrty to-see har t-heagpnt with whomhe ctealss suchapemon s.maybe relted upon.not aloneas to honesby,ut knowledgeandpractrceas wetl.

INI'ESTICATE PROPBIY


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202 The Realt! Bl,ueBook of Cal,ifomiaand if he finally buys t, to see hat he scura alneupon such ermsand conditions t}Iat he is able to financehimself.It is his duty to see hat all which has beenagreedupon s prop-erly placed n a written contractand that everyconditionof the pur-chase s therein set forth. Where a sritten instrument, termed a con-tract of purchase, s used, h law requir.eshat it be acceptedasembodyingevery'thirg agreed uDon and which wipes out all verbaldiscussion. TAKE NOTHING FOBGEANTED

Therefore, t is his duty to himselJ o see hat he takesnothing forgr-anted Dd hat any promisesmadeby agent or ovner are includedtherein. For instance, a promise to improve a street, run watermains,or pay certain axes s not an enforcibleobligationunless hesethings to be doneare in the conhact, because ll verbal agreementsare pla.aledby ihe writ len instrumenl.SELECT A RESPONSIBLEACENT

I repeat hat the buyer has a duty in the selection f his agert,He must be careful n ihat. He shouldselecthis aEent rom that classof real pstatemen who are banded ogethpr n th; eflod to raise theethics of the ral estatebusinessand who are known as "Realtorc."A Realtor s an active memberof a local real estateboard.which is amenber of the National association. Almost every communiiy nowhas a Realty Board, and these Realty Boards are formed for the pur-poseof grouping reputablemen and establishingprcper methods ordoing business nd at fair rates. There s no excuse ow for a citizenof a community or a stranger therein to raise anv such defenseas"he did not know with whom he was dealing." A request o theRealty Boardwill at oncegivehim a list of reliable dealers, nd if heshoulal uffr at suchhandshe then has hat Board o go o for redress.It is, therefore, the buyer's duty to seeksuch agencies. Many realestatemen are using his designationwithout the ght to do so. It isa buyer's duty to be on guard againstsuch deception.

SINCE&IAYTOW.ARD CENTHaving selected his realtor agent, he should give all infomation

possible conceming his requirements, class of propedy desired, thelocality, his cash limjtations, and the amount of mortgage, if any, heis willing to carry. He should rely upon his agent and not attempt tobuy directly fi'om the owner any property submitted by the agent,neitber should he use several agents in the efiort to secure th sameproDerty-if he does, h pays dearly in the end, because he ownerbelieving that many are after his property accordingly raises his pricsand stitrens his telfns becauseof the apparent demand.BUYEB SIIOULDPBO\TDNOWN T'INANCINC. It is his duty in the case where an agent submits property {rhichhas aheady been ofiercd to him to so advise that agent tt once, andnot place fmself under suspicion of insincerity by such neglect.It is his duty to finance himself. He Ehould not expect an agentto do so unless it is previously under-stoodhat such mav be neded.and thFn shouldarrcnge fo} i l and be wi l l ing io pay whaalhe servi.es


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lThe Reditu Blue Book of CalifortLid 203

are worth, Sometimes buyer will try to usean agenl'scommission.Wlat I nan is this: R.ecen a deal was made whereinthe buyerestimatedhat he would be short 92,500.00,he amouDtof the agentscommission,and insisted that the agent should take his note for thirtyor sixty days or this amount,which he refused o do, of course,andthebuyer met his requiredpal.rnelt,but thereinmanifestedhis insin-cerity,and disposition o use he agent. This he ought not do.Accommodation financing by an agent often leads to strained re-lations. For example:A buyer had given a check on his bank for$1,200.00,he pa],rneDt n which was refused or Dot sufficient unds.Thebuyer hen came o the agentand asked o be financedor 9450.00to makup the deficiency.The agentdid so,but insistedupon e per-sonal ecurity,which was giveD,and the deal was completed, nd thebuyer, notwithstanding the accommodation, ecamevery much iD-censed ecause f the agent's nsistence ponhaving a secured laim,even houghhis own bank had refusedhim credit, and has sincesaidthat he woulddo no further businesswith that Darticularoffice.Now.if thebuyer adbeen repa|'edndsl.aighr orwefd, his disrupron roa wholesomeelationshipwould not haveoccurred.The buyershould e\er go beyordhis f inancial ppth,especiallyif hehasa family elyingupo; him or. f hc hn!a busi lress.f hedoe.ssohe is bound, -hendepression ccur.s,o cause ullering not only tohimselfbut to his family, and n1av uin his business.

DISR,ECANDWR-SANCUINETATDMENTSTt is his duty lo disregardaD agpnls velbal guat.anlee f prof irs,i f an agentshouldLpso unbp.oming n h s .onduri, as many havebccnguil tyof doing. o makesaiesb) su.h r?prpsentat ions.A buyer musrmt hold an agent lesponsible for that credulity or vivid imaginationvhich impels him to act without pr.oDer care-such a buyei shouldhavea friend to guide him.It is his duty to act of his own free will and not be influenced bvhisemotions. nd 10 avoid rhp pffons of any agpnl who usps lhe'shong-arm" method of salesmanshiD-in fact, in both such casesheoves t to himself to immediately ceasenegotiations. Emotionalism&td tle excitation of desire to gain has ied myrrads of buyers into

thoughtlessand i pulsive purchases, wherein they have become in-volved y conl act obligal ing hAm ro pay ior sompl ing wh ch is dis-covereo o De undeslrable.BUYERSHOULD ANEFULLYOLLOW RANSACTION

