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Real Estate Business 
 Self=Taught 
 
 A Handbook containing Lessons to be used in 
 connection with the book entitled "How to 
 Buy and Sell, Real Estate at a Profit" 
 
 By 
 
 W. A, CARNEY 
 
 Author of "How to Buy and Sell Real Estate at a Profit/' and 
 "New Secretary's Manual " 
 
 Published in Parts 
 
 Published by W. A. CARNEY at Los Angeles, California, 1906 
 Copyright, 1906, by W. A. CARNEY 
 
SUGGESTIONS TO THE STUDENT. 
 
 The object of these lessons is to give the student or reader 
 a practical knowledge of real estate and of the real estate busi- 
 ness. The student who will devote a definite portion of each 
 working day to the study of the subject will make the most 
 satisfactory progress. The student should exercise to the full- 
 est extent the qualities of industry and perseverance ; he should 
 concentrate his mind on the subject and keep it there; he 
 should study a few pages at a time and not skip from one 
 portion of the lessons to another. 
 
 "HOW TO BUY AND SELL REAL ESTATE AT A 
 PROFIT" is referred to herein as the "Text Book" or as 
 "Vol I." In it, the Sections are numbered from i to 163, 
 inclusive, and the Forms from i upwards. In this book, the 
 Sections are numbered from 200 upward, and the Forms from 
 100 upward. ^ y 
 
 The "Final Examination Questions" are contained in a 
 booklet comprising questions and blank spaces for answers, 
 and suggestions as to how these answers should be made. 
 Upon being written up, the booklet is to be returned to the 
 author for correction, and, upon being corrected, is sent to 
 the student, who retains it. 
 
LESSON I. 
 
 LARGELY INTRODUCTORY. 
 
 Section 200. An ancient king who was at the pinnacle of 
 his power and greatness, and who thought he might have 
 ready access to anything he should desire, inquired of a vener- 
 able sage in his kingdom how to master the problems of Euclid. 
 "There is no royal road to Euclid," the sage replied. And so 
 it must be said to every one entering the real estate business: 
 There is no royal road to this business ; the study of "Euclid 
 and of the real estate business must be hard and tense. There 
 can be no avoiding or going around each successive proposi- 
 tion which forms the basis of future progress and no shirking 
 or omitting of detail; every step requires close attention and 
 reflection. 
 
 Sec. 201. The impression prevails in some quarters that 
 the real estate business is scarcely respectable. Such is not 
 the case, however. The real estate business is as honorable 
 and dignified a vocation as any in which men are engaged, and 
 the intention of every person entering the profession of real 
 estate broker should be to maintain, in all his transactions, a 
 strict adherence to sound principles of morality and justice. 
 In this way he will reflect credit on the profession and be 
 justly entitled to the respect and confidence of his fellow-men. 
 
 Sec. 202. The young real estate broker should pay atten- 
 tion to the formation of character. The ability to restrain 
 one's appetite, passions, tongue and temper is of the first im- 
 portance. One must be the master, not the slave, of himself; 
 ii he cannot govern himself, he cannot govern others. Indeed, 
 a good character is vastly more important than a great fortune. 
 A United States Senator who died recently, wrote the follow- 
 ing in his will : "I hope that my sons will, early in life, realize, 
 
 342111 
 
4 REAL ESTATE SELF-TAUGHT 
 
 above all else, that the only thing more difficult to build up 
 than an independent fortune, is character, and that the only 
 safeguards of character are the Ten Commandments and the 
 Sermon on the Mount." 
 
 Sec. 203. Among the components of a good character are 
 honesty, politeness, confidence, energy, economy and perse- 
 verence. These will be considered severally. 
 
 Sec. 204. Honesty is not only the best policy, but it is in 
 strict accordance with a right conscience. The real estate man 
 who practices deceit and trickery may be successful for the 
 time being, but he is pretty certain to lose eventually. The 
 confidence which his clients repose in him is a part of his stock 
 in trade, and if he violates that confidence his clients will 
 desert him; moreover, they will take particular occasion to 
 make known to others his true character. A real estate broker, 
 by reason of his knowledge of the business, may be able to 
 deceive his clients in respect to property, but clients are apt 
 to be suspicious and watchful, and their knowledge of human 
 nature may be more keen than that of the broker; hence, it 
 behooves the broker, from every point of view, to be honest. 
 
 Sec. 205. Politeness costs nothing and accomplishes much. 
 The real estate broker should cultivate a charm of manner and 
 all those personal qualities that will attract people to him. 
 
 Sec. 206. Confidence, or self-reliance, is very essential to 
 success in the real estate business. To believe and go forward 
 is the key to success and happiness. Doubt and distrust are 
 negative and corrosive forces. The man who engages in the 
 real estate business should resolve at the beginning to rely on 
 his own judgment. Even if he be rich, and has heretofore de- 
 pended on some relative or other person, let him cut loose and 
 paddle his own canoe adown the stream of events. 
 
 Sec. 207. Energy is another name for enthusiasm. En- 
 thusiasm means an optimistic whole-heartedness in an under- 
 taking. A man can do best that which he likes best. Hi 
 
REAL ESTATE SELF-TAUGHT 5 
 
 never can succeed in this age of competition unless he finds 
 real pleasure in his work. The making of money is not a 
 sufficient incentive ; a man must find the highest enjoyment in 
 the accomplishment of the task itself. An energetic man seizes 
 events and makes them subservient to his will ; whereas, a man 
 lacking in energy is controlled by events which carry him in 
 opposition to his will. A live, active, confident man is a mag- 
 net that draws people and their money around him, and if he 
 rises to the occasion, as he should, many things will lie in his 
 power that otherwise would have gone to some other magnetic 
 individual. 
 
 Sec. 208. The man who learns to save and who is thrifty 
 will fortify his self-reliance. The thrifty man is not troubled 
 about to-morrow, for he is prepared for to-morrow. Mr. 
 Shailer Mathews defines economy as that way of living that 
 systematically transfers a portion of one's income to one's capi- 
 tal, and he states that if any man who earns would, at the 
 expense of some self-denial, capitalize ten per cent, of his in- 
 come, his future would be more under his own control and his 
 life would be more full of reliance and self-respect. It is not 
 what a man earns, but what he capitalizes, that really gives him 
 permanent economic independence. The rule should be to save 
 before spending, rather than to save what is not spent. To put 
 this rule into effect, it is sometimes necessary for a man to go 
 in debt for the purchase of a lot, or a home, or building and 
 loan stock, as then he must save to meet the payments. A real 
 estate broker should make it a point ta accumulate capital, as 
 he will have many opportunities of investing it advantageously 
 in real estate. No one knows whether a man who always pays 
 cash is honest or not, and no one cares to know. A man 
 should be in debt to a reasonable extent for two' reasons : First, 
 to establish his credit against the time he may need credit, and 
 second, to lay the foundation for a reputation for honesty and 
 promptness in payment of bills. Debt is generally recognized 
 
REAL ESTATE SELF-TAUGHT 
 
 as one of the best incentives to prudent foresight on the part 
 of any person, as, where there are certain payments to be made 
 at the end of the month, household and personal expenditures 
 are regulated to that end, with the result that a transfer is 
 made at stated intervals from income to capital. 
 
 Sec. 209. A person should enter the real estate business 
 with the expectation of continuing in it. A man's efforts in 
 any particular line, if properly directed, become cumulative 
 after a time, and if he then quits, he quits when he is about 
 t& receive the reward of his labors. Courage to carry on the 
 work, in spite of obstacles and disappointments, is essential to 
 success. After triumphantly treading the stony road of ex- 
 perience, let us hope that the student who peruses these pages 
 will finally stand at the summit, the typical American real 
 estate broker, the most perfect, progressive and well-equipped 
 of his kind. 
 
REAL ESTATE SELF-TAUGHT 
 
 LESSON II. 
 OF REAL ESTATE IN GENERAL. 
 
 Sec. 210. Let reader or student now study pages 5 to 10 of 
 the Text Book, viz. : "How to Buy and Sell Real Estate at a 
 Profit," which, in these Lessons, is referred to as "Vol. II" or 
 as "Text Book." This lesson contains all the definitions and 
 particulars relating to real estate in general that the real estate 
 broker will be likely to meet with in the ordinary course of 
 business. 
 
REAL ESTATE SELF-TAUGHT 
 
 LESSON III. 
 
 OF IX)CATION AND EQUIPMENT OF OFFICE. 
 
 Sec. 211. A real estate broker should, if possible, locate on 
 the ground floor, where people can walk in without effort, and 
 where he can place his signs in the window or on the outside 
 to attract attention. If he is in a large city, where there are 
 building having elevators, he should locate in such building, 
 as people, at the present time, will not walk to the second story 
 if they can ride. One can begin, of course, with only a small 
 desk and occupy space in an office at a cost of not exceeding 
 $5.00 or $10.00 per month, and, in the real estate business, 
 many men who now have finely furnished offices, began in this 
 way. The size of the desk is no limit to the amount of business 
 that can be transacted over it. Ordinarily, the broker cannot 
 afford to incur heavy expense for office rentals until well estab- 
 lished. In large cities, ground, floor offices are generally so. ex- 
 pensive in the way of rent that a large room, if devoted to the 
 real estate business, is divided by the means of railings into 
 spaces, and a number of persons occupy the same room. This 
 is not always desirable, as among the tenants may be some 
 unscrupulous fellow who will "butt in" when one is talking to 
 a customer. The expense of telephone rentals is considerable, 
 and this causes office men to herd together where they can use 
 one 'phone, with extensions to several desks. On the whole, a 
 real estate broker or firrrTwill find that an office, or two or more 
 connecting offices, in an up-to-date building, where light, heat 
 and janitor service are included in the rentals, to be best 
 adapted to the business, as, if the broker has the right kind of 
 property at the right prices people will find him even though 
 he be on the top floor. 
 
REAL ESTATE SEIyF-TAUGHT $ 
 
 Sec. 212. The furniture and furnishings should be in keep- 
 ing with the character of the office and be pleasant and har- 
 monious in effect. If a broker has not sufficient business to 
 warrant him in employing a stenographer, he should procure, 
 and learn to run, a typewriter, as, with a typewriter he can do 
 more rapid and legible work than with a pen, and a typewrit- 
 ten letter is more modern and has a better effect. 
 
 Sec. 213. At the outset the broker should adopt some dis- 
 tinctive mark or sign in connection with his name, such as 
 
 and this should appear on all -his cards, letter heads and sign- 
 boards, so that any one upon seeing the name and sign at a 
 distance will instinctively say: "That's Baldwin's." 
 
 Sec. 214. Stationery should be of good quality and artis- 
 tically printed. It is the broker's representative among per- 
 sons who do not know him, and will make a good or bad im- 
 pression as it is excellent or cheap. 
 
 Sec. 215. For listing property some brokers use simply an 
 ordinary blank book. At the present time the vast majority of 
 brokers use cards. These cards are of two kinds ; one has both 
 the description of the property and the contract of the owner 
 as to commission and length of time the property is to be listed 
 on one side of the card ; the other form of card has the descrip- 
 tion on one side and agreement as to commissions, etc., on the 
 reverse. The latter form has some advantages over the former, 
 
10 REAL ESTATE SEUP-TAUGHT 
 
 but costs more to print. The cards are arranged in a tray, 
 alphabetically, either by names of owners or names of streets, 
 etc., or by valuations. By the use of cards, listing is reduced 
 to a system, but care must be taken to replace the cards where 
 they belong or confusion results. One publisher furnishes for 
 one dollar a loose-leaf listing outfit which is very convenient 
 and practical. (See also Lesson V, Listing and Advertising.) 
 
 Sec. 216. As soon as a business has assumed any magni- 
 tude, it is well to arrange the cards according to whether the 
 property is in the city or in the country, and the following is 
 suggested as a suitable classification : 
 
 CITY. Business, semi-business, lots, houses and lots. 
 
 COUNTRY. Suburban, beach or sea shore, ranch and 
 farm, groves and orchards, mining. 
 
 BUSINESS CHANCES. Bakeries, cigar stands, laun- 
 dries, lodging houses, restaurants, etc. 
 Houses for rent, rooms for rent, furnished 
 and unfurnished. 
 
 Houses and lots can be arranged by prices, and separated 
 by guide cards indicating the price. 
 
 Sec. 217. As to buying an interest in a firm already estab- 
 lished, it may be said that the buyer should first investigate 
 the matter very thoroughly. Any list of property which a firm 
 may have is not of very great value unless verified anew. A 
 partnership is often times an uncertain ship in which to sail. 
 Each partner can contract debts in the name of the firm and 
 each is liable for the entire debts of the firm. Tricky real estate 
 firms have been known to sell one-half interests to three or 
 more persons. In large cities some crooked individual en- 
 gaged in the real estate business will advertise for a man to 
 learn a paying business, and offer to take him in as a partner 
 and teach him the business for $250 or $300. Two or three 
 confederates are necessary to work the scheme successfully, 
 and when the buyer appears in answer to the advertisement 
 
REAL ESTATE SELF-TAUGHT 1 1 
 
 the advertiser seems to be very busy. He calls up his confed- 
 erates on the 'phone, and they, in turn, call him up and big 
 deals in real estate are discussed, and the large commissions 
 which will accrue are brought out prominently. If the inquirer 
 asks for references, he is referred to one or both of the con- 
 federates, who give the advertiser an excellent character. The 
 advertiser declares that he is driven to death with business and 
 cannot find time to sleep. Business looks good to the innocent 
 victim and he invests. Shortly afterward the advertiser is 
 called away and the victim is left alone and remains alone so 
 much that he gets lonesome. The 'phone rings no more, and 
 he finds that he has paid a high price for an ordinary roll-top 
 desk and office rug. 
 
 Sec. 218. A real estate firm, doing practically no business, 
 in one of the large coast cities, decided to sell out in this way : 
 One partner would offer his half interest for sale, no price men- 
 tioned, with the understanding that the other partner would 
 remain and teach the new partner the business, and as soon as 
 the new partner was fairly started would sell out also and thus 
 they would both be out. The half interest had been advertised 
 for some time without success, when one day in walked a large 
 and well-dressed colored man, who inquired about the interest 
 in the business. They had intended to ask $300 for one-half 
 interest, but in view of the circumstances, gave the price as 
 $1,000. The visitor made some inquiries in regard to the busi- 
 ness and stated that he would think the matter over and return 
 on the following Monday, it being then Saturday. After the 
 colored man had gone out, the partners looked at each other 
 in a dazed sort of way, and one of them exclaimed : "If he re- 
 turns, what are we going to do with him?" "I'll tell you," 
 said the other, "let's open a branch office in A., as the real 
 estate business is brisk there, and put him in charge." Mon- 
 day came and so did the colored man with his fifty twenty- 
 dollar gold pieces. He was given an interest in the business 
 
12 REAL ESTATE SELF-TAUGHT 
 
 and the plan of opening a branch office at A. and putting him 
 in charge, was broached to him. He was entirely agreeable to 
 the project; one of the partners went with him to A., where 
 the branch office was fitted up, the colored man bearing the 
 expense, of course, and he was duly installed, and the partner 
 returned to his native heath. After a time the colored man re- 
 turned, said that he had closed the office in A., and sold the 
 furniture, and wanted to know how much of the proceeds the 
 firm desired. He said he had done no business. He was told 
 that the firm did not desire anything. He expressed himself 
 as well satisfied with his experience and stated that he was 
 going back to South Africa, from whence he had come and 
 where he had made money in the diamond fields, to show those 
 negroes down there how to do high finance in real estate. Tt 
 is not to be inferred from what has been said that every interest 
 in a real estate firm is of doubtful value; some such interests 
 are very valuable and desirable. As heretofore stated, the pro- 
 posed purchaser of a partnership interest should investigate 
 thoroughly. 
 
 Sec. 219. A broker should have a large map, having the 
 outline of the world on one side and of the United States on 
 the other, hanging on the wall; also a large wall map of his 
 own State and of his county, and, if in a large city, of the city 
 also. Maps are interesting and attractive, and many people 
 who have not examined a map since leaving school take 
 pleasure in looking them over; besides, they lend an air of im- 
 portance to the broker's surroundings. 
 
 Sec. 220. In some of the large cities map books are obtain- 
 able, showing the names of every tract and the numbers and 
 exact dimensions of every lot. These are expensive but val- 
 uable aids in carrying on the real estate business. In Los An- 
 geles the publisher of a book of this kind also furnishes a book 
 containing the names of the owners of each lot, and entries are 
 made in this name-book every day by the clerk of the pub- 
 
REAL ESTATE SELF-TAUGHT 13 
 
 lisher, giving changes of ownership as shown by the deeds re- 
 corded the previous day in the County Recorder's office. Maps 
 or blue-prints of new subdivisions can usually be obtained from 
 the principal agents for such subdivisions. 
 
 Sec. 221. If there is a Board of Trade or Chamber of Com- 
 merce in his town, the broker should become a member. He 
 should also join one of the political or business men's clubs, as, 
 in meeting men of affairs at such clubs, he will acquire advance 
 information along real estate lines that will be of value to him. 
 
 Sec. 222. If there is a realty association or board in his 
 city or county, it would be well for the broker to join. The 
 constitution of the Los Angeles Realty Board provides that 
 the objects of that corporation shall be to secure the benefit of 
 united effort and concentrated power among its members to 
 the end that the annoyance and evils which had, in the past, 
 been encountered in dealing in real estate, might be abated ; to 
 promote good-fellowship and fair dealing; to protect the mem- 
 bers of the board and the public in general from reckless and 
 dishonest dealers ; to promote the enactment of legislation for 
 the protection of property rights and dealings pertaining there- 
 to and to do all else in the power of the board which may tend 
 to the upbuilding, stability and dignity of dealing in real estate. 
 Applications for membership in the Los Angeles Board must 
 be signed by the applicants, be approved by two dealers who 
 are members of the board and be accompanied by the member- 
 ship fee. The By-Laws provide, among other things, for an 
 Arbitration Committee, composed of five members, to take 
 cognizance of and have jurisdiction over all claims and matters 
 of difference between members of the board in their capacities 
 as real estate brokers, agents, owners or partners, under certain 
 prescribed rules; also for an Appraisal Committee. 
 
 Sec. 223. If the broker is also engaged in the building 
 business, a membership in a builder's exchange will be ad- 
 vantageous. Suggestions for organizing such an exchange are 
 
14 REAL ESTATE SELF-TAUGHT 
 
 given in Form No. 153. Where a new town is started in the 
 country, the question of incorporating same will arise as soon 
 as there are a sufficient number of inhabitants for the purpose. 
 A petition for incorporating a town is given in Form No. 154. 
 In a small community there are always two or more contend- 
 ing factions one faction being in favor of progress and the 
 other being content to let things remain as they are. Even 
 the change of the postoffice for half a block in either direction 
 (Form No. 155) will divide the community into two parties 
 and arouse considerable feeling. 
 
 Sec. 224. The broker should make it a point to study men 
 as they appear in action on boards of directors, in lodges, 
 public meetings and in other places where man is brought into 
 keen, yet withal good-natured, competition with his fellows 
 where will is pitted against will. He should learn to listen in- 
 tently, and think steadily, clearly and comprehensively amid 
 distracting surroundings. Then when he sees a number of 
 others in a dilemma, he should quickly offer a sensible and 
 practicable solution of the problem, and, if his solution is 
 feasible, he will have scored a strong point in favor of the 
 soundness and alertness of his judgment and of leadership. 
 
 Sec. 225. The broker should not omit to cultivate the ac- 
 quaintance of bankers and capitalists, as he will need their co- 
 operation and good will in the making of loans and perhaps in 
 the purchase of properties which will yield a profit to the in- 
 vestor. Real estate brokers often lose sight of the fact that 
 there are two "ends," as the saying is, to the real estate busi- 
 ness, namely, the buying "end" and the selling "end," and that 
 one is equally as important as the other. A broker might have 
 all the property in a county listed, but he would not be able 
 to sell until he had buyers. 
 
 Sec. 226. There are many ways in which a real estate 
 broker may be active and useful in a community, and at the 
 same time advance his own interests ; as, for instance, by con- 
 
REAL ESTATE SELF-TAUGHT 15 
 
 verting picturesque spots into remunerative pleasure grounds; 
 by erecting and operating hotels and apartment houses ; in ex- 
 ploiting mines and mineral lands, either by organizing corpor- 
 ations to take over promising prospects and operate them (the 
 broker arranging to act as secretary and provide the office) or 
 by selling such prospects to practical mining men ; and by cre- 
 ating sentiment in favor of good roads. Good roads stimulate 
 travel, popularize the sections traversed, increase land values, 
 attract new residents, build up trade and improve conditions 
 generally. 
 
1 6 REAL ESTATE SELF-TAUGHT 
 
 LESSON IV. 
 
 OF SECURING APPOINTMENT AND ACTING AS NOTARY PUBUC. 
 
 (See also Text Book, or Part Two, Page 51, Sec. 88.) 
 Sec. 227. In many cases a real estate broker will find it ad- 
 vantageous to secure an appointment as notary public, as the 
 revenue from that source is considerable, and affords him an 
 opportunity to meet people with whom he otherwise would not 
 become acquainted. 
 
 Sec. 228. A notary public is an officer appointed to per- 
 form certain duties, prescribed by law, within, but not outside 
 of, the limits of a certain County of a certain State or Terri- 
 tory. In some of the States the applicant for notarial honors 
 has to pass an examination to determine his fitness for the 
 office. In California, the appointment is made by the Gov- 
 ernor ; in Texas, by the Governor, with the consent and advice 
 of the Senate while in regular session. (See Form No. 100.) 
 
 Sec. 229. Upon receiving his appointment the applicant is 
 required to execute an official bond, in a sum varying from 
 $1,000 to $5,000, and such bond must be executed by the notary 
 and two good and sufficient sureties. In most of the States a 
 bonding company (such as the American Bonding Company 
 of Baltimore) will be accepted in lieu of individual sureties. A 
 notary often feels a delicacy about asking influential friends to 
 go on his official bond, and where the bonding company's bond 
 will be accepted it should be given preference. A nominal fee 
 is charged for issuing this bond. The notarial bond, in Cali- 
 fornia, must be approved by a judge of the Superior Court of 
 the County in which the notary is to act, and, upon such ap- 
 proval, the notary must take the official oath, and the oath and 
 the bond are then recorded in the office of the County Recorder. 
 
REAL ESTATE SELF-TAUGHT I? 
 
 Sec. 230. In order to do business, the notary will require 
 a notarial record, a notarial seal and proper blank forms of 
 certificates of acknowledgment. A notary should perform all 
 his official acts with scrupulous care and fidelity. 
 
 Sec. 231. If the appointee fails to qualify within the pre- 
 scribed time, the appointment becomes vacated, and the appli- 
 cant must begin anew: 
 
 Sec. 232. The term of office varies in the several States 
 and runs from two to four years from the date of the appoint- 
 ment. In some of the States a notary is required to have sub- 
 stantially these words after his signature: "My commission 
 expires " 
 
 Sec. 233. The duties of a notary are, in general, these : To 
 take acknowledgments, and to certify all acknowledgments 
 and proofs of instruments in writing, such as deeds, mortgages, 
 satisfaction of mortgage, deeds of trusts, homesteads, powers 
 of attorney, etc. Also to take and certify depositions and affi- 
 davits and administer oaths, and to make declarations of pro- 
 test in respect to promissory notes and bills of exchange. 
 
 Sec. 234. The maximum fees which a notary may collect 
 for his official services are fixed by law, and, at the time of ob- 
 taining his seal, etc., the notary should procure a fee card, which 
 he should keep posted up in his office for the information of 
 customers. The notary can waive the regular fees or perform 
 them at reduced rates; in fact, it is customary where a notary 
 has a large number of acknowledgments to take for one party 
 to charge but one-half the regular fees. If any one questions 
 the amount of the fee he should be referred to the fee card. The 
 majority of persons are informed as to the fee a notary is en- 
 titled to charge, but have considerable reluctance about paying 
 it. Where the notary is asked to go away from his office to 
 perform official acts, or to go after office hours, he should, if 
 the distance be great or he be put to considerable inconvenience, 
 make a moderate charge in addition to his regular fees. Per- 
 
l8 REAI, ESTATE SELF-TAUGHT 
 
 sons accustomed to business have no objection to paying such 
 reasonable additional fees. The payment of notary fees touches 
 a tender spot in some persons, particularly wealthy persons who 
 could well afford to be the least sensitive on the subject, and 
 the real estate broker will do well to exercise discretion as to 
 fees if he has an inkling that fees are distasteful to a customer 
 who might be a seller or a buyer in the future. 
 
 Sec. 235. In taking an acknowledgment, the instrument 
 should be signed in the presence of the notary, and the notary 
 should then ask the party signing: "Do you acknowledge this 
 to be your signature?" and he replies: "I do." If there is a 
 printed form of notarial acknowledgment on the instrument, that 
 should be used; if not, the notary should attach with paste his 
 own printed form. The seal should then be impressed, and, if 
 the attached form is used, through that and through the instru- 
 ment. Two acts are necessary: The acknowledgment by the 
 party signing, and the certification of the notary. The notary 
 then makes an entry of the transaction in his notarial record. 
 (See Text Book, pages 72 to 74.) 
 
 Sec. 236. When an instrument in writing, such as a deed, 
 is presented to a notary for his acknowledgment and certifica- 
 tion, he is not called upon to pass judgment upon the sufficiency 
 of the instrument. If, for instance, he discovers that a deed is 
 made by a married man, and that his wife has not joined in 
 the deed, and that she is competent to do so, he may call the 
 attention of the grantee, if he is present, to the fact. The notary 
 has no jurisdiction in such cases, but he should deem it his duty 
 to point out to the parties any defects apparent on the face of the 
 instrument. 
 
 Sec. 237. When a party appears before a notary to make an 
 acknowledgment, and he is unknown to the notary, the notary 
 should require of him to prove himself to be the person he 
 claims to be, on the oath of a creditable witness, examined and 
 sworn by the notary for that purpose. (See Form No. 24, page 
 
REAL ESTATE SELF-TAUGHT 1 9 
 
 73, Text Book.) In this matter also, the notary should use dis- 
 cretion, keeping in mind the fact that all of his official acts 
 should be so performed that he and his bondsmen will incur no 
 liability. In some of the States the wife must be examined 
 privily and apart from her husband, and the contents of the 
 instrument must be fully explained to her, and the notary's cer- 
 tificate must recite these facts. In certain cases a notary is dis- 
 qualified from acting. 
 
 Sec. 238. Frauds have been committed by persons who, upon 
 short acquaintance with a notary, have introduced to him a con- 
 federate, representing such confederate as Mr. or Mrs. So-and-So, 
 a property owner of record. They then ask the notary to take 
 the acknowledgment of the imposter to a forged signature on a 
 deed or mortgage conveying property to an innocent third party, 
 and the notary, by taking and certifying the acknowledgment, 
 unwittingly abets the deception. Having secured the money, 
 the confederates disappear, leaving the notary and his bonds- 
 men to be brought to bar for the alleged negligence of the 
 notary. 
 
 Sec. 239. The laws of each State prescribe certain forms 
 of deeds and of acknowledgment for the transfer of property in 
 that State, and such forms must be followed even though the 
 instrument be executed in another State. In order .that /the 
 notary should be informed as to such forms, and as to his 
 duties in every other respect, he should have in his office a copy 
 of "John's American Notary Manual." (See advertising pages 
 of this book.) 
 
2O REAL ESTATE SELF-TAUGHT. 
 
 LESSON V. 
 
 LISTING AND ADVERTISING. 
 
 Section 240. As soon as a real estate broker has opened his 
 office he should let the public know that he is ready for business. 
 Prior thereto he should have listed considerable property so as 
 to be prepared for immediate inquiries. He can inform the 
 public of his new calling by means of advertisements in the 
 local newspapers, by distribution of business cards, by sending 
 out circulars and by word of mouth, and by sign-boards on the 
 properties which he has listed. 
 
 Sec. 241. Some brokers go about listing in a systematic 
 manner. Let us suppose that there is a tract of land near a 
 depot or railroad yard, or lying along or close to a railroad, 
 which tract was built upon years ago and is now occupied by 
 houses that are inhabited by railroad employes. This district, 
 because of its proximity to the railroad, is not a desirable resi- 
 dence section. Let us suppose further that a new and larger 
 depot is to be built and that there will be a demand for land 
 around this depot for warehouse sites. Now, the man who goes 
 systematically about listing will take a map of the tract in which 
 this district lies, make a list of all the lots of the tract on 
 legal-cap or fools-cap, placing the numbers of the lots at the 
 left hand of the paper and leaving one blank line opposite to 
 each number. Then, if he doesn't have a tract and address book, 
 he goes to the County or City Assessor's office and obtains per- 
 mission to look over the Assessor's book for that tract, in which 
 book he will find the name and address of the owner of each 
 lot at the date of the last assessment. Having secured these, 
 he interviews all such owners who are in town and obtains their 
 price, making a separate listing card for each, and, whenever 
 he can do so, gets such owner to give him the exclusive agency 
 
REAL ESTATE SELF-TAUGHT 21 
 
 for say sixty days or more. Some owners will sign the listing 
 cards; others will not. He can sometimes list a real bargain 
 by writing for price to an out-of-town owner who does not 
 keep posted as to movements in city property. If he finds a 
 particularly desirable corner, he may pay from $10 to $100 for 
 an exclusive agency option (See Form No. 112) for say ninety 
 days or six months. Having gone over the field thoroughly, he 
 is in a position to say to intending purchasers just where is the 
 cheapest piece of property in the district. There is consid- 
 erable work attached to this method of listing, but the results 
 are more certain than to go about it haphazardly. All the data 
 so obtained should be classified and arranged for ready refer- 
 ence, so that it will be immediately available when wanted, as 
 it will be in the future. 
 
 Sec. 242. The listing card shown in Form No. 118 has both 
 space for description and agreement as to commission on one 
 side of the card. Forms Nos. 117 and 120 show a card with 
 space for description on one side and agreement for commission 
 on the obverse, with space for confirming the listings. Where 
 values are changing it is necessary to confirm and correct the 
 listings every month or two. If the agent wishes to engage gen- 
 erally in sales and exchanges beyond the limits of his immediate 
 vicinity, the forms given in Nos. 104 and 107 are well adapted 
 to listing properties for this purpose. 
 
 Sec. 243. A broker to be successful should list property 
 in the section in which property is selling and, whenever pos- 
 sible, obtain an exclusive agency contract. In large cities the 
 areas in which real estate is being actively transferred are con- 
 stantly changing, and it is part of the duty of the agent to get 
 advance information of these movements in real estate and then 
 list as much property as possible in that immediate section. 
 
 Sec. 244. An agent should write to all parties who adver- 
 tise their own property, and tell them that he has exceptional 
 facilities for handling that class of property, and that he is con- 
 
22 REAL ESTATE SELF-TAUGHT. 
 
 stantly having inquiries therefor; also that having recently en- 
 gaged in the real estate business, he is putting more vigor and 
 energy into the business than some of the agents who have 
 been longer in the business and have fallen into the ruts of the 
 trade. 
 
 Sec. 245. Good returns are generally obtained by the use 
 of the "postal card with paid reply," which provides for the 
 recipient detaching the annexed card in reply. A short note, 
 something like the following, will generally bring the desired 
 information: "In replying, please use attached card, and state 
 
 your lowest cash price for your premises at No street, as 
 
 I am confident that I can dispose of this property immediately 
 if the price is right. Also, please be kind enough to list any 
 other property you may have." 
 
 Sec. 246. There is more real estate advertised as a rule in 
 the Sunday newspapers in large cities than on any other day of 
 the week, and the agent should answer these advertisements 
 promptly every Monday morning. If the advertiser gives a box 
 in some newspaper office, the reply should be sent there very 
 early in the day. 
 
 Sec. 247. In approaching a real estate owner with a view 
 to listing his property, the broker should present his business card 
 and set forth the nature of his errand in a businesslike way. If 
 the owner is a business man, he can be dealt with readily. If not 
 accustomed to business, it will sometimes be necessary for the 
 agent to first gain the owner's confidence. 
 
 Sec. 248. At the time of listing property, it is important that 
 the agent have a clear and distinct understanding with the owner 
 in regard to commission. The commission is the object for 
 which the agent is working. Most owners understand what 
 "regular commission" means. The list of commissions given at 
 the close of this lesson is that in effect by the Los Angeles Realty 
 Board, and is a safe and reasonable one to follow, unless the 
 customary commission where the agent is located is higher, in 
 
REAL ESTATE SELF-TAUGHT 23 
 
 which case he should follow the custom. If there is no established 
 commission in the locality where the agent is acting, it would be 
 well for him to have a list of his commissions printed on the 
 back of his business cards. Where two agents work together to 
 close a deal, one furnishing the property and the other the cus- 
 tomer, it is usual to divide the commission equally between them, 
 and sometimes it is expedient to allow a part of the commission 
 to a person, not in the real estate business, who assists in effecting 
 a sale. It is necessary, in some cases, in order to effect a sale, to 
 allow the purchaser a rebate of say one-half of the commission. 
 
 Sec. 249. The following relates to the size of the type, 
 measurement of advertising space, and classification of the ad- 
 vertisements : 
 
 (a) All type is made on the point system. This is an arbi- 
 trary system of measurement, and there are 72 points to an inch j 
 therefore a six-point type means that there are twelve lines of 
 the type of that size in an inch. In addition to this system of 
 measurement, the smaller sizes of type, such as are commonly 
 used for reading matter, are named: Agate measures fourteen 
 lines to the inch; Brevier is eight-point; Long Primer is ten- 
 point; Pica is twelve-point, or one-sixth of an inch. 
 
 (b) All newspapers and periodical space is based on a price 
 of so much per inch, but where the circulation is large the rate 
 generally quoted is the price per line, or per word. Unless other- 
 wise specified, price is based on one agate line space, i. e., one- 
 fourteenth of an inch, without any regard to the size of the type 
 which is used in the space. For example, in an advertisement 
 occupying ten lines of space, four or five lines might be occupied 
 with a heavy display type. 
 
 (c) The measure of space above referred to means one line 
 across the column. The ordinary width of column among news- 
 papers is thirteen ems, which is two and one-sixth inches. In 
 the principal magazines, the column measures two and three- 
 fourths inches. 
 
24 RAL ESTATE SELF-TAUGHT. 
 
 (d) The newspaper column varies in length, but among the 
 larger dailies is in the vicinity of twenty-one inches. 
 
 (e) The most common size of the magazine page is eight 
 by five and one-half inches. This makes the ordinary magazine 
 quarter-page measure four by two and three-fourths inches. 
 
 (/) Display advertisements are placed among the ordinary 
 advertisements in the publication. i 
 
 (g) It is customary to use some of the type in large sizes 
 to attract attention, with or without illustrations. It is not neces- 
 sary, however, to use display type, even where one is buying 
 display space. But an advertisement set in the shape of reading 
 matter and grouped among display advertisements would be out 
 of place, and in most cases not particularly effective. 
 
 (h) Classified advertisements are those which are set with- 
 out display type and are grouped under proper headings in some 
 special section of the publication. They are carried by all daily 
 publications, most of the large weeklies and trade papers, and 
 some of the magazines. The rate is generally less than for display 
 space in the same publication. 
 
