SALE OF MORTGAGED LAND.

Taranaki Daily News, 29 January 1917, Page 2

SALE OF MORTGAGED LAND.

LAND AGENT'S COMMISSION, A decision regarding the amount of commission due. to a. la.ng agent in respect of the sale of a mortgaged property has been given by Mr. .T. W.> Poynton, S.M., at Palmerston North. The property involved in the case was su.i and the agent claimed commission on me "mount. The defendant, however, contended that commission was payable only on the amount received over and above the mortgage, wliicli amounted to £2£4o, and had paid commission on the net proceeds of the sale. In the course of his judgment the Magistrate said there, is no direct authority on the point. If an agent, not knowing, through the concealment or neglect of the owner to disclose it, that there was a mortgage on a property, he might be entitled to commission oil the whole value. He would naturally exert himself more to effect the sale of a large property than e, small one, or a small interest in one, but where tho total interest <?f the owner was Aown as in this case ,and nothing was said as to the basis of payment of commission, payment should be on the value of the owner's interest only. Where a property was mortgaged to its full value or nearly so a special arrangement. would- be sure to be made on its sale, as to the commission payable. Judgment woukl-be for defendant. As the case was of importance to owners of property and land agents, and an authoritative decision was wanting, tlie security of an appeal would be fixed at £6 fis.'