A Point of Law.

Thames Star, Volume XI, Issue 3676, 6 October 1880, Page 3

A Point of Law.

A case of considerable interest to all branches of the community, but to intending investors in landed property particularly, came before the local, District Judge in Wellington recently. About two years ago, when tiie mania for land speculation was ot its highest the plaintiff in the case, a Mr Gary, purchased a piece of laud at an auction sale on what is called terms. The terms

as stated at the time were that'one lialf o/ the purchase > money should be deposited forthwith in cash, the balance to lie over, for 6ix months. Prior (o the commencement of the sale, the conditions were read by the auctioneer, a material point in wHich was that the vendor engaged to give a full and proper title to the purchaser within fourteen days after the payment of the'second instalment of the purchase money. The vendor, it subsequently transpired, was'a Mr Arden, but as the name was not mentioned in the conditions, the Court considered that for the purposes of the present case it was to be assumed that at the time of the sale the defendant, that is, the auctioneer, was the vendor. The amount of the purchase money was paid in full and handed over by Mr Sidey, the auctioneer, to the owner of the land,but for some* reason or other the title was never completed, the owner,

apparently, not having the means of giving *'it. After repeated applications to' the auctioneer for a refund of the purchase money, the' purchaser at last took legal proceedings against the auctioneer. The judge, who had reserved his decision for some days, held that the law was clear that an auctioneer occupied the position of stakeholder; that in the case of a sale like the one in question he was bound to band over the amount of the purchase money to the owner on the completion of the contract, an<? was responsible for the money to the purchaser if the owner of the property failed or" refused to give the purchaser a title., TBeauctioneer had no right to hand over a single shilling to the vendor until the n purchaser obtained bis title;: if he did So it was .at his own peril* - This .decision seems certainly in accordance with com* mon sense, and, as no appeal was lodged against the judgment, we presume the defendant's legal advisers: admitted its legality. One result of this decision will be that auctioneers

< w,ho may have properties placed in their hands for sale will be careful to !■: retain: any depositsthat may,be made by purchasers until they see the title completed, as in case of a hitch occuring afterwards'they might find themselves called on to refund the money. In matters of this kind too much care cannot ' be exercised by t auctioneers that they do notf undertake/ sales" of properties for pefsofag tl|at hiye^no legalright to dispose of them.:" It is only reasonable that if a would-be -investor pays ,his money into the hands of a.respecjtable auctioneer he should "have some guarantee that he is not going to be swindled.—B. P. Times.