 .(*) "Readers" are set in different types at varying prices, 
 but are always without display of any sort except that a heading 
 is generally allowed in a black-faced type of small size. The 
 price varies according to the position in the paper, being highest 
 on the editorial page, if allowed there at all; they also cost more 
 if set in the reading-matter of the paper. In a general way, the 
 rate is two or three times as much per line as for display space 
 in the same publication. Reader advertising is effective where 
 one has a high-class subdivision. A reader to the effect that Mr. 
 So-and-So, a social leader, has purchased a lot in the subdivision 
 and will erect a handsome residence, will induce others in his set 
 to do likewise. 
 
 Sec. 250. An advertisement in a newspaper under "Real 
 Estate Wanted," something like the following, will induce prop- 
 erty owners to bring in their property to be listed : 
 
ESTATE: SELF-TAUGHT. 25 
 
 "List your real estate of all kinds with me; I am in touch 
 with capital and with parties desiring to exchange, and can make 
 quick and satisfactory sales and exchanges;" or "I am having 
 inquiries every day for modern homes of all sizes. Yours may 
 be just the place that will suit. Call to-day, or telephone, and 
 list your property. My watchword is : 'No misrepresentation' " ; 
 or "Wanted We can sell or exchange your property or business 
 no matter where located; our terms for closing deals are very 
 low ; it will pay you to investigate our plans" ; or, "We handle 
 properties ; nothing is too large or too small for us. We have a 
 fine list of lots, homes, investments, income properties, timber 
 lands, berry land ; in fact, anything in the real estate line. Come 
 in and see us if you want a good buy. List your property with 
 us for quick sales. We have customers for choice building sites" ; 
 or, "List your property with us. From our listings received since 
 Sunday last, we have made a large number of deals that again 
 has demonstrated our ability to Mo things' ; several of the bargains 
 were 'snapped up' before the ink was hardly dry on our books, 
 and we are looking for more opportunities to make money for our 
 clients. In order to do so, we want your property, not to fill our 
 books with a larger list, but to supply our customers, who are 
 legion, and are waiting with the money and an eagerness to pur- 
 chase. Call at our splendidly equipped offices, where we have 
 the system, the ability and determination to be the leaders in our 
 profession." 
 
 Sec. 251. P. T. Barnum, one of the most renowned adver- 
 tisers of his day, gives the following suggestions in regard to ad- 
 vertising: Don't hide your light under a bushel; advertise your 
 business thoroughly and efficiently in some shape or other and it 
 will arrest public attention. There may be some business or occu- 
 pation which does not require advertising, but I cannot well 
 conceive what it is. Homeopathic doses of advertising will not 
 pay; they make the patient sick and effect nothing; administer 
 liberally and the cure will be sure and permanent. Some say they 
 
26 REAL ESTATE SELF-TAUGHT. 
 
 cannot afford to advertise; they mistake; they cannot afford not 
 to advertise. Everybody reads the newspapers, and these are 
 the cheapest and best means of speaking to the public. Put on 
 the appearance of business and the reality will generally follow. 
 While you are dealing with one set of customers, your advertise- 
 ment is being read by thousands of others. 
 
 Sec. 252. Success and failure are often results of proper and 
 improper follow-up systems. Every name and address received 
 through the medium of an advertisement has a possible cash value, 
 and as such should be carefully preserved and judiciously fol- 
 lowed. The excessive use of large quantities of printed matter 
 in follow-up systems is wrong. Short, plain, self-explanatory 
 letters will do in the majority of cases. The smaller the quantity 
 of literature, the greater its chances of being read. A New York 
 concern never uses one cent postage, but sends out all its literature 
 under two cent stamps. By going to the expense of two cent 
 stamps, good stationery, return envelopes, etc., they find they 
 stand better chances of receiving returns than if one-cent stamps 
 and cheap paper are used. After the name and address of the 
 inquirer are secured, efficient follow-up work is more important 
 than advertising. 
 
 Sec. 253. A real estate advertiser writes : 
 
 (a) A sign over your door that you sell Real Estate is not 
 going to bring a rush of prospective customers into your office. 
 Neither will your announcement that you have "all kinds of farms 
 to sell," printed in a newspaper, make people write you for par- 
 ticulars, because such an announcement makes no impression. 
 Unless you can interest and impress people sufficiently to make 
 them write you, no results will be obtained, although your an- 
 nouncement may be read by a great many persons. 
 
 (b) In order to interest, one must be specific. Instead of 
 offering all kinds of farms, select one and describe it fully. Better 
 get ten men worked up to the point of buying than try to appeal 
 
ESTATE SELF-TAUGHT. 27 
 
 to a thousand and fail to set them thinking. Say something that 
 will appeal to somebody. 
 
 (c) If you offer a farm that must be sold because the owner 
 died, you would strongly appeal to those that are looking for a 
 real snap. If your farm has a nice, bearing orchard, that would 
 catch others. If your farm borders on a lake, that would be a 
 great attraction. If there is some timber on the place, that might 
 turn the scale. If your farm raised a magnificent crop last year, 
 mention it and put heart into the timid and doubting. 
 
 (d) If you have a $5,000 farm to sell, it is time and money 
 wasted to correspond with a $500 man ; therefore, state the price 
 or give an idea of what the farm is worth. 
 
 (e) Give the location. The name of the county is good, if 
 the ad. is intended for readers in the same State. Otherwise, 
 better give the part of the State or the valley, etc., where the farm 
 is located. Nebraskans know that Lancaster county, the country 
 around Lincoln, is situated in the southeastern part of Nebraska, 
 the "South Platte Country," where land is worth as high as $125 
 an acre ; they also know that some 400 miles farther west, in the 
 west end of the State, in the "Sand Hill district," you can get a 
 free Government homestead of 640 acres, under the new law, 
 which was passed because a man cannot make a living on 160 
 acres of Sand Hills. But readers in other States do not know 
 whether Lancaster county is in or near the Sand Hills. They 
 must be interested before they will look it up on the map. 
 
 (b) Sometimes a few words may be necessary to counteract 
 unfavorable notoriety which some drought, flood, cyclone, or 
 earthquake may have given your locality. Thus, a $1,000 Kansas 
 farm, even if offered at $500, would not appeal to the man whose 
 whole knowledge of Kansas is restricted to the drought region, 
 unless you make it plain in which part of the State your farm is 
 that it is in the rainy district, where droughts are unknown. 
 
 (g) If your farm is well improved, has a good house, is in 
 a good neighborhood, close to a good town, convenient to school 
 
28 REAI, ESTATE SELF-TAUGHT. 
 
 and church, this should, of course, be gone into fully. In short, 
 do not fail to put in all the information that would interest, and 
 favorably impress, the prospective buyer. 
 
 (h) In offering wild lands, give enough of a description of 
 the land and of the natural advantages and prospects, to get the 
 reader interested. Do not overdo things. Do not use too many 
 big words. Avoid glittering generalities. Appear to be frank 
 and humanize your talk as much as possible. Tell of the experi- 
 ences of settlers, how they started, what they have accomplished, 
 what progress has been made in the way of public improvements 
 in the last year or so. Wind up with an offer to send a map, a 
 pamphlet or full description of the land. If your advertising talk 
 has the proper ring, the reader will be eager to learn more about 
 your land. 
 
 (i) It is better to run a larger advertisement, giving the right 
 kind of information, a few times, than to run continually a small 
 ad. which says nothing. 
 
 (/) "Blind ads." like the following are sometimes used by 
 real estate men: 
 
 FARM WANTED. 
 
 Will pay fair price for good sized farm in good section, soil must 
 be first class. Will take large or small place if it suits. Will bar- 
 gain for machinery and stock. Give description and lowest price. 
 I want the best I can get for my money. I want possession in 
 May or October. Will deal with owners only, real estate men 
 need not answer. Address 
 
 Box 980, Minneapolis, Minnesota. 
 
 Sec. 254. The student will do well to give some study to the 
 suggestions for advertisements given in Forms Nos. 127 to 136, 
 inclusive. 
 
REAL, ESTATE SELF-TAUGHT. 29 
 
 Sec. 255. The following is the schedule of commissions ap- 
 proved by the Los Angeles Realty Board: 
 
 SCHEDULE OF COMMISSIONS. 
 
 ON REAL ESTATE SALES. 
 
 (a) COUNTRY PROPERTY: 
 
 On all property situated outside the city limits of the city of 
 Los Angeles 5 per cent on the purchase price. 
 
 (&) CITY PROPERTY: 
 
 On all property located within the city limits of the city of 
 Los Angeles 5 per cent on the first $1,000 and 2^2 per cent 
 on the balance of the purchase price. 
 
 ON REAL ESTATE EXCHANGES. 
 
 2^2 per cent on the estimated value of the property [contributed 
 by each party to be] exchanged, to be paid by each party to 
 the exchange. 
 
 RENTAL CHARGES. 
 
 (a) For renting unfurnished houses, stores, and other unfur- 
 nished property, except as herein specifically mentioned, from 
 month to month, 10 per cent of the first month's rent. 
 
 (b) For renting furnished houses and other furnished property 
 1 5 per cent of the first month's rent. 
 
 (c) FOR LEASING ALL CLASSES OF PROPERTY: 
 
 2.1/2 per cent on the amount of the First Year's Rent. 
 2 per cent on the amount of the Second Year's Rent. 
 1^2 per cent on the amount of the Third Year's Rent. 
 I per cent on the amount of the Fourth Year's Rent. 
 Y-2 per cent on the amount of the Fifth Year's Rent. 
 On leases for a term exceeding five (5) years y 2 per cent of 
 the rental for the remainder of lease. 
 
 For assigning a lease at request of the tenant, $5.00, to be 
 paid by tenant. 
 
30 REAL ESTATE SELF-TAUGHT. 
 
 Making inventory of contents of furnished houses and flats, 
 
 $5.00 up. 
 
 Checking inventory, $2.50 to $5.00 each checking. 
 
 All Charges to be Deducted from the First Money Received, 
 
 and to include drawing of lease. 
 
 COLLECTION OF RENTS AND GENERAL MANAGEMENT OF PROPERTY. 
 
 On business property, 2^ per cent of rents collected. 
 On other classes of property, 5 per cent of rents collected. 
 Care when vacant : Unfurnished houses, $i a month. 
 
 Unfurnished flats, 50 cents a month (each flat). 
 
 Furnished flats, $i up a month. 
 
 Business property: Inside retail district, no charge; others, 
 
 $i a month each store or apartment. 
 
 DRAWING DEEDS, MORTGAGES, ETC. 
 
 For drawing deeds, mortgages and other legal papers incident to 
 real estate transactions, including notarial acknowledgment, 
 a charge of $1.50 to be made. 
 
REAL ESTATE SELF-TAUGHT. 3! 
 
 LESSON VI. 
 OF SELLING AND EXCHANGING. 
 
 Section 256. A real estate broker should always keep in mind 
 the fact that he must be pre-eminently a salesman. Commercial 
 travelers and salesmen in other lines take kindly to real estate 
 salesmanship. A salesman must have a meritorious article to sell, 
 must seek his customer, must introduce the subject of the sale, and 
 evince a willingness to serve his customer and aid him in making 
 a desirable purchase or investment. 
 
 Sec. 257. A successful salesman must be honest. He must 
 have a character that will inspire confidence and must be pleasant 
 and agreeable as well as capable. He must create a congenial 
 atmosphere about him. Then he must know his goods. He must 
 satisfy himself that he is selling the best goods at the lowest prices. 
 He must know the reason why they are the best, and he must 
 present these honest, convincing thoughts in a way that will carry 
 conviction to the hearer. The most successful salesman is he who 
 understands human nature and who can set forth the merits of 
 what he has for sale in a clear and convincing manner. It is un- 
 necessary to state that every salesman should have system in his 
 work, and the system should be his own. One person cannot adapt 
 in its entirety a system devised by another, as there are no two 
 persons who think, reason and act precisely alike. A broker 
 should think out his own system and then live up to it. He should 
 have certain office hours, be at his office within those hours, leave 
 someone in charge when he is out, or leave a notice stating when 
 he will return ; have a method of making notations on a calendar 
 pad or otherwise as to future work and appointments ; and carry 
 a memorandum book wherein he can jot down things to be done, 
 together with names and telephone numbers of customers. 
 
32 REAL ESTATE SELF-TAUGHT. 
 
 Sec. 258. The soliciting of life insurance is one of the most 
 delicate and difficult duties of a salesman. A great deal of thought 
 has been given to the subject, and the following is an adaptation 
 to the real estate business of the pithy remarks of expert life in- 
 surance solicitors: "You were afraid of your man that he 
 might 'turn you down.' He bluffed you at the critical moment. 
 You lost your moral courage at the crisis. You left your man 
 five minutes too soon. You argued with him about other real 
 estate dealers and their properties. You did not unfold your con- 
 tract of sale and commence writing when he was on the fence. 
 You failed to show a confident and fearless smile when he was 
 gruff and severe, and you did not realize that a gruff man often 
 has the kindest heart. You tried to talk to him in the presence 
 of others or while he was busy or preoccupied. You did not re* 
 quest a brief and private interview. A private interview has the 
 effect of increasing your customer's importance in kis own esti- 
 mation. You did not study the favorable conditions of your prop- 
 erty as compared with other similar properties and you did not 
 emphasize these points. You waited too long and the other fellow 
 got there first. He told you not to call again for two weeks, and 
 you didn't. You wrote him letters instead of calling. You spoke 
 disparagingly of rival brokers and lost your customer's respect. 
 You became temporarily interested in other customers or prop- 
 erties and neglected this particular customer. You expected your 
 customer to keep you in mind and also his promise to let you 
 know when to call again, instead of dropping in on him unexpect- 
 edly. You did not give him a straight-from-the-shoulder talk in a 
 confident and bouyant spirit. You did not work and think hard 
 enough, nor exercise sufficient foresight in anticipating and tact- 
 fully combatting opposing arguments." 
 
 Sec. 259. In selling property, both principal and agent should 
 avoid artifices calculated to mislead. As is well known, fraud 
 vitiates all contracts. Any misrepresentation of a material fact 
 on which the other party had a right to rely, and in respect to 
 
ESTATE SELF-TAUGHT 33 
 
 which he was deceived to his injury, is fraud. Fraud has been 
 defined to be any kind of artifice used by one person in deceiving 
 another, but what constitutes fraud depends upon circumstances. 
 Fraud must be proved and will not be presumed. Every person 
 relies at his peril on the opinions of others when he has an equal 
 opportunity of confirming or exercising his own judgment. 
 Puffing and extravagant commendation of property is, therefore, 
 allowable, and does not amount to fraud which will avoid a con- 
 tract. The buyer should not trust to the assertions of the seller 
 or agent as to the market or real value of the property. The prin- 
 cipal or agent should not suppress material facts nor conceal latent 
 defects regarding the property to be sold where both parties have 
 not equal access to means of information. To do so will be deemed 
 to be fraud. The difference between a false statement in the mat- 
 ter of fact and a like falsehood in the matter of opinion has been 
 illustrated thus : IT I, the owner of a house, affirm that it will sell 
 or let for a certain sum per annum when in fact no such sum can 
 be obtained, such statement is in its nature a matter of judgment 
 or an estimate and will be understood that the party so considered 
 it. But if I falsely affirm that the house brings $150 per annum 
 when in fact it is let for $100 per annum, such affirmation is a 
 fraud, because I know what fact is, although the buyer, even if 
 he should inquire of the tenant, might not be able to ascertain the 
 fact, as the tenant might not give him any information or give him 
 false information. 
 
 Sec. 260. The seller is placed in a somewhat different position, 
 as if he allows himself to be beaten down in price by any false in- 
 ducements or statements on the part of the buyer or agent, he can- 
 not recover the difference between the price he first asked and 
 that which he afterwards consented to take because of such false 
 representations. 
 
 Sec. 261. If a party discovers that fraud has been practiced 
 upon him and he does not intend to stand by the bargain he should 
 
34 REAL ESTATE SELF-TAUGHT 
 
 declare the deal off and restore, or offer to restore, anything he may 
 have received under the contract. 
 
 Sec. 262. If the agent should at any time have in his pos- 
 session funds belonging to his principal, he should be careful to 
 keep such funds separate from his own funds, as, if the two could 
 not be distinguished, the principal might claim the whole. If 
 deposited in a bank, the agent should keep two accounts, one for 
 the funds of his principal and one for his own funds, and make all 
 payments by means of checks, which, in the absence of receipts or 
 other written proof of payment, might serve as vouchers. 
 
 Sec. 263. An agent should always keep his principal well in- 
 formed as to the progress of negotiations and as to the condition 
 of business under his charge. 
 
 Sec. 264. In opening negotiations for a bargain between par- 
 ties, a broker should invariably communicate sufficient information 
 to them to identify the transaction so that he may be entitled to 
 his commission. 
 
 Sec. 265. A person undertaking to act as a broker impliedly 
 warrants that he possesses such knowledge and skill as, in ordinary 
 cases, would be adequate for the purpose. 
 
 Sec. 266. A portion of this lesson will consist of a few "Don'ts 
 for Real Estate Brokers." 
 
 (a) Don't induce your client to buy an undesirable property 
 for the sake of the commission you might make. 
 
 (b) Don't buy property yourself from your client, knowing 
 you have it already resold to another at an advance ; you probably 
 made a commission in buying the property for your client, and 
 you should sell it for him to the best advantage and be satisfied 
 with the second commission. 
 
 (c) Don't try to coerce buyers, after you have shown a 
 property, by insistent suggestions to buy, as they may think you 
 too demonstrative and avoid you. 
 
 (d) Don't give your estimate offhand as to the value of a 
 certain piece of property when you don't know what it is actually 
 
ESTATE; SELF-TAUGHT 35 
 
 worth. You might lose your reputation for good judgment. 
 Simply say you don't know what it is worth now, but will investi- 
 gate and report. 
 
 (e) Don't attempt to crowd sellers into making a sale. In- 
 stead of doing so, use arguments that will appeal to them, as, that 
 the time to sell is when one has a buyer, and that there are other 
 properties on the market, as good or better, which may be brought 
 to the attention of the proposed buyer if the sale is not made. 
 
 (/) Don't, if possible, let your buyer have an opportunity to 
 think about the deal over night ; if the buyer has time to consider 
 over night, he is pretty certain to decide not to buy, as human 
 nature is so constituted that fear is predominant in the night, 
 whereas hope is quickened by the light and sunshine of the day. 
 
 (g) Don't take sides with either party when both are present, 
 closing up a deal ; let them adjust any differences that may arise, 
 and, by a tactful, diplomatic word at the right time bring the 
 matter to a friendly close. 
 
 (/&) Don't forget that every buyer will some day buy, and 
 every seller will some day sell ; so work a "follow-up" system on 
 each class, offering new properties to the buyers and soliciting new 
 properties from the sellers. Keep separate lists of both buyers 
 and sellers, with brief notations, if need be, to indicate their wants. 
 
 (i) Don't forget to remain with your customer, when you 
 take him out to show him property, pass his objections by unno- 
 ticed or courteously dismiss them; and don't let your customer 
 talk to neighbors or tenants, except in your presence. 
 
 (/) Don't omit making suggestions to your customer along 
 the lines of the comfort, contentment and pecuniary gain, which, 
 in your opinion, will be his if he makes the purchase in question ; 
 and by all means, don't neglect to first place yourself in a buoyant 
 and confident frame of mind, as your sanguine utterances will then 
 have the more compelling effect upon your customer. 
 
 (&) Don't manifest any impatience if the buyer desires, be- 
 fore purchasing, to have the property examined by a builder or 
 
36 REAL ESTATE SELF-TAUGHT 
 
 architect to determine what the building could be erected for and 
 its present value. Arrange for the examination and impress upon 
 the buyer that you are looking after his interests. 
 
 (/) Don't fail to get a deposit from the buyer as speedily as 
 possible, as this is what you are working for, and you are never 
 sure of a sale until you have received a deposit, and not always 
 then, as the deposit may be forfeited by the buyer. 
 
 (m) Don't contradict your customer, unless absolutely neces- 
 sary to do so to correct a serious misapprehension, and if he is 
 pleased with a property that you don't think well of, acquiesce in 
 his judgment. 
 
 () Don't attempt to sell or list too many properties at a 
 time, if you expect to do all the work yourself. It is better to con- 
 fine your efforts to a few first-class properties that are real bar- 
 gains until you dispose of them, rather than to scatter your ener- 
 gies over a multitude of pieces. After you have gained a reputa- 
 tion for making sales, people will come to you without solicitation 
 and insist on your handling their property. 
 
 (0) Don't allow the owner to offer the property at one price 
 while you quote it at another and higher price, the difference being 
 your commission. Insist on his quoting the price you quote, with 
 understanding that he may say to an intending purchaser who has 
 come voluntarily to him without having obtained information as to 
 the property by or through you, that, inasmuch as he would have 
 to pay a certain amount as commission in case the sale were made 
 through a broker, he, the owner, will deduct that sum from the 
 purchase price, provided the proposed buyer will at once close the 
 deal. The practice of having two prices on one piece of property 
 at the same time always leads to trouble and complications. A 
 buyer, if he ascertains that the owner has a lower price, concludes 
 that the broker has been trying to extort money from him, and 
 feel aggrieved, and the reputation and business of the broker is 
 needlessly injured. 
 
ESTATE SELF-TAUGHT 37 
 
 (p) Don't forget to obtain a deposit from a purchaser who 
 offers less for a certain property than the owner is asking for it, 
 as, by obtaining the deposit, together with say ten days in which 
 to endeavor to close a deal, you prevent the purchaser from buying 
 anything else, and in many cases by diplomatically securing con- 
 cessions from each party, you will succeed in effecting a sale of 
 the property desired, or of some other property. 
 
 Sec. 267. Real estate brokers are sometimes subjected to an- 
 noyance and not infrequently to loss of commissions by reason of 
 inquiries being made about properties by bargain-hunting pur- 
 chasers or emissaries from rival brokers. To guard against this, 
 the author suggests a form like No. 122, to be used by the broker 
 at his discretion when called upon for a list of properties. These 
 lists can be bound in pads or in books and a carbon copy retained 
 of the list as furnished. The moral effect on the inquirer would 
 no doubt be good, and the broker would obtain the name and ad- 
 dress of the inquirer which he oftentimes fails to do. 
 
 Sec. 268. Brokerage in stocks and bonds cannot, as a rule, be 
 successfully done in connection with real estate. The man who 
 handles stocks and bonds must look well fed and be well groomed, 
 be suave in address, and frequent clubs and hotels where the 
 wealthy congregate. He must cultivate and exhale an optimistic 
 view as to financial matters and wear a smile that won't come off. 
 His clients are to be found among retired business men, and among 
 women and young people who have inherited money, and who 
 wish to place it where they hope it will be secure and call for no 
 personal effort on their part in looking after it, and where the 
 dividends or interest will be received with undeviating regularity. 
 As a rule, this class of investors know very little about the securi- 
 ties in which they invest beyond what is told them by the broker, 
 and the broker must act his part with great tact and probity. The 
 story of the two brothers, James and John, illustrates the stock 
 brokerage business. "I have some spare money," said James, 
 "and I think I will take a little flyer in stocks. What do you advise 
 
3 REAL ESTATE SELF-TAUGHT 
 
 me to buy ?" "You can do no better than to buy the Great Hot- 
 airship, Unlimited," said John. "Where can I get that?" said 
 James. "Oh, I can sell you all you want," quoth John. The real 
 estate broker is at times forced of necessity to engage in handling 
 stocks and bonds, as the latter are active and real estate is quiet. 
 This is particularly true when business is recovering from a period 
 of industrial depression. Stocks then first become active, be- 
 cause new enterprises are organized, and the sale of shares is car- 
 ried on to acquire capital. 
 
 Sec. 269. "Business Opportunities," or "Business Chances" is 
 the title generally given to all sorts of business whereby men make 
 a living by catering to others, such as bakeries, barber shops, drug 
 stores, restaurants, lodging houses, etc. The broker who makes a 
 specialty of business chances and exchanges, in order to be suc- 
 cessful, must have in his makeup something of the "born trader" 
 instinct. 
 
 Sec. 270. The "Good Will" of the business is the expectation 
 that the customers under one management will continue to be cus- 
 tomers under the next succeeding management. 
 
 Sec. 271. In transferring the title to personal property, no 
 abstracts of certificates of title are obtainable, as a rule, and the 
 purchaser must examine the public records for himself or have 
 some one do so for him who understands that part of the trans- 
 action. The broker generally attends to this, for the purpose of 
 ascertaining whether or not the statement of the seller in regard to 
 there being any incumbrancses on the property is true. The seller 
 shuold have in his possession a bill of sale from the party from 
 whom he purchased, and if he has given a chattel mortgage that 
 should appear of record, and any judgments against him would 
 also appear of record. As to whether or not the seller has paid for 
 the goods he has, aside from those acquired by the bill of sale, the 
 purchaser should require him to produce receipted bills therefor, 
 and if not paid, should ascertain from the parties of whom he has 
 been purchasing that the amount of the bills unpaid as given by 
 
ESTATE; SELF-TAUGHT 39 
 
 the seller is correct. There may be some consigned goods, such 
 as perfumery or fountain pens, which are payable in installments 
 or at a certain later date, and this also should be investigated. The 
 agent generally attends to these matters for the parties. The 
 transfer of personal property is effected by means of a bill of sale. 
 (See Form No. 91.) A contract of Conditional sale is used where 
 the seller wishes to retain the title to a sewing machine, wagon, or 
 other article or articles which the purchaser can use but cannot 
 sell. (See Form No. 92.) A law regulating the sales of mer- 
 chandise in bulk has been adopted in quite a number of the states 
 in order to protect wholesalers as well as the buyer and seller. 
 
 Sec. 272. In making a contract of sale of merchandise, the 
 seller may agree not to engage in the same line of business, either 
 directly or indirectly, in the same place within a certain time. 
 
 Sec. 273. Exchanges of both real and personal property are 
 most actively made when sales for cash are slow. Exchanging 
 of one species of property for another, where no money changes 
 hands, makes it somewhat difficult for the broker to collect his 
 commission, and he generally has to take in payment a promissory 
 note, either secured by mortgage or unsecured, and keep after his 
 client until' the broker is able to make another deal and convert 
 some of the property into cash. 
 
 Sec. 274. Money may be made in the rooming-house busi- 
 ness, but, as in every other business, experience and good judg- 
 ment are indispensable qualifications to making it. The general 
 impression prevails, however, that any one who can raise the 
 price, can make money running a lodging-house. And yet a 
 great many people try it and fail. Considerable ability and a 
 good knowledge of human nature are essential to the handling 
 of all sorts of people under diverse circumstances, and to be con- 
 stantly on the watch both of roomers and of expenses is apt to 
 wear on one. Then, where there are a good many ladies and 
 children in the house, jealousies and gossip will arise to annoy one. 
 There are persons who are peculiarly fitted for conducting a 
 
4O R&AI, ESTATE SELF-TAUGHT 
 
 hotel or lodging-house, and such persons can, by buying run- 
 down places from inexperienced and unwary investors, make the 
 business pay, especially if the house be brightened up by means 
 of paper and varnish and special inducements be offered to guests. 
 Having placed the house on a good paying basis, the owner is 
 then ready for an exchange or a sale. The successful rooming- 
 house owners are chiefly women, and some of them have become 
 wealthy by reason of remunerative sales and exchanges. Country 
 property owners often wish to remove to the city, either because 
 they have become tired of farm life or because their grown chil- 
 dren are occupied in the city, and it is with these that the lodging- 
 house owner makes desirable trades. The country owner, having 
 led an active life, desires something in the city whereby he can 
 be occupied and make money. Here is where the lodging-house 
 and hotel broker makes his harvest, and in large cities some 
 brokers devote their entire time to this branch of the business. 
 
 Sec. 275. In disposing of business chances, the seller should 
 always have a plausible reason to advance for selling out sick- 
 ness in the family, other business requiring attention, about to 
 move to another section of the country, wanting a change, etc. 
 Sometimes the party who holds a mortgage on the stock wants 
 his "change," but of course the broker need not mention that. 
 , Sec. 275^. "My equity" is a phrase frequently used in con- 
 nection with sales and exchanges, but not always understood. It 
 invariably has reference to property which is incumbered by mort- 
 gage or otherwise. For example: An owner values a certain 
 property at $4000 ; there is a mortgage on it of $1800 ; his "equity," 
 therefore, is $2200. In making exchanges, values are often placed 
 one-fourth higher than the owner would take for cash. By means 
 of inflated values, each party to an exchange hopes to gain an ad- 
 vantage. 
 
REAL ESTATE SELF-TAUGHT 4! 
 
 LESSON VII. 
 OF OPTIONS, CONTRACTS AND CONVEYANCES. 
 
 In this connection study first, Sees. 61 to 79 inclusive, 80 to 92 
 inclusive, and 126, and 129 to 133 inclusive, of the "Text Book." 
 
 Section 276. Whenever a broker is called upon to formulate 
 an option, contract, deed or mortgage, as he naturally will be in 
 the course of his business, he will be expected to do so with rea- 
 sonable speed and correctness. In order to do this, it will be neces- 
 sary for him to give some study beforehand to the matter. 
 
 Sec. 277. The broker should provide himself with the printed 
 legal blanks ordinarily employed in making sales and transfers 
 in his section, as these are the blanks with which persons resident 
 in that vicinity are familiar. Printed blanks do not always fully 
 meet the requirements of the law nor the intentions of the parties. 
 Thus, the provision, usually to be found in an agreement of sale, 
 that the vendor shall furnish a good and sufficient deed does not 
 require him to furnish a marketable title. Should the broker not 
 find printed blanks to meet his requirements, he is referred to the 
 forms mentioned in this lesson. 
 
 Sec. 278. It is not the printed forms with which the broker 
 will have the most difficulty, but with forms for which he has 
 had no precedent. It frequently happens that parties desire to 
 come to an agreement immediately in regard to something which 
 can be completed only at a later date when certain other docu- 
 ments are in readiness or certain other acts have been performed. 
 Forms Nos. 109, no and in are furnished as suggestion along 
 this line. 
 
 Sec. 279. There are not a few persons, beginners in the real 
 estate business among them, who do not know what sort of a 
 paper to use for any particular purpose in connection with the 
 
42 REAL ESTATE SELF-TAUGHT 
 
 conveyance and transfer of real and personal property, and the 
 following information will be found helpful in this regard: 
 
 (a) SEPARATE ASSIGNMENTS are used for the 
 transfer of the following named several properties: Accounts, 
 homesteads, patents, bonds, contracts for the sale of real estate, 
 copyrights, judgments of courts, leases, mortgages of either real 
 or personal property, or of both real and personal property. Any 
 instrument, except a deed, which has not been put of record, may 
 be transferred by the indorsement of the assignment on the instru- 
 ment itself. Where the assignment is made on an instrument 
 which has been recorded, or if made on an instrument which has 
 not been recorded but which the law requires or the interest of the 
 parties demand that it shall be recorded, and where separate books 
 are provided for each class of instruments, as a "Book of Leases" 
 for the record of leases and a "Book of Assignments" for assign- 
 ments, it is evident that the instrument and the assignment in- 
 dorsed thereon would have to go of record in both tiooks. In 
 such a case, the proper course is to prepare a separate assignment. 
 Where an instrument is not required to be recorded, as is the 
 case with policies of insurance, certificates of stock, corporation 
 bonds and promissory notes, the title to these may be transferred, 
 so far as the parties to the transaction are concerned, by indorse- 
 ment and delivery; but there being a third party interested in 
 the case of corporate stocks and bonds and policies of insurance, 
 further action is necessary ; the assignment of the policy of insur- 
 ance must be assented to by the agent of the company issuing 
 same; the certificates of stock must be cancelled and new certifi- 
 cates issued by the corporation ; and where corporate bonds have 
 been registered, they must either be released from registry or trans- 
 ferred to the name of the new owner by the transfer agent. 
 
 (b) DEEDS are always used to convey the title acquired by 
 deed ; a separate assignment, an indorsement on a deed, or a bill 
 of sale is not sufficient to pass title by deed. The party named in 
 a deed as he to whom the property is conveyed, is called the 
 
REAL ESTATE: SELF-TAUGHT 43 
 
 grantee, and when such grantee makes another deed of the same 
 property to another person he becomes the grantor. 
 
 (c) BILLS OF SALE are used to transfer the title of per- 
 sonal property; and these are frequently used by careful convey- 
 ances to transfer certifictaes of stock, and corporate bonds, in 
 addition to indorsement and delivery, as they afford tangible 
 written evidence of the transfer. They are used for the transfer 
 of the title to all sorts of personal property, such as furniture, live 
 stock, etc. 
 
 Sec. 280, A proposed purchaser will find it to his advantage 
 to study the "Purchase Chart," Form No. I, page 29, of Text 
 Book, to put him on his guard against overlooking anything that 
 should be mentioned while the negotiations are in progress, as a 
 discussion by the parties of all the points involved, before entering 
 into a contract, will save both time and trouble afterward. When 
 there is a building and loan mortgage on a place, the purchaser 
 should obtain a written statement from the agent of the company, 
 showing exactly the amount still owing and the monthly payments, 
 and how much thereof is applied to the principal, and how much 
 on the interest. A borrower from a building and loan association 
 is always a stockholder and usually there are transfer fees to be 
 paid when the certificate of stock is transferred. These fees should 
 be borne by the seller. In California, the taxes on personal prop- 
 erty, where a person is the owner of both real and personal prop- 
 erty, becomes a lien on the real property, and where the purchaser 
 agrees to assume the taxes, particularly the first installment for 
 the fiscal year, he should make a deduction for the tax on per- 
 sonal property, if ascertainable at the time; if not ascertainable, 
 then he should have an agreement in writing from the seller that 
 he will pay the personal property tax ; or a sum sufficient to cover 
 should be placed in the hands of a responsible third party until 
 the taxes are ascertained and paid by the seller. Such taxes 
 usually attach as a lien to the premises in which the seller resides. 
 
44 REAL ESTATE SELF-TAUGHT 
 
 Sec. 281. When an agreement is made for the sale, or fen 
 the mortgaging or leasing of property belonging to an estate, or 
 to a minor or incompetent person, such agreement should be made 
 with the executor, administrator or guardian, and contain a clause 
 to the effect that the same shall be subject to the confirmation of 
 the Court having charge of said matter. 
 
 Sec. 282. In case an executor, administrator or guardian 
 enter into an agreement for the investment of the funds belonging 
 to an estate, or to a ward, the agreement should also be made 
 subject to the approval of the Court having charge thereof; 
 otherwise, the executor, administrator or guardian is personally 
 liable. The application to the Court takes the form of a petition 
 (see Form No. 137) which must be verified upon oath bv the 
 petitioner; the order of the Court, made upon hearing, directs 
 that the petition be granted ; and a certified cogy of the order 
 must be filed for record, with the deed, lease or mortgage ; and the 
 consideration mentioned in the instrument of conveyance, must 
 be the same as that mentioned in the order of the Court. In this 
 instance, a nominal consideration (see Text Book, page 58) will 
 not be acceptable. 
 
