200 Tke Red,ItU,BIueBook of C1Ji.

tor"nia

W. L. BnENr
l/06 Anqelas Realty Bodr.l
 -T

Tke Raa,buBh& Book of Cahlernit 201

The Buyer'sDuty
B, W. L. BRENT

Sel,ectEesponsibleAgent Bwer Should,Proj)id,eObn

Finatucing-SinceritA T oxoaril,Ag ent-Dis,t eg&ril O! er-Sang-
uine Statemenb-Fuir, Thoughtf ttl Deal,itzg.

HE questionof a "Buyer's Duty" appearsto be an unusualview

- lrot new, but unusual. Unusual only becausecustom has
trained us to think of the duties of the one sellins or those
of his_agAnt. - But there is a duiy which ihe buyer oves n-oconly to
himself but likewise to those with whom he deals. The lavr of ieal
$(atc agenc)placesrhebrokerin sucha posilionthar he mav beDefit
fuom his sewice only under an espec'ally pr€scribed qu;lity of
agency,which means that lo be ablp io claim compensationfoi his
oerviceshe must have written authority. This has to do with the
buyeronly in that it placesthe agent in a position wherein he is re-
quiredfo conservehis time, inteliigenceand exDerience.The duties
ot the buyer, rherefore.musube rpgardedin the light of his relation-
ship to these factors. This, of course,intimaies l6at he owes a dutv
to the agenl.and he does.but lhe dury he owesto himsellis the pri-
mary consrderatronhere_
..CA!'EAT
XMPTOB"
_. . T]le wdttelt law comp€]sa buyer to investigate before purchasing.
This is -expresspd in the phrase Ccvea! Emptor," in which the laiv
sa$--"Let rhe buyer beware." The buyer at all times shoulalknow
whathe is dojng.and if he is a(ting intelljgenjtyhp wilt know_ and
the law requiresthat he shall know.
.. It 1s_hf5 duty- aside from this legal obligation to investigate
thoroughlythat which he is buying, as to its desirability, qualityind

. It is his duty l,o surroundhimsplf$ith suchprotectjonas will

bestinsure to him whal he desires. He owpqit i,o [imself to make a
&asonableeffort to avoid b€ing defrauded.
Ii is his dlrty to-seethar t-heagpnt with whom he ctealsis such a
pemonas.maybe relted upon.not aloneas to honesby,but knowledge
andpractrceas wetl.
INI'ESTICATE PROPBIY
It is his dury in the purchaseof propery, and that, of course.is
whatconcemsus.1o invesligatprhe properly.the localityofhis pro_
opedy purchase,ils prospectsfor development, iis valuesilis
cosl,sancllelums l rom rentals,and possibleincreaseof value,
202 The Realt! Bl,ueBook of Cal,ifomia

and if he finally buys it, to seethat he s€cur€asalneupon suchterms

and conditions t}Iat he is able to finance himself.
It is his duty to seethat all which has beenagreedupon is prop-
erly placedin a written contract and that every conditionof the pur-
chaseis therein set forth. Where a sritten instrument, termed a con-
tract of purchase,is used, th€ law requir.esthat it be acceptedas
embodyingevery'thirg agreed uDon and which wipes out all verbal
discussion.
TAKE NOTHING FOBGEANTED
Therefore,it is his duty to himselJto seethat he takesnothing for
gr-antedaDd that any promisesmadeby agent or ovner are included
therein. For instance, a promise to improve a street, run water
mains,or pay certaintaxesis not an enforcibleobligationunlessthese
things to be doneare in the conhact, becauseall verbal agreements
are pla.aledby ihe writlen instrumenl.
SELECT A RESPONSIBLE ACENT
I repeat that the buyer has a duty in the selectionof his agert,
He must be careful in ihat. He shouldselecthis aEentfrom that class
of real pstatemen who are bandedtogethpr in th; eflod to raise the
ethics of the r€al estatebusinessand who are known as "Realtorc."
A Realtor is an active memberof a local real estateboard.which is a
menber of the National association. Almost every communiiy now
has a Realty Board, and these Realty Boards are formed for the pur-
poseof grouping reputablemen and establishingprcper methodsfor
doing businessand at fair rates. There is no excusenow for a citizen
of a community or a stranger therein to raise anv such defenseas
"he did not know with whom he was dealing." A request to the
Realty Board will at oncegive him a list of reliable dealers,and if he
shoulalsuff€r at suchhandshe then has that Board to go to for redress.
It is, therefore, the buyer's duty to seeksuch agencies. Many real
estatemen are using this designationwithout the ght to do so. It is
a buyer's duty to be on guard againstsuch deception.
SINCE&IAYTOW.ARD ACENT
Having selected his realtor agent, he should give all infomation
possible conceming his requirements, class of propedy desired, the
locality, his cash limjtations, and the amount of mortgage, if any, he
is willing to carry. He should rely upon his agent and not attempt to
buy directly fi'om the owner any property submitted by the agent,
neitber should he use several agents in the efiort to secure th€ same
proDerty-if he does, h€ pays dearly in the end, because the owner
believing that many are after his property accordingly raises his prics
and stitrens his telfns becauseof the apparent demand.
BUYEB SIIOULD PBO\TDNOWN T'INANCINC
. It is his duty in the case where an agent submits property {rhich
has aheady been ofiercd to him to so advise that agent tt once, and
not place lfmself under suspicion of insincerity by such neglect.
It is his duty to finance himself. He Ehould not expect an agent
to do so unless it is previously under-stoodthat such mav be n€eded.
and thFn shouldarrcnge fo} il and be willing io pay whaalhe servi.es
 l
The Reditu Blue Book of CalifortLid 203

