OF INTEREST TO LAND DEALERS.

Manawatu Herald, Volume XXXIX, Issue 1666, 25 January 1917, Page 2

OF INTEREST TO LAND DEALERS.

A CASE of considerable interest to land dealers was dealt with by Mr Poynton, S.M., at Palmerston N. this week. The suit was one brought by Knyvett and Pratt, of Eeilding, against Robert L. Suisted, a farmer at Hiwinui. The plaintiffs set out in their stateement that they were authorised to sell defendant’s property, defendant agreeing to pay £2 10s per cent, on the price’realised. Plaintiffs claimed £l2l 17s as commission on the sale. Defendant paid £OS (is (id, and plaintiff's claimed the balance, £SO 10s Od. The defence was that commission was payable only on the amount received over and above the mortgage, and not on the gross amount of the sale. The Magistrate, in giving judgment, said: “The total value of the property here sold was £4,874, and commission at 21 per cent, is claimed on that. Deducting the mortgages the value would be £2,034. On this commission has already been paid. Each case would have to be considered according to its circumstances. If an agent, not knowing through the concealment or neglect of the owner to disclose it

that there was a mortgage on a property, brought about a sale of it, he might be entitled to commission on the whole value. He would naturally exert himself more to effect the sale of a large property than a small one, or a small interest in one, but where the total interest of the owner to the nearest £1 is shown as in this ease, and nothing is said as to the basis of payment of commission, it appears to me that payment should be on the value of the owner’s interest only. Where a property is mortgaged to its full value or nearly so a special aiTangement would be sure to be made on its sale as to the commission payable. Judgment would be for defendant. As the case is of importance to owners of property and land agents, and an authoritative decision is wanting, the security for an appeal will be made low. It is fixed at £0 Os,”