 Sec. 283. In California, and in the Western states generally, 
 religious corporations not organized for pecuniary profit are 
 required to petition the Superior Court for permission to sell or 
 mortgage property. Notice of intention to sell or to mortgage 
 must be pulished as directed by the Court, and upon hearing of 
 the matter, any member of the corporation may oppose the grant- 
 ing of the order. An agreement to borrow money from such a 
 corporation, or for the purchase of its property, should contain 
 a clause to the effect that the same is made subject to the con- 
 firmation of the Court. 
 
 Sec. 284. In states where the wife is entitled to dower, the 
 contract should contain a clause providing for release of dower. 
 The release of the wife's contingent right to dower is made to 
 the party to whom the husband conveys; it cannot be made to 
 
REAL ESTATE SELF-TAUGHT 45 
 
 the husband himself nor to a stranger. The release must be by 
 grant deed, but in some of the states the mere signing by the 
 wife of the husband's deed is sufficient. A homestead (see Sec. 
 125) may be released by an abandonment of homestead (see 
 Form No. 59) or by both husband and wife executing the deed of 
 conveyance. 
 
 Sec. 285. The tendency in conveyancing at the present time 
 is in the direction of brevity and simplicity. Some conveyancers 
 still use "enfeoff" and "aliene," and the rolling of these and other 
 fine phrases under the tongue with suitable intonation impresses 
 the ordinary mortal that by means of that particular instrument 
 the thing has been everlastingly done, finished, completed, ef- 
 fected, accomplished, performed, executed, achieved, fulfilled, 
 perpetrated and consummated. On the other hand, persons who 
 are not accustomed to lengthy instruments, often exclaim : "My, 
 what a long paper!" In fact, if one wishes to secure a right of 
 way from a farmer, he should make the instrument as brief as 
 possible, as the tiller of the soil thinks that a lengthy paper, even 
 though it be no more binding than a short one, has some secret 
 "hitch" concealed in its sinuous folds. In any written instrument, 
 wherever figures are used, the same should also be written in 
 words; as, for example: Twenty-three and 53-100 Dollars 
 ($23.53); Lot Number 36 (thirty-six), Township Four (4), 
 North, etc. 
 
 Sec. 286. As stated in Section 63, page 31, of Text Book, 
 certain contracts are required by law to be in writing. The laws 
 of California also provide that an agreement for the sale of goods, 
 chattels or things in action, at a price of not less than $200, 
 unless the buyer accepts or receives part of such goods and chat- 
 tels or the evidences, or some of them, of such things in action, 
 or pays at the time some part of the purchase price, must be in 
 writing; but when a sale is made at auction an entry by the 
 auctioneer in his sale book, at the time of the sale, of the kind of 
 property sold, the terms of the sale, the price, and the names of 
 
46 REAL ESTATE SELF-TAUGHT 
 
 the purchaser and person on whose account the sale is made, 
 is a sufficient memorandum. An agreement which, by its terms, 
 is not to be performed in the lifetime of the promisor, or an 
 agreement to devise or bequeath any property, or to make pro- 
 vision for any person by will, must be in writing. 
 
 Sec. 287. Any contract not required by law to be in writing 
 may be made with the same force and effect as if in writing. Pru- 
 dent foresight and the liability of the impressions received on the 
 memory to become dim by lapse of time, and the tendency of 
 each individual to take the view most favorable to his own inter- 
 ests when questions arise regarding the meaning f a verbal con- 
 tract, would indicate that the only safe rule is to reduce all con- 
 tracts to writing. The execution and delivery of a written 
 contract, whether the law requires it to be in writing or not, 
 supersedes all negotiations which preceded or accompanied the 
 execution of the instrument. 
 
 Sec. 288. In addition to the written instruments ordinarily 
 employed, the broker will have occasion from time to time to use 
 other supplementary written evidences in connection with some 
 transactions. Every written instrument, such as a contract, 
 option, etc., should be sufficient in itself to confer all of the 
 rights that the purchaser or option-holder supposed he was ob- 
 taining, and the value of having those instruments carefully 
 drafted and adequate for the purpose intended will be realized 
 only after loss has occurred through the use of defective or in- 
 sufficient writings. In this connection, attention is called to 
 Forms Nos. 113 to 117, both inclusive, relating to an option taken 
 under the following circumstances: A broker submitted to the 
 owner an option, substantially in the form of No. 112, which pro- 
 vides for the owner furnishing an unlimited certificate of title 
 (No. 47) showing the premises free and clear of incumbrances. 
 At the time of signing the option, the owner did not inform the 
 broker, nor did the broker know, that the premises were incum- 
 bered by an easement in favor of the city, in which the premises 
 
REAL ESTATE SELF-TAUGHT 47 
 
 were situated, for a right of way for a pipe line. The broker 
 sold the premises at a profit of about $2,000, and agreed with 
 the purchaser to furnish a deed free and clear of incumbrances. 
 The transfer was placed in escrow with a title company. (See 
 Lesson on Escrows.) When the title company were about to 
 write the certificate of title, they requested the purchaser to waive 
 in writing the easement, and this was the first notice the pur- 
 chaser had that the premises were incumbered by an easement. 
 The purchaser, thereupon, declined to take the premises with the 
 easement. In this transaction, as is the case in many sales of 
 real estate through brokers or option-holders, the owner and 
 the purchaser had not seen each other at all, all negotiations be- 
 tween the parties having been conducted by the broker. In such 
 a case it is advisable for the broker to have written evidence of 
 every step in the transaction in order to show that he is acting 
 in good faith. Upon the refusal of the purchaser to take the 
 premises because of the incumbrance, the broker had the pur- 
 chaser sign Form No. 113, and he presented this, together with 
 Form No. 114, to the owner. Upon ascertaining that the owner 
 would clear the incumbrance from the premises, he then advised 
 the purchaser of the fact as per Form No. 115. When the owner 
 had obtained and filed his deed from the city, quit-claiming the 
 incumbrance to him, the broker then had the title company write 
 up a certificate of title, showing the premises free of incumbrances, 
 and he tendered such certificate to the purchaser with a letter as 
 per Form No. 117. In instances of this kind, it is necessary for 
 the broker to be on the alert and safeguard every step in the ne- 
 gotiations by a writing, if he wishes to keep the parties in line. 
 It is not probable that any broker who reads these lines will have 
 a case precisely similar to the foregoing, and these suggestions 
 and forms are offered merely as thought-savers and time-savers. 
 
 Sec. 289. For a receipt for deposit paid by the purchaser on 
 account of land sold him, use Form No. 2 or Form No. 3, page 
 37, Text Book; for a sale made by the agent, in behalf of the 
 
48 RAI< ESTATE SELF-TAUGHT 
 
 owner, use Form No. 90; for an agreement of sale of land in a 
 city, or for city lots, use Form No. 5, with modifications as to re- 
 strictions, etc., to suit the case; for an option, containing full 
 terms, and giving exclusive right of purchase for a certain length 
 of time, use Form No. 112. 
 
 Sec. 290. For an agreement of sale, which is a continuing 
 option, requiring the buyer to be very prompt in his payments, 
 the seller extending the time from month to month as such pay- 
 ments are made, use Form No. 7. 
 
 Sec. 291. It is always best to have all such agreements made 
 in duplicate or triplicate, and, except as to options, all such agree- 
 ments should be signed by each party, and each party should 
 retain one copy of the agreement. The broker also should keep 
 a copy for his files. 
 
 Sec. 292. In this connection, let the student read carefully 
 Sections 61 to 79, both inclusive, commencing on page 31 of Text 
 Book. 
 
 Sec. 293. Also Sections 80 to 93, inclusive, commencing on 
 page 48 of Text Book, subject "Deeds," and particularly the 
 "Analysis of a Deed," and comments thereon, pages 54 to 63. 
 Also the subject of "Mortgages," Sections 93 to 108, both inclu- 
 sive, commencing on page 75 of Text Book. 
 
 Sec. 294. See Text Book, Section 92, page 59, as to where 
 to get description of property for writing up deed or mortgage; 
 and Section 104, page 78, for clause to be inserted in "Purchase 
 Money Mortgage;" and Section 103, page 78, for wording of 
 clause conferring right to pay off note by paying bonus of inter- 
 est ; see "Conditions," page 56, for wording to be inserted in deed 
 where premises are to be conveyed subject to a mortgage which 
 is to be assumed by purchaser. 
 
 Sec. 295. The following are the forms for which the student 
 and practicing real estate man will have the most frequent use, 
 and they are enumerated here for the sake of convenient reference. 
 
ESTATE SELF-TAUGHT 49 
 
 (a) Assignments: Separate instrument, No. 8, page 44; to 
 be annexed to instrument, No. 9, page 45 ; to be endorsed on 
 instrument, No. 10, page 45 ; of a lease, No. 66, page 162 ; of a 
 mortgage, No. 32, page 87. 
 
 (b) Contracts: Brief memorandum of sale, No. 2, page 37; 
 more complete memorandum of sale, No. 3, page 37; formal 
 memorandum where abstract is to be furnished and examined by 
 attorney or purchaser, No. 4, page 38; contract for sale of land, 
 providing for partial payments, for building restrictions, and for 
 execution and delivery of deed, and delivery of certificate of title 
 upon full payment being made within the time limited, No. 5, 
 page 40 ; agent's agreement of sale, No. 90, page 198 ; owner's 
 agreement with agent, No. 89, page 197; builder's contract, very 
 full and complete, No. 49, page 122; contract for drilling oil 
 wells, giving full details, No. 65, page 157; party-wall agree- 
 ment, frequently used, but not to be found in many works on 
 real estate, No. 83, page 174; contract appointing agents to sub- 
 divide and sell property, very frequently used, and going fully 
 into details, but seldom met with, No. 87, page 183; declaration 
 of trust in respect to property conveyed in trust for the purpose 
 of being subdivided and sold, No. 88, page 187; bill of sale, No. 
 91, page 199; contract of conditional sale, or a sale which is ap- 
 parently a lease, No. 92, page 199; contract to extend mortgage 
 and increase rate of interest, No. 36, page 94; chattel mortgage,. 
 No. 141 ; crop mortgage, Form No. 142; contracts of exchange,, 
 Nos. 109, no and in ; special clauses in lease, Forms 143 to 153, 
 inclusive. 
 
 (c) Deeds: Analysis of a deed, showing the several orderly 
 parts, No. 13, page 55. The student should give this form care- 
 ful study, and should read over carefully, several times, the 
 comments thereon, pages 58 to 63, inclusive. In drawing a quit- 
 claim deed, refer to No. 14, page 63 ; a deed of gift from hus- 
 band to wife, No. 15, page 63 ; a deed to mining lands or mining 
 rights, No. 1 6, page 64; a deed from several grantors to County 
 
50 REAL ESTATE SELF-TAUGHT 
 
 for right of way for road, No. 17, page 65; a deed of right of 
 way for a pipe line to terminate six months after non-user, No. 
 84, 177; of agricultural rights by a corporation, and reserving 
 the mineral rights, thus creating two estates in the land, No. 18, 
 page 66; this form shows also certified copy of resolution of 
 Board of Directors authorizing the officers of the corporation 
 to execute the deed, such resolution being prefixed to, and to be 
 recorded as a part of the deed; of a deed from individuals to a 
 corporation, conveying the minerals, and rights, privileges and 
 easements necessary for extraction and removal of same, the 
 agricultural rights being reserved, and the acquisition of the 
 mineral rights by the corporation being ratified by the holders of 
 more than two-thirds of its issued and outstanding stock, such 
 ratification, in some of the states, being necessary to the validity 
 of the deed, No. 19, page 68 ; of a deed of trust to secure a note, 
 called "Trust Deed," No. 34, page 90; of reconveyance of trust 
 property, No. 35, page 93. 
 
 Sec. 296. Ground rent leases, where the law permits of their 
 being made for from thirty to fifty years, are popular at present 
 in large cities. The owner of the ground prefers to retain the 
 title and await the increase in value which will come by lapse of 
 time, rather than to sell. The lessee, on the other hand, rather 
 than to buy at prevailing high prices, prefers to take a long-time 
 lease, upon such terms as will enable him to calculate a fair margin 
 of profit after paying the ground rent, cost of improvements and 
 maintenance. A broker will find it greatly to his advantage, where 
 parties wish to enter into a contract or lease, in regard to which 
 there must be more or less negotiation pro and con before the 
 final terms are all embodied, to submit an outline or synopsis along 
 the lines desired by his client and containing also such other pro- 
 visions as ordinarily go into a document of the kind. He will 
 find that this will not only facilitate the negotiations, but will come 
 in the nature of a surprise to his client, who will compliment him 
 on his tact and knowledge. A long-time ground-rent lease is one 
 
ESTATE SELF-TAUGHT 51 
 
 of the most difficult of instruments to draft, as there are so many 
 contingencies to be provided for, and a first-class attorney would 
 charge at least five hundred dollars for drawing a lease such as 
 that here outlined. Leases of this kind are made in two ways: 
 (i) Where the improvements to be erected by the lessee are only 
 nominal in value, provision is made that all such buildings, struc- 
 tures and improvements shall be and become the property of the 
 lessor, and no compensation therefor shall be due, allowed or paid 
 therefor to the lessee. (2) Where the improvements are extra- 
 ordinary, as in the case of a hotel or business block, provision is 
 made for the appraisal of the improvements at the end of the term, 
 as provided in Form No. 146. To indicate what such a lease 
 should contain, the following outline is given : 
 
 Sec. 297. Synopsis or outline for a ground-rent lease : 
 
 1. Date, names and residences of parties, lessor, or party of 
 the first part, lessee, or party of the second part. 
 
 2. Witnesseth, that, lessor, in consideration of rents and cov- 
 enants to be paid, kept, performed and fulfilled on part of lessee, 
 does demise and lease unto lessee the premises, situate in City, 
 County and State (description). 
 
 3. Habendum (to Have and to Hold), see Form No. 124, 
 "Yielding and Paying," etc. (Where the rent is payable monthly 
 in advance for a number of years, it is the custom, in some in- 
 stances, to require the rent for the first month and for the last 
 month of each year, to be paid in advance at the beginning of the 
 year, for the better assurance of the lessor; and this can be pro- 
 vided for in the lease, if desired). 
 
 4. Rent reserved is to be paid in standard gold coin of the 
 United States; dollar defined as containing at least 25.8 grains 
 of gold of standard weight and fineness observed at mints of 
 United States at date of lease ; acceptance by lessor of currency, 
 legal tender, checks, coin, money or value whatever, except stand- 
 ard gold coin for any installment of rent shall not be waiver of 
 
52 REAL ESTATE SELF-TAUGHT 
 
 his right to demand gold coin in payment of any other installment 
 or installments. 
 
 5. As a further consideration, lessee further covenants to pay 
 and discharge, in addition to said rent, all rates, taxes, charges for 
 revenue, assessments and levies, general and special, ordinary and 
 extraordinary, including water rates, electric light and gas rates, 
 assessed, levied or imposed on said premises, or upon any and all 
 buildings thereon, during said demised term, commencing with 
 
 the taxes for the fiscal year ; same shall be made in the 
 
 name of lessor, be paid at least five days before delinquency, and 
 duplicate tax receipts therefor delivered to lessor. 
 
 6. Lessee agrees to erect, finish and complete, at his own cost 
 and expense, upon said premises, a (here describe building) and 
 have the same completed and ready for occupancy and fully 
 
 paid for by 
 
 Said building shall be erected under the inspection and to the 
 
 satisfaction of the Building Superintendent of the City of 
 
 Said building shall cost at least 
 
 dollars ; plans and specifications therefor shall be 
 
 approved by lessor as to general design, method of construction, 
 strength of materials and cost of building. If lessor shall not 
 approve plans and specifications submitted to him, they shall be 
 submitted to a board of three architects, one to be appointed by 
 lessor, one by lessees, and the two so appointed to select a third ; 
 a majority report of said board on said plans and specifications 
 shall be final, and the building shall be erected in accordance 
 therewith. If the plans and specifications are not so approved by 
 said board, then further plans and specifications must be prepared 
 and submitted in like manner. 
 
 7. Covenant that there shall be no mechanics' liens upon any 
 building or improvement which shall be upon said premises; but 
 if there should be, lessee must pay off same, and if default in 
 payment thereof shall continue for thirty days, lessor may pay 
 off same, and the amount so paid, including expenses, shall be so 
 
REAL ESTATE SELF-TAUGHT 53 
 
 much additional rent payable at the next rent day, with interest 
 thereon at the rate of seven per cent per annum ; or lessor may, at 
 his option, terminate the lease; and if lessor shall conclude or 
 determine that his estate may or might suffer injury or damage by 
 reason of the filing of any lien or suit to foreclose the same, he may 
 require lessee to give bond. 
 
 8. Covenant that the premises shall not be used for any im- 
 moral or unlawful purposes; and that said lessee will indemnify 
 and save harmless lessor from any loss, damage or expense arising 
 out of any accident or other occurrence causing injury to any 
 person or property, and due directly or indirectly to use of said 
 premises by said lessee, or any person holding under him. 
 
 9. Covenant as to removing or tearing down buildings only 
 upon written consent of lessor and upon the following condition 
 precedent being first fulfilled: Lessee shall first execute and 
 deliver to lessor a contract, guaranteed by two good and sufficient 
 
 sureties, agreeing to pay lessor dollars 
 
 within two years of the date thereof, said contract to provide that 
 inasumuch as it is impossible to determine upon the exact damages 
 and injury which lessor will suffer by reason of the failure of 
 lessee to construct a building or buildings upon said premises 
 
 within said two years, said sum of dollars 
 
 shall be considered as liquidated damages, and lessee shall be 
 estopped from asserting same as a penalty; or lessee, if he elects, 
 
 may, in lieu of sureties, deposit dollars with 
 
 Trust Company upon the conditions 
 
 above mentioned. 
 
 10. Covenant as to insurance. See Form No. 144. 
 
 11. Covenant as to owner's right to post notices. See Form 
 No. 145. 
 
 12. Covenant as to appraisal of buildings. See Form No. 146. 
 
 13. Lessor's warranty. See Form No. 147. 
 
 14. Covenant to pay rent. See Form No. 148. 
 
 15. Covenant not to assign lease or sublet premises. See 
 Form No. 149. 
 
 1 6. Heirs and assigns bound. See Form No. 150. 
 
 17. Testatum clause. 
 
54 REAL ESTATE SELF-TAUGHT 
 
 LESSON VIII. 
 
 OF MAKING TRANSFERS IN ESCROW 
 
 Study Sections 109 to 121, inclusive, of Text Book 
 
ESTATE SELF-T AUGHT 55 
 
 LESSON IX. 
 
 OF RENTING AND INSURING 
 
 In this connection study Section 127, pages 134 and 135, of the 
 Text Book. 
 
 Section 297. RENTING. All persons who are qualified to 
 hold real estate and who labor under no disability, may make a 
 lease. A tenant for life can make a lease only to the extent of his 
 interest. Joint tenants and tenants in common may make leases 
 jointly and severally. When joint tenants join in a lease, it is 
 only one lease, as they have only one estate. 
 
 Sec. 298. Every lease should be in writing, and should 
 specify : 
 
 (a) The date on which the tenancy is to commence ; 
 
 (b) How long the tenancy is to continue; 
 
 (c) The days whereon, and the place where, the rent is 
 payable ; 
 
 (d) Conditions which the landlord may deem necessary to 
 protect his interests, such as that the tenant shall not sell liquor 
 on the premises, nor conduct a disorderly house, etc. ; 
 
 (e) And should provide that upon the failure of the tenant 
 to pay the rent, or upon his violation of any of the covenants of 
 the lease, the landlord may terminate the lease, re-enter and oust 
 the tenant. 
 
 See Form No. 60 which contains covenants well adapted to 
 the leasing of a dwelling house. Also, synopsis of a Ground 
 Rent lease, Sec. 296. 
 
 Sec. 299. Any personal property belonging to the landlord, 
 and left on the premises for the use of the tenant, should be listed 
 item by item, in a separate paper, be headed "Exhibit A," and 
 be attached to the lease, and be referred to as such in the lease. 
 
56 REAL ESTATE SELF-TAUGHT 
 
 Sec. 300. If the tenant intends to add anything in the way 
 of fixtures to the landlord's premises, he should be given the 
 privilege to do so in the lease, together with the right to remove 
 such fixtures while entitled to possession or within a reasonable 
 time thereafter. If the tenant does not exercise his privilege to 
 remove his fixtures before his lease expires, he cannot lawfully do 
 so afterwards, unless provision therefor is made in the lease, as 
 the right to re-possess the land, and also the fixtures as a part of 
 the land, vests immediately in the landlord. 
 
 Sec. 301. Firms and corporations who carry on the renting 
 of houses and other buildings on an extensive scale, have the 
 matter of giving out lists of such houses or buildings to intending 
 renters reduced to a system. The forms in use by Wright & 
 Callender Company, one of the largest real estate and rental con- 
 cerns in Los Angeles, for the rental of houses, are shown in 
 numbers 123 to 125 inclusive. The use of forms such as these 
 puts inquirers on their honor, and enables the agent to secure his 
 hard-earned commission, and prevents the dishonest and slippery 
 renter from getting a foothold before he has paid his rent. The 
 rental and the selling branches of the real estate business go well 
 together, although the former is less remunerative and involves 
 more detail than the latter. It sometimes happens that a would- 
 be renter cannot find a residence to suit him, and he then is in a 
 mood to buy particularly after he has looked in vain for a week 
 for a suitable house to rent. 
 
 Sec. 302. The mutual obligations of the lessor and lessee 
 under a lease are fixed almost entirely by the covenants of the 
 lease. Covenants in a lease to make repairs, to pay rent, to 
 cultivate land in a certain manner, for quiet enjoyment of the 
 premises, and all implied covenants, run with the land. If a lessor 
 assigns the remainder of a term of a lease, his lessee is liable on 
 the covenants running with the land. If the assignment is for a 
 shorter term than the remainder of the term of the original lease, 
 even by one day, the transfer is not an assignment, but is a sub- 
 
REAL ESTATE SELF-TAUGHT 57 
 
 .ease, and in such case the sub-lessee is liable to the lessee and not 
 to the original landlord. 
 
 Sec. 303. A good many landlords object to children, and a 
 prominent real estate broker in speaking on this subject, said: 
 "The childre n of today are not brought up as they should be. 
 Discipline is not taught and applied as in the old days. In my 
 boyhood days, discipline meant respect to your elders, subordina- 
 tion to authority and education in morals and manners as well as 
 in schooling. It also meant punishment for errors committed as 
 a preventive for the future. At the present time, parents seem to 
 think their children can do no wrong and consequently are not 
 reprimanded or corrected. The result is that many of the children 
 of today are nuisances and objectionable in many ways, espe- 
 cially to owners of real estate, whose property is disfigured or 
 destroyed by these young free lances. The old proverb, 'Spare 
 the rod and spoil the child,' is just as good now as when it was 
 written. Owners and agents, if they draw strict rules against 
 children, cannot be blamed, as they have suffered from children's 
 misdeeds and lack of discipline and have to safeguard themselves 
 against further troubles and losses." 
 
 Sec. 304. An agent should familiarize himself with the laws 
 of his State in respect to giving tenants notice to quit within the 
 time prescribed by law. 
 
 Sec. 305. INSURING. In this connection, study Section 
 122, page 101, of Text Book. A broker should endeavor to se- 
 cure an agency for underwriting fire insurance in some of the 
 well-known companies. Boards of insurance underwriters govern 
 the placing of fire insurance in large cities and real estate brokers 
 doing business in an ordinary way oftentimes place insurance for 
 their clients through insurance agents who make a specialty of 
 insurance. The broker should call the attention of all of his 
 friends and acquaintances to the fact that he places insurance 
 and request that they favor him when in need of insurance. 
 
58 REAL ESTATE SELF-TAUGHT 
 
 Sec. 306. A veteran underwriter recommends that the ama- 
 teur agent study the copy of the printed form of a policy of fire 
 insurance, as that contains the law of the contract. Any and all 
 persons who carefully read, study and follow the wording of the 
 policy cannot make an error that will void the contract. In all 
 insurance policies the words "where," "when" and "how" must be 
 kept in view. Applying each of these words in its proper place 
 will enable anyone of ordinary education to write up a proper 
 contract of fire insurance. The tendency among agents in making 
 up policy forms is to enumerate every class of goods that might 
 come under the head of the item intended to be described. This 
 frequently leads to results not intended. In a recent case, the 
 Court held that a policy covering "stock of family groceries, cases, 
 lamps, scales and other merchandise for sale," covered cases, 
 lamps and scales not for sale, and in another case the policy cov- 
 ered" lumber piled in mill building, on cars, under mill sheds, and 
 in sheds adjoining to said mill building." The court held that 
 lumber sheds from 75 feet to 200 feet distant were "mill sheds" as 
 described in the policy. The following are recommended as 
 suitable forms for the several classes of property named : 
 Dwelling and Contents. 
 
 $ On the story building, including side- 
 walks, awnings and all fixtures and appurtenances attached thereto 
 and being part thereof, while occupied only as a family dwelling- 
 house, situate and 
 
 $ On all furniture and household personal effects of 
 
 the insured, his family and servants, not prohibited and or excepted 
 in the printed conditions of this policy, while contained in above 
 described dwelling-house. 
 
 Mercantile Building and Stock Form. 
 
 $ On the story building, including side- 
 walks, awnings and all fixtures and appurtenances attached 
 thereto and being a part thereof, while occupied for mercantile 
 purposes only, situate 
 
REAL ESTATE SELF-TAUGHT 59 
 
 $ On all furniture, trade fixtures, supplies for store and 
 
 office use, tools, machines and appurtenances used in the business, 
 not kept for sale, and not excepted in the printed portion of this 
 policy. 
 
 $ On all merchandise of every description kept for sale, 
 
 and not excepted in the printed conditions of this policy, consist- 
 ing principally of all and only while contained in the above 
 
 described building and on and under its sidewalks. 
 Manufacturing Plant. 
 
 $ On the story building, including open 
 
 platforms and open scales adjoining, and all fixtures and appurt- 
 enances attached thereto and being a part thereof, other than 
 manufacturing fixtures and appurtenances, while occupied as 
 a power flour mill. 
 
 $ On all machinery, tools, implements, furniture, ap- 
 paratus, mill and office supplies not kept for sale and not pro- 
 hibited and/or excepted in the printed portion of this policy, and 
 all fixtures and appurtenances directly connected with flour 
 handling and manufacturing, except boilers and connections and 
 the main power engines. 
 
 $ On all boilers, piping to first joint, and all appurt- 
 enances attached thereto, and main power engines, fly wheels, and 
 engine and fly wheel shafting to first connection. 
 
 Sec. 307. A mortgagee has an insurable interest, but it is not 
 good underwriting for Company A to write $1,000 on the mort- 
 gagee interest and Company B to write $1,000 on the mortgaged 
 property. In case of a $1,000 loss, A would pay the mortgagee 
 and B would pay the owner. It is safer to write the policy in the 
 name of the owner, with the loss, if any, payable to the mortgagee 
 as his interest may appear. This rule also applies to insurable 
 property sold on a contract for a deed, or where same is sold on the 
 installment plan, and wherever there are two or more parties 
 having equities in the same property. 
 
 Sec. 308. Leaving the blank for the amount of other or total 
 insurance permitted unfilled is one of the worst features of under- 
 
OO REAL ESTATE SELF-TAUGHT 
 
 writing, as it permits unlimited insurance without regard to the 
 value of the property or the character of the insured. 
 
 Sec. 309. The permit for other insurance as usually written 
 is not as clear as it seems on its face. It has been held by the 
 courts that a policy for $2,500 with $2,500 total concurrent insur- 
 ance permitted, allowed $2,500 additional, or $5,000 in all. The 
 safest form is to write: "$2,500 total insurance permitted, in- 
 cluding the amount of this policy." 
 
 Sec. 310. The broker should keep a correct record of each 
 policy with full description of the property, date of policy, amount, 
 and date when same expires and reduce the dates of expiration 
 to a system so that such dates will be called to his attention 
 almost automatically. Record books, especially designed for the 
 recording of policies, are furnished by some of the insurance 
 companies; and they also furnish all blanks that are required to 
 be attached to policies, and blanks for reports to principal agency. 
 A good many owners are careless in respect to renewing their 
 insurance and rely on the agent to look after the matter for them, 
 and if the agent fails in this regard, they think he has neglected 
 their interests and feel aggrieved as well as alarmed that their 
 property is not protected against loss. Besides, other agents are 
 in the field and competition in the insurance line is keen. Vacancy 
 permits, good for sixty days, usually form part of the policy on 
 dwellings. Should any premises, under the charge of the agent, 
 become vacant, he should see that a vacancy permit is attached 
 to the policy of insurance, if no such permit is contained in the 
 policy itself. Vacancy is regarded by insurance companies as a 
 decided increase of hazard and agents are cautioned to be guarded 
 in granting permits therefor. If the vacancy extends over sixty 
 days, a two-thirds value clause permit is attached, specifying cer- 
 tain requirements as to the care of the property, and if these are 
 not complied with the policy becomes void. Fire insurance under- 
 writing, if vigorously pushed and properly looked after, is in itself 
 a remunerative feature of the real estate broker's business. 
 
REAL ESTATE SELF-TAUGHT 61 
 
 LESSON X. 
 
 OF SUBDIVIDING. 
 
 Sec. 311. In this connection study Sections 134 to 139 of 
 Text Book, together with Forms Nos. 87, 88 and 167. 
 
 Sec. 312. In addition to the three modes of placing subdi- 
 visions on the market, as mentioned in Sec. 134, there are at least 
 two other ways, namely : First, by organizing a corporation, and 
 issuing stock to the incorporators according to their respective 
 interests, and letting them share in the expenses and participate 
 in the earnings in proportion to their holdings of stock. In such 
 case, all of the details of the subdivision become a matter for the 
 directors and officers to act upon and execute. Second, by dividing 
 the estimated expenses of the subdivision into an equal number 
 of units and taking subscriptions for such units, as set forth in 
 Form No. 155, payments on account of such subscriptions being 
 made as indicated in said agreement. 
 
 Sec. 313. Where the property is placed on the market, indi- 
 cated in Forms Nos. 88 or 155, a payment is made to the owner 
 by the person or persons engineering the deal, and the owner 
 thereupon conveys the property to a trust company or bank ab- 
 solutely, and such deed is placed of record, so that the trust com- 
 pany or bank appears of record as the sole owner. The trust 
 company or bank issues a declaration of trust, similar to that 
 shown in Form No. 88, and bearing the same date as the deed, 
 but this declaration of trust is not placed of record, for the reason 
 that, if it were placed on record, all of the parties to it would 
 have to join in each deed or contract for the conveyance of lots. 
 The trust company or bank is in a safe position, as the title to 
 the property is vested in it, and it receives and handles all of the 
 moneys and makes partial payments on the indebtedness due the 
 owner until such indebtedness is extinguished. The taxes, ex- 
 
62 REAL ESTATE SELF-TAUGHT 
 
 penses and commissions are also paid by the bank or trust com- 
 pany, the bills therefor being first O. K.'d by the beneficiary or 
 subdivides Form No. 155 is a plan devised by Mr. J. B. Leiser, 
 of Los Angeles, and is designed to assure the investors in a sub- 
 division proposition that they will receive fair and equitable treat- 
 ment at the hands of the agent. A subscription agreement, such 
 as this, ought to make it easier for an agent to induce capitalists 
 to join him placing a tract on the market. 
 
 Sec. 314. Lots in subdivisions are usually sold on contracts 
 (Form No. 7) which are neither acknowledged nor recorded. 
 The contract-purchaser does not appear at all in the public 
 records as the owner of the lot he has purchased. The contract- 
 purchaser in such case has to depend a good deal on the integrity 
 and financial responsibility of the subdivider, and oftentimes the 
 latter is deeply indebted to the owner for the lots. In a recent in- 
 stance, a party purchased a number of lots at $150 each and paid 
 cash in full for them. He sold the lots on contracts at from $300 
 to $600 each, payable one-third in cash, and the balance in six 
 months and twelve months, with interest on the deferred pay- 
 ments at 7% per annum, payable semi-annually. Desiring to raise 
 money to buy more lots, he borrowed from another party on the 
 lots he already owned a considerable sum, giving his note therefor, 
 secured by a deed of trust on the lots, with privilege of having 
 any lot released from the trust deed upon the payment of $200 in 
 cash, this provision being inserted to enable him to make delivery 
 of the lots to his contract purchasers as they made their last pay- 
 ments. He failed to pay his note, became bankrupt, and the other 
 party became owner of the lots, and the contract-purchasers lost 
 what they had paid for the lots. Contracts for the sale of lots 
 should be just and equitable in their terms, both to the seller and 
 to the buyer. Form No. 154 is an example of a loose- jointed 
 contract, wherein the payments made are treated as so much rent, 
 and which provides, in two instances, that the seller may, in lieu 
 of doing what he is supposed to agree to do, return to the pur- 
 
ESTATE SELF-TAUGHT 63 
 
 chaser the money paid with 6% interest thereon, and gives notict 
 that the contract issued to the buyer is based on a prior contract 
 between the seller and another party, leaving the buyer to draw 
 the inference, if he is shrewd enough to do so, that if the pro- 
 visions of the prior contract are not carried out by the seller, the 
 contract with the purchaser will fail also. The purchaser rarely 
 takes the precaution to ascertain what the provisions of such 
 prior contract are. The profits on subdivisions, when carried on 
 in a legitimate way, are ample enough, and the small investor 
 should be assured that when he has paid for his lot he will receive 
 a marketable title and fair treatment. 
 
 Sec. 315. Form No. 156 is a Sales Report to be used by the 
 tract agent in making daily reports to the main office of sales 
 made by him. The tract agent turns in daily to the main office 
 one of these slips for each lot sold by him, together with the 
 amount of the deposit thereon received by him. By means of 
 these reports, the main office is kept advised as to lots sold, who 
 the purchasers are, and when they will call to receive and sign 
 contracts of sale. 
 
 Sec. 316. Payments on lot-contracts are made direct to a 
 bank or trust company, if sold by the latter. Where the lots are 
 sold by an individual, the lot-contracts are generally placed in a 
 bank, and the purchasers are notified to make payments at the 
 bank (as a matter of convenience) for the account of the seller. 
 Lot-contracts are issued in duplicate, and the purchaser, when he 
 makes a payment, brings his contract and has the payment en- 
 dorsed on the back thereof as per form No. 157. The contract 
 held by the bank is kept in an envelope like form No. 158. 
 
 Sec. 317. Restrictions as to the value of the building, and 
 the distance it is to be from the front line of the lot and from the 
 side line, and as to prohibiting the conveyance of the premises to 
 any but members of the white race (see Forms Nos. 5 and 87) 
 have been pretty generally adopted in respect to high-class subdi- 
 visions of late years. A good deal has been said pro and con as to 
 
64 REAL ESTATE SELF-TAUGHT 
 
 the value of building restrictions. It has been argued that these 
 restrictions are handed down indefinitely from seller to buyer and 
 impose needless hardship on one's liberty to do as he pleases. The 
 tendency at the present time is to so word restrictions that they 
 expire by limitation after a certain time, say five years. When 
 lots in a high-grade subdivision are first placed on the market, 
 restrictions are of value in assuring purchasers that the lots in the 
 tract will be improved in a corresponding and uniform manner. 
 