are worth, Sometimesa buyer will try to usean agenl'scommission.

Wlat I n€an is this: R.eceny a deal was made wherein the buyer
estimatedthat he would be short 92,500.00,the amouDtof the agents
commission,and insisted that the agent should take his note for thirty
or sixty daysfor this amount,which he refusedto do, of course,and
the buyer met his required pal.rnelt, but therein manifestedhis insin-
cerity, and dispositionto use the 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, the pa],rneDton which was refusedfor Dot sufficientfunds.
Thebuyer then cameto the agentand askedto be financedfor 9450.00
to mak€ up the deficiency. The agent did so, but insistedupon e per-
sonalsecurity,which was giveD,and the deal was completed,and the
buyer, notwithstanding the accommodation,becamevery much iD-
censedbecauseof the agent'sinsistenceupon having a securedclaim,
eventhough his own bank had refusedhim credit, and has sincesaid
that he would do no further businesswith that Darticular office.Now.
if thebuyerhad beenprepa|'ed andsl.aighriorwefd,this disruprion ro
a wholesome relationshipwould not have occurred.
The buyershouldne\er go beyordhis financialdppth,especially
if hehasa family relyingupo; him or.if hc hn! a busilress.If hedoe.s
sohe is bound,*-hen depressionoccur.s,to causesullering not only to
himselfbut to his family, and n1avruin his business.
DISR,ECAND OWR-SANCUINE STATDMENTS
Tt is his duty lo disregard aD agpnl s velbal guat.anleeof profirs,
if an agentshould Lp so unbp.omingin h is .onduri, as many have bccn
guiltyof doing. to make saiesb) su.h r?prpsentations.A buyer musr
mt hold an agent lesponsible for that credulity or vivid imagination
vhich impels him to act without pr.oDer care-such a buyei should
havea friend to guide him.
It is his duty to act of his own free will and not be influenced bv
his emotions.and 10 avoid rhp pffons of any agpnl who usps lhe
'shong-arm" method
of salesmanshiD-in fact, in both such caseshe
oves it 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-
volvedby conlract obligaling ihAm r o pay ior somplhing wh ich is dis-
covereoto De undeslrable.
BUYERSHOULDCANEFULLY FOLLOWARANSACTION
I
. . -repeat again : It is the buyel's duty at ali times to kno.\,r,what
ne ls ootns.