. . I -repeatagain : It is the buyel's duty at ali times to kno.\,r, hatne s ootns.

silentlykilled the extnsionclauseof the Dotewhich th buver


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204 TheReal,taBLueBook ol Calitoniirtfsiled to notice. The deal was closedaDdhe later learneal hat he hadgiven a note of earlier malurity than had beenprovided or. He feltiniured and blarncd verybodybut himself. the.tact is, he bad failedin his duty oI self-protection-he was careless-he had not read hisescrow nor even his note.The buyer should always have a contract drawn for a purchasebefore he makes his deposit or goes nto escrow. That avoids mis-understanding and also placeshim in a position to compel delivery ofthe propedy. The escrow should conform to the contract.It is the buyer's duty to see hat the Cediicat of Title is to befurnished by a reputable Title Company,and is to be a MerchantableCedificate of TitlFa title which lvill be accepted n the usual cou6eof business-by banks particularly.It is the buyer's aluty also if the proper-ty is improved and occu-pied to go upon the ground and learn at first-hand the fights of thelarties in possession.The law requires his. If he fails to do so andtherc exists contracts or leases vith tenants which do not show ofrecord, he then is bound by those contractsor leasesbecause f hiscarelessness.He should never ask an agent to split his commission-that wouldbe analogousto askrng your stenographer, for instance, to divide hersalary, or your employeeBo givq up part of their earnings, The com-mission is a measure of the value of his serviceq and when the deelis closedhe is entitled to his pay for same.

CONFIDENCESIIOULD NOT BE BLINDThe buyer should not entrployan agent in whom he cannot confide,but he must not place such confidence n any agent as to blindly signeverlthing that is placedbefore him. A teputable agent or owrer willinsist upon the buyer reading t}Ie instrument. Many buyers fail inthese precautions s,nd when they have thus signeal away some oltheir rights they have no cause o blame any but themselves, and yetthey invariably do so,He should understand that the agent is the seller's agent-not his.The seller is the one who pays the agents commfusion-not the buyer.He should not, therefore, expect the broker to violate the confidenceof the seller, nor protect him against his employerwhom the law com-pels the agent to protect.A rcpentant buyer shouldnot attempt to evadecontract by takirgrefuge in his immunity to a judgment satisfaction.He should not take up the agent s time for educational pur?osesonly. Many buyers do this \Mhontend to buy, but who have no ideaof buying from the agent, f any, whoseservices hey are employingand whose time thy are taking and from whom they are obtaininginformation of valuesand listings.

BUYER MUSA EXERCISE OWN PRUDNNCEHe should not conspire with either owner or other agent tordeprivean agmt of his conrmission.That is oflen doneafter an agenthasperlormeda real seNiceand given heely ol his time and knowl-edge, If after having made the purchasehe then is or becomesdis-satisffedwith it, it is his duty to pla.ethe blamewhere t belongs, nd


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The Re(dtu Bl,ueBook of CaUlomitt 205if he finds hat he has actedhastily or without judgment,he shouldnotblame the agent. So many are not prudent, do not look before theyleap, are thoughtless, do not take the affairs of the world seriouslyenough,do not take their own senously enough,do not realize thepotencyof contract, of signature, the value of nmney, the imDortanceof signing notesagreeing o pay money. In a few words: They failby ignorance, ndifference, rd not infuequently, y egotism,n theirduty. Injury often occurs n this way.However reliablean agent,merchant,banker,or raltor may be,it is yet always incumbent upon one to look well into the characterand value of the a*icle ofered for sale,and which he might proposeto purchase,not in such an instance to defeat fraud as to know whaton s doingandto makehis moneybuy the greatestvalue.When our fathels of jurisprudence ncor?orataln their basiclaws the "Caveat Emptor" law, they did so not alone o \qar"lr he buyerbut also to protect the seller against the buyer who is negligent orcrafty, for they realized that human nature will place in its naturialorderof distribution as many unscrupulous eopleamong he buyeEas are placedupon he side of the sellels. There are laws which pro-hibit th seller from misreprsenting, and, therefore, there must belaws which will prohibit the buyer from claiming fraud without justcause.And there shouldbe laws to prohibit the buyer from commit-tins frauds- FA]R, THOUCHT!'UL DEALINCLet a buyer be alwayshonest, houghtful and cilcumspect n thehandlingof his moneywhen purchasing eal estate,and he will thenhave r1ocause or regrt. Purchases made with such care are amongthat large percentageof wise and profitable investments. The buyershould e able to rely upon his agent to see hat he secureswhat hebought and obtains it in confomity with such procedure that willguapnteegood jtle. No repuiableagent will fail to properly secureit to him by good title.The writer has had considerable expedence n arbitrating differ-ences etween rokers,and between ge[ts andprincipals,and idshesto tak this occasion o state that it is seldom. ndeed. that a reDutablebrcker s grieviouslywrong and ne\er doeshe relus" to make epara-tion whn advised by his Board to do so. I have been highly gratifiedto amthat it is a very smallpercentage f the large volumeof busi-nessdone n which any differencesexist, and that, genel.ally, s due tomisunderstanding. wish to compliment he realtorsfor tleir veryhighplaneof action,and hope hat by thg continuationof this effort,wemay attain to that pinnacleof excellencen our conduct Mhercomplete ullification of "Caveat Emptor" will exist, and the insigniaof the realtor emblazoned por one's door will shine as the star ofdestiny, nd be evel welcome o the jnvestingpubljc and a guaranteeof tluth and justice in all dealing.


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Buyers Duty Real Estate by W. L. Brent President Los Angeles Real Estate Board