 Sec. 318. In placing a subdivision on the market, the at- 
 tractive features, such as desirability and easy access of location, 
 water piped to every lot, cement sidewalks and curbs, graded 
 streets, fountains, parks, and archways at the entrance of the 
 principal streets, should be carefully thought out and executed. 
 As soon as the tract has been surveyed, a plat of same should be 
 made, and the tract should then be well advertised, and induce- 
 ments, such as a discount, offered to early investors. An opening 
 day should then be announced, and free transportation offered, ob- 
 tainable at the town office of the tract. Interest in the tract 
 should be worked up in every possible way, and one or more 
 agents should be on the tract daily to show lots to intending pur- 
 chasers. A quarter-page, half-page or whole page of one or more 
 newspapers should be covered with a well-displayed advertisement 
 of the tract. Wealthy people have their homes in courts and 
 places where they are exclusive to some extent by reason of price 
 as well as by entrance gates and archways, and the entrance gate 
 and the archway are factors to be reckoned with in opening up 
 tracts for the so-called middle classes. While the advertising and 
 hurrah goes on, lots sell readily, as a rule, in new tracts, but the 
 sale lags when the interest fags. 
 
 Sec. 319. Lots are sometimes auctioned off with brass-band 
 and barbecue accompaniments. The following are extracts from 
 a recent announcement of an auction sale of this kind : 
 
 Grand Auction Sale of Business and Residence Lots and 
 acreage at the new townsite of BENEDICT on the new Santa 
 
REAL ESTATE SELE-TAUGHT 65 
 
 Ana Electric Railroad, 30 minutes' ride from Los Angeles. Com- 
 mencing Saturday, March ijth, 1906, at 10 a. m., and continuing 
 on following Monday if lots not all sold. Call at our offices for 
 particulars. Lots valued at $2,000 given away free. 
 
 We desire the ladies present. A large number of ladies always 
 attend our sales, and they are often the shrewdest buyers. Hun- 
 dreds of families are living in their own homes today, because 
 the good wife bought a lot at our sales. We are always glad to 
 see them, and pay especial attention to lady buyers. 
 
 We have arranged very easy terms, that will enable each and 
 every one so desiring to buy a lot and pay for it without missing 
 a dollar so expended. The terms will be only $25 down on each 
 lot, balance payable $10 per month. An unlimited certificate of 
 title will be furnished with each purchase free. 
 
 Remember, we make an auction sale of this Townsite in order 
 that a large number of investors may become interested with us 
 quickly. We expect to get value for this subdivision, because we 
 believe that our loss now will be your gain, and because we are 
 convinced that our present loss will be more than compensated by 
 the enhancement in value of the lots remaining unsold. After 
 having spent months in looking cfver Southern California and 
 studying its prospects for the future, we have every reason to 
 believe that there is not a foot of ground anywhere in Benedict 
 but will sell, in a short time, for five to ten times the auction 
 prices. We have the best and most healthful climate, and the 
 most productive soil in the world. These well-known facts are 
 yearly drawing thousands upon thousands of families from the 
 East; and, after spending one year in our delightful climate, 
 very few there are who will be satisfied to endure again the rigors 
 of an eastern winter. Tell us where a man can find more to 
 please and benefit him than in the beautiful townsite, Benedict, 
 on the electric car line, thirty minutes' ride from Los Angeles. 
 
 Five lots worth $2.000 given away free during the sale. The 
 lots are given away simply as an advertisement to call the at- 
 
66 REAL ESTATE SELF-TAUGHT 
 
 tention of the general public to our tract, as we know that the 
 distribution of these presents will attract the attention of many 
 persons who otherwise would not attend our sales ; and if they 
 once see the desirability of our lots for residential purposes or 
 speculation, and the low prices for which they will be sold, the 
 public will undoubtedly purchase in our tract, instead of in some 
 less favored localities. 
 
 Remember, no one need buy, or even bid on, a lot to receive 
 the presents. They are given away Absolutely Free to those who 
 attend the sale as well as to those who do purchase. 
 
 How the lots are given away : Every man and woman who 
 attends these sales will receive a ticket free entitling them to par- 
 ticipate in the Grand Distribution, providing they are at the sales 
 before 1 130 p. m. Coupons will be taken up at 1 130 p. m. each 
 day, and lots will be given away at different times until the sale 
 is over, which will be about 4 p. m. Don't fail to come. The lots 
 are free. No lottery. No charge. 
 
 COMPLIMENTARY: This ticket No. 15935 
 Entitles the bearer (if at the sale) to participate in the GRAND 
 DISTRIBUTION of $2,000 WORTH OF LOTS to be given 
 away FREE at the GRAND AUCTION SALE OF LOTS AND 
 ACREAGE at town of BENEDICT on Santa Ana Electric Line, 
 Saturday, March 17, 1906, at 10 a. m., or at any postponement 
 thereof. (Good for anyone over 18 years of age, whether he 
 purchases or not.) 
 
 (Coupon) No. 15935 
 
 Tear off this coupon and give to collector on tract. KEEP 
 LARGE PART until drawing is over. 
 
REAL ESTATE SELF-TAUGHT 67 
 
 LESSON XL 
 
 OF BUILDING AND WRECKING 
 
 Section 320. In this connection, study Sections 124 and 125 
 of Text Book, pages 115 to 132. 
 
 Sec. 321. The real estate broker should make the erection of 
 buildings a study, so as to familiarize himself with the technical 
 terms employed among builders, and for the purpose of learning 
 how to build economically and attractively. A broker who does 
 not object to frequent removals can erect a home according to 
 the latest and more pleasing designs, paying particular attention 
 to the decorations on the front exterior and in the interior, and 
 after he has tastefully furnished the house and occupied it for n 
 time, offer it for sale. He can sometimes effect the sale of his own 
 house by first offering a customer an inferior house at about the 
 same price, and remarking incidentally that he might sell his own 
 place. 
 
 Sec. 322. A broker can sometimes organize a building tri- 
 umvirate consisting of a banker, a lumber dealer and the broker, 
 and these three can operate together to very good advantage, 
 either as partners or through a corporation created for the pur- 
 pose. The banker supplies the money, the lumber dealer the 
 building materials, and the broker attends to the erection and sale 
 of the houses. 
 
 Sec. 323. An energetic and resourceful broker can always 
 find avenues of profit in which to direct his talents. 
 
 Sec. 324. Where a city undergoes a great change in the way 
 of structural improvement within a short time, or where fire, 
 earthquake or tornado leave structures in a dilapidated condition, 
 the removal or razing of old buildings to make room for new ones 
 becomes a business of itself the business of wrecking, and is 
 carried on by men or corporations known as "wreckers." Stately 
 
68 RAL ESTATE SELF-TAUGHT 
 
 piles that were once pointed to with pride by the early inhabit- 
 ants are razed to the ground without exciting more than a passing 
 comment from the bustling humanity of our later days. There is 
 method in the seeming madness of the wrecker, and the wrecking 
 of buildings has grown of itself into an important industry. The 
 process of demolition is not, however, a simple one by any means. 
 Every brick and stone must be preserved ; every board or piece of 
 timber must be carefully laid aside ; every iron brace, and iron and 
 lead piping, the tin from the roof and the window glass must be 
 saved. These all have a value and many new buildings are partly 
 constructed out of the material saved by the wrecker. In the 
 event the wrecker is also in the building or lumber business, as is 
 often the case, he can himself utilize the dismantled material to 
 good advantage. When the wrecker is asked to make a bid for 
 the demolition of a building, he first goes carefully over the entire 
 structure for the purpose of ascertaining how much of the ma- 
 terial may be saved and used again; he makes notes as to the 
 construction of the building and estimates as to the quantity of 
 lumber, brick, stone, sash, doors, iron and lead piping, windows and 
 window glass and of everything he calls "salvage." From these 
 notes and estimates lie figures out what the cost of razing the 
 building will be, and in nine cases out of ten, he makes the owner 
 an offer for the building outright, as it stands. In any building 
 that is demolished, there is considerable waste, and only an expert 
 can tell what will be realized from the salvage. The man in charge 
 of the job has prices on all of the salvage material and he sells as 
 much of it as possible on the ground. The portion not sold is re- 
 moved to the wrecker's yards. In most cases the destruction com- 
 mences at the roof and proceeds downward, for the purpose of 
 saving material; but where the material is of little value, the 
 foundations are jerked out and the structure allowed to collapse. 
 
ESTATE SELF-TAUGHT 69 
 
 LESSON XII. 
 
 OF SPECULATING AND SYNDICATING. 
 
 In this connection, study first "How and Where to Buy," Sees. 
 35 to 60, inclusive, pages 15 to 30, inclusive, of Text Book. Also 
 "Booms and Panics," Sees. 158 to 163, inclusive, pages 202 to 208 
 of Text Book. Persons who desire to pursue the subject of City 
 investments further than explained in this course, should procure 
 a copy of "Principles of City Land Values," by Richard M. Kurd. 
 
 Sec. 324. The laws of speculation are not well understood; 
 in fact, they may be considered as not well established. 
 
 Sec. 325. There is a wide and essential difference between 
 merchandising and speculation, although these two things are apt 
 to be confounded together in theory and practice. A merchant 
 or storekeeper has customers upon whom he must always be ready 
 to attend, and he depends upon small but regular gains. A specu- 
 lator has no customers and he relies on sudden and eccentric en- 
 richment. 
 
 Sec. 326. To the successful speculator, three things are es- 
 sential time, capital and courage, and these three are of little 
 value without a fourth, and that is judgment. As shown in Section 
 36, page 15, of Text Book, judgment is that faculty of the mind 
 which, more than any other, distinguishes one man from another. 
 The successive mental states through which the mind passes in ar- 
 riving at judgment are set forth in the following section. 
 
 Sec. 327. (a) Judging involves materials for judgment 
 ready to hand, and a process of reflecting on these, in order to see 
 to what result they point. The materials are supplied by personal 
 experience or by the words or testimony of others. Judgment 
 rests largely on one's own experience and cannot be accurately 
 exercised until the mind has long been storing up materials for it 
 by unbiased observation and reflection. 
 
70 REAL ESTATE SELF-TAUGHT 
 
 (b) To come to a sound decision on a matter of any diffi- 
 culty, such as the prospective value of a parcel of real estate, 
 implies that the mind rejects what is irrelevant, steadily keeps 
 in view all the relevant facts, and weighs well the bearing of 
 each fact on the case. 
 
 (c) Judgment, to be perfect, must be clear and accurate, and 
 be exercised with reasonable promptness. Judgments formed 
 under the influence of strong emotion are in general characterized 
 by vagueness and exaggeration. One must not passively adopt 
 the views of others without seeking to make them his own by per- 
 sonal observation and reflection. 
 
 (d) An accurate judgment is one which corresponds pre- 
 cisely to the realities presented and which faithfully expresses the 
 relation of things. 
 
 (e) A certain degree of promptness in decision is a condition 
 of a good faculty of judging. A mind drawn hither and thither 
 by conflicting tendencies, and unable to master these, is weak in 
 judgment. (Sully.) 
 
 (/) It will be observed that men of good judgment usually 
 decide promptly after coming into possession of all the facts. 
 
 (g) A man's judgment concerning real estate may be ex- 
 cellent and yet be suspended or be not exercised, for any one of 
 these reasons: 
 
 1 i ) Because of being completely occupied with other matters ; 
 
 (2) Because of unpreparedness ; i. e., the lack, at the time, 
 of funds with which to take advantage of the opportunity ; 
 
 (3) Because of prejudice; that is, an unwarranted dislike to 
 a certain locality. 
 
 Sec. 328. All speculation has reference to a future and the 
 question of time is always involved. Results are hardly ever 
 immediate; time is required in which to bring about changed 
 conditions. A speculator must have some capital, or at least a 
 small portion of capital and a large portion of credit, or the co- 
 operation of those who have both capital and credit. The specu- 
 
ESTATE SELF -TAUGHT 71 
 
 lator must have nerve and confidence ; he must not keep the nickel 
 so close to his eye that he cannot see the dollar beyond. 
 
 Sec. 329. A merchant must be active; a speculator must be 
 patient. Ordinarily, a speculator can only be watchful and bide 
 his time, as the changes which are about to occur and from which 
 he anticiaptes good fortune may be entirely beyond his control, 
 and may be happening thousands of miles distant. In real estate 
 speculation, however, these changes are confined to a circum- 
 scribed area and their speed may be accelerated by "booming" 
 and advertising on the part of the speculator. There is a proper 
 time to buy and a proper time to sell, and decisive action must be 
 taken before the turn of the tide. 
 
 Sec. 330. In speculating in a commodity, such as wheat or 
 cotton, the speculator studies statistics, and takes note of great 
 political and commercial changes. After he has ascertained the 
 average price for a number of years on a particular commodity, 
 exclusive of extreme cases, he buys when the price has fallen below 
 that average. 
 
 Sec. 331. Speculation is an exception in business, arising out 
 of derangements of trade, or out of the impossibility, or seeming 
 impossibility, of adjusting the supply to the demand. Speculation 
 has a tendency to readjust trade, as, when prices are low, every 
 purchase that is made has a tendency to raise the price. Trade 
 is steady and uniform and can be carried on at all times ; specu- 
 lation can be conducted only occasionally and when opportunity 
 offers. Trade is certain; speculation unstable. 
 
 Sec. 332. Let it be understood that speculation may be di- 
 rected to any property or article which is, or is likely to be, 
 plentiful or scarce, or may be directed to a variety of properties or 
 articles, so that the speculator may have under way at one time 
 the beginning of one speculation by purchase and the ending of 
 another speculation by sale, and the irregularity which is one of 
 the characteristics of speculation can in this way be turned into 
 regularity. As considerable time is required to mature any one 
 
72 REAL ESTATE SELF-TAUGHT 
 
 speculation, the wise speculator does not invest all of his disposable 
 means in any one venture, but in several ventures, at various 
 times, so that they are in different stages, some commencing, 
 others terminating. He thus reduces speculation to the nature of 
 a regular trade and makes it more uniform and safe. In real 
 estate speculation, this uniformity is in a measure secured by tak- 
 ing options, but these are only of value when there is great 
 activity and they must be taken before prices rise too high. 
 
 Sec. 333. To buy when prices are low, and to sell when prices 
 are high, is most consistent with reason ; but the temptation is to 
 speculate in high prices with the expectation of their rising still 
 higher. While there is often large gains in speculating at high 
 prices, there is also great risk, and the property or article must 
 be disposed of speedily. The last purchaser will be unable to sell 
 or must sell at a loss. 
 
 Sec. 334. The speculator has little to fear from competition, 
 for ''he who has the folly of mankind for an inheritance has a 
 plentiful estate." The great object of speculation is to substitute 
 sagacity for toil and foresight for stupidity, and there are only 
 a few men who are fitted by nature and training for the role of 
 the speculator. 
 
 Sec. 335. (Part of the foregoing is adapted from a paper by 
 a merchant of Boston, quoted in Freedley's Treatise on Business.) 
 
 Sec. 336. The word speculation, as generally used, means 
 the investing of money at the risk of loss, on a chance of unusual 
 gain, and is characterized by a strenuous endeavor to penetrate 
 the riddle of chance and to discover some clew by which to read 
 the future. An absolute distinction cannot be made between 
 speculation and gambling, although the latter has only the evils 
 and none of the virtues of speculation. Gambling throws patient 
 industry to the winds, fascinates those who engage in it by an 
 unending series of shallow uncertainties and thoughtless surprises 
 fit to tickle the feeble wits of savages and degenerate types of the 
 human family. 
 
ESTATE SELF-TAUGHT 73 
 
 Sec. 337. The speculator rarely realizes the full extent of his 
 anticipations. The future is uncertain, and his beliefs in regard 
 to what it holds in store for him are likely to be formed according 
 to his most favorable desires. The most brilliant good fortune 
 which may result from the operations of a speculator generally 
 fall below his anticipations, when the operations are reduced to 
 figures. It appears that the imagination gets, as it were, diseased 
 by feeding on the contemplation of very rapid gains; and that 
 whatever may be the reality of a hypothetical gain, the mind gets 
 bewildered and fails to estimate, as an element of loss, the sur- 
 rounding husks in which the fruit is enclosed. (Jones' Economic 
 Crises, and Cramp's Theory of Stock Exchange Speculation.) 
 
 Sec. 338. The four chief causes contributing to the present 
 prevailing mania for riches are set down by Prof. Taussig as the 
 following: Love of comfort, desire for distinction, the impulse 
 to continue in active life, and the passion for power. 
 
 Sec. 339. Some one may inquire : "What is value, and how 
 am I to get acquainted with 'good values ?' " Value is the desir- 
 ability, worth or utility of anything. The president of a bank, 
 when asked by a young clerk how to distinguish bad bills from 
 good ones, said: "Get acquainted with good bills and you will 
 recognize the bad ones at sight." And so the investor, in buying, 
 should study what elements constitute good values and he wil! 
 instinctively avoid bad values. A person who is termed a shrewd 
 buyer is one who really knows values whose buying instinct or 
 ability has been developed by a careful study of the real estate 
 market. 
 
 Sec. 340. There is no better investment than real property 
 in growing cities. The arguments in favor of business property 
 as an investment are well set forth in a booklet issued by the 
 Trustee Company of Los Angeles, as follows: The best invest- 
 ment should possess the following elements, viz: 
 
 1. It should be safe. 
 
 2. It should have a satisfactory earning power. 
 
74 REAL ESTATE SELF-TAUGHT 
 
 3. It should have an increasing value. 
 
 4. It should not be subject to depreciation in earning power. 
 
 5. It should be easily convertible into cash. 
 
 6. It should be free from care and expense. 
 
 Every investment should be tested in the light of the above 
 elements, to determine whether or not it is the best. No invest- 
 ment possesses so many of these elements as business property, 
 because : 
 
 1. In a growing city, investments in centrally located business 
 property are absolutely safe. 
 
 2. The earning power is larger than in any other safe in- 
 vestment. 
 
 3. There is a very large increasing value in business property. 
 
 4. Well located business property, properly improved, in a 
 live city, is not subject to depreciation. Any depreciation of per- 
 manent buildings is small, and is more than balanced by the large 
 appreciation of the ground value. In such investmetns the earn- 
 ing power increases yearly. 
 
 5. In large cities there is a standard of values in the business 
 section, which enables an owner to convert business property into 
 cash at its reasonable market value. However, it requires a con- 
 siderable length of time to find a purchaser, on account of the 
 magnitude of such transactions and the large amount of capital 
 required to handle them. 
 
 6. Business property is subject to the usual care, trouble and 
 expense incident to the management of all real property, in deal- 
 ing with tenants, paying taxes, providing insurance, making 
 repairs, etc. 
 
 Sec. 341. To enable an investor, whether his capital be large 
 or small, to invest in business property, a new method has been 
 devised whereby a corporation purchases a piece of business prop- 
 erty, improves it, leases it, and divides the cost of the ground and 
 building into a definite number of units, which are represented 
 by an equal number of certified investment bonds. These bonds 
 
ESTATE SELF-TAUGHT 75 
 
 are secured by a deed of trust on the property, and the owners 
 of the bonds receive interest on their investment at the rate of 
 say 5 per cent per annum, payable quarterly or semi-annually, and 
 also two-thirds of the surplus net earnings, the remaining one- 
 third of the net surplus being retained by the company as compen- 
 sation for its services in caring for the property. These invest- 
 ment bonds are not subject to taxation, and can be registered, 
 transferred at will, and used as collateral security. The company 
 assumes all care and trouble incident to the management of the 
 property. 
 
 Sec. 342. Syndicating properties, as the phrase is commonly 
 understood with reference to real estate deals, is done by agents 
 obtaining options for a certain length of time on certain proper- 
 ties and then unloading such properties at a higher figure, before 
 the options expire, on to an aggregation of individuals called a 
 syndicate. Agents work the syndicate proposition in this way: 
 Having secured options from some of their friends, probably 
 without consideration, on property in a district in which great 
 improvements in the building line are to be made by somebody 
 in the near future, they go to others of their acquaintance who are 
 inclined to speculate in real estate, and state that they are forming 
 a syndicate to take over the properties at a certain figure (gener- 
 ally at a price that will allow the agent a handsome commission) 
 and descant on the profits that can be made when the proposed 
 improvements materialize. This might be very well if the agents 
 would make and maintain the same price to all of the members of 
 the proposed syndicate; but unfortunately, like a stock proposi- 
 tion, there are ground-floor, basement and sub-basement prices, 
 and the man who has the hardest head and the most money gets 
 the sub-basement price, and the fellow with the least money gets 
 the ground-floor price, and he is told that he is getting a good 
 run (but not to the sub-basement) for his money. Eventually, the 
 man who doesn't get the "square deal" finds it out, and he has less 
 faith than ever in human nature and none at all in syndicates. 
 
76 REAL ESTATE SELF-TAUGHT 
 
 Sec. 343. Usually, there are half a dozen or more persons in 
 the syndicate, and it is not feasible to take the title to the syndi- 
 cate properties in the names of all of them ; neither is it advisable 
 to have the properties conveyed to a third person in trust for the 
 members of the syndicate ; the best plan is to have the properties 
 conveyed at once to a trust corporation, authorized to execute 
 trusts of the kind, by a deed to be executed by the owners, and 
 which will show that the properties are conveyed in trust to the 
 trust company for the syndicate, naming them. The trust company- 
 then issues a written instrument, over its name and seal, to each of 
 the members of the syndicate, setting forth the terms on which 
 the trust is held. Generally, the syndicate members agree upon 
 the minimum price at which they will sell, and this is inserted in 
 the last-named instrument. If an individual held the properties 
 as trustee, and should die or become incapacitated, or if one of 
 the members of the syndicate should die, the properties might 
 become so tied up that they could not be handled to advantage 
 within the time in which it was desired to dispose of them. Every 
 member of a syndicate should insist that these matters be all 
 worked out correctly from a legal standpoint and that the papers 
 are ready for execution before he puts up his money. Some sug- 
 gestions in this regard may be found in Form No. 155, wherein 
 provision is made for a syndicate to take over options and place 
 a tract on the market. The executive committee therein provided 
 for places a check on the dictatorial and sometimes unprofitable 
 management of the undertaking by one individual. 
 
 Sec. 344. Oftentimes another syndicate is formed to purchase 
 the properties of the first syndicate at a considerable advance. 
 Where fancy profits are thus made by one set of men at the ex- 
 pense of another, there is great danger that properties will be 
 forced to a price far beyond their real value, and the last pur- 
 chasers will have to charge a part of the purchase price to un- 
 warranted enthusiasm, and simply wait until the march of events 
 icstores the properties to their true value. Whenever any property 
 
ESTATE SELF-TAUGHT 77 
 
 has reached a price where, if improved, it will not return the owner 
 a fair rate of interest on the amount invested, it has an inflated 
 value. 
 
 Sec. 345. Syndicates operating in large cities and offering to 
 the public investment certificates or bonds based on land and 
 buildings owned or controlled by such syndicates, are in reality 
 borrowing money from the public for the carrying on of their 
 business, the control and management of the business being en- 
 tirely in the hands of the syndicate. 
 
78 REAL ESTATE SELF-TAUGHT 
 
 LESSON XIII. 
 
 OF LOANS, MORTGAGES AND TAXES. 
 
 Section 346. Study, first, Section 93 to 108, inclusive, and ac- 
 companying forms, pages 75 to 95, inclusive, of Text Book ; also 
 Section 123, pages 102 to 105, inclusive. 
 
 Sec. 347. Loans are of two kinds, flat and installment. A 
 flat loan is made for a certain term with the entire principal re- 
 payable in one sum. Installment loans are payable at a certain 
 sum per month or quarter, both principal and interest, for a cer- 
 tain time which will discharge both principal and interest. In- 
 stallment loans are an accommodation to borrowers with limited 
 but regular salaries, and to whom the accumulation of a large sum 
 to pay a flat loan at maturity would be out of the question. In- 
 terest on installment payments may be figured in several ways, 
 and the two following examples illustrate the yearly, and the 
 monthly, method. 
 
 (a) Yearly Method. A house and lot are sold for say $4,500. 
 with a cash payment of $450. ( 10% ) , the remainder of $4,050 to 
 be paid at the rate of $45 per month, aggregating $540 per an- 
 num. The interest on $4,050 at 6% amounts to $243 per year, 
 and this, deducted from the payment of $540, leaves $297 to be 
 applied on the principal, which is thereby reduced to $3,753, and 
 this amount constitutes the principal on which interest is figured 
 for the second year, and so on. 
 
 (b) Monthly Method. House and lot are sold for $4,500, as 
 above, with a cash payment of $450, leaving a balance of $4,050. 
 Monthly payments, $45 each; interest at 6% for one month on 
 $4,050 amounts to $20.25 ; this latter deducted from the monthly 
 payment, leaves $24.75 to be applied to reducing the principal, 
 leaving $4,025.25 as the principal for the next month ; interest on 
 same for one month at 6% equals $20.13; this latter, deducted 
 
ESTATE SELF-TAUGHT 79 
 
 from $45, leaves $24.87 to be applied to reduction of principal, 
 and so on. The latter plan is more in favor of the purchaser than 
 the yearly method, as, by the monthly method, he receives full 
 benefit of interest upon his monthly installments as paid, and, 
 where the installments cover a number of years, the saving in in- 
 terest by the monthly-credit method is considerable. Persons or 
 corporations doing an extensive installment business should be 
 provided with tables of compound interest and annuities, and in 
 some instances it is necessary to resort to the use of logarithms, 
 in order to work a ready solution of problems relating to the num- 
 ber of equal monthly installments necessary to liquidate a given 
 principal, with interest credited at stated intervals, and excess 
 interest applied to reduction of principal, as above set forth. 
 
 Sec. 348. Where the rebate agreement is given in connection 
 with a flat loan, as explained in Section 123, the borrower pays 
 the interest at the net rate ; thus, if the rate in the note calls for 9 
 per cent, and rebate agreement is given for 3 per cent, the bor- 
 rower calculates and pays his interest at 6 per cent, and pays the 
 taxes on the equity of both mortgagor and mortgagee. The laws 
 of California are peculiar in this regard. 
 
 Sec. 349. In every community there are people who have 
 mortgages soon to mature, or who wish to negotiate loans for 
 erecting buildings and other purposes, and they naturally go to the 
 real estate broker to assist them in obtaining money. The man 
 who wants a loan generally is in urgent need of it, and no great 
 effort is required in order to do business with him. Brokers who 
 make a business of obtaining loans extensively have printed ap- 
 plication blanks similar to Form No. 27, and all savings banks 
 and building and loan associations have such blanks. These 
 blanks place the matter of the loan before the lender in shape to 
 enable him to act upon it intelligently. In Sections 96 and 97 
 of the Text Book the procedure in obtaining a loan from a savings 
 bank or building and loan association is outlined, and the real 
 estate broker should follow a similar course in obtaining a loan 
 
8O REAL ESTATE SELF-TAUGHT 
 
 from a private individual, and he should particularly protect the 
 lender in the matter of seeing that all of the papers (mortgage, 
 promissory note, or trust deed and promissory note, and abstract 
 of title or certificate of title) are in proper legal form and suffi- 
 cient in every respect. 
 
 Sec. 350. The best plan in every instance, even in the case of 
 individuals, is for the broker to have the money passed through 
 an escrow, either with a title company or with a bank. The lender 
 deposits his -money with the escrow-holder, with instructions that 
 it be paid over to the borrower after the mortgage has been exe- 
 cuted and filed for record, and after the certificate has been brought 
 down, showing the title to the premises vested in the borrower, 
 free and clear of incumbrances, except the mortgage and possibly 
 taxes assessed but not paid. The lender and the broker, or the 
 broker in behalf of the lender, examine the papers and see that 
 everything is in proper shape before the money is paid to the 
 borrower. 
 
 Sec. 351. The loans made by savings banks and building and 
 loan associations are, as a rule, first liens on the premises, and 
 the broker should have it distinctly understood by all the parties, 
 in the case of individuals, that the loan is to be a first lien, unless, 
 as sometimes happens, a second mortgage is what is to be given. 
 Where a party accepts a second mortgage, he generally intends 
 to hold it, as there is difficulty in negotiating it. 
 
 Sec. 352. When an application for a loan is presented, the 
 broker should examine the property, unless he is already familiar 
 with it, and pass judgment upon it. If there is anything con- 
 nected with the transaction that, in the opinion of the broker, would 
 cause the application for a loan to be rejected, the broker will do 
 well to dismiss the matter entirely, as if he presented such an 
 application to the lender, particularly if it be a bank, the lender may 
 form an unfavorable opinion of his business ability and it will be 
 more difficult for him to obtain other loans which are desirable. 
 The broker should ascertain from an applicant for a loan whether 
 
ESTATE SELF-TAUGHT 8 1 
 
 or not such applicant has already applied to a bank or elsewhere 
 for the loan; as otherwise, the broker may be wasting energy in 
 going over the same ground. The broker's commission for ob- 
 taining a loan is usually I per cent of the amount of the loan, pay- 
 able at the time the loan is granted. 
 
 Sec. 353. If the broker wishes to ascertain who has money, 
 he should advertise in the "Want" columns of the newspapers, and 
 he can do so at first from a box number, as some people who have 
 money will not answer advertisements by brokers new to the 
 business. After the broker has become well established and has 
 built up a reputation for clear-cut and reliable business methods, 
 he can advertise directly from his office with good effect. 
 
 Sec. 354. Oftentimes a broker can facilitate a sale by securing 
 a loan on either real property or personal property for one or the 
 other of the parties to the deal. 
 
 Sec. 355. Loans on personal property are secured by chattel 
 mortgages (form No. 141). The property remains in the pos- 
 session of the mortgagor. In some cases, where the personal 
 property, such as jewelry, typewriters, etc., are loaned on, the 
 property is given into the possession of the lender, and an agree- 
 ment of conditional sale is used (Form No. 92). Any personal 
 property which is capable of being sold or assigned, may be mort- 
 gaged, even if such property has only a prospective existence, such 
 as a growing crop. The foregoing is the general rule, but in Cali- 
 fornia the personal property which can be mortgaged is enumer- 
 ated in Section 2955 of the Civil Code. 
 
 Sec. 356. A mortgage of a vessel flying the United States 
 flag must be recorded in the office of the Collector of Customs 
 where such vessel is registered or enrolled. 
 
 Sec. 357. See (6) page 80 of Text Book, as to execution of 
 personal property mortgages in California. 
 
 Sec. 358. A mortgagee of personal property, when the debt 
 to secure which the mortgage was executed becomes due, may fore- 
 
82 REAL ESTATE SELF-TAUGHT. 
 
 close the mortgagor's right of redemption by a sale of the property 
 in the manner and upon giving the notice required by law. 
 
 Sec. 359. Personal property which is mortgaged may be at- 
 tached, in California, at a suit of the creditor of the mortgagor, 
 but before taking the property the officer must tender to the mort- 
 gagee the amount of the mortgage debt and interest, or must de- 
 posit the amount thereof with the County Clerk or Treasurer, pay- 
 able to the order of the mortgagee. 
 
REAL ESTATE SELF-TAUGHT. 83 
 
 LESSON XIV. 
 
 OF LEARNING HQW TO SAVE. 
 
 Study Sections 22 to 34, inclusive, of Text Book, pages n to 
 14, inclusive. 
 
REAL ESTATE SELF-TAUGHT. 
 
 LESSON XV. 
 
 OF INCORPORATING AND PROMOTING. 
 
 Sec. 360. A corporation is an artificial person created by 
 a number of natural persons complying with the laws of some 
 State or Territory in respect to incorporation. A corporation 
 organized by persons residing in California to do business in 
 that State is called a "domestic" corporation, and a corporation 
 organized under the laws of some other State, such as New 
 Jersey, to do business in California, is called a "foreign" cor- 
 poration. The laws of the several States differ with regard to 
 incorporating, and the laws most favorable to corporations are 
 those of New Jersey, Delaware, West Virginia, South Dakota, 
 Arizona and Nevada. 
 
 Sec. 361. In a partnership, each partner is liable for the 
 entire debts of the firm, and each partner may contract debts 
 in the name of the firm, and the death, incapacity or withdrawal 
 of a partner terminates the partnership. By incorporating, the 
 following advantages over partnership are secured: The lia- 
 bility of a stockholder is limited. In California, for instance, 
 each stockholder in a domestic incorporation is liable for such 
 portion of the debts and liabilities of the corporation contracted 
 or incurred during the time he was a stockholder as the amount 
 of his stock or shares bears to the whole of the subscribed capital 
 stock of the corporation, and the liability of the stockholder in 
 a foreign corporation, doing business in California, is the same 
 as that of a stockholder of a domestic corporation. By incor- 
 porating, continuity of existence is secured. Each of the stock- 
 holders of the corporation may sell his shares to other persons, 
 who will be substituted in the places of the original stockholders, 
 and the life of the corporation will not be affected. The property, 
 
REAL ESTATE SEXF-T AUGHT 85 
 
 assets, good will and prestige of the business belong to the cor- 
 poration, and not to its component parts, the stockholders. A 
 corporation is conducted, managed and controlled by a Board of 
 Directors, and the combined wisdom and counsel of three or more 
 persons are thus secured. By incorporating, greater undertakings 
 may be exploited, as the capital therefor may be more easily 
 obtained by means of sale of stock and bonds. Furthermore, the 
 interests of the several stockholders are evidenced by certificates 
 of stock, which can be passed from hand to hand by endorse- 
 ment and delivery and be used as collateral security in borrowing 
 money. 
 
 Sec. 362. In creating a corporation, the incorporators execute 
 and file an instrument called "Articles of Incorporation," or 
 "Articles of Association." These articles provide for the name 
 of the corporation, the purposes for which it is created, how 
 long it is to continue, the principal place of business, the names 
 and residences of the Directors chosen for the first year, the 
 amount of the capital stock, the par value and number of shares 
 into which it is divided, and the amount actually subscribed, and 
 by whom. Blank printed forms of Articles of Association 
 may be obtained from leading stationers, but the purposes for 
 which the Association is created will ordinarily have to be drafted 
 by trie incorporators themselves, or their attorney. The follow- 
 ing is a suitable form for the purposes of a real estate company, 
 and, with some slight variations, will answer as well for a hotel 
 company, a land and improvement company, or an investment 
 company, namely: 
 
 (i) To buy, purchase, lease, exchange or otherwise acquire 
 real or personal property, and to own, hold, sell, lease, rent, 
 encumber by mortgage or deed of trust, or otherwise deal in, 
 utilize or dispose of real and personal property, and rights and 
 interests in any such property; also to acquire, improve, con- 
 struct, build, own, operate and maintain, lease and sell dwelling 
 houses, apartment houses, business blocks, store rooms and other 
 
86 
 
 REAL ESTATE SELF-TAUGHT 
 
 structures and improvements; also to maintain and conduct a 
 general real estate agency and brokerage business, and to act as 
 agent, broker or attorney-in-fact for any person or corporation, 
 and to do any and all things incidental or auxiliary thereto, and 
 to the same extent that a natural person might or could do in 
 and about said business. 
 
