Pa. 108: "If an agent undertakes to do a specific thing for a stipulated reward, he is bound to exercise due diligence to accomplish what he has agreed to do, and to observe good faith toward his principal in every step, either of success or failure towards accomplishing the end. The law implies a promise from brokers, bankers, agents and attorneys that they will severally in their respective callings exercise competent skill and proper care in the service they undertake to perform, in which, if they fail, an action lies to recover damages for breach of their implied promise." By law, whenever a person presumes to act for another without authority, or if he exceeds his authority, he is personally liable to a person with whom he deals for his principal. So, where an agent bid at a sheriff's sale a sum higher than he was authorized to bid he became personally liable and not the principal (Hampton v. Specknagle, 9 S. & R. 212; Simpson v. Kerkeslager, 41 Superior Ct. 347; Wolf v. Wilson, 28 Superior Ct. 511). Should the principle, however, ratify the excess of authority the principal becomes liable, and the personal liability of the agent disappears (Hopkins v. Everely, 150 Pa. 117). Mr. Fallon, in his excellent book on conveyancing, quotes the three cases under which an agent may be held personally liable as follows: "1. Where the agent makes a false representation of his authority with intent to deceive. 2. Where, with knowledge of his want of authority, but without intending fraud, assumes to act as though he were fully authorized. 3. Where he undertakes to act bona fide, believing he has the authority but in fact has none, as in case of an agent acting under a forged power of attorney." In conclusion, it may be said, highest fidelity to client, fair dealing with others has a reward which should make such conduct attractive aside from the penalties that are visited upon those guilty of breach of faith. As before stated, in recent years a remarkable change has come over the business of conveyancing, especially in the larger cities, due mainly to the modern tendency of specialization in all business. In the real estate business it has resulted in the formation of companies making a specialty of searching and insuring titles, called title insurance companies.* In Philadelphia, fifty years ago a conveyancer, besides drawing the necessary papers, always made the title searches, the correctness of which he certified to by signing the brief of title. There was, however, no guarantee other than the personal integrity and reputation of the man (Watson v. Muirhead, 57 Pa. 161). But in those days this was no small thing. The conveyancers were a splendid set of men, proud of their calling and jealous of their unblemished reputations. They were well grounded in the law and their opinions on real estate law were often sought after as eagerly as a lawyer's. Indeed, the examinations necessary to gain admission to their conveyancers' associations were considered in those days to be more difficult than the lawyer's examination for admission to the bar. Forty years ago saw the incorporation of the first title insurance company† in Pennsylvania, in fact in the world. This company was organized by several members of the Con *See an interesting address of Emil Rosenberger, president of the Real Estate Title Insurance and Trust Co., made to Real Estate Brokers' Association of Philadelphia, March 2, 1911, published by Real Estate Title and Trust Co. †The Real Estate Title, Trust and Insurance Co., Philadelphia, Pa. veyancers' Association who saw the value of co-operation as well as specialization in the field of title searching. They foresaw that the time was coming when people would not be satisfied with the guarantee consisting solely of an individual's integrity, however spotless, but would demand some financial assurance. Accordingly, the new company issued a policy of title insurance backed by its capital, guaranteeing its searches. So successful was this first company that others rapidly followed until nowadays most all the searching in Philadelphia is done by these companies. The old time conveyancers have practically disappeared. Few modern conveyancers bother with searching title, and the profession of conveyancing as once understood no longer exists. The old time conveyancers have been replaced by the modern real estate brokers, whose special business it is to buy and sell real estate for others. He still draws agreements and prepares the instruments of conveyancing, but leaves the field of title searching to the title insurance companies, who do it more expeditiously and perhaps better than he could. The modern real estate broker is not so well grounded in the law as the old time conveyancer, nor does he need to be for questions of defect in title are no longer for him to decide, but are determined by the experts employed by the title companies. All in all, however, the real estate business has lost nothing by its abandonment of title searching. Rather have brokers been enabled to turn their energies in other directions of their vast field. However this may be, the title companies are here to stay, and it becomes necessary therefore in a modern book to dwell briefly upon the methods by which the title companies carry on business, and the way settlements are conducted. 