silently killed the ext€nsionclauseof the Dotewhich th€ buver

204 The Real,taBLueBook ol Calitoniirt

fsiled to notice. The deal was closedaDd he later learnealthat he had

given a note of earlier malurity than had beenprovided for. He felt
iniured and blarncdcverybodybut himself. the.tact is, he bad failed
in his duty oI self-protection-he was careless-he had not read his
escrow nor even his note.
The buyer should always have a contract drawn for a purchase
before he makes his deposit or goes into escrow. That avoids mis-
understanding and also places him in a position to compel delivery of
the propedy. The escrow should conform to the contract.
It is the buyer's duty to see that the Cediicat€ of Title is to be
furnished by a reputable Title Company, and is to be a Merchantable
Cedificate of TitlFa title which lvill be acceptedin the usual cou6e
of 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 the
larties in possession.The law requiresthis. If he fails to do so and
therc exists contracts or leases vith tenants which do not show of
record, he then is bound by those contracts or leasesbecauseof his
carelessness.
He should never ask an agent to split his commission-that would
be analogous to askrng your stenographer, for instance, to divide her
salary, or your employeeBto givq up part of their earnings, The com-
mission is a measure of the value of his serviceq and when the deel
is closedhe is entitled to his pay for same.
CONFIDENCE SIIOULD NOT BE BLIND
The buyer should not entrployan agent in whom he cannot confide,
but he must not place such confidencein any agent as to blindly sign
everlthing that is placed before him. A teputable agent or owrer will
insist upon the buyer reading t}Ie instrument. Many buyers fail in
these precautions s,nd when they have thus signeal away some ol
their rights they have no cause to blame any but themselves, and yet
they invariably do so,
He should understand that the agent is the seller's agent-not his.
The seller is the one who pays the agent s commfusion-not the buyer.
He should not, therefore, expect the broker to violate the confidence
of the seller, nor protect him against his employer whom the law com-
pels the agent to protect.
A rcpentant buyer should not attempt to evadecontract by takirg
refuge in his immunity to a judgment satisfaction.
He should not take up the agent s time for educational pur?oses
only. Many buyers do this \Mhointend to buy, but who have no idea
of buying from the agent,if any, whoseservicesthey are employing
and whose time th€y are taking and from whom they are obtaining
information of values and listings.
BUYER MUSA EXERCISE OWN PRUDNNCE
He should not conspire with either owner or other agent to
rdeprivean agmt of his conrmission.That is oflen doneafter an agent
has perlormed a real seNice and given heely ol his time and knowl-
edge, If after having made the purchase he then is or becomesdis-
satisffedwith it, it is his duty to pla.e the blamewhereit belongs,snd
 The Re(dtu Bl,ueBook of CaUlomitt 205

if he findsthat he has actedhastily or without judgment,he shouldnot

blame the agent. So many are not prudent, do not look before they
leap, are thoughtless, do not take the affairs of the world seriously
enough,do not take their own senously enough,do not realize the
potency of contract, of signature, the value of nmney, the imDortance
of signing notesagreeingto pay money. In a few words: They fail
by ignorance,indifference,ard not infuequently,by egotism,in their
duty. Injury often occursin this way.
However reliablean agent,merchant,banker,or r€altor may be,
it is yet always incumbent upon one to look well into the character
and value of the a*icle ofered for sale,and which he might propose
to purchase, not in such an instance to defeat fraud as to know what
on€is doing and to makehis moneybuy the greatestvalue.
When our fathels of jurisprudence incor?orat€alin their basic
laws the "Caveat Emptor" law, they did so not alone to \qar"lrthe buyer
but also to protect the seller against the buyer who is negligent or
crafty, for they realized that human nature will place in its naturial
orderof distribution as many unscrupulouspeopleamong the buyeE
as are placedupon the side of the sellels. There are laws which pro-
hibit th€ seller from misrepr€senting, and, therefore, there must be
laws which will prohibit the buyer from claiming fraud without just
cause. And there shouldbe laws to prohibit the buyer from commit-
tins frauds-
FA]R, THOUCHT!'UL DEALINC
Let a buyer be always honest,thoughtful and cilcumspectin the
handlingof his moneywhen purchasingreal estate,and he will then
haver1ocausefor regr€t. Purchases made with such care are among
that large percentage of wise and profitable investments. The buyer
shouldbe able to rely upon his agent to seethat he secureswhat he
bought and obtains it in confomity with such procedure that will
guapnteegoodtjtle. No repuiable agent will fail to properly secure
it to him by good title.
The writer has had considerable expedence in arbitrating differ-
ences betweenbrokers,and betweenage[ts and principals,and iidshes
to tak€ this occasionto state that it is seldom.indeed. that a reDutable
brckeris grieviouslywrong and ne\er doeshe relus" to make iepara-
tion wh€n advised by his Board to do so. I have been highly gratified
to l€am that it is a very small percentageof the large volumeof busi-
nessdonein which any differences exist, and that, genel.ally, is due to
misunderstanding.I wish to complimentthe realtors for tleir very
high planeof action,and hopethat by thg continuationof this effort,
we may attain to that pinnacleof excellencein our conduct\Mher€a
completenullification of "Caveat Emptor" will exist, and the insignia
of the realtor emblazonedupor one's door will shine as the star of
destiny,and be evel welcometo the jnvesting publjc and a guarantee
of tluth and justice in all dealing.