 (2) To subscribe for, purchase or otherwise acquire, and 
 to own, hold, sell, hypothecate and dispose of shares of the 
 capital stock or bonds or other securities or obligations of any 
 person or corporation, and, while such owner, to exercise all the 
 rights and powers incidental thereto, including the right to vote 
 thereon. 
 
 (3) To do all and every thing necessary, suitable or proper 
 for the accomplishment of the foregoing purposes or which the 
 Board of Directors of the corporation may, from time to time, 
 deem to be conducive or expedient for the protection or benefit 
 of the corporation. 
 
 Sec. 363. The bonded indebtedness which a corporation can 
 create must not exceed its capital stock, and such indebtedness 
 is secured by deed of trust, executed to the corporation, called the 
 "Trustor," in favor of a trust company, called the "Trustee," 
 and thereby certain property, in said deed described, and also all 
 property thereafter acquired by the trustor corporation, arc con- 
 veyed in trust for the pro rata benefit or security of each and 
 every person 01 corporation that then or thereafter may become 
 the owner or holder of the bonds secured by the deed of trust. 
 The bonds are issued in various denominations, those of $500 
 and $1,000 each being the most popular, and run for terms 
 ranging from ten years to thirty years. Form No. 138 is an 
 excellent model of a five per cent., sinking fund, 2oyear gold 
 bond. The interest is evidenced by coupons attached to the 
 bonds, and, in case of the bond just mentioned, there are forty 
 such coupons, each for $25.00, payable semi-annually for twenty 
 years, amounting in all to $1,000. Bonds which are to be listed 
 
ESTATE SELF-TAUGHT 87 
 
 on New York Stock Exchange must be steel engraved, and the 
 cost of engraving on steel and issuing one thousand bonds will 
 average $1.25 per bond. Lithographed bonds cost much less. 
 In issuing bonds, all of the prerequisite steps and proceedings, 
 acts and things essential to the proper, due and legal authoriza- 
 tion of the bonds and deed of trust, must be taken by the proper 
 bodies, officers and persons in due and proper form, time and 
 manner. 
 
 Sec. 364. A deed of trust must provide for the various con- 
 tingencies that may arise while the trust continues, and is of 
 necessity a lengthy instrument. It is customary to print the 
 deed of trust, and sometimes a printed copy is executed and 
 recorded. Where personal property is also conveyed by a deed 
 of trust, the instrument has to be recorded in three books in 
 the Book of Deeds of Trust, Book of Mortgages, and Book of 
 Chattel Mortgages in each county where the property is sit- 
 uated. Printed copies of the deed of trust and sample bonds 
 are furnished to brokers and bond buyers. The initial expenses 
 for attorney's fees, lithographing or engraving of bonds, premium 
 on policies of title insurance, printing and recording of deed of 
 trust, etc., are considerable. The bonds become of value only 
 after they have been certified by the Trustee. 
 
 Sec. 365. A sinking fund is created in this way : The Heed 
 of trust contains a provision whereby the Trustor, or corporation 
 issuing the bonds, agrees to pay the Trustee, say five years after 
 the date of the deed, a sum which will be equivalent to five per 
 cent., par value, of the amount of the bonds then certified and 
 outstanding. In lieu of cash, payment for the sinking fund may 
 be made to the Trustee by the Trustor delivering its own bonds, 
 or such other securities as may be approved by Trustee, at their 
 face value. The sinking fund is specially applied to the redemp- 
 tion of the bonds secured by the deed of trust, on or before their 
 maturity. In case payment is made in cash, the Trustee must 
 advertise, inviting for bids for the sale to it of a sufficient amount of 
 
88 REAL ESTATE SELF-TAUGHT 
 
 the bonds as shall be necessary to the investment of the sinking 
 fund money then in its hands, at a price not higher than a four 
 per cent, basis. If no offers are received, the Trustee may buy 
 the bonds in the open market on the same basis ; but if no bonds 
 can be obtained, then the sinking fund payment must be invested 
 by the Truste in securities satisfactory to the Board of Directors 
 of the Trustor, and all income from such securities must also be 
 reinvested as a part of the sinking fund, and such sinking fund 
 must be applied to the purchase of bonds whenever they may be 
 obtained at not exceeding a four per cent, basis. As purchased, 
 the bonds and coupons are cancelled by the Trustee. 
 
 Sec. 366. A prospector is an individual of solitary tendencies 
 who roams the hills in search of hidden treasure. When he finds 
 good indications of the metal he is seeking, he stakes out one or 
 more mining claims; and digs holes at several points to discover 
 the width and extent of the ore. This is a prospect ; some people 
 call it a mine; but large sums of money must be expended in 
 development work and for machinery before a prospect becomes 
 a remunerative mine. 
 
 Sec. 367. A promoter has a sanguine temperament, a Brilliant 
 imagination, a copious flow of language, and no money. He is 
 generally of a portly build, an epicure as to tastes, correct as to 
 attire, and can behold sky-scrapers where others can see only 
 three-story blocks. The rough-and-ready prospector desires to 
 have his prospect developed, and the promotor is always in touch 
 with capital at least he says he is and so the prospector and 
 the promotor come to a ready understanding. Wise legislators, 
 knowing the inherent human weakness to overstate things, have 
 passed laws, in some of the States, making it a felony for any 
 director, officer or agent of a corporation to knowingly concur 
 in making, publishing or posting any written report, exhibit or 
 statement, prospectus or account of the operations, values, busi- 
 ness, profits, expenditures or prospects containing any material 
 statement which is false or which has a tendency to produce or 
 
REAL ESTATE SELF-TAUGHT 89 
 
 give to the stock or shares of the corporation a greater or a less 
 apparent or market value than they really possess. 
 
 Sec. 368. Nearly every mining corporation created has an 
 authorized capital stock of at least $1,000,000, divided into one 
 million shares of the par value of $i each, so that the parties 
 who purchase the stock will think they are receiving a good many 
 shares for their money. The prospector generally receives one- 
 fourth of the shares, in consideration of his transferring his 
 prospect or "mine" to the Company; the promoter receives one- 
 half of the shares for his services, and the remaining one-fourth 
 are not issued, and are called "Treasury stock." As the promotor 
 has no money, he gets a few of his friends, who have some money, 
 to advance enough to pay incorporation fees, in consideration 
 whereof they are made directors and are given some of the pro- 
 moter's stock. The treasury stock is then offered to the public 
 in one of two ways for cash, or on installments, as per Forms 
 Nos. 139 and 140. Two hundred and fifty thousand shares at 
 five cents per share amounts to $12,500; whereas, to convert the 
 right kind of a prospect into a paying mine requires sums ranging 
 from $25,000 to $100,000. As a mining expert has said : "It is 
 necessary for one to investigate closely the reliability and com- 
 petency of the men behind the enterprise when stock is offered 
 for sale, and where and how the stock is distributed, for what 
 consideration issued, how the value is determined, and how much 
 will be required to 'make it pay/ In other words, if it's a 
 $100,000 enterprise, and stock is selling for two cents a share, 
 and provision is made for only $8,000, you might as well throw 
 your money away as to invest in such an enterprise. Under the 
 best of management, all losses cannot be eliminated, for mining 
 is a business requiring the highest degree of technical skill, 
 including a thorough knowledge of metallurgy, chemistry, me- 
 chanics, civil engineering, assaying, and executive ability and 
 integrity." 
 
90 REAL ESTATE SEI^-TAUGHT 
 
 Sec. 369. The promoting of corporations designed to render 
 service to the public, such as telephone, gas, water and electric 
 light companies, is profitable and may sometimes be financed 
 without the investment of much actual money. Such a company 
 issues bonds, and in order to enlist the co-operation of bankers, 
 offers them the bonds at a discount, and gives gratis to the banker 
 a certain number of shares of stock with each bond he purchases. 
 Sometimes the banker does not buy the bonds outright at first, 
 but loans money on them as collateral security, and the company 
 is thus enabled to install its plant. After the company has begun 
 to pay dividends, there is a demand for the stock, and the Banker 
 can sell his at so much clear profit. The bonds also advance in 
 value until they reach par or above. Such a corporation, after 
 having obtained valuable franchises from some city or county 
 and installed an expensive plant, holds a virtual monopoly of the 
 particular service it is rendering, as none but a formidable com- 
 petitor can enter the field against it. 
 
REAL ESTATE SELF-TAUGHT. 
 
 LESSON XVI. 
 
 OF BOOKKEEPING FOR THE REAL ESTATE OFFICE. 
 
 Sec. 370. Bookkeeping in a small business is ordinarily not 
 well conducted, for two reasons: First, the proprietor does not 
 understand the principles of double-entry sufficiently well to put 
 them into practice ; and second, his time is so much occupied with 
 other matters that he cannot give the requisite attention to keep- 
 ing accounts as they should be kept. In a small real estate 
 business personal accounts are kept as a rule by single entry; a 
 ledger title, such as John Smith, being credited with the rents 
 collected and debited with water rates, commissions, etc., and 
 with the remainder when paid in cash, thus balancing the account 
 to a certain date. 
 
 Sec. 371. It is assumed that the student has some knowledge 
 of the elementary principles of bookkeeping and knows that assets 
 are things belonging to a person or corporation, and that liabili- 
 ties are debts owing to others by such person or corporation. 
 
 Sec. 372. The moneys expended in carrying on a business 
 are laid out for two purposes : First, to acquire additional prop- 
 erty, which, in the judgment of the proprietor, is necessary to 
 the success of the business, and such expenditures on the books 
 of account are termed "Investment Accounts;" and second, to 
 procure things of no permanent value, such as office rent, clerk 
 hire, etc., and such expenditures on said books are termed "E3t- 
 pense Accounts." Thus, the owner of the "Dennison Block" 
 would have on his books, if properly kept, two or three accounts 
 relating to that parcel of property, viz. : ( I ) "Dennison Block," 
 a debit account, representing the first cost of the ground and 
 building, and subsequent additions thereto. In entering this item 
 in the ledger, a value should be placed on the land and a value 
 
9 2 REAL ESTATE SELF-TAUGHT 
 
 on the building, and so entered in the ledger, the two amounts 
 constituting the total cost. 
 
 (2) "Dennison Block Expense," a debit account, represent- 
 ing use and services, such as cost of elevator service, water rent, 
 light, heat and supervision. 
 
 (3) "Dennison Block Earnings," a credit account, repre- 
 senting rentals received and other earnings, such as money com- 
 ing in for steam furnished to an adjoining building, etc. These 
 last two accounts could be included in one account, to be known 
 as "Dennison Block Earnings and Expenses." 
 
 Sec. 373. In order that the expenditures may be properly 
 segregated, it is necessary to consider the nature of these two 
 accounts : 
 
 (1) Improvements or betterments are those additions to 
 property which permanently increase its value or earning capac- 
 ity; while 
 
 (2) Repairs serve merely to maintain property in a certain 
 state of preservation or prevent it from falling into decay. The 
 cost of adding to a building a room which will increase the 
 rentals, would be an investment ; but the changing of the construc- 
 tion of a room, without any increase in earning capacity, would 
 be an expense. In both cases, the total cost would be composed 
 of minor items of labor and materials. In most works on book- 
 keeping the distinction between Investment Accounts and Expense 
 Accounts is not explained at all, and many bookkeepers do not 
 recognize this distinction nor understand how to properly segre- 
 gate the expenditures above mentioned. 
 
 Sec. 374. If all the rooms in the "Dennison Block" were 
 rented to persons other than the owner, he naturally would credit 
 all the rents to one account. If he occupied one room, he might 
 overlook crediting rent account with the rent of that room and 
 debiting same to his own expense account. If he did not do so, 
 however, rent account would not receive credit for the full rental 
 of the building. 
 
REAL ESTATE SELF-TAUGHT 93 
 
 Sec. 375. To elucidate the matter further: Let us suppose 
 that the Dennison Building cost for the land, $3,500, and for the 
 building, $6,500, a total of $10,000, and that the rentals for one 
 year amounted to $1,500 and the expenses to $500. The net 
 earnings for the year (nothing written off for depreciation) would 
 be $1,000 ; dividing this by I per cent, of $10,000, or $100, gives 
 10 per cent as the rate per cent of earnings for the year. It will 
 readily be seen that if the book-keeper had charged to Investment 
 any item which should have been charged to Expense, or vice 
 versa, no accurate results would be reached. Another object in 
 always treating similar items in like manner is to enable the 
 proprietor to make correct comparisons of one period of time 
 with another, as shown by accurate statements for each of such 
 periods. 
 
 Sec. 376. For a small business, or indeed one of considerable 
 magnitude, columner books and the voucher system are the sim- 
 plest and the best. See Forms Nos. 162, 163 and 164. Columner 
 books provide a means of checking an aggregate of debits against 
 an aggregate of credits, as the work progresses ; lessen the num- 
 ber of postings in a marked degree, and thereby the liability to 
 errors; and, where provision is made for cash columns, admit 
 of the complete entry of any transaction being made at one time 
 in one book, instead of at different times in two books. Columner 
 books, with debit and credit columns together (not with debit 
 columns on one side and credit columns on the other, as shown in 
 form No. 164), may be obtained from stationers. In the Cash- 
 book Journal (Form 164), accounts for which no columns are 
 provided are entered in "Sundry Columns" and posted from there. 
 This book can be used either with or without vouchers. No 
 accounts are kept with parties from whom purchases are made. 
 Where vouchers are used, the bills for purchases are inserted 
 inside the voucher, which is then O. K.'d by the person making 
 the purchase, and, after the extensions are verified, the voucher 
 is entered in the Cash-book Journal, debited to the accounts to 
 
94 REAL ESTATE SELF-TAUGHT 
 
 be charged and credited to Voucher Account. When paid, a debit 
 therefor is made to Voucher Account and a credit to Cash. The 
 entered, unpaid, vouchers on hand at any time should agree with 
 the balance of the voucher account. The vouchers secure uni- 
 formity in size for filing as well as uniformity in treatment, and 
 are numbered and filed from one upward. In the case of pay- 
 rolls, one voucher is sufficient, with as many receipts within as 
 there are names on the payroll. The check numbers and thfc 
 voucher numbers will not correspond. The vouchers are indexed 
 for ready reference. In the Cash-book Journal (Form 164) all 
 of the debits are on one page, the credits on the other, and more 
 debit columns are provided for than credits, as the former exceed 
 the latter. 
 
 Sec. 377. All monies received should be deposited in bank, 
 and all payments made by check. A day should be fixed say 
 about the tenth of each month on which to pay all bills of the 
 preceding calendar month. 
 
 Sec. 378. A balance sheet is a statement of financial exhibits, 
 showing, in compact form, the resources and liabilities and gains 
 and losses of a business. Form No. 165 is both a condensed 
 trial balance and a balance sheet. In any business, to ascertain 
 the true loss and gain, an inventory must be taken, and so, in the 
 real estate business, any real or personal property should be re- 
 valued at least once a year and entered on the books to account 
 for increment or depreciation. A trial balance should be taken 
 once a month and a balance sheet made therefrom. The difference 
 between the resource and liability columns shows the present 
 worth or insolvency of the business, and the difference between 
 the gain and loss columns the net loss or gain. The difference 
 between the present worth and the net investment, on closing the 
 books, also shows net gain or loss. The net gain, if added to, or 
 the net loss, if subtracted from, the net investment, on closing, 
 will show the present worth. 
 
Real Estate Business 
 Self -Taught 
 
 COPYRIGHT, 1906, BY W. A. CARNEY. 
 
 FORMS 
 
 FORM NO. IOC-APPLICATION TO GOVERNOR FOR APPOINT- 
 MENT AS NOTARY PUBLIC. 
 
 Hon. George C. Pardee, 
 
 Governor of the State of California, 
 Sacramento, Cal. 
 
 SIR : I hereby make application for appointment as Notary Public 
 in and for the County of Los Angeles, State of California. I am a citizen 
 of United States over 21 years of age, and would respectfully refer you 
 to the following well-known citizens of Los Angeles, Cal., as to my fitness 
 for office, character and integrity, namely: S. W. Lukens, President of 
 the American National Bank; Hon. D. J. Williams, Judge of the Superior 
 Court, Department No. 2, and James L. Smith^, President of the Eldorado 
 Mining Company. 
 
 Respectfully yours, 
 
 GEORGE W. BROWN. 
 No. 132 South Broadway, 
 
 Los Angeles, Cal. 
 
 FORM NO. loi LETTER TO CUSTOMERS UPON OPENING OF- 
 FICE. 
 
 DEAR SIR : I beg leave to advise you that I have recently opened 
 a real estate office at No. 23 Mercantile Place, this city. Inasmuch as I 
 have just completed a course in Real Estate, and have secured an appoint- 
 ment as Notary Public, I feel warranted in stating that any business in 
 the real estate line intrusted to my care will receive intelligent attention, 
 and I assure you that same will be promptly and efficiently executed. I 
 also write fire insurance in behalf of several of the most responsible fire 
 insurance companies in the world. Kindly bear in mind my name and ad- 
 dress (which, for more convenient reference, you will find on the en- 
 closed business card), and whenever you desire the services of a Notary, 
 wish to insure your premises, or desire to buy or sell real estate, please 
 favor me with a call, and greatly oblige. 
 
 Yours truly, 
 
2 REAL ESTATE SELF-TAUGHT 
 
 FORM NO. 102 ANNUAL LETTER TO CUSTOMERS. 
 FEDERAL REALTY CO., 
 
 REAL ESTATE AND INSURANCE, 
 STOCKS AND BONDS. 
 
 Los ANGELES, CAL., January 2, 1906. 
 Geo. M. Jones, Esq., 
 
 Los Angeles, Cal. 
 
 DEAR SIR : This personal letter is intended to touch upon a question 
 of vital importance, and one which demands your serious consideration 
 the investment of your capital and surplus income. 
 
 We have spent many years in this community, dealing in the highest 
 grades of investments, and in making a study of 'real estate and securities 
 and matters of finance. 
 
 Our experience enables us to give you valuable advice and assistance, 
 and we invite you most cordially to call and discuss this subject with us 
 personally and confidentially, it being thoroughly understood fthat no 
 obligation whatever rests upon you to do business with us. You will be 
 welcome, if you come simply for an exchange of ideas. 
 
 We shall hope to have the pleasure of seeing you at our office when 
 vou can make it convenient to come; or, if that is not practicable, we 
 would be gratified to have an opportunity of opening correspondence with 
 you on this subject. 
 
 As a careful investor, you will doubtless be interested in looking over 
 the enclosed list of securities, which we are enabled to offer you. 
 
 It frequently happens that we have a block of especially desirable 
 bonds, and we would like to place you on our special list for these bargains 
 from time to time. Mail us the enclosed postal with your name and ad- 
 dress, and you will have first chance at our best offerings. 
 
 With best wishes for the New Year, we are, 
 
 Very truly yours, 
 
 FEDERAL REALTY Co., 
 By W. A. CARNEY, President. 
 
 FORM NO. 103 LETTER TO BROKERS, OFFERING PROPERTY. 
 
 W. A. CARNEY, GEO. M. SoRELLE, 
 
 433 STIMSON BLDG. DEALERS IN 1006 UNION TRUST BLDG. 
 
 Home 434 INDUSTRIAL SITES. Home 1819 
 
 Main 4054. Main 8727 
 
 Los ANGELES, CAL., May 16, 1906. 
 
 DEAR SIR: We would respectfully call your attention to the list of 
 Industrial Sites herein referred to, and solicit your co-operation in the 
 sale of the same. 
 
 Will pay commission on sales as stated in each case. 
 
 No. i. 
 
 The S. E. corner of HUNTER AND MATEO, fronting 100 ft. oh Mateo 
 by 120 on Hunter, extending back to a 2O-ft. alley. This is an EX- 
 CEPTIONALLY choice corner. 
 
 Price, $6000 Commission, $200. 
 
 No. 2. 
 
 776 Hemlock St.,< having a frontage on Hemlock of 100 ft. by -112% ft. in 
 depth. Present income $31 per month. This property, which is 
 
REAL ESTATE SELF-TAUGHT 3 
 
 within one block of where the GREAT $1,000,000 UNION DEPOT 
 is to be built; adjoins the HUNTINGTON PROPERTIES on the 
 west, and has a spur track extending up to the property line in the 
 rear. 
 
 Price, $11,000 Commission, $350. 
 
 No. 3. 
 
 The N. E. cor. of SANTA FE AVE. and PORTER ST., fronting 210 ft. 
 on SANTA FE AVE. by 140 ft. in depth to a 2O-ft. alley, along 
 which the SALT LAKE RY. recently obtained a FRANCHISE for 
 a spur track. There are situate thereon 10 cottages, having a monthly 
 rental INCOME of $100. (Recently we sold 140x360 ft. *>n Porter 
 St., diagonally across the street and alley to the RAND-McNALLY 
 people, who intend in the near future to erect a substantial WARE- 
 HOUSE COVERING THE ENTIRE PREMISES). Terms $0000 
 cash, $7000 in 3 years, at 6% interest net. 
 Price, $15,000 Regular Commission. 
 
 No. 4. 
 
 McPHERSON ST. near SANTA FE AVE., fronting 600 ft. on McPher- 
 son, by 140 ft. in depth to a 20- ft. alley, and adjoins the Santa Fe 
 Right of Way on the east. This property is within one block of the 
 GREAT STEEL PLANT to be erected by the REPUBLIC IRON 
 WORKS ; within one block of the HAUSER PACKING COMPANY 
 and within three blocks of where the HUNTINGTON interests are 
 to erect their large RAILWAY TRANSFER BARNS. Reasonable 
 terms. 
 
 Price, $18,000 Commission, $500. 
 
 All of these properties are held under option by us, and we abso- 
 lutely guarantee delivery. 
 
 This circular letter supersedes all previous offers. 
 Make all sales subject to our approval. No signs. 
 
 Respectfully yours, 
 
 GEO. M. SoRELLE, 
 W. A. CARNEY. 
 
 FORM NO. 104 LETTER ENCLOSING LISTING BLANKS. 
 
 DEAR SIR : I enclose you several blanks herewith. Kindly fill out and 
 return to me the blank or blanks suited to your case, and I will en- 
 deavor to sell or exchange your property for you. Give me your best price 
 and every particular, and state exactly what you will and will not do. I 
 have a large number of deals under way at all times, and it may be that 
 I can make a sale or exchange for you at once. Some people are going 
 East, some West, some North, and some South. Western people want 
 to go East, and Eastern people want to go West ; Southern people want 
 to go North, and Northern people want to go South. These are the peo- 
 ple I want to help on their way. Let me hear from you without delay. 
 
 Very truly yours, 
 
4 REAL ESTATE SELF-TAUGHT 
 
 FORM NO. 105 SALE BLANK. 
 
 DEAR SIR: I have for sale or exchange the following described prop- 
 erty: 
 
 (State all particulars and description above.) 
 
 Situate in County, State My price is My 
 
 terms are My reasons for selling are I would exchange for. . . 
 
 (State here in what section you want property or business.) 
 
 State what revenue your property is now bringhrg $ If a business, 
 
 how much you are clearing per year $ If property is clear,, so state. . . 
 
 If not how much of a debt is against it 
 
 You may sell or exchange the above-described property, and if same 
 is sold or exchanged through your efforts, I will pay you for your services 
 the sum of five per cent, on the amount I accept for my property. 
 
 Very truly yours, 
 
 FORM NO. 106 NEW LOCATION BLANK. 
 
 DEAR SIR: We are desirous of changing our location, and would 
 like to hear from you as to a new location for our plant. We employ... 
 
 people. The average pay of each is $ per week. Our pay-roll is 
 
 $ per month. Our plant is run months each year. We manufac- 
 ture Our annual sales amount to $ Our product goes principally 
 
 to We now use for fuel. We could use natural gas to advan- 
 tage. Our fuel bill will approximate $ per month. We would re- 
 quire acres of land. Railroad siding is needed. We would need 
 
 house accommodations for families, who would pay $ each 
 
 per month in rent, on the average. We would expect the following in- 
 ducements : Our raw material comes from and we have ap- 
 proximately cars coming in per month, and our shipments will 
 
 amount, approximately to cars going out per month. 
 
 We employ people, 16 years old and upwards, the majority of 
 
 whom we would expect to find in the new location. 
 
 Very truly yours, 
 
 FORM NO. 107 INFORMATION BLANK. 
 
 DEAR SIR: I have acres or ... .lots in or near the town of. ... 
 
 County of State of Population Railroads . . Chief in- 
 dustries ....Town is growing. .. .New houses built last year.... I want 
 your terms for a lot sale on commission..! want to sell (here state in detail 
 the lots or acreage you have for sale, describing premises fully). I have 
 
 had an Auction Lot Sale If so, state how many lots were sold 
 
 Who had charge of the sale? State year and month in which sale was 
 
 held Have you coal or oil or natural gas? How does your property 
 
 He level or otherwise? How near the residence section is it? 
 
 How many feet front on Road or Street? Do you think a Lot Sale 
 
 would pay? Has your town a Board of Trade? Does the town 
 
 want factories? If so, what? Will town make inducements? 
 
 Give Bank References Is your property clear or can you make clear 
 
 deed? Give address of good attorney in your city 
 
 Very truly yours, 
 
REAL ESTATE SELF-TAUGHT 5 
 
 FORM 108 SUGGESTIONS AS TO BOND CIRCULAR. 
 
 BARNUM, MERRILL & LAME, 
 
 Suite 534 Mason Building, Los Angeles, California. 
 
 Dealers in Municipal, Railroad, Corporation Bonds. 
 
 WESTERN CORRESPONDENTS, LAWRENCE BARNUM & CO. 
 
 Philadelphia. New York. Boston. 
 
 We offer the following securities subject to sale and change in price: 
 
 Security and Price with To 
 
 Amount Description Maturity Ac'd Int. Yield 
 
 MUNICIPAL BONDS. 
 
 (25,000 Imperial Japanese Govt. 4^js. Feb. 15, 1925. At market. 5.00% 
 
 Sterling, First Series, Coupon F. & A. 
 
 ******* 
 
 $3,000 FIRST MORTGAGE 6 PER CENT. GOLD BONDS OF THE 
 BATTLE CREEK COAL AND COKE COMPANY. 
 
 Dated April I, 1905; due April I, 1935. Denomination $500. Cou- 
 pon. Principal may be registered. Subject to call and interest after 1906. 
 Interest payable (April and October) at the International Trust Co., 
 Baltimore, Md., and at the banking house of Lawrence Barnura & Co., 
 New York City. Principal payable at the International Trust Co., Balti- 
 more, Md., Trustee. A sinking fund of 10 cents per ton, but not less than 
 $7,500 annually, is provided to retire bonds. Stock: Common, $400,000; 
 preferred, 7 per cent cumulative, $300,000; bonds authorized, $325,000; 
 bonds outstanding, $300,000. 
 
 These bonds are a first mortgage on all property of the Battle Creek 
 Coal and Coke Company, which owns 2,378 acres of valuable coal lands, 
 located at Orme, Marion County, Tenn. a complete plant, capable of han- 
 dling an output of 1,000 tons daily, and all of the buildings and improve- 
 ments in Orme, which town is entirely on the property of the Company. 
 
 This property has been acquired by purchase from the Campbell Coal 
 and Coke Company, which has been in successful operation for over two 
 years, having earned net over $60,000 each year. Orme is located on a 
 branch of the Nashville, Chattanooga & St. Louis R. R., about ten miles 
 from Bridgeport, Ala., thirty miles from Chattanooga, Tenn., and one 
 hundred miles from Atlanta, Ga., Nashville, Tenn., and Birmingham, Ala., 
 and has good railroad connections with the above-named cities, all of which 
 afford it ample market for the coal at good prices. 
 STATEMENT OF EARNINGS. 
 
 (13 months) 
 1904 1903 
 
 Gross income $242,771.16 $227,720.32 
 
 Expenses, taxes, renewals, etc 182,538.71 161,245.01 
 
 Net income 60,232.45 66,475.31 
 
 Interest on bonds 18,000.00 18,000.00 
 
 Surplus $ 42,232.45 $ 48,475.31 
 
 Sinking fund 7.500.00 7,500.00 
 
 Surplus applicable to dividends on stock $ 34,732.45 $ 40,975.31 
 
 Legality approved by James H. Gilbert, Esq., of Atlanta, Ga., and Hon. 
 Frank D. Pavey of New York City. 
 
 The books of the company have been audited by the American Audit 
 Company of New York. 
 
6 REAL P:STATE SELF-TAUGHT 
 
 PRICE io 2 y 2 AND INTEREST. 
 Special circular on application. 
 
 All statements in this circular are based on information ivhich we regard 
 
 as reliable. 
 
 BARNUM, MERRILL & LAMB, 
 Suite 534 Mason Bldg. Los Angeles, Cal. 
 
 FORM NO. 109 AGREEMENT FOR SALE OF LAUNDRY ROUTE. 
 
 THIS AGREEMENT, made in duplicate this I2th day of February, 1906, 
 by and between George W. Brown, the first party, and Amos Judd, the 
 second party,, each of said parties being a resident of the City of Los 
 Angeles, State of California. 
 
 WITNESSETH, That the said first party agrees to sell and transfer 
 to the said second party, and the said second party agrees to purchase and 
 take over the laundry route business of said first party, including the 
 good will of said route, one sorrel horse, laundry wagon and harness and 
 all paraphernalia connected therewith, for the sum of $500, to be paid as 
 follows : $50 as a deposit and part payment, the receipt whereof is hereby 
 acknowledged ; $50 at the end of one week from this date, and $400 at the 
 end of two weeks from this date, all payable to said first party in United 
 States Gold coin ; Provided, that the following conditions shall be complied 
 with, namely: 
 
 Said first party shall take said second party over said route for two 
 weeks from and after this date, introducing said second party to the 
 customers of first party, and if the commissions or compensation from said 
 business in and during said two weeks shall be equal to $25 per week, net, 
 then said sale shall be consummated. The moneys received in said two 
 weeks as such compensation shall be disbursed as follows: First party 
 shall receive all of said moneys for the first week and the said party of the 
 second part shall receive one-half, and said first party shall receive one- 
 half, of the said moneys for the second week. 
 
 Said first party agrees not to engage in the laundry business in the 
 City of Los Angeles, in any manner, either directly or indirectly, within 
 the term of two years from and after this date. 
 
 Upon consummation of sale, said first party shall make a bill of sale 
 of said goods and chattels, conveying the same to said second party, free 
 and clear of all incumbrances, and shall warrant and defend the title 
 thereto against the just and lawful claims of any person whomsoever. 
 
 If the above conditions as to compensation shall not be complied with, 
 then said deposit of $50 shall be returned to said second party, and second 
 party may also retain the one-half of the net earnings of said business 
 for said second week, and both of the parties hereto shall thereupon be 
 released from the obligations hereunder. 
 
 If the above conditions as to compensation are complied with and the 
 second party shall fail to consummate the purchase, the first party may 
 retain for himself as liquidated and stipulated damages all moneys received 
 on account hereof. 
 
 IN WITNESS WHEREOF, The parties hereto have hereunto set their 
 hands and seals the day and year first above written. 
 
 GEORGE W. BROWN. (SEAL). 
 AMOS JUDD. (SEAL) 
 
REAL ESTATE SELF-TAUGHT t 
 
 FORM NO. i la AGREEMENT OF EXCHANGEr-LAND FOR 
 LODGING HOUSE. 
 
 THIS AGREEMENT, made in duplicate, this I2th day of January, 1906, 
 between John W. Ives, the first party, and Mrs, Mary Davis, the second 
 party, each of said parties being a resident of the> County of Los Angeles, 
 State of California. 
 
 WITNESSETH, That for and in consideration of the agreements herein- 
 after expressed, the parties hereto do hereby mutually covenant and agree, 
 each with the other, as follows, to wit: 
 
 Said first party agrees to sell and convey to said second party,, and 
 said second party agrees to purchase forty (40) acres of land, situate in 
 the County of Los Angeles, State of California, described as the S. E. one- 
 fourth O/i) of the N. E. one-fourth (%) of Section 17, in Township 4 N., 
 Range 15 W., S. B. M., subject to a mortgage thereon, for the sum of $500, 
 dated July 21, 1905, in favor of Isaac Jackson, of Pasadena, California, pay- 
 able three years after date, with interest at the rate of 7 per cent per annum, 
 net, said premises to be conveyed free and clear of all incumbrances, save 
 and except said mortgage ,by a good andsufficient deed, the title thereto 
 to be marketable and to be evidenced by an unlimited certificate of title 
 to be issued by the Title Insurance & Trust Company of Los Angeles, at 
 the expense of first party, showing the title in said first party as afore- 
 said at this date or later. The deed to said premises shall contain a 
 clause to the effect that second party shall assume and pay said mort- 
 gage. 
 
 The second party agrees to sell and transfer to said first party, and 
 said first party agrees to purchase the furniture of ten-room lodging 
 house, and the good will and lease thereof, at No. 805 Central Ave., in the 
 City of Los Angeles, State aforesaid, said furniture having been this 
 day inventoried and listed as shown in Exhibit A, hereto attached ; said 
 furniture, good will and lease to be transferred to said first party free and 
 clear of incumbrances by a recordable bill of sale to be executed and 
 delivered by said second party. 
 
 Said first party shall have said certificate of title to said premises 
 brought down to this date or later, and if said certificate, when so con- 
 tinued, shall show said premises vested in said first party clear of all 
 incumbrances, except said mortgage, as aforesaid, then said conveyances 
 shall be exchanged and said second party shall put said first party in pos- 
 session of said lodging house. The first party shall pay interest on said 
 mortgage to the date when said exchange shall be made, and said second 
 party shall pay the rent of said lodging house to said date. The said 
 papers shall be exchanged at the real estate office of George W. Brown, 
 Room 404, Chamber of Commerce Building, Los Angeles, California. 
 
 IN WITNESS WHEREOF, the parties hereto have hereunto set their 
 hands and seals the day and year first above written. 
 
 JOHN W. IVES, (SEAL) 
 
 MRS. MARY DAVIS (SEAL) 
 
8 REAL ESTATE SELF-TAUGHT 
 
 FORM NO. in AGREEMENT TO EXCHANGE' LAND FOR 
 SHARES OF STOCK. 
 