201. Application for Title Insurance. The application for title insurance is usually made by the agent of the vendee, for the vendee by custom in this State bears the costs of its examination fees. The application blanks are obtainable at any of the title companies and are similar to the one set out on page 249. The application is usually filled up by the company's clerk, and signed by the applicant or his agent, to whom he issues a card receipt containing the number of the application and the rate to be charged therefor. The cost varies with the amount of insurance desired. The minimum rate for a for an Insurance in its usual form, in the sum of $...... in_title affecting the premises hereinafter described. against liens or defects It is agreed that the following statements are correct and true to the best of the applicant's knowledge and belief: Interest to be insured. Name of Insured. Address of Insured. Description of the lot and Buildings. Ward. House No. Title vested or to be vested in Insured by? Address of grantor or mortgagor. Who holds possession, and under whom? Ground-rents and incumbrances, decedent's debts, mechanics' and municipal claims known or alleged to exist-stating which are to remain and which not. Unrecorded deeds, agreements, adverse claims, and interest or secret trust known or rumored to exist. Is any part of the premises, privy, yard, &c., used by any neighbor- If so, Mortgagee. H. B. BUILDING AND LOAN ASSOCIATION (Owner's Certificate to Owen Johnson.) The Company will not Guarantee Accuracy of Description unless furnished with an Official Survey. North side of X Street Ninety feet West of Y Street; sixteen feet on X Street by Seventy-seven feet parallel to Y Street to a three feet alley. 50th. 314 "X" Street. Mortgage. 314 "X" Street. Owner. Mortgage of $2,000.00 to George H. Mann dated March 28, 1908 to remain. No. If the applicant, before the issuing of the policy, should have any further information or intimation as to defects, objections, liens, or incumbrances affecting the premises, the same will at once be fully made known to the Company. The Company is not responsible for unpaid gas or electric light bills. Where the owner's title is insured, and delay or expense in obtaining actual possession of the premises is to be wholly borne by the Insured, and not by the Com pany. It is further agreed and understood, that the entire charge for the services of the Company, including the Policy fee, shall be due and payable immediately upon the presentation and delivery of the Settlement Certificate. Applicant, Frederick Black, Solicitor H. B. B. & L. Association. property that has never been insured is $26.00, which includes the examination fee of $21 and minimum premium of $5 for a $2,000 policy of title insurance. The premium for additional insurance is 25 cents per hundred for each additional hundred dollars. Once a property has been insured the company will offer a reduced rate if asked to insure it again, depending on the length of time since the last insurance, which varies from $13.50 up to $21.00. The title companies will also make guaranteed, general and partial searches, and the charges therefor vary according to the period covered and kind of search made. Rates will be quoted by any of the title companies on application. Of course, such a search is not guaranteed by a title policy. 202. Settlement Certificate. Upon receipt of the application the company makes the searches and prepares its brief of title and notes upon a paper, all of the encumbrances, liens and objections to the title. This paper is known as the settlement certificate and is sent to the applicant for the title insurance. The form of a settlement certificate is as follows: No. 33967. Settlement Certificate. THE TITLE AND TRUST COMPANY. PHILADELPHIA, August 20, 1912. Mortgage, $1,200, secured on premises north side of X Street, 90 feet west of Y Street, 16 feet on X Street x 77 feet parallel to Y Street to three feet alley about to be made by Owen Johnson to H. B. B. & L. Ass'n, No. 314 X Street. O. C. to Owen Johnson. The premises are subject to the following encumbrances and claims, which will be excepted in the policy unless removed: Ground rents. Registered taxes. None. $2,000 ex. 3 yrs. 5 4-10% Owen Johnson to George H. Mann, dated March 28, 1908. Rec. March 30, 1908, W. S. V. 1332, P. 197. None. (Continued on next page.) |