 THIS AGREEMENT, made in duplicate, this 22d of April, 1906, between 
 FRANK N. WILSON, the party of the first part, and B. G. MILLIKEN, party 
 of the second part, each of said parties residing at Los Angeles, California, 
 
 WITNESSETH, WHEREAS, the said party of the first part is the owner 
 of two thousand (2,000) acres of land, situate in Lawrence County, State 
 of Kentucky, the same being described as Sections or Blocks 38 and 39 of 
 the Wilcox Grant, each of said blocks containing one thousand (1,000) 
 acres, the estimated value of said lands being Twenty Thousand ($20,000) 
 Dollars; and 
 
 WHEREAS, said party of the second part is the owner of the majority 
 f the shares of the capital stock of the Milliken Canal & Reservoir 
 Company, a corporation organized under the laws of the State of Idaho, 
 and having a capital stock of $250,000 divided into 5,000 shares of the 
 par value of $50 each, of which stock 3,000 shares are now issued and 
 outstanding, the object and purpose of said Company being the segregation 
 and irrigation of lands under the "Carey Law ;" and 
 
 WHEREAS, said party of the first part proposes to sell and convey the 
 aforesaid Kentucky lands to said party of the second part, in exchange 
 for Four Hundred (400) shares of the capital stock of said Milliken 
 Canal & Reservoir Company, and said party of the first part, is willing to 
 make said exchange, provided and on condition that the title to said 
 lands shall be found to be vested in said party of the first part by a good 
 and marketable title, free and clear of all incu-mbrances, as shall be 
 shown by an abstract of title, to be furnished by the said party of the 
 first part, at his expense : 
 
 Now, THEREFORE, in consideration of the premises and of One ($1.00) 
 Dollar, by each to the other in hand paid, receipt whereof by each is 
 hereby acknowledged, the parties hereto do hereby mutually covenant and 
 agree, as follows, to wit: 
 
 THE PARTY OF THE FIRST PART, in consideration of the sale and transfer 
 to him of the said 400 shares of said capital stock, hereby agrees to sell 
 and convey to said party of the second part, by a good and sufficient deed, 
 (said deed to contain the usual covenants for quiet enjoyment and that 
 the vendor will defend the title to said premises) the aforesaid Kentucky 
 lands, and agrees to furnish, at his own cost and expense, an abstract of 
 title thereto, showing said lands vested in him at or after this? date, by a 
 good and marketable title, free and clear of all incumbrances. 
 
 And said party of the second part, in consideration of the conveyance 
 to him as aforesaid of said Kentucky lands, agrees to sell and transfer to 
 said party of the first part 400 shares of the capital stock of said Milliken 
 Canal & Reservoir Company, and to cause certificates in evidence of said 
 400 shares to be issued to, and in the name of, said party of ; the first part. 
 
 The abstract of title to be furnished as aforesaid, shall be placed in the 
 possession of the said party of the second part within fifteen days from 
 the date hereof, and, if upon examination thereof, the title to said lands 
 shall not prove satisfactory to said party of the second part, or his attorney, 
 he shall so notify said party of the first part, in writing, and thereupon 
 this contract shall immediately become null and void. If said title, upon 
 such examination, shall be found satisfactory to party of the second part, 
 the said exchange shall be consummated, not later than May 22, 1906, at the 
 office of James Brown in Bryson Block, Los Angeles, California. 
 
 IN WITNESS WHEREOF, the parties hereto have hereunto set their 
 hands and seals the day and year first above written. 
 
 FRANK N. WILSON, (SEAL) 
 B. G. MILLIKEN. (SEAL) 
 
REAL ESTATE SELF-TAUGHT 9 
 
 FORM NO. ii2 OPTION AND AGREEMENT. 
 
 KNOW AU, MEN BY THESE PRESENTS, That of the County of Los 
 
 Angeles, State of California, the owner, in consideration of the sum of 
 
 dollars, gold coin, to in hand paid, the receipt whereof is 
 
 hereby acknowledged, does hereby give and grant unto 
 
 of the County and State aforesaid, for the term ending at twelve o'clock 
 
 noon on the .... day of , 1906, the exclusive right and option to 
 
 purchase that certain real property, situate in the City of Los Angeles, 
 County and State aforesaid, officially described as follows, to-wit: (here 
 follows description.) 
 
 situate on street, and being of the dimensions of feet 
 
 frontage on said street by feet in depth, to a foot alley, together 
 
 with the appurtenances, for the sum of ($ ) NET to said 
 
 owner, the said price to be payable as follows, to-wit : 
 
 $ the amount paid for this option, which shall be applied on, 
 
 and as a part of, said purchase price, in event of sale ; 
 
 $. . . . in cash, to be paid within fifteen days from date of sale after con- 
 veyances shall be placed in escrow; 
 
 $ by a negotiable promissory note, to bear date of sale, to be 
 
 executed by the purchaser to said owner, and to be payable years 
 
 after date, with interest at the rate of per cent per annum, payable 
 
 quarterly and to be secured by a first mortgage on said premises. 
 
 In the event of sale, the said owner agrees to make, ' execute; 
 acknowledge and deliver a good and sufficient deed, conveying said premises 
 
 to said or his assigns, and to furnish, free of expense to 
 
 the purchaser, an unlimited certificate of title, to be issued by the Title 
 Insurance and Trust Co., or Title Guarantee and Trust Co., showing a 
 marketable title to said premises to be vested in purchaser, free and clear 
 of incumb ranees, except 
 
 This option is given subject to the following conditions on the part 
 of said owner to be kept and performed, namely: 
 
 That he shall pay interest to date of transfer on any mortgage now 
 on said premises; 
 
 That he shall transfer to purchaser without charge, either for transfer 
 fee or return premium, any policy or policies of insurance now on said 
 premises, for the unexpired terms thereof; 
 
 That he shall pay any personal property taxes which by operation of 
 law or otherwise might become or are a lien upon said premises; 
 
 That he shall receive all rents from said premises to date'of transfer, 
 and if said rent shall have been or be paid to him in advance and beyond 
 the date of transfer, he will refund the excess to the purchaser; 
 
 In the event of sale, all papers and the said moneys are to be placed 
 forthwith in escrow with either of the above mentioned Title Companies. 
 
 In the event this option shall not be exercised within the time above 
 
 limited, the said sum of $ shall be retained by said owner as 
 
 liquidated and stipulated damages, and both parties shall thereupon be 
 released from all obligations hereunder. 
 
 All of the covenants and agreements hereof shall bind the heirs, legal 
 representatives, successors and assigns of the said respective parties hereto, 
 and each of them. 
 
 IN WITNESS WHEREOF, the said has hereunto set hand 
 
 and seal this day of , A. D. 1906. 
 
10 REAL ESTATE SELF-TAUGHT 
 
 A SERIES OF LETTERS TO FOLLOW UP AND CLOSE A SALE 
 
 UNDER OPTION, WHERE AN INCUMBRANCE IS 
 
 DISCOVERED. 
 
 (Nos. 113 to 117 inclusive.) 
 
 FORM NO. Ji3. 
 
 Los ANGELES, CAL., April 25, 1906. 
 George Brown, Esq., Agent, Los Angeles, Cal. 
 
 DEAR SIR : Whereas, I have heretofore paid you the sum of $500.00 to 
 apply on the purchase of (here describe premises) at the price of $12,000, 
 under an option and agreement held by you from the owner, Mr. A. K. 
 Jones, whereby he agrees to furnish an unlimited certificate of title showing 
 same premises free and clear of incumbrances ; and 
 
 WHEREAS, the certificate of title to said premises shows the same to be 
 incumbered by an easement in favor of the City of Los Angeles, for a right 
 of way for a pipe line and the right to operate same, and inquiry at the 
 office of the Street Superintendent of said city shows that a pipe line, 
 30 inches in diameter, runs diagonally across said premises about 2% 
 feet beneath the surface of the ground, and is now leased by said city to 
 certain corporations and is now in use: 
 
 Now, therefore, because of said incumbrance and of the defect in said 
 title, I demand that you return to me the said sum of $500.00 paid on 
 account of said purchase. 
 
 Truly yours, 
 
 PETER SMITH. 
 
 FORM NO. 114. 
 
 Los Angeles, Cal., April 25, 1906. 
 A. K. Jones, Esq., 
 
 Los Angeles, Cal., 
 
 DEAR SIR : I hand you hereto attached, a copy of notice of a demand 
 served on me by Mr. Peter Smith, with whom I made a contract for the sale 
 of your lots (here describe premises) at the price of $i2,ooo,under and pur- 
 suant to the provisions of an option and agreement, signed by you and 
 dated April I, 1906. You will observe from said notice that by reason of a 
 defect in the title to said premises, the purchaser declines to accept the 
 same and demands return of the deposit paid at the time the contract with 
 him was entered into. I request that you proceed immediately to clear the 
 property of the incumbrance referred to., so that I can close the deal. 
 
 Respectfully yours, 
 
 GEORGE BROWN. 
 (Inclosure.) 
 
 FORM NO. 115. 
 
 Los Angeles, Cal., April 26, 1906. 
 Peter Smith, Esq., 
 
 Los Angeles, Cal. 
 
 DEAR SIR : Referring to lots (here describe premises) which I sold 
 you,, and in respect to which you demanded that the deposit paid thereon 
 be returned to- you, would state that the owner, Mr. A. K. Jones, informs 
 me that he will proceed with due diligence and all convenient speed to 
 clear said premises of the incumbrance to which you object, and that he 
 
REAL ESTATE SELF-TAUGHT 11 
 
 will at his expense, cause said pipe line to be removed from said premises 
 and placed in the adjoining alley and street, and that he will procure from 
 the City of Los Angeles a quit-claim deed, quit-claiming to him the ease- 
 ment on said premises, and for such purposes he desires that he be allowed 
 such 'reasonable time as may be necessary, not exceeding sixty days in all. 
 I will issue my check to the Union Title Company for $500, being the 
 amount of your deposit, to be held by said Title Company, for said sixty 
 days, as per the accompanying instructions, which I request you to confirm. 
 If Mr. Jones shall be able to clear said premises of said incumbrance 
 within said sixty days, it is understood that you are thereupon to pay the 
 balance of the purchase price, to-wit}, the sum of $11,500. 
 
 Respectfully yours, 
 
 GEORGE BROWN. 
 
 FORM NO. 116. 
 
 Los Angeles, Cal., April 26, 1906. 
 To Union Title Co., City. 
 
 GENTLEMEN : I hand you herewith, in connection with Escrow No. 
 50,127, my check for $500, being the amount advanced by Mr. Peter Smith, 
 as a deposit and part payment on Lots (here describe premises) sold to 
 him at the price of $12,000, and in respect to the purchase of which he now 
 declines to proceed because of a defect in the title of which he was not in- 
 formed at the time of said purchase. In. order to enable the owner of 
 said premises, and myself as option-holder, to attend to the perfecting of 
 the title to said premises, the above-mentioned sum is to be held by you in 
 escrow for the term, of sixty days after this date. If the title to said 
 premises is perfected within said sixty days, you are to return said sum 
 of $500 to me ; if said title is not perfected within said sixty days, you are 
 to pay said sum to said Peter Smith. 
 
 GEORGE BROWN. 
 
 I confirm the foregoing instructions. 
 PETER SMITH. 
 
 FORM NO. 117. 
 
 Los Angeles, Cal., May 3, 1906. 
 Peter Smith, Esq., 
 
 Los Angeles, Cal. 
 
 DEAR SIR: In the matter of the sale to you of lots (here describe 
 premises) Mr. A. K. Jones advises me that he has arranged with the 
 Street Superintendent for the removal of the pipe line from the above- 
 mentioned lots at any time upon receipt o'f notice from you ; but inasmuch 
 as the street department is very busy just now, the Street Superintendent 
 desires that you defer making the request for a few days. 
 
 I hand you herewith an unlimited certificate of title issued by Union 
 Title Company, showing said lots free and clear of incumbrances and re- 
 quest that you make payment forthwith of the balance of the purchase 
 price. 
 
 I regret the tedious delay which has attended the closing of this trans- 
 action, due to an incumbrance, the existence of which was unknown to 
 you and myself at the time of the sale, and Mr. Jones having accom- 
 plished what seemed to be an impossible task, it now remains for your 
 good self to consummate the deal by putting up the purchase price, with 
 said Union Title Company, Escrow No. 50,127. 
 
 Respectfully yours, 
 
 GEORGE BROWN. 
 
12 REAL ESTATE SELF-TAUGHT 
 
 FORM NO. 1 18 GENERAL LISTING CARD, WITH SPACE FOR 
 
 DESCRIPTION, AND COMMISSION CONTRACT, 
 
 BOTH ON ONE SIDE. 
 
 CARNEY REALTY CO. 
 
 Name Address Lot Block Tract Loca- 
 tion of property Size of lot...x... To Alley Cement 
 
 Walks Rooms Bath Toilet Sewer Barn 
 
 Price $ $ Down, Balance $ per month per cent in- 
 terest. Mortgaged for $ per cent Due Rented for $ 
 
 per month. Water Will exchange for Insured for 
 
 Owner to furnish unlimited Certificate of Title at expense. 
 
 I hereby constitute the CARNEY REALTY CO. sole agent for the 
 herein described property and agree to pay a regular commission of 5 per 
 cent on first $1,000 and 2^/2 per cent on balance at whatever price sold. 
 
 This price to be good until 190 
 
 Dated 
 
 (Signed) 
 
 FORM NO. 119 BUSINESS PROPERTY CARD. PARTICULARS 
 ON ONE SIDE. SEE NEXT FORM FOR CONTRACT. 
 
 No Street. Size Side Between and Streets. 
 
 Improvements Incumbrance $ Due Interest % 
 
 Leased for Years. Expires Price $ Terms 
 
 Cash ; Bal Yrs % Monthly rent $ Taxes $ 
 
 In Net annual income . .$ Pays % Net Re- 
 marks Business Map No 
 
 FORM NO. 120 CONTRACT ON BACK OF FOREGOING CARD. 
 
 Los ANGELES, CAL., 190 
 
 I hereby authorize Federal Realty Co. to sell the hereon described 
 property upon the terms stated, until I notify them otherwise in writing. 
 
 I also agree to pay said Federal Realty Co. their regular commission 
 of 5 per cent on the first $1,000 and 2% per cent on the remainder of such 
 sum as I may accept as purchase price. 
 
 And I further agree to notify said Federal R.ealty Co. in writing when 
 this property is sold, or any change made in price or terms. I authorize 
 said Federal Realty Co. to put up their sign on said property. 
 
 Owner. 
 
 Address Tel. Sunset Home 
 
 See Contract No See Letter Dated 190 Listed 
 
 by Listing confirmed 190.., by 190.., by 
 
 190. ., by Instructions 
 
 FORM i2i BUSINESS CHANCE CARD. 
 
 Card No Business Street and No Name 
 
 Rent Lease Value of Stock No. of Rooms 
 
 Condition Income Expense Amount of Help 
 
 Are double entry books kept? Where do you bank? ..Has any 
 
 Mercantile Agency a report on you? Indebtedness, what- 
 
REAL ESTATE SELF-TAUGHT 13 
 
 Description of business Price $ Terms Will exchange 
 
 for 
 
 (Agreement on back to pay commission for sale or exchange.) 
 
 FORM NO. 122 LIST OF PROPERTY TO BE FURNISHED IN- 
 QUIRERS. 
 
 DUPLICATE LIST 0? PROPERTY 
 
 FURNISHED BY 
 
 SMITH & JONES, 
 
 Real Estate Brokers 
 
 To the undersigned inquirer. 
 
 Los ANGELES, CAL 190 
 
 The above list of property having been furnished me by Smith & Jones, 
 Real Estate Brokers, I agree, in consideration thereof, that if I should 
 bargain for, purchase or otherwise acquire any of said property, I will dp 
 so only through the agency of said Smith & Jones ; and if I should fail 
 to keep this agreement, then I agree to pay said Smith & Jones the sum of 
 
 Dollars ($ ) for their services in furnishing such list. 
 
 Signature 
 
 Address. . 
 
 FORM NO. 123 BLANK FOR FURNISHING LIST OF HOUSES 
 
 FOR RENT. 
 
 HOUSES FOR RENT 
 
 BY 
 
 WRIGHT & CALLENDER 
 
 MANAGERS OF RENTAL PROPERTY 
 
 Wright & Callender Building. 
 
 Telephones : Sunset, Main 808 ; Home, Private Ex., 7 Los Angeles, Cal. 
 Some of the choicest residences in the city for sale. 
 
 No Street Rent 5 
 
 Key Street Rent J 
 
 No Street Rent 
 
 Key Street Rent i 
 
 No Street Rent 
 
 Key Street Rent i 
 
 Rooms Water. 
 
 Rooms Water. 
 
 Rooms Water. 
 
 Rooms Water. 
 
 Rooms Water. 
 
 Rooms.. Water. 
 
 The above list of houses having been furnished me by WRIGHT & 
 CALLENDER, it is agreed that if I rent any of them, I will do so only 
 through them, and will pay to them the first month's rent ,or their regular 
 commission as agent. 
 Date 1905 Name Address 
 
14 REAL ESTATE SELF-TAUGHT 
 
 FORM NO. 124 TENANT'S APPLICATION. 
 WRIGHT & CALLENDER, 
 
 RENTAL DEPARTMENT. 
 
 TENANT'S APPLICATION. 
 
 Los ANGELES, CAL 190 
 
 MESSRS. WRIGHT & CALLENDER: 
 
 I hereby make application for the rental of premises described below, 
 upon the following terms, and warrant all statements made in application 
 to be correct. 
 
 Name in full Residence Tel. No Business Address 
 
 Tel. No Occupation Number in family f Number 
 
 of children Oldest child Sex Youngest child 
 
 Sex Any illness in family? Do you expect to rent rooms? 
 
 Or keep boarders? 
 
 I desire to rent No For Term of From At $ 
 
 per month, water paid by Deposit $ Subject to 
 
 References : Present landlord or agent Other references 
 
 If any of above statements are found to be false, I hereby agree to 
 forfeit said deposit. 
 
 Witness Signed (Seal) 
 
 Owner Address Tel. No Approved by 
 
 Reference examined bv. . 
 
 FORM NO. 125 RENT DEPOSIT RECEIPT. 
 
 WRIGHT & CALLENDER, 
 
 Wright & Callender Building. 
 
 $ RENTAL DEPARTMENT No 
 
 RENT DEPOSIT RECEIPT All Rents Payable Invariably in Advance. 
 
 Los ANGELES, CAL 190 
 
 RECEIVED FROM DOLLARS, to be applied on ac- 
 count of rent of subject to tenant and the following Terms and 
 
 Agreements being accepted by owner, or WRIGHT & CALLENDER, 
 
 Agents. Rent to commence from I. . . ., at a monthly rental of 
 
 Dollars, Payable in Advance, term Water to be paid by 
 
 and , or if not so accepted, this deposit be returned by the 
 
 undersigned, and accepted by applicant, at any time when same is tendered. 
 
 It is a condition of this receipt that within Twenty-four hours after 
 notification of the acceptance of tenant and said terms by owner, or 
 WRIGHT & CALLENDER, Agents, the balance of one month's rent 
 (if any unpaid) shall be paid to WRIGHT & CALLENDER, <xr the 
 amount herein receipted for shall be forfeited to them as liquidated 
 damages. 
 
 Tenant to be entitled to possession of premises only after notification 
 of acceptance and payment of full rent, as above specified, and under no> 
 other conditions. 
 
 The above amount is accepted by the undersigned only on the express 
 agreement that the applicant holds the owner of the above described prem- 
 ises and WRIGHT & CALLENDER, Agents, harmless in every way, 
 except for the return of the amount deposited, if demanded within five (5) 
 days from the date hereof, in case the application is not accepted. 
 
 This receipt is given in connection with Application of even date and 
 number herewith, which is hereby referred to and made a part hereof. 
 
 WRIGHT & CALLENDER, Agents. 
 
 By 
 
 THIS RECEIPT MUST BE RETURNED. 
 
REAL ESTATE SELF-TAUGHT 15 
 
 FORM NO. 126 SCHEDULE OF PRICES OF LOTS. 
 
 PRICE LIST OF LOTS 
 OF 
 
 PALM TERRACE PLACE. 
 
 Lot i $2500.00 
 
 Lots 2 to ii inclusive 2000.00 
 
 Lots 14 to 19 inclusive 1500.00 
 
 Lots 20, 21, and 23 1000.00 
 
 Lots 22-24-25-26 1500.00 
 
 Lots 27-28-29 2000.00 
 
 Lots 30 to 37 inclusive 2500.00 
 
 Lots 44 to 51 inclusive 2000.00 
 
 Lot 52 1700.00 
 
 TERMS. 
 
 One-fourth cash; balance 6, 12 and 18 months, at 7% net. Five per 
 cent discount for cash. 
 
 IMPROVEMENTS will be made promptly and as follows : Oiled streets, 
 Cement walks and Curbs, Water piped to each lot and shade trees planted 
 in front of every lot. 
 
 RESTRICTIONS: Jefferson and Fourth Ave., $1500. All other lots 
 $1250, except lots south of Edison; these latter lots $1000. No barns or 
 temporary buildings allowed to be built until house is completed. All 
 houses must be built 25 feet from front property line, and a number of 
 other desirable restrictions will be included. 
 
 NEW HOUSES TO BE BUILT. Three new houses will soon be 
 built in the first block on Jefferson street. These houses will be built by 
 the owners of the Tract. 
 
 CERTIFICATE OF TITLE by the Title Insurance and Trust Co. 
 will be furnished with every lot as paid for. 
 
FORM NO. 127 A STRIKING SUBDIVISION AD. 
 
 " Sauttyvestward the growth of Greater Los Angeles 
 takes its way." 
 
 Jefferson St. Park Tract 
 
 A FORTUNE IN LOTS 
 
 Right in Line of the City's 
 Irresistible Growth South- 
 west The Handsomest 
 Subdivision in Greater 
 Los Angeles. 
 
 On West Jefferson Street 
 Car Line, Bounded on the 
 East by Arlington Street, 
 on Both Sides of Jefferson 
 Street. 
 
 JEFFERSON ST. PARK TRACT 
 
 The owners of this beautiful subdivision present it as the/tnost 
 attractive and desirable moderate-priced tract in the city It is 
 the logical location fur a beautiful home district the place of all 
 places It commands j great panoramic view across the perpetu- 
 ally ji'oen Santa Monica Valley to the ocean. Cool ID summer 
 ftod vvarm in winter. Fine soil and pure water. 
 
 JEFFERSON ST. PARK TRACT 
 
 Only 30 minutes distant from Fourth and Broadway All the 
 lots are level and carry $150000 building restrictions. All street 
 Improvements to be made ai once. The city is built solidly 10 
 this trdct, and must grow through it. The careful restriction* ihni 
 &oycrn it and the neighboring properties wit) insure you the most 
 ideal and refined surroundings for your home. 
 
 JEFFERSON ST. PARK TRACT 
 
 Make your reservations now. Several fine homes to be built 
 ai once. Secure your lot, for they will quickly double in value 
 Prices $550 and up. Terms, one-fourth, cash, one-fourth 6 months, 
 one-fourth 12 months, balance in 18 months. 5 per rent, discount for 
 cash, Jt fs the lot under the thousand mark thai makes you the 
 dollars. 
 
 JEFFERSON ST. PARK TRACT 
 
 Remember, it is on Jefferson street, tlie great south cross-town 
 thoroughfare of Los Angeles. Renv.'iuber. it is SOUTH WRST. 
 and on a car line. Remember, it is close in the city, and your 
 profits are assured. Make your reservations today Regular com- 
 mission to agents. 
 
 SEE OWNERS' REPRESENTATIVES: 
 
 ARTHUR W. KINNEY CO., 
 
 119 Merchants Trust Bldg., Ground 
 Floor. Phone Home 402. 
 
 G. G. JOHNSON, 
 
 204-5 Bryson Bldg. Phone Home 180. 
 P. W. POWERS, 
 
 234 Byrne Bldg. Phone Home 3041. 
 
REAL ESTATE SELF-TAUGHT 17 
 
 FORM NO. 128 A TYPICAL REAL ESTATE BULLETIN. 
 
 **Live and let live today" is a good maxim, but "Live and help live every 
 
 day" is better. 
 EASTER GREETINGS : "Be Joyful" 
 
 REAL ESTATE BULLETIN 
 
 CHARLES M. STIMSON. 
 
 207 Trust Bldg. Cor. 2nd aand Spring Sts. 
 
 Telephones : Home 7585 ; Sunset Main 6005. Los Angeles, Cal. 
 
 I am the owner of all properties quoted for sale in my list. They afe 
 all free from all incumbrances and I offer the same for sale on easy terms 
 to suit purchasers at good investment prices. If you see what you want 
 speak quickly as prices are advancing to keep pace with the rapid growth 
 of our city. The prices are subject to change without notice, and all sales 
 are subject to my approval. Regular commission on sales made by dealers. 
 
 PRICE LIST NO. 12. INCOME AND BUSINESS PROPERTY. 
 $21000 No. 504-506 E. 3rd street, restaurant, tailor shop and 3 rooms first 
 floor, 14 rooms second floor; lot 35x100 to alley; near Central Ave. 
 market. Street paved. $600 per foot. 
 
 20000 No. 369 Central Ave., opposite market, 25x100, restaurant. $800 
 per foot. 
 
 FORM NO. I29-TWO SUGGESTIVE ADS. FOR BUILDERS. 
 HOMES FOR THE MILLION. 
 
 As to building do you contemplate erecting a residence, store, office 
 building or factory? Our architectural department is managed by one 
 of the finest architects in Los Angeles, a graduate of the English schools of 
 architecture, with ten years' practical experience, thoroughly conversant 
 with every department of the business, whose plans are unsurpassed in 
 architectural effect, beauty of design, space utilization, economy of con- 
 struction and durability. Remember, we do the work ourselves. We do 
 not sublet our work. We employ our own force of men in every depart- 
 ment, plumbing excepted. Our managers are thoroughly up to date and re- 
 liable, and we assure you that you will receive everything that we specify 
 according to the terms and spirit of our specifications. Try us. Once a 
 customer, always a customer. 
 
 FEDERAL REALTY COMPANY. 
 
 433 Stimson Building. , Los Angeles, Cal. 
 
 Home Phone 1275. 
 
 FORM NO. 130 FOR SALE HOUSES. 
 
 WE HAVE TALKED 
 
 a great deal during the past four months about home building, and during 
 that time we have convinced a great many wide-awake people that our plan 
 of building houses is just about the proper thing. 
 
18 REAL ESTATE SELF-TAUGHT 
 
 NEVERTHELESS 
 
 there are a few remaining who have not heard of us and of the thoroughly 
 modern houses that we design and build. 
 
 It seems to us that our plan once explained would immediately appeal 
 to you. We build for cash, after plans and specifications that you furnish, 
 or, better still, if you will come to the office and tell us what you want, the 
 number of rooms, etc., we will guarantee to get you out one of the nicest, 
 neatest and best arranged plans for a house that you have seen;, and we 
 will write the specifications to meet the requirements and furnish the entire 
 cost of the house, if you desire. And you can repay us as you see fit. 
 We will make you a loan to be repaid in three or five years, interest to be 
 paid every three months, or you can repay us in monthly payments, the 
 same as you pay rent. Your payments start when the house is finished. 
 We charge nothing for the plans and specifications. 
 
 Come in and see us and let us convince you that in Los Angeles our 
 houses are in demand. 
 
 J. BURRIS MITCHELL & CO. 
 Contractors and Builders. 
 
 326 Douglas Building. 
 Sunset, Black 3991. Home, 3774 
 
 FORM NO. 131 THIS AD. IS HELPFUL AND ASSURING, AND IS 
 
 AN EXCELLENT MODEL TO FOLLOW FOR 
 
 COUNTRY LANDS. 
 
 FOR SALE 
 
 Country Property. 
 
 HOMESEEKERS. 
 
 THIS IS FOR YOUR GOOD! 
 
 IF YOU ONLY KNEW IT. 
 
 Is it not worth your while to make sure that you are getting the best 
 for your money when you buy a ranch that may be your home for many 
 years, if not for life? 
 
 Will it not be wisdom on your part to go slow until you are sure of 
 what you are buying? Remember, it is a good deal easier to buy than to 
 sell; be sure, then, that you buy in the right section. 
 
 NEW FRIENDS, let us tell you that we have farmed our own land 
 for many years, we have cultivated and pruned our own orchards and har- 
 vested the crops from them; we know good land when we see it. We 
 have been of untold assistance to thousands of homeseekers; we have saved 
 them thousands of dollars ; may we not be of equal assistance to you ? 
 Our advice costs you nothing, and certainly if any advice is worthy of 
 consideration it is ours. It certainly ought to be we have had the actual 
 practical experience. We have made a success of farming and we can help 
 others to do the same. We know from our own experience all the draw- 
 backs with which the California farmer has to contend. We know, too, that 
 few men can pay $250 to $500 an acre for land and make a living and in- 
 terest on their money, unless it be in concentrated form. Take our advice 
 and learn something about CENTRAL CALIFORNIA. We can give you 
 
REAL ESTATE SELF-TAUGHT 19 
 
 good valley land for $50 to $100 per acre, where no irrigation is necessary, 
 rainfall being 25 to 35 inches and CROP FAILURE UNKNOWN. 
 
 Just send 5c for illustrated literature which will show you what can 
 be done by the farmer in this section. 
 
 Send Sc for colored map of the State. 
 Send a stamp for free catalogue. 
 
 Let us hear from you anyhow. Correspondence does not cost much 
 and it will result to our mutual benefit. 
 
 BURR-PADDON CO. 
 
 (Incorporated.) 
 San Francisco. California. 
 
 FORM NO. 132 AN ARGUMENTIVE AD., USEFUL IN WORKING 
 UP INTEREST IN A PARTICULAR STREET. 
 
 FOR SALE 
 
 Business Property. 
 
 CONCERNING JEFFERSON STREET. 
 
 I present below what I POSITIVELY KNOW to be the four best 
 investment propositions on all JEFFERSON ST., and that means the four 
 best in Los Angeles (for a moderate amount of money,) because JEFFER- 
 SON is now LOWER in price than any other street of anything like its 
 importance in this city. It has not been "boomed" as have most of the 
 others. Great jumps in price, like those on Washington, Pico, Figueroa 
 and Main, are YET TO CpME, and they will come SOON. It is natural 
 and ONLY cross-town business street for the southern end of town, and it 
 offers to the scientific investor opportunities that he will seek in vain 
 elsewhere. 
 
 If you ever lived in New York, Chicago, St. Louis, or any of the other 
 large eastern cities, go out and study JEFFERSON, and see what a 
 striking analogy there is between it and such streets as 39th and 47th in 
 Chicago and Spth or I25th in New York, which I might add, are cross- 
 town thoroughfares, removed several miles from the downtown center, and 
 yet among the GREATEST business street of this, country. '' What they 
 have become, JEFFERSON will become, and the tfme is not so far away 
 when JEFFERSON, between Main and Figueroa, will be worth $250 a 
 foot. This may seem strange, but IT IS TRUE. 
 
 Here are the FOUR. There is a certain profit on each one of from 
 FIFTY TO ONE HUNDRED per cent, in the next eight months. 
 
 Corner Grand and JEFFERSON 100x185 on JEFFERSON, income 
 $100 a month, andonly ONE-FIFTH improved. Five stores could be put 
 on this corner aand rented IMMEDIATELY. $10,000 cash in this will 
 DOUBLE within a year. 
 
 51x160, near Grand, $3,250. This is the ONLY vacant lot on the south 
 side of JEFFERSON, between Main and Figueroa, and is a grand little 
 buy. Get it and they'll have to come to you. Price goes to $3,500 if not 
 sold Feb. 15. 
 
 Corner on JEFFERSON, near Grand, with 5-room house, $3,750. It's 
 worth $4,000 now, and in a few months it will be $5000. 
 
 50x140, with fine Q-room house, few feet west of Main on south, ; side 
 street. Price $7,000. The lot ALONE is worth $4,500, and the house $3,000. 
 
 The above prices are for NOW. They'll be DIFFERENT a month 
 hence, because they are the LAST three pieces left on the original options 
 I secured on JEFFERSON early in January. Everything else is 20 per 
 cent higher. Just inquire and see if I am right. , J 
 
 RALPH SULLIVAN, 
 Phone Home 5985. 142 S. Broadway. Room 105. 
 
20 REAL ESTATE SELF-TAUGHT 
 
 FORM NO. 133 AN AD. CONFIRMING PRIOR STATEMENTS. 
 
 FOR SALE 
 
 Business Property. 
 
 CONCERNING JEFFERSON ST. 
 
 JEFFERSON is no longer a "coming" business street. It has AR- 
 RIVED. There are at present MORE business improvements contem- 
 plated and arranged for on JEFFERSON, between Main a;nd Wesley ave- 
 nue, than on ANY OTHER STREET IN LOS ANGELES, outside the 
 downtown center. 
 
 On the 24th of last January, in this column of this paper, in my talk 
 concerning "Jefferson Street," at the same time that I offered a lot on 
 JEFFERSON, between Main and Grand, for $55 a foot, and another for 
 $60, I made this prediction: 
 
 "I say now that eight months hence property on JEFFERSON,, be- 
 tween Main and Grand will cost you not less than $100 a foot, and be- 
 tween Grand and Figueroa $75 a foot. If you don't believe this is con- 
 servative now, you will LATER." 
 
 I sold those two lots, and you can't buy either now^ TWO MONTHS 
 later for less than $100 a foot, and they're as cheap as anything between 
 Main and Grand. You can't buy anything NOW between Grand and Fig- 
 ueroa on JEFFERSON for less than $75 a foot. Don't you think I'm a 
 PRETTY FAIR guesser when it comes to JEFFERSON street property? 
 Don't you wish you'd bought a few dollars' worth of those twelve pieces 
 I've sold on JEFFERSON street since February first? 
 
 But never mind that. (Some people NEVER CAN see a bargain till 
 some one else buys it.) There are plenty of 'opportunities yet. The good 
 times the money making times on JEFFERSON have just BEGUN. 
 Values are increasing more rapidly in the southwest than in any other sec- 
 tion of this town; JEFFERSON is to be paved from Main to Vermont 
 very soon, and possibly 'from South Park to Western avenue; business is 
 springing up all along this grand street; what JEFFERSON is TODAY 
 is but the faintest echo of what it WILL BE three or four years hence, and 
 present prices are in proportion. 
 
 I honestly believe that, at prevailing figures, there is no property in 
 the city which offers as large a profit as JEFFERSON, between Main and 
 Wesley. I am buying there myself. I am getting my closest friends to 
 buy there. I am spending money to advise YOU to buy there, primarily 
 because there's a commission in it, and secondarily and this is more im- 
 portant because I know I can give you such a satisfactory investment that 
 you'll come after more at least, this is the experience I've had with every 
 client I've sold to on JEFFERSON this year. Ask them. 
 
 I have two exceedingly 'good things right now on JEFFERSON. One 
 will take $2500 cash, the other $7500. If you are ready to buy right now, 
 and not just "shopping around," I'll be glad to give you full particulars. 
 
 RALPH SULLIVAN, 
 Tel. Home 5985. 223 r W. Second St. 
 
REAL ESTATE SELF-TAUGHT 21 
 
 FORM NO. 134- 
 This ad. brings out prominently sizes of lots and prices. 
 
 FOR SALE- 
 SPECIAL BARGAINS IN LOTS. 
 
 $1500 Wilton, near 16th 50x155 
 
 $1250 Oxford, near 16th 50x155 
 
 $900 Sixth ave., near Adams. 52x1 50 
 $700 Fourth ave., near 20th.. 50x140 
 $1500 Orchard ave., near 27th. 50x125 
 $750 Jefferson, near Hobart. .50x150 
 $900 Brighton, nr. Jefferson. .50x150 
 
 $1250 Halldale, near 29th 50x150 
 
 A. W. ROSS, 
 L.A.R.B. 420 Bradbury Building. 
 
 FORM NO. 135. 
 Hotels and Lodging Houses. 
 
 28 ROOMS, CLOSE IN $900 
 
 17 rooms, close in $800 
 
 17 rooms, central $450 
 
 20 rooms, central $900 
 
 1 1 rooms, central $350 
 
 7 rooms, fine furniture, mo- 
 quette and body brussels car- 
 pets and Briggs piano $325 
 
 10 rooms, with nice stock of gro- 
 ceries, good location, rent 
 
 $20 $1300 
 
 C. H. GEORGE & CO., 
 
 545 South Spring. 
 
22 
 
 REAL ESTATE SELF-TAUGHT 
 
 FORM NO. 136. 
 
 This ad. shows the effect of surround- 
 ing blank space. 
 
 FOR SALE- 
 WESTMINSTER SQUARE. 
 
 MAGNIFICENT NEW WESTLAKE 
 TRACT, 
 
 AT 10 PER CENT. DISCOUNT 
 
 FOR A FEW DAYS. 
 No greater opportunity for profit- 
 able investment will be found in this 
 paper today than here offered. This 
 high class residence subdivision has 
 absolutely every advantage of desir- 
 able location and environment that 
 can make residence property valu- 
 able. Location, southwest corner of 
 Fourth and Western ave. ; high- 
 class subdivisions on every hand; 
 the Sixth st. car line is now being 
 constructed directly through this 
 property, and will be in operation 
 in three -months; values must ad- 
 vance rapidly then. Right NOW 
 and right HERE is the critical time 
 for you to get one of the most de- 
 sirable home sites in this city, or se- 
 cure a certain money making invest- 
 ment. Our autos at your service 
 daily. 
 
 ALTHOUSE BROS., 
 Members L. A. Realty Board. 
 
 234 Laughlin Bldg., 
 Main 263. Home Ex. 263. 
 
REAL ESTATE SELF-TAUGHT 23 
 
 FORM NO. I37-PETITION, VERIFIED, AND ORDER OF COURT, 
 
 AUTHORIZING INVESTMENT OF WARD'S 
 
 FUNDS BY GUARDIAN. 
 
 No. 3362. Dept. 2. 
 
 In the Superior Court of the State of California, in and for> the County 
 
 of Los Angeles. 
 
 In the Matter of the Estate and Guardianship, of James Jones, In- 
 competent. 
 
 Petition of Guardian for Leave to Invest Moneys of Ward. 
 
 The petition- of Peter Bennett respectfully shows : 
 
 1. That he is the duly appointed, qualified and acting Guardian of 
 John Jones, an incompetent. 
 
 2. That he has in his hands Fifteen Hundred Dollars ($1,500) the 
 same being proceeds of property which belonged to said John Jones, in. 
 the State of Pennsylvania. 
 
 3. That the petitioner desires to invest said moneys in the City of Los 
 Angeles, California, in property that will produce an income! and at the 
 same time enhance in value. 
 
 4. That he has agreed with Elmer Belding and Belinda Belding to 
 purchase of them, if the Court shall approve such purchase, Lot no of the 
 Baldwin Tract, as per map recorded in Book 40, at page 268, Miscellaneous 
 Records of Los Angeles County, California, said lot being situated on 
 Enterprise Avenue and having improvements consisting of a five-room 
 cottage, numbered 2134. 
 
 5. That the purchase price of said property is Two Thousand Dollars 
 ($2,000), and that the rental value of the same is from $13.50 to $14.00 per 
 month ; that there is a trust deed upon said premises for the sum of Eight 
 Hundred and Fifty Dollars ($850.00) in favor of the Federal Building 
 and Loan Association of San Francisco, California, on which there is a 
 credit of Two Hundred Dollars ($200.00), leaving a balance of said trust 
 deed of Six Hundred and Fifty Dollars ($650.00). 
 
 6. That the petitioner has advanced Fifty Dollars ($50.00), of his 
 own funds to bind the bargain, and the owner has agreed to pay and 
 transfer fee on the certificate of stock in said Federal Building and Loan 
 Association, so that the amount to be paid in cash out oi the funds in the 
 hands of the petitioner, if said purchase shall be authorized, will be 
 Thirteen Hundred and Fifty Dollars ($1,350.00). 
 
 7. That the payments on the trust deed above, mentioned are Nine 
 Dollars 20-100 ($9.20) per month, including taxes, and the rentals from 
 the property will be sufficient to make such monthly payments, and peti- 
 tioner believes that the income from said property will not only meet 
 the deferred payments thereon, but that the property, being located between 
 Sixth and Seventh Streets on Enterprise Avenue, will increase in value, 
 and that the investment of Thirteen Hundred and Fifty Dollars ($1,350), 
 of his ward's money in said property would be judicious and would pro- 
 mote the welfare of the estate of his said ward. 
 
 8. That the said ward is not competent to determine or advise as to 
 whether said purchase should be made, and his children are all minors, 
 the oldest being thirteen years of age. 
 
 Wherefore, petitioner prays the Court to make an order authorizing 
 him to purchase said lot and improvements on the terms above stated, 
 without notice. 
 
 Dated at Los Angeles, Calif ornia> April 13, 1906. 
 
 RUFUS SPAULDING, 
 Attorney for Petitioner. 
 PETER BENNETT, Petitioner. 
 
24 REAL ESTATE SELF-TAUGHT 
 
 (VERIFICATION.) 
 
 State of California, County of Los Angeles, ss. 
 
 Peter Bennett, being by me duly sworn, desposes and says: That 
 he is petitioner in the above entitled action; that he has read the fore- 
 going petition and knows the contents thereof ; and the same is- true of 
 his knowledge, except as to matters which are therein stated upon his 
 information and belief, and as to those matters that he believes it to be 
 true. 
 
 PETER BENNETT. 
 
 Subscribed and sworn to before me this I3th day of April, 1906. 
 
 (SEAL) MARY M. RICE, 
 
 Notary Public in and for the County of 
 
 Los Angeles, State of California 
 No. 3362. Dept. 2. 
 Granted April 20, 1906. 
 
 (ORDER OF COURT.) 
 
 BE IT REMEMBERED that on the 2Oth day of April, 1906, 'inj Department 
 Two of the Superior Court of the County of Los Angeles, State of Cali- 
 fornia, Hon. C. A. Giles. Judge, Presiding; present, Mr. L. M. Williams, 
 Deputy Clerk, the following proceedings were had, to wit: 
 
 In the matter of the Estate and Guardianship of John Jones, art 
 Incompetent. 
 
 ORDER AUTHORIZING INVESTMENT. 
 
 The petition of Peter Bennett, the guardian of said John Jones,, 
 incompetent, for an order authorizing him as such Guardian to invest a 
 portion of the funds in his hands belonging to said ward in the house and 
 lot described in said petition, subject to the incumbrance as i'n said petition- 
 stated, coming on for hearing, and evidence having been heard, it is or- 
 dered by the Court that said petition as prayed be granted. 
 
 Entered Jan. 20, 1906. 
 
 N. A. MARSH, County Clerk, 
 By JAMES SCOTT, Deputy. 
 
 Certificate under date of April 21, ioo6..| of N. A. Marsh, County 
 Clerk, that the same is a true copy. 
 
 FORM NO. 138 CORPORATE BOND. 
 
 United States of America, State of California Union Transportation Com- 
 pany. 
 
 First Mortgage Five Per Cent. Sinking Fund, Twenty- Year Gold Bond. 
 Number $1000. 
 
 For Value Received, the UNION TRANSPORTATION COMPANY, 
 a corporation, organized and existing under the laws of the State bf Cali- 
 fornia, and having its principal place of business at Los* Angeles, County 
 of Los Angeles, State of California, promises to pay to the bearer hereof 
 or to the registered holder of this bond, if the same be registered, One 
 Thousand Dollars ($1,000) in gold coin of the United States of America, 
 of the present standard of weight and fineness, on the first day of Feb- 
 ruary, in the year 1926 at the office of the Title Insurance and Trust 
 Company in the City of Los Angeles,: State of California, or at the 
 Corn Exchange Bank in the City of New York, State of New York, and 
 to pay interest thereon from the date hereof until paid, at the rate of five 
 per centum per annum, at the places specified in the annexed coupons, in 
 
REAL ESTATE SELF-TAUGHT 25 
 
 like gold coin semi-annually on the first days of February and August 
 in each year, upon the presentation and surrender of said interest coupons 
 as they severally mature. This bond is one >of a series of First Mortgage 
 Five Per Cent. Sinking Fund Twenty-Year Gold Bonds of the Union 
 Transportation Company, of the denomination of one thousand dollars 
 ($1,000) each, numbered from one (i) to three thousand (3,000), both 
 inclusive, issued and to be issued to an amount not exceeding in the 
 aggregate the principal sum of three million dollars ($3,000,000), under the 
 provisions of, and be equally secured by, a mortgage or deed of trust 
 dated February 1st, A. D. 1906, and executed by the Union Transportation 
 Company to the Title Insurance and Trust Company of Los Angeles, 
 California, as Trustee, to which mortgage or deed of trust reference is 
 hereby made for the description of the property, rights and franchises 
 mortgaged, the nature and extent of the security and rights of the holders 
 of bonds under the same and the terms and conditions upon which the 
 bonds are issued and secured. This bond shall pass by delivery unless 
 registered in the name of the owner on the books olf said Union Trans- 
 portation Company, such registry being noted on the bond by said last 
 mentioned corporation. After such registry, no transfer shall be valid 
 unless made on said books by the registered owner in person, or by his 
 attorney duly authorized, and similarly noted on the bond. The same 
 may be discharged from registry by being in like manner transferred to 
 bearer, and thereupon transferability by delivery shall be restored, but 
 this bond may again, from time to time, be registered and transferred to 
 bearer as before. Such registry, however, shall not affect the negotiability 
 of the coupons which shall continue to be transferable by delivery. This 
 bond shall not be obligatory for any purpose until the certificate of the 
 said trustee authenticating the same shall have been duly signed by said 
 trustee. 
 
 IN WITNESS WHEREOF, the Union Transportation Company has caused 
 these presents to be signed by its President, and its corporate seal to be 
 hereunto affixed,,, to be attested by its Secretary, and coupons for said 
 interest with the engraved fac simile signature of its Secretary to be 
 attached hereto, as of the first day of February, A. D. 1906. 
 
 UNION TRANSPORTATION COMPANY. 
 
 By 
 
 President. 
 Attest 
 
 Secretary. 
 
 Coupon No>. $25. 
 
 On the first day of , 19 , the Union Trans- 
 portation Company will pay to bearer, at the American National Bank in 
 the City of Los Angeles, State of California, or at the Corn Exchange 
 Bank in the City of New York, State of New York, at the option of the 
 holder hereof, Twenty-five Dollars ($25) in United States gold coin, of the 
 present standard of weight and fineness, being six months' interest then 
 due on its First Mortgage Five Per Cent. Sinking Fund Twenty- Year 
 
 Gold Bond, No 
 
 W. A. CARNEY, Secretary. 
 
 The TITLE INSURANCE AND TRUST COMPANY, of Los 
 Angeles, California, the trustee within named, hereby certifies that the 
 within bond is one of the series of bonds therein mentioned; that said 
 company has examined the records of the proceedings taken for the 
 incorporation of said UNION TRANSPORTATION COMPANY and 
 for the execution and issuance of said bonds and of the deed of trust 
 herein referred to; that from such examination it appears: 
 
 That said UNION TRANSPORTATION COMPANY is duly incor- 
 
26 REAL ESTATE SELF-TAUGHT 
 
 porated under the laws of the State of California, and is empowered by 
 law to issue said bonds and to execute said deed of trust; that all the 
 requirements of law have been complied with in the authorization, execu- 
 tion and issuance of said bonds and of said deed of trust ; and that said 
 deed of trust and said bonds are subsisting and legal obligations. 
 
 Said TITLE INSURANCE AND TRUST COMPANY hereby 
 certifies that said deed of trust has been delivered and recorded as required 
 by law, and that said company has issued in its usual form and under its 
 Order No. 95,665, a policy of title insurance upon the title to that certain 
 property described in said policy, insuring the owners or legal holders of 
 said bonds against loss by reason of any defect in or lien or incumjbrance 
 on the title to the property described in said policy, subject only to the 
 written and printed exceptions contained in said policy. 
 
 TITLE INSURANCE AND TRUST COMPANY, 
 
 Trustee. 
 By , President. 
 
 FORM NO. 130 CASH SUBSCRIPTION BLANK. 
 
 (NO CERTIFICATE FOR LESS THAN 3OO SHARES WILL BE SOLD.) 
 
 CASH CONTRACT. 
 
 SUBSCRIPTION BLANK. 
 
 FOR SPECIAL ORGANIZATION STOCK OF 
 
 THE GOLDFIELD RELIANCE MINING COMPANY. 
 The C. M. Sumner Investment Securities Company, 
 Kittredge Building, Denver Colo. 
 
 Gentlemen : I hereby subscribe for Shares of 
 
 THE GOLDFIELD RELIANCE MINING COMPANY Stock, par value 
 $1.00 per share, full paid and non-assessable, with no individual liability, 
 
 at the special price of 4 CENTS per share, for which I enclose 
 
 payment in full. Issue certificate to 
 
 Name 
 
 Postomce Address 
 
 City 
 
 State 
 
 PRICE OF STOCK SUBJECT TO CHANGE WITHOUT NOTICE. 
 
 FORM NO. 140 INSTALLMENT SUBSCRIPTION BLANK. 
 
 (NO CERTIFICATE FOR LESS THAN 50O SHARES WILL BE SOLD.) 
 
 INSTALLMENT CONTRACT. 
 
 SUBSCRIPTION BLANK. 
 
 FOR SPECIAL ORGANIZATION STOCK OF 
 
 THE GOLDFIELD RELIANCE MINING COMPANY. 
 The C. M. Sumner Investment Securities Company, 
 Kittredge Building, Denver, Colo. 
 
 Gentlemen : I hereby subscribe for Shares of 
 
 THE GOLDFIELD RELIANCE MINING COMPANY Stock, par value 
 $1.00 per share, full paid and non-assessable, with no individual liability, 
 
 at the special price of 5 CENTS per share, for which I enclose 
 
 first month's payment, the balance to be paid in ten equal monthly pay- 
 ments. Please acknowledge receipt and send contract for delivery of 
 stock on completion of payments. 
 
 Name 
 
 Postoffice Address 
 
 City 
 
 State . . . 
 
 PRICE OF STOCK SUBJECT TO CHANGE WITHOUT NOTICE. 
 
REAL ESTATE SELF-TAUGHT 27 
 
 FORM NO. 141 CHATTEL MORTGAGE. 
 
 THIS MORTGAGE. Made this 3Oth day of January, in the year of our 
 Lord One Thousand Nine Hundred Six (1906) by C. H. Allen and Eliza 
 A. Allen, his wife, of the County of Los Angeles lA State oi California; 
 Mortgageors, to W. A. Wilson, of the County and State aforesaid, Mort- 
 gagee, 
 
 WITNESSETH, That the said Mortgageors mortgage to the Mortgagee 
 all that certain personal property situated and described as follows, to-wit ; 
 
 All the furniture and furnishings of sixteen rooms, comprising the 
 rooming house at No. 1306 Maple Ave., in the City of Los Angeles, State 
 of California, and consisting of the carpets, rugs, mattings, bedsteads, bed- 
 springs, mattresses^ dressers or bureaus, washstands, tables, bedclothing 
 and kitchen utensils, as per inventory thereof, hereto annexed and marked 
 "Exhibit A," as security for the payment to said W. A. Wilson, the said 
 Mortgagee, of Two Hundred Dollars, gold coin of the United States of 
 America, on or before the 3Oth day of July, in the year Nineteen Hundred 
 Six, with interest thereon at the rate of 13 per cent per annum, according 
 to the terms and conditions of a certain promissory note of even date here- 
 with, and in the words and figures following, to-wit : 
 
 $200 Los ANGELES, CAL., Jan. 30, 1906. 
 
 On or before six months after date, for value received, we promise to 
 pay W. A. Wilson or order, the sum of Two Hundred Dollars, with 
 interest at the rate of thirteen per cent, per annum from date until paid, 
 interest payable semi-annually, and if not so paid to 'be compounded semi- 
 annually, and bear the same rate of interest as the principal ; and should 
 the interest be not so paid then the whole sum of principal and interest 
 shall become immediately due and payable at the option of the holder of 
 this note. Principal and interest payable in gold coin of the United States. 
 
 Payable at Los Angeles, Californa. 
 
 This note is secured by a chattel mortgage of even date herewith. 
 
 C. H. ALLEN, 
 E. A. ALLEN. 
 
 It is also agreed that if the Mortgageors shall fail to maKe any payment 
 as in the said promissory note provided, then the Mortgagee may take 
 possession of the said property, using all necessary force so to do, and 
 may immediately proceed to sell the same in the manner provided by law, 
 and from the proceeds pay the whole amount in said note so specified, 
 together with all payments made by the Mortgagee for insurance on the 
 said property, and all costs of sale, including counsel fees not exceeding 
 twenty per cent, upon the amount due, paying the overplus to the said 
 Mortgageors. C. H. ALLEN (SEAL) 
 
 E. A. ALLEN (SEAL) 
 State of California, County of Los Angeles, ss. 
 
 Signed, sealed and delivered in the presence of 
 
 C. H. Allen and E. A. Allen, the Mortgageors in the foregoing mort- 
 gage named, and W. A. Wilson, the Mortgagee in said mortgage named, 
 being duly sworn, each for himself and herself, doth depose and say that 
 the aforesaid mortgage is made in good faith and without any design to 
 hinder, delay or defraud creditors. 
 
 Subscribed and sworn to this 3Oth day of January, 1906. 
 
 W. A. WILSON, 
 C. H. ALLEN, 
 E. A. ALLEN, 
 JAMES J. WHITE, a Notary Public in and for said County df Los Angeles, 
 
 State of California. 
 (Notarial Seal) 
 
 (Acknowledgment) 
 
28 REAL ESTATE SELF-TAUGHT 
 
 FORM NO. 142 CROP MORTGAGE. 
 
 THIS INDENTURE, Made the day of ..... in the year of 
 
 our Lord one thousand eight hundred and ninety- BETWEEN 
 
 of the. . . . County of State of ... .by occupation a Mortgageor 
 
 . .and part. . of the first part, and by occupation a , Mortgagee 
 
 ..and part., of the second part, WITNESSETH : That the said Mort- 
 gageor.., for and in consideration of the sum of ....DOLLARS, 
 
 to., in hand paid, the receipt whereof is hereby acknowledged, do. .by 
 these presents grant, bargain, sell and convey unto the said part. . of the 
 second part, and to . .heirs and assigns forever, the following growing Crop 
 
 . . .viz. : the Crop. . of now being, standing and growing upon that 
 
 certain piece or parcel of land, situate, lying and being in the said County 
 of . .. ., State of. .. ., and particularly described as follows, viz.: 
 
 TO HAVE AND TO HOLD the above-mentioned and described 
 Crop. . subject to the provisions hereinafter contained. 
 
 PROVIDED, NEVERTHELESS!, and these presents are upon the 
 express condition.., that if the said part., of the first part, .... heirs, 
 executors, administrators or assigns, shall well and truly pay or ca,use 
 to be paid, unto the said part., of the second part, .... executors, ad- 
 ministrators or assigns, the sum of Dollars, on the with 
 
 interest thereon at the rate of.... per cent per from the date hereof, 
 
 until paid, according to the true intent and meaning of. .. .certain Prom- 
 issory Note, .dated as by said Promissory Note. ., reference there- 
 unto being had, will more fully appear, then these presents shall be void. 
 And the part. . of the first part do. . hereby covenant and agree to and with 
 the said part., of the second part, ....heirs and assigns, that. .he. .will 
 well and carefully tend, take care of and protect the said Crop, .while 
 growing and until fit for harvest, and then faithfully and without delay, 
 harvest, thresh, clean and sack the same, and deliver the same immediately 
 into the possession of the said part. . of the second part, or. . . . assigns, to 
 be by. . . .held and disposed of for the payment of the debt hereby secured; 
 that in default of either of the above acts to be done by the said part. . of 
 the first part, the said part. . of the second part, or. . . .assigns, may enter 
 upon the premises and take all necessary measures for the protection of 
 said Crop.., and may retain possession thereof, harvest, thresh and sack 
 the same; and all expenses so incurred, and all that may become necessary 
 in the keeping and care of said Crop. ., as well as the hauling.,' storing and 
 delivery thereof, shall be secured by this Mortgage, and shall be first pay- 
 able in United States Gold Coin, out of the money realized from the sale 
 of said Crop. . ; that said part. . of the second part, or. .. .assigns. .. .shall 
 and may at all times enter into the premises to view the same, or to tajce 
 any measures necessary for the protection of said Crop.., or. .. .interests 
 therein, and that upon harvesting thereof,. .. .shall be entitled to the im- 
 mediate possession of the same, and may haul and store the, same, at the 
 
 expense of the said part., of the first part, and do. .for the purposes 
 
 aforesaid, make, constitute and appoint the said part. . of the, second part, 
 and. .. .assigns,. .. .true and lawful Attorney, .irrevocable,, with full power 
 to enter upon said premises and take possession of said Crop. ., and take 
 care of, protect, thresh, clean and sack the same, in case of any default 
 on. . . .part of the covenants herein contained; and. . . .do. .further authorize 
 ... .or. .. .assigns to take possession of said Crop., when harvested, to 
 haul and store the same, to sell and dispose of the same, or any part there- 
 of, at such time or times, and for such sum or sums of money as may 
 
 deem proper, and for the best advantage of all concerned, and out of the 
 proceeds of such sale, first, to retain the costs and charges thereof, and 
 any and all expenses by the part. . of the second part incurred in the care 
 and protection, harvesting, hauling or storing the same, and commission 
 
REAL ESTATE SELF-TAUGHT 29 
 
 for selling the same; second, to apply the residue to the payment of said 
 
 Note.., rendering the overplus, if any there be, to the said part., of the 
 
 first part,. . . .or. . . .assigns. 
 
 IN WITNESS WHEREOF, the said part., of the first part ha.... 
 
 hereunto set hand, .and seal, .the day and year first above written. 
 
 Signed, Sealed and Delivered in the presence of 
 
 (SEAL) 
 
 (SEAL) 
 
 (SEAL) 
 
 STATE of County of ss. 
 
 the Mortgageor. .in the foregoing Mortgage named, and the Mort- 
 gagee, .in said Mortgage named, each being duly sworn;, each for himself, 
 doth depose and say: that the aforesaid Mortgage is made in good faith 
 and without any design to hinder, delay, or defraud any creditor or 
 creditors. 
 
 Subscribed and sworn to before me, this.... day of 189.., at the 
 
 County of 
 
 FORM NO 137 HABENDUM AND RENT CLAUSE. 
 
 To HAVE AND TO HOLD the said above mentioned and described prem- 
 ises, with the appurtenances, unto the said party of the second part, his 
 executors, administrators and assigns, from the. .. .day of. .. ., one thous- 
 and nine hundred and , for and during the full term of years thence 
 
 next ensuing, and fully to be completed and ended. Yielding and paying 
 therefor, unto the said party of the first part, his heirs or assigns, monthly 
 .and every month, during the said term hereby granted, the monthly rent or 
 
 sum of dollars, Gold Coin of the United States of America, on the 
 
 day in each and every month during the said term : Provided always, 
 
 nevertheless, that if the monthly rent above reserved, or any part thereof, 
 shall be behind or unpaid on any day of payment whereon the same 
 ought to be paid, as aforesaid; or if default shall be made in any of the 
 covenants herein contained, on the part and behalf of the said party 
 of the second part, his executors, administrators and assigns, to be paid, 
 kept and performed, then and from thenceforth it shall and may be 
 lawful for the said party of the first part, his heirs or assigns, into and 
 upon the said premises, and every part thereof, wholly to re-enter, and 
 the same to have again, repossess and enjoy, as in his or their former 
 estate, any thing hereinbefore contained to the contrary thereof in any 
 wise notwithstanding. 
 
 FORM 144 COVENANT AS TO INSURANCE, AND APPLI- 
 CATION OF SAME, ON BUILDINGS ON LEASED GROUND. 
 
 The lessee does covenant and agree to and with the lessor, that it, 
 the lessee, will keep insured, during the said demised term, any atod all 
 buildings, or improvements that may be built or placed upon said premises, 
 in a good and responsible company or companies to the amount of not 
 less than eighty (80%) per cent, of the cost of the buildings, provided 
 insurance in good and solvent companies can be obtained to that percent- 
 age; if not, then to the highest percentage that can be obtained, not 
 exceeding eighty (8p%) per cent, and all policies issued, and renewals 
 thereof, of all such insurance upon the said buildings or improvements to 
 the amount of any per cent, of the cost of the buildings, are to be assigned 
 
30 REAL ESTATE SELF-TAUGHT 
 
 to, and in case of loss, be made payable to, the Trust 
 
 Company of (hereby designated as 
 
 trustee) for the purposes hereinafter named, to wit: the same to be 
 held by the said Trust Company as trustee as additional security for 
 the amount of rent that might become due under the said lease and 
 for the rebuilding herein provided for. And the lessee covenants and 
 agrees, in the event of the total destruction of said premises by fire, 
 that immediately upon the payment of the insurance moneys accruing to 
 said Trust Company, it, the said lessee, will forthwith, and immediately 
 advance and pay to said Trust Company the difference between the amount 
 
 of insurance so received upon said policies and the sum of 
 
 thousand dollars, the said sum of thousand dollars to constitute a 
 
 trust fund for the payment of the rent hereunder, as well as for the 
 rebuilding of said building; and said Trust Company, in case said build- 
 ings or improvements shall at any time or times be destroyed by fire, 
 during said demised term, shall pay to said lessee,; upon proper architect's 
 certificates, so much of the said trust fund in such sum or sums as may be 
 necessary to pay for the rebuilding of said building; and the lessee agrees 
 and covenants that said sum shall be so expended in the construction of a 
 new building upon said premises, and that it will rebuild the same. It 
 is furthermore covenanted and agreed that the policies of insurance upon 
 said premises shall be subject to the examination of the lessor, and the 
 lessor shall have the right to reject any of said policies and in the event of 
 such rejection, the lessee agrees to substitute new policies in like amount 
 in companies the said lessor may approve. In the event that, owing to 
 insurance regulations then or thereafter in force, said Insurance moneys 
 cannot be made payable to said Trust Company, on in the event said Trust 
 Company shall be unwilling, or should be unable, or should decline, to 
 act, then said moneys shall be payable to such person or corporation and 
 in such manner as may be permitted by said insurance regulations, but in 
 such a way as that all moneys paid or recovered on account of said policies 
 shall constitute a trust fund as hereinbefore expressly provided. 
 
 And it is further understood and agreed that no interest is to be 
 paid on said insurance money by said Trust Company during the time 
 said money remains in its possession ; and it is further agreed that any and 
 all moneys which the said Trust Company shall receive by reason of any 
 loss or destruction of the said buildings or improvements, is hereby 
 constituted a trust fund, to be used for the rebuilding of the buildings and 
 improvements upon the said premises as hereinbefore provided for. AncT 
 it is further agreed that said Trust Company shall properly disburse such 
 moneys and use same toward rebuilding the buildings and improvements 
 upon the said premises as herein provided for ; but it is expressly under- 
 stood and agreed that this provision shall not prejudice the provisions in 
 this lease contained,, that such insurance money shall stand as additional 
 security for the rent herein provided for. And it is further understood 
 and agreed that neither the lessor nor said Trust Company shall be 
 responsible for the collection or noncollection of any insurance money 
 or in any event but only for such insurance money as shall come to 
 its hands; provided, however, that said Trust Company shall take such 
 steps as said lessee may direct, either by suit or otherwise, for the 
 collection of said insurance moneys, should the insurance company or 
 companies for any reason decline to pay any loss ; and the lessee shall 
 advance all costs and expenses of such proceedings and shall fully 
 indemnify said Trust Company from any loss, damage, costs and expense 
 resulting therefrom. It is further understood that the said insurance 
 moneys shall be applicable as to the payment of rent that may be due 
 hereunder and shall at all times be subject to the payment of such rental. 
 
 And the said lessee covenants and agrees that if said buildings and 
 
REAL ESTATE SELF-TAUGHT 31 
 
 improvements, or any part thereof, shall at any time or times during the 
 continuance of said term be destroyed or damaged by fire or other 
 casualty, and as often as any building or improvements on said premises 
 shall be destroyed or damaged by fire or other casualty, said lessee shall 
 rebuild and replace the same upon the same general plan and dimensions 
 as before the said fire or casualty, the construction so rebuilt and repaired 
 to be of the value of not less than. . . .thousand dollars, and shall have the 
 same rebuilt and ready for occupancy within twelve months from each 
 loss or destruction, at its own expense, provided, tha v t in case such" build- 
 ing shall be destroyed or damaged so near the end of said term that there 
 shall not be ample time (which time shall not exceed eighteen months) 
 to rebuild or repair the same before the end of said term, then the insur- 
 ance on the said buildings shall belong to and be paid to the said lessee, 
 except so much thereof as shall be equal to the sum due and to become 
 due the said lessor under the terms of this lease, which amount, if any^ 
 shall be paid to the said lessor; and in such case this leasehold interest 
 shall be determined ; and it is covenanted and agreed that all and every 
 sum or sums of money which shall be recovered or received by said 
 lessee for and in respect of said insurance upon said building or buildings 
 shall be laid out and expended by it in rebuilding or repairing said buildings 
 or such parts thereof as shall be damaged as aforesaid, and in case the 
 lessee shall not have advanced the funds necessary to bring said insurance 
 moneys up to. .. .thousand dollars, it shall be lawful for the lessor to 
 declare this lease ended, and into said premises to re-enter as herein- 
 before provided; and any part of any building or buildings remaining on 
 said premises shall at once be forfeited to said lessor and no compensa- 
 tion therefore shall be allowed to said lessee, and any balance of insurance 
 money remaining in the hands of the said Trust Company shall be forfeited 
 to him as liquidated and ascertained damages, and not as a penalty or 
 penal sum or in the nature thereof. And it is understood and agreed, in 
 case of a fulfillment by said lessee of its covenants in this lease, that any 
 surplus of any and all insurance moneys, after the use of the same for the 
 purpose provided in this lease, shall belong to and be paid over to the said 
 lessee, except in the event of the destruction of said building, within 
 eighteen months of the expiration of this term, when, after the deducti'on 
 of the rental to grow due, the balance of the insurance money shall be 
 paid to the lessee. 
 
 FORM NO. 145 COVENANT IN LEASE THAT LESSOR MAY 
 
 POST NOTICES THAT HE WILL NOT BE RESPONSIBLE 
 
 FOR CONSTRUCTION, ALTERATION AND REPAIR 
 
 OF IMPROVEMENTS. 
 
 The lessor shall have the right, and hereby reserves the right, to 
 enter upon said demised premises on or before or about the time or 
 during the time of the construction of said new building, and to post, 
 print, paint, or place thereon, in a conspicuous place or places, notices of 
 such character and size as the lessor may determine, and to keep them so 
 maintained, to the effect that, he, the lessor and owner will not be re- 
 sponsible for the construction, alteration and repair, or intended construc- 
 tion, alteration or repair, of any building or improvement upon the said 
 property ; or to take any other act that may be required by law or by 
 Section 1192 of the Code of Civil Procedure to exempt said lessor from 
 liability by reason of the construction thereof. 
 
32 REAL ESTATE SELF-TAUGHT 
 
 FORM NO. 146 COVENANT IN LEASE AS TO APPRAISAL 
 
 OF. AND PAYMENT FOR, BUILDINGS ON 
 
 LEASED GROUND. 
 
 It is further covenanted and agreed that unless the respective parties 
 
 herein shall have agreed in writing ninety days before the day 
 
 of A. D., 19. ., (provided this lease is not sooner 
 
 determined in any of the ways herein mentioned) upon the actual cash 
 value of any and all buildings and any and all improvements that are 
 situated and standing upon said premises (exclusive of and not including 
 the value of the land or ground) then an appraisal shall be made of the 
 then actual cash value of any and all such buildings and improvements at 
 the time of the appraisal, said appraisal to be made by three disinterested 
 
 free-holders in the City of , owning land in fee in 
 
 that part of said City, and not related to any of the parties in interest by 
 consanguinity or affinity, and they shall be selected in the following manner, 
 that is to say : The lessee shall select one appraiser and notify the lessor 
 in writing of the person so chosen, and the lessor shall thereupon, or within 
 ten (10) days thereafter, choose one appraiser and notify the lessee in 
 writing of the person chosen, and the two persons so chosen shall, within 
 ten (10) days thereafter, choose a third appraiser,, and the three persons 
 so chosen, or any two of them, shall proceed forthwith to appraise the 
 actual cash value of any and all buildings and improvements a'foresaid, 
 exclusive of and not including the value of the land or ground at the time 
 of the appraisement, and shall determine whether or not the buildings have 
 at any time been used for a purpose likely to weaken or injure them beyond 
 ordinary wear and tear and deterioration, and shall, within ten (10) days 
 thereafter notify, in writing, the said lessor and lessee of the appraisal so 
 made by them; and the decision of the said appraisers, or of any two of 
 them, shall be final and binding. And in case of the refusal of either of 
 the parties hereto to appoint an appraiser as herein provided, or, in case ot 
 the death, inability, neglect or refusal to act of either of the appraisers 
 so appointed by the said parties hereto, or of the third appraiser appointed 
 by the said appraisers chosen by the parties hereto, as hereinbefore pro- 
 vided* or, in case the appraisers appointed by the said parties hereto shall 
 neglect or refuse to appoint or be unable to agree upon a third appraiser, 
 as hereinbefore provided, or, in case the three appraisers are appointed, 
 that any two of them shall be unable to agree upon an appraisement as 
 hereinbefore provided, then, in any such event, either of the said parties 
 hereto, or the party or parties who shall succeed to the interest of the said 
 parties hereto under the terms of this lease, shall have the right to apply 
 to any judge of any court of Record having chancery Jurisdiction within 
 
 the said county of ; for the appointment 
 
 of one or two or three appraisers as the circumstances demand ; and any 
 judge to whom such application shall have been made, shall, upon satis- 
 factory evidence being furnished that due notice of such application has 
 "been given to the other party in interest, have the power to appoint one 
 or two or three appraisers, as the circumstances demand, of like qualifica- 
 tions as herein provided, and the appraisers so appointed shall have 
 the same qualifications, powers and duties as though they had been selected 
 as hereinbefore provided. Said appraisers shall take into consideration, in 
 estimating the value of said building, such sums as may have been expended 
 under any party wall agreements theretofore entered into by ttie said 
 lessee and the adjacent property owners. 
 
 And it is hereby Understood, Covenanted and Agreed that no appraisal 
 shall be invalid by reason of not being made within the time provided by 
 this lease, and that the appraised value shall in no case exceed what it 
 would then cost to erect and complete such buildings and improvements 
 
REAL ESTATE SELF-TAUGHT 33 
 
 less the then depreciation thereof occasioned by wear and tear, age and 
 decay; but in no event shall said appraisement exceed nor shall said 
 lessor be under any obligation or liability to pay hereunder a sum ex- 
 ceeding dollars. 
 
 And the said lessor covenants and agrees to purchase on the 
 
 day of , in the year of our Lord one thousand 
 
 hundred and , (unless this lease is sooner determined .in any of the 
 
 ways herein provided,) the said building and improvements situated and 
 standing upon the said premises, (exclusive o>f and not including the 
 value of the land or ground) at their actual cash value, so agreed upon 
 and determined as aforesaid; said purchase money to< be payable one-half 
 
 in cash and the balance in one (i) year from the first day of , in 
 
 the year of our Lord one thousand hundred , with interest 
 
 thereon at the rate of six per cent, per annum, said deferred payment to be 
 secured by a first mortgage on said premises and improvements, or by 
 such other securities as may be satisfactory to the said lessee; or, if the 
 said lessor so desires, he may pay the entire sum of said purchase price 
 in cash. 
 
 And the said lessee covenants and agrees that at the time and upon 
 
 the day of such purchase to-wit : Upon the day of , at twelve 
 
 o'clock noon, it will convey all of said buildings and improvements to the 
 said lessor, by a good and sufficient deed of conveyance* and will immedi- 
 ately surrender, yield and deliver up, peaceably, said described premises 
 in as good condition as when the same was entered upon by the said 
 lessee, and any and all buildings and improvements thereon in a good and 
 perfect condition, ordinary wear and tear, depreciation and decay, excepted. 
 It being, however, fully understood and agreed by and Between the parties 
 hereto that it is a condition of this lease that all buildings and improve- 
 ments and fixtures upon the said premises at the termination of said 
 demised term, providing this lease is not sooner determined, shall, at 
 and upon the date of the expiration of said demised term, revert to and 
 become the exclusive property of and be vested in the said lessor, after 
 any such deed of conveyance from the said lessee to the said lessor; but 
 this condition is not to be understood or to be so construed as to waive 
 the right of the lessee to the payment to it of the actual cash value of the 
 said improvements upon the said premises, to be ascertained and determined 
 as aforesaid. And it is further understood and agreed^ in the event that 
 the value of the buildings shall not have been agreed upon or ascertained 
 prior to the expiration of the said demised term, then and in such case 
 said lessee shall have the first and valid lien upon said premises for the 
 amount of such value notwithstanding the surrender of the possession 
 thereof to the said lessor as above provided, together with interest thereon 
 at the rate of six per cent. (6%) per annum from the date of the deter- 
 mination of said demised term, until so paid or secured; and in default 
 thereof said lessee may enforce its lien therefor. 
 
 FORM NO. I47-COVENANT FOR QUIET ENJOYMENT. 
 
 And the said party of the first part, for himself, his heirs, and assigns, 
 doth, covenant and agree, by these presents, that the said party of the 
 second part, his executors, administrators or assigns, upon paying the said 
 monthly rent above reserved, and performing the covenants and agree- 
 ments aforesaid, on his and their part, the said party of the second part, 
 his executors,, administrators and assigns, to be paid, kept and performed, 
 shall and may at all times during the term hereby granted, peaceably and 
 quietly have, hold and enjoy the said demised premises, without any let, 
 suit, trouble or hinderance, of or from the said party of the first part, his 
 heirs or assigns, or any other person or persons whosoever. 
 
34 REAL ESTATE SELF-TAUGHT 
 
 FORM NO. I48-COVENANT TO PAY RENT. 
 
 And the said party of the second part, 'for himself and his heirs, 
 executors, administrators and assigns, doth covenant and agree, to and 
 with the said party of the first part, his heirs and assigns, by these presents, 
 that the said party of the second part, his executors,, administrators or as- 
 signs, shall and will monthly and every month during the term granted, 
 well and truly pay, or cause to be paid, unto the said party of the first 
 part, his heirs or assigns, the said monthly rent above reserved, on the 
 days, and in the manner limited and prescribed, as aforesaid, for the pay- 
 ment thereof, without any deduction, fraud or delay, according to the true 
 intent and meaning of these presents : And that on the last day of the 
 said term, or other sooner determination of the estate hereby granted, the 
 said party of the second part, his executors, administrators or assigns, 
 shall and will peaceably and quietly leave, surrender and yield up, unto the 
 said party of the first part, his heirs or assigns, all singular the said 
 demised premises. 
 
 FORM NO. 149 COVENANT NOT TO ASSIGN LEASE WITHOUT 
 WRITTEN CONSENT OF LESSOR. 
 
 And said party of the second part further covenants and agrees, that 
 he will not assign this lease or under let or sublet said premises, or any 
 part thereof, to any person or persons whomsoever, without first obtaining 
 the written consent of said party of the first part ; and notice is hereby 
 given that any assignment of this lease or underletting of said premises 
 not in strict conformity to this provision shall be absolutely null and void : 
 Provided, however, that the consent of said party of the first part shall 
 not be unreasonably nor capriciously withheld. 
 
 FORM NO. 150 COVENANT AS TO HEIRS AND ASSIGNS. 
 
 It is mutually covenanted and agreed by and between the parties 
 hereto, that each of the expressions, phrases, terms, conditions, provisions, 
 stipulations admissions, promises, agreements, requirements and obliga- 
 tions of this lease shall extend to and bind and inure to the benefit of (as 
 the case may require) not only the parties hereto, but each and every df 
 their heirs, executors, administrators and assigns of the respective parties 
 of the first and second part hereto ; and wherever in this lease a reference 
 to either of the parties hereto is made, such reference shall be deemed to 
 include, wherever applicable, also a reference to the heirs, legal repre- 
 sentatives and assigns of such party the same as if in every case expressed ; 
 and all the conditions and covenants contained in this lease shall be con- 
 strued as covenants running with the land. 
 
 FORM NO. 151 COVENANT AS TO RIGHTS OF THE PARTIES 
 IN EVENT OF DESTRUCTION OF PREMISES BY FIRE. 
 
 If, during the term of this lease, the building or premises are destroyed 
 by fire, or other action of the elements, or partially destroyed so as to 
 render the premises demised wholly unfit for occupancy, or if they shall 
 be so badly injured that they cannot be repaired within sixty days after 
 the happening of the injury, then this lease shall cease and become null and 
 void from the date of such damage or destruction, and the lessee shall 
 
REAL ESTATE SELF-TA.UGHT 35 
 
 immediately surrender said premises, and all interests therein, to said 
 lessor^ and said lessee shall pay rent within this term only to the time of 
 such surrender; and in case of destruction or partial destruction as above 
 mentioned, the said lessor may re-enter and re-possess said premises dis- 
 charged of this lease, and may remove all parties therefrom; and if said 
 premises shall be repairable within sixty days from happening of said 
 injury, then said rent shall not run or accrue after such injury and while 
 the process of repairs is going on, and the lessor shall repair the same 
 with all reasonable speed, and the rent shall recommence immediately after 
 said repairs shall be completed; but if said premises shall be so slightly 
 injured by fire or the elements as not to be rendered unfit for occupancy, 
 then the said lessor agrees that the same shall be repaired with reasonable 
 promptitude ; and in that case the rent accrued and accruing shall not 
 cease or determine. In no case shall the lessee be entitled to compensa- 
 tion or damages on account of any inconvenience or annoyance, or destruc- 
 tion by fire or earthquakes or by other actions of the elements, or by recon- 
 struction or repair of any portion of said building; nor for any damage 
 to or loss of property in said premises from any cause. 
 
 FORM NO. 152 COVENANT AS TO REPAIRS. 
 
 The lessor shall not be required to make any repairs on said premises, 
 and shall not be responsible for any damage to the demised premises or 
 property contained therein, by reason of the leakage of water from the 
 roof, or pipes, or stoppage of pipes, or stoppage or overflow! of sewers, or 
 leakage or overflow from any cause ; but the lessor will cause the defects 
 to be remedied with reasonable diligence by a mechanic after receiving 
 notice thereof; but if said mechanic fails to make said repairs properly 
 and the lessee sustain loss or damage thereby before the lessor is notified 
 of such failure and has reasonable time to have the same corrected, thjen 
 the lessee hereby waives all claims therefore against the lessor and agrees 
 to look to said mechanic. 
 
 FORM NO. 153 COVENANTS BY LESSEE OF FLAT BUILDING. 
 
 And for the consideration aforesaid, the said party of the second 
 part further covenants and agrees with said party of the first part,, his exe- 
 cutors, administrators, and assigns, to take good care of the apartments 
 demised and their fixtures, and to commit and suffer no waste therein; 
 that no changes or alterations of the premises shall be made, or partitions 
 erected nor walls papered, without the consent in writing of said lessor; 
 that said second party will make all repairs required to the walls, ceilings, 
 paint, plastering, plumbing work, pipes, and fixtures belonging to said 
 apartments, whenever damage or injury to the same shall have resulted 
 from misuse or neglect ; that said premises shall not be used as a "board- 
 ing" or "lodging" house, nor for a school, or to give instruction in music 
 or singing,, and none of the rooms shall be offered for lease by placing 
 notices on any door, window or wall of the building, nor by advertising the 
 same directly or indirectly, in any newspaper, or otherwise ; that there 
 shall be no lounging, sitting upon, or unnecessary tarrying in or upon the 
 front steps, the sidewalk, railing, stairways, halls, landing, or other public 
 places of the said building by the said lessee, members of the family, or 
 other persons connected with the occupancy of the demised premises ; that 
 no provisions, milk, ice, marketing, groceries, or like merchandise, shall 
 be taken in to the demised premises through the front door of said build- 
 
 
36 REAL ESTATE SELF-TAUGHT 
 
 ing; that said lessee, and those occupying under said lessee, shall not in- 
 terfere with the furnace, heating apparatus, or with the gas or other 
 lights of said building which are not within the apartments hereby demised, 
 nor with the control of any of the public portions of said building; that 
 the said lessee and those occupying under said lessee will comply with, 
 and conform to all reasonable rules or regulations that the lessor may 
 make for the protection of the building or the general welfare and comfort 
 of the occupants thereof ; and will conform to and comply with the notices 
 and requirements posted in the halls of said building. And that said 
 party of the first part shall have the right to put up notices to rent on the 
 hall doors, and to show said premises between the hours of 10 and, 12 
 A. M. of each day, for thirty days prior to the expiration of this lease. 
 
 FORM NO. 154 A LOOSE CONTRACT FOR SALE OF LOTS. 
 
 Contract No 
 
 RECEIVED OF the sum of. ... Dollars ... .as a deposit to 
 
 secure the purchase of the following described lots of the TRACT, 
 
 Lot numbered of block numbered according to the Preliminary 
 
 Maps, made by from which plan of sub-division the Official Map 
 
 will be made to conform as close as practical; subject to the following 
 conditions : 
 
 The said deposit is accepted only as Rent of said property for thfc 
 period of one month from date, and the benefits of this contract are con- 
 ditioned on the further sum of. .. .Dollars, being paid as monthly rent 
 to be paid on the. . . .day of each month hereafter for. . . .months,, with ex- 
 act punctuality, as time is the essence of this agreement; then, and in 
 consideration of having paid said rent for said period, upon payment of 
 Two Dollars, a grant deed is to be furnished to the above named party, 
 conveying a perfect title to the above described property, free and clear of 
 all incumbrances on 190. ., or we will refund all money paid to- 
 gether with 6 per cent, per annum interest added. 
 
 Prior to the delivery of deed, said above named party has the right to 
 examine Certificate of Title to make certain that a perfect title to said 
 property will be conveyed, free and clear of all encumbrances at time when 
 deed is delivered, or we will refund all money paid, together with 6 per 
 cent, per annum interest added. 
 
 All deeds are to contain a clause prohibiting the establishment of 
 saloons to sell spiritous liquors on said property, and also prohibiting .the 
 erection of shanties thereon, and that all buildings erected on said prop- 
 erty must be neat, modern, and attractive, the plans of which must be 
 first approved by the City Building Inspector of....*,, in order TO assure 
 the erection of only attractive homes thereon. 
 
 The Company reserves the right to lay water, sewer, gas, and 
 
 electric conduits, telegraph and telephone lines and electric railroad lines 
 
 over and along the streets of the Tract, without any expense to 
 
 lot purchasers. 
 
 All deeds will accurately describe the property as the Tract, 
 
 according to the official map thereof, which is to conform closely to the 
 Preliminary Map as above stated. 
 
 This contract is based on a contract for the sale of.... acres of the 
 Rancho. . . ., said contract being dated. . . ., and now of record in the office 
 
 of the County Recorder of County, California. 
 
 By t ^ President. 
 
 All of the above terms and conditions are hereby accepted by me. 
 
 .... Purchaser. 
 
REAL ESTATE SELF-TAUGHT 37 
 
 FORM 155 SUBSCRIPTION AGREEMENT TO FORM 
 
 SYNDICATE TO PLACE SUBDIVISION 
 
 ON THE MARKET. 
 
 Subscription Agreement. 
 
 KNOW ALL MEN BY THESE PRESENTS, THAT WHEREAS, 
 
 has obtained options for the purchase of (here descnbe the premises) 
 which said options are hereby referred to and by reference made a part 
 hereof; and, 
 
 WHEREAS, It is the intention of the said to form a syndicate for 
 
 the purchase of said properties, and for the purpose of laying out and sub- 
 dividing said properties into lots of suitable si^es,, and to put said sub- 
 division on the market for sale, and to sell saia tots in said subdivision with 
 the greatest possible expedition, and, in order to protect the various in- 
 terests that may be represented in said syndicate and in order to accomplish 
 the purposes herein set forth, it is the intention to have the title to the 
 
 said properties taken in the name of the Trust Company, with a 
 
 declaration of trust by said company in favor of the beneficiaries who sub- 
 scribe the money for the purchase of said property; and, 
 
 WHEREAS, It is estimated that the cost of purchasing said properties, 
 including the expense of grading and improving the land, subdividing the 
 same, and opening, laying out and improving the avenues, streets aind 
 parks, will be, and shall not exceed ....thousand dollars; and, 
 
 WHEREAS, It is the intention of said.... to have subscribers hereto 
 take shares or undivided interests in the beneficial title to said properties, 
 and for that purpose the total amount hereinbefore estimated is divided 
 
 into shares or parts of One Thousand Dollars ($1^000.00) each, and 
 
 the said Trust Company, as such trustee, will issue to each subscriber a 
 declaration of trust showing in apt and appropriate language the amount 
 of such beneficiary interest, and the shares or parts taken by each subscriber 
 respectively, and such other matters as may be decided upon; it being 
 distinctly understood and agreed that said shares are not assessable in 
 any way whatsoever, and that the total liability of any subscriber hereto is 
 limited to the exact amount of the subscription made by him ; and that the 
 said Trust Company shall not be liable in any event beyond the amounts 
 of money collected by it properly applicable to disbursements hereunder, 
 nor to issue any certificate of unqualified ownership, until said property 
 shall have been fully paid for, and an unincumbered title thereto is in- 
 vested in it; and, 
 
 WHEREAS, The said agrees to turn over to the subscribers 
 
 hereto said options for the purchase of said lands, reserving to himself, 
 
 however, the commission therein agreed to be paid by the aforesaid ; 
 
 and, 
 
 WHEREAS, It is understood and agreed that the owners of said prop- 
 erties, and the said agent may subscribe for shares 
 
 in said syndicate, and that the amount of the first cash payment on such 
 subscriptions respectively may be deducted from the cash amounts other- 
 wise coming to them under the terms of said options and without the ne- 
 cessity of depositing the thirty-five per cent. (35%) of said subscriptions 
 in cash as hereinafter provided ; and, 
 
 WHEREAS, It is the intention to have said act as 
 
 agent for the beneficiaries and the trustee, and in handling said subdivision 
 and advertising the same for sale, and selling the lots therein, and the 
 
 said agrees to act as an exclusive sales agent for the 
 
 sale of said properties and to advertise said properties extensively in the 
 press of Los Angeles and otherwise, and to use his best endeavors to sell 
 the lots in said subdivision, and the said also agrees to 
 
38 REAL ESTATE SELF-TAUGHT 
 
 interest other agents in the sale of said lots, and to pay such agents for 
 services actually rendered by them reasonable commissions upon the sales 
 effected by them, and otherwise to devote reasonable time and attention to 
 the business of said subdivision and to the interests of the beneficiaries 
 herein, so as to produce, at the earliest practicable time, the greatest re- 
 turn to the beneficiaries or subscribers hereto ; and in consideration oif the 
 
 promises and covenants on the part of said it is hereby 
 
 agreed that he shall receive from the said Trust Com- 
 pany, as such trustee, a commission of ten per cent (10%) upon all sales 
 made of any and all lots in said subdivision, and for contracts or deeds 
 which shall be issued by said trustee, said ten per cent, to be payable out 
 of the cash proceeds received upon the sale or disposition of any of such 
 lots so sold respectively; said agency to continue until the termination of 
 the trust hereinbefore referred to, and specifically set forth and described 
 in the declaration of trust, reference to which is hereby made ; and, 
 
 WHEREAS, It is the intention, of the subscribers hereto to have an 
 executive committee composed of three of the subscribers hereto to be 
 appointed by a two-thirds vote of the subscribed shares, each share being 
 entitled to one vote; or such committee shall be appointed by the written 
 consent of the holders of two-thirds of the subscribed shares,, the specific 
 
 duties and powers of said committee to be determined by said 
 
 Trust Company. 
 
 Now, THEREFORE, We, whose names are undersigned, in consideration 
 of the mutual promises and covenants herein contained, and of the sub- 
 scription herein stated, agree each with the other to subscribe, and do 
 hereby subscribe for the shares and in the amount set opposite our names 
 respectively,and agree to pay the amount of our respective subscriptions in 
 the following manner, to-wit : 
 
 35% in cash on or before April 10, 1906. 
 
 10% thereof on or before three months from April 10, 1906. 
 
 10% thereof on or before six months from April 10, 1906. 
 
 15% thereof on or before one year from April 10, 1906. 
 
 15% thereof on or before two years from April 10, 1906. 
 
 15% thereof on or before three years from April 10, 1906. 
 Provided, however, that the subscribers shall be notified by the said 
 trustee at least ten days before any such installments, except the first, 
 shall become due and payable, said notice to be given by sending a letter 
 to each subscriber at the address designated in this subscription agreement, 
 or at such other address as may from time to time be left with said 
 
 Trust Company ; it being understood that if the sales 
 
 of lots shall proceed with sufficient rapidity, it will be unnecessary to call 
 for all the balance of the subscriptions hereinbefore stated, and in such 
 event the proceeds of the sales of lots shall be applied (after the payment 
 of other expenses as provided in the declaration of trust), toward the 
 payment of installments and principal and interest which may be due or 
 become due on the purchase price of said property, and towards the cost 
 of such improvements or other expenses as may be directly connected with 
 the handling of said property. All subscriptions hereunder shall be pay- 
 able at the office of the Trust Company of Los Angeles, 
 
 California, or at any other place which may be designated by said Com- 
 pany. 
 
 It is further understood and agreed that said .Trust 
 
 Company may, at its option, call for only such proportion of any install- 
 ment herein agreed to be paid as may, in the opinion of said 
 
 Trust Company, be necessary to meet the deferred payments of the pur- 
 chase price, interests, costs and expenses which may then be. due or grow 
 due. 
 
 It is further understood and agreed that when all of the said prop- 
 
REAL ESTATE SELF-TAUGHT 
 
 39 
 
 erties shall have been paid for in full, including all costs and expenses 
 of improvements, and the handling of said properties, the profits or 
 
 dividends thereafter earned by the syndicate and received by said. 
 
 Trust Company shall be distributed pro rata among the subscribers hereto 
 
 every three months, after deducting the then accrued costs of said 
 
 Trust Company in connection with the handling of said trust. 
 
 Each subscription is made upon the distinct understanding and agree- 
 ment that if the whole sum of thousand dollars is 
 
 not subscribed on or before the day of , 1906, then the sub- 
 scription of each of the parties hereto shall be and is hereby declared null 
 and void and of no effect whatever, and whatever cash payments, may 
 have been made by any of the subscribers hereto prior to said date, s-iiall, 
 in the event of such subscription agreement becoming ineffective, be re- 
 turned to the persons making such payments respectively. 
 
 Dated at Los Angeles, California, this day of 
 
 FORM NO. 156 SALES REPORT OF TRACT AGENT. 
 
 Brown & Jones, Room 3, Dunn Block, Los Angeles, Cal. 
 
 Lot No. 12, Block A, Briswalter Tract; Price $1,000; Purchaser, Daniel 
 Draper ; Address 1 127 Ingraham Street ; Phone, Home 608 ; Am't Deposited 
 $100; Terms $350 cash; Balance $650 in one and two years, with 7% in- 
 terest, payable quarterly. Name of party to whom deed or contract is 
 to be made, Daniel Draper. Will call at office tomorrow at 10:30 A. M. 
 Date, May 10, 1906. 
 
 TIMOTHY TILDEN, Trad Agent. 
 
 FORM NO. 157 RULING FOR PAYMENTS ON BACK OF LOT 
 
 CONTRACT. 
 
 Sold to 
 
 Mr* \J+ ^jLC**// coj .----- ........--..... -- 
 
 For $ - Lot No. * 
 
 
 Date Paid 
 
 Amount 
 Paid 
 
 Interest 
 Paid 
 
 To Whom Paid 
 
 
 
 
 
 
 ! 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40 REAL ESTATE SELF-TAUGHT 
 
 FORM NO. 158 RULING ON ENVELOPE TO CONTAIN CONTRACT 
 
 (Trad)... 
 
 Lot. 
 
 .Blk.. 
 
 BOWEN & DOLTON 
 
 IN ACCOUNT WITH 
 
 (Name). 
 
 DATE 
 
 Interest Per Cent. Payable Quarterly-Semi- Annually 
 
 
 To Contract-Deed 
 
 
 
 
 
 
 By Cash Payment 
 
 
 
 
 
 
 To Balance due onCont.-Mtg. 
 
 
 
 
 
 
 
 
 
 
 
 FORM NO. 159 BUILDERS EXCHANGE; (SUGGESTIONS AS TO 
 CONSTITUTION AND BY-LAWS.) 
 
 OBJECTS. 
 
 First. To join in one association all mechanics, manufacturers and 
 dealers of good repute, doing business in the city and -county aforesaid, 
 whose vocation connects them, wholly or generally, with the industry of 
 building, either as an employing contractor in any branch of the building 
 business, or as a manufacturer of, or dealer in material used and employed 
 in the erection of buildings, or other structures. 
 
 Second. To establish and maintain among the individuals so as- 
 sociated, a just and equitable system of dealing, and a uniformity in com- 
 mercial usages by rules and regulations ; to acquire, preserve or disseminate 
 valuable information regarding the business in which they are severally 
 engaged. 
 
 Third. To procure (either by lease or purchase), furnish and main- 
 tain suitable rooms for the use of its members for meeting rooms, offices, 
 and other purposes. 
 
 Fourth. To establish and enforce a system cwf arbitration for the set- 
 tlement of disputes or misunderstandings which may arise between its 
 members. 
 
 The term of existence of this Exchange is to be FIFTY YEARS, from 
 and after the filing of the certificate of incorporation. 
 
 No shares of stock or individual right in the property of this Ex- 
 change shall exist or be acquired during its existence. 
 
REAL ESTATE SELF-TAUGHT 41 
 
 But the property belonging to, and in the name of "The Builders' Ex- 
 change," shall be held in trust by the Directors for this Exchange, and shall 
 not be diverted from the purposes and intentions for which it was or- 
 ganized. 
 
 MEMBERSHIP. 
 
 Any person creditably and practically engaged as an employing con- 
 tractor in any trade connected with the business of building, or in manu- 
 facturing, or dealing generally in building material, is eligible to mem- 
 bership in this Exchange, and may be admitted as provided in the By- 
 Laws of the Exchange. 
 
 A copartnership or corporation may become a member of the Exchange 
 as one person, in the manner provided for the election and admission 
 of members. 
 
 Such copartnership may be represented by any member thereof; but 
 a corporation shall be represented only by some officer duly authorized to 
 act for them. Neither a copartnership nor a corporation is entitled to 
 but one vote on any question. 
 
 The fee for admission to this Exchange is Twenty-five Dollars 
 ($25.00), until the membership reaches two hundred. 
 
 The fee will then be Fifty Dollars ($50.00), until the mem- 
 bership reaches four hundred, after which time it will be One Hun- 
 dred Dollars ($100.00). 
 
 The dues to be paid by each member are Twenty-four Dollars ($24.00) 
 per annum, payable semi-annually, in advance, on or before the third 
 Monday of February and August of each year, and mustl be paid before 
 the annual or semi-annual meeting, to entitle the member to vote or take 
 part therein. 
 
 POWERS OF DIRECTORS. 
 
 The Board of Directors have power to adopt By-Laws, Rules and 
 Regulations for the management of the affairs of the Exchange, not in 
 conflict with the laws of the State, and amend or repeal the same, sub- 
 ject to the approval of the Exchange, by a majority vote of the members 
 present at the next regular meeting of the members thereafter, or at a 
 special meeting duly called for that purpose. 
 
 Second. To fill all vacancies which may occur in its own body, until 
 the next election. 
 
 Third. To have and exercise a supervisory care over the affairs of 
 the Exchange and its members; to designate the bank in which the 
 funds of the Exchange shall be deposited, and require the Treasurer to 
 keep them deposited there, and to change the same when in their judgment 
 the interest of the Exchange requires it. 
 
 Fourth. They shall hear, examine into, and, if possible, settle all 
 disputes betweep members when they can do so to the satisfaction of the 
 parties concerned ; otherwise direct the parties to submit the matter in 
 controversy to arbitration in the usual manner, or as provided in the By- 
 Laws. 
 
 Fifth. To hear and determine all charges brought against any member 
 for a violation of the Laws, Rules and Agreements, for any unbusiness- 
 like conduct, or for any other cause, or to cause the same to be heard 
 and determined by a committee to be appointed by the President from 
 among the members of the Exchange, subject, however, to revision by 
 the Exchange as a body at the next or a subsequent meeting. And the 
 said board shall, when any charges are preferred by one member against 
 another, proceed to hear and determine the same without delay, or appoint 
 a committee for that purpose, which committee shall have the powers pro- 
 vided for in the By-Laws. 
 
 Sixth. To receive, hold in trust and invest such funds of Individual 
 members as may, under the provisions of the By-Laws, be placed in their 
 
42 REAL ESTATE SELF-TAUGHT 
 
 hands for that purpose, and in the manner and form, and subject to all 
 the conditions therein prescribed. 
 
 Seventh. To obtain by lease or purchase, and to hold in trust for 
 and in the name of "The Builders' Exchange," any real or personal prop- 
 erty necessary for the use or benefit of the Exchange, and to mortgage, 
 sell, lease or otherwise dispose of the same, whenever in their judgment 
 it may be necessary to do so ; and they are vested with full power to appro- 
 priate the funds and manage the affairs of "The Builders' Exchange" sub- 
 ject to the laws of this State, and the By-Laws and Rules of the Ex- 
 change. 
 
 SUNDRY PROVISIONS. 
 
 Neither the Board of Directors nor the members of the Exchange 
 have power to pass any By-Law or Rule abridging the right of any 
 members to conduct or transact his business in such manner as he shall 
 deem just and proper, unless such law or rule shall have received the 
 affirmative consent of at least three-fourths of all the members of the Ex- 
 change. 
 
 Due notice of the passage of any such By-Law; or Rule is to be given 
 to each member in writing (or be mailed to him at his address, as given 
 to the Secretary), at least two weeks before the same shall be in force, 
 and a minute to that effect made in the records. 
 
 Any member of the Exchange may propose an amendment to the By- 
 Laws, and the same shall be acted on at the next regular meeting of the 
 Board, after having been posted in the rooms of the Exchange! for one 
 week; or any member may propose an amendment at a meeting of mem- 
 bers, and the same having been first posted in the rooms of the Exchange 
 for one month previous to the meeting, shall be acted upon; and if it 
 receives a two-thirds vote of the members present it will become a law. 
 
 The removal from the State of any officer or Director, or the volun- 
 tary absence from three successive meetings without leave from the 
 Board, of any Director or officer required to be present at such meetings, 
 shall be sufficient cause for their removal from office; and they may be 
 so removed in accordance with the provisions of the law of this State, 
 either by the Board of Directors or by the members. 
 
 FORM NO. 160 PETITION TO INCORPORATE TOWN. 
 
 PETITION. 
 
 Notice is hereby given that the following petition will be presented to 
 the Board of Supervisors of Los Angeles County, California, at the reg- 
 ular meeting of said Board, to be held at 10 o'clock a. m. on Monday, 
 April 30, 1906, in the office of the said Board, in the Court House, of the 
 County of Los Angeles, California. 
 
 To the Honorable Board of Supervisors of Los Angeles County, State 
 of California: 
 
 The undersigned petitioners respectfully represent : 
 
 First, That they, and each of them, are bona fide residents of and 
 within the territory hereinafter described and proposed for municipal cor-* 
 poration, and that they, and each of them, are qualified electors of the said 
 County of Los Angeles, State of California. 
 
 Second, That the following is a particular description of the boun- 
 daries of the territory proposed for municipal corporation : 
 
 Beginning at the intersection (Description). 
 
 Third, That your petitioners believe that the interest of the in- 
 habitants residing within the boundaries of the proposed municipal cor- 
 poration, above described, and the interests of all owners of property 
 
REAL ESTATE SELF-TAUGHT 43 
 
 within said boundaries above mentioned, will be subserved and prompted 
 by its incorporation as a city of the sixth class, to be named and entitled 
 "The City of Watts." 
 
 Fourth, That said portion of Lps Angeles County so described and 
 bounded or any part thereof, is not incorporated as a municipal corpora- 
 tion, or any part of a municipal corporation, and there are now living and 
 residing within the boundaries of said proposed municipal corporation more 
 than two thousand inhabitants. 
 
 Fifth, That there is attached to this petition an affidavit of (3) three 
 qualified electors verifying that the said petition has, and bears the re- 
 quired number of signatures of qualified electors. 
 
 Wherefore, your petitioners, being more than fifty qualified electors 
 of Said County of Los Angeles and residents within the limits p<f the cor- 
 poration hereby proposed and petitioned for, pray that that portion of Los 
 Angeles County, State of California, lying within the boundaries herein- 
 before described, may be incorporated as a municipal corporation of the 
 sixth class under the name and style of "The City of Watts," under and by 
 virtue of the provisions of an Act of the Legislature of the State of Cali- 
 fornia, entitled, "An Act to provide for the organization, incorporation and 
 government of municipal corporations," approved March 13, 1883, and acts 
 amendatory and supplemental thereto. And further pray that to that end 
 your Honorable Body take the steps necessary under the aforesaid act and 
 acts amendatory thereof and supplemental thereto to cause an election to 
 be held in said territory included in said proposed corporation in accordance 
 with law. 
 
 Dated this 5th day of April, A. D., Nineteen Hundred' and Six. 
 
 W. M. Kellogg, C. W. Curran, et al. 
 
 State of California, County of Los Angeles, ss. 
 
 S. J. Lord, C. W. Curran, A. H. Trimble, each being first duly sworn, 
 each for himself and not one for the other, deposes and says : 
 
 I am a qualified elector of the County of Los Angeles, State of Cali- 
 fornia, and reside within the limits of the territory described in Section 
 II of the foregoing petition for incorporation, and was then and since 
 have been such elector and resident as aforesaid ; that I know d(f my own 
 knowledge that the facts stated in said petition are true and each signer 
 thereof is a qualified elector of said county and a resident within the limits 
 of the territory described in Section II of said petition as the territory to 
 be included within said proposed municipal corporation, and that each and 
 everyone of said signers was such elector and resident when he signed his 
 name to said petition and has continued to be such elector and resident, 
 I know of my own knowledge that each signature to said petition is the 
 true and genuine signature of the person whose name it purports to be 
 and that the identical petition to which this is attached was and is actually 
 signed by more than fifty persons, each of whom is both a qualified elector 
 and A resident within said proposed municipal corporation, as the boun- 
 daries thereof are described and set forth in said petition. 
 
 S. J. LORD, 
 
 C. W. CURRAN, 
 
 A. H. TRIMBLE* 
 
 Subscribed and sworn to before me this 5th day of April, 1906. 
 
 (SEAL) CAROLINE H SMITH, 
 
 Notary Public in and for Los Angeles County, California. 
 
44 REAL ESTATE SELF-TAUGHT 
 
 FORM NO. 161 PETITION FOR REMOVAL OF POST OFFICE TO 
 MORE CENTRAL LOCATION. 
 
 SATICOY, CAL., May 10, 1906. 
 To the Hon. Fourth Assistant Postmaster General, Washington, D. C. : 
 
 We, the undersigned citizens and business men, living within the de- 
 livery of, and receiving our mail matter at, the Saticoy Post Office, do most 
 respectfully petition that said post office be removed from its present lo- 
 cation to a more convenient portion of the town. 
 
 We do most respectfully represent and direct your attention to the 
 following reasons for the desired removal. 
 
 That the said Post Office is now, and has been for a considerable time, 
 located at the extreme eastern portion of the said town of Saticoy, Cali- 
 fornia, thereby causing each and all of the said undersigned citizens and 
 business men great and unnecessary inconvenience in going to and re- 
 turning from said Post Office, as they have business to transact therewith; 
 
 That a building or room as secure, commodious and desirable as the 
 one now used by the government for the transaction of its postal business 
 in Saticoy, can be obtained in a more convenient and central location 
 in said town. 
 
 III. 
 
 That the building or room that may be so secured is located within a 
 reasonable distance from the depot of the Southern Pacific Railroad Com- 
 pany, which Company, our petitioners are informed and verily believe, is 
 under contract to carry and deliver the mails as the same arrive at, and 
 depart from, said town. 
 
 That said proposed change and removal will meet with the approval 
 and approbation of the vast majority of the patrons of said Post Office. 
 
 Wherefore, your petitioners pray that the desired change and removal 
 in the location of said Post Office in the town of Saticoy may be ordered 
 and effected. 
 
REAL ESTATE SELF-TAUGHT 
 FORM No. 162 PRINTED BACK OP VOUCHER. 
 
 45 
 
 Voucher No ........... ......... ... Check No. 
 
 Month ................................ Amt. $ 
 
 Date of Payment 
 
 In favor of 
 
 FEDERAL REALTY COMPANY. 
 
 Cash 
 
 
 
 
 Operating Expenses 
 
 
 
 
 General Expenses 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Total 
 
 
 
 
 Cash 
 
 
 
 
 Bills Payaable . 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Voucher Account 
 
 
 
 
 Total Credits 
 
 
 
 
46 
 
 REAL ESTATE SELF-TAUGHT 
 
 I 
 
REAL ESTATE SELF-TAUGHT 
 
 47 
 
 
 
 Voucher 
 Account 
 
 
 
 Operating 
 Expenses 
 
 
 
 General 
 Expenses 
 
 
 
 CO 
 
 a 
 
 O 
 
 
 
 J fe 
 
 
 Sundry 
 
 
 
 fl 
 
 - 
 
 4) 
 
 15 
 Q 
 
 
 
 a 
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 > 55 
 
 
 
48 
 
 REAL ESTATE SELF-TAUGHT 
 
 FORM NO. 165 BALANCE SHEET. 
 
 Balance Sheet 
 
 of 
 
 JOHN NEWMAN 
 For Year Ending December 31, 1906. 
 
 Ledger 
 Titles 
 
 Trial Balance 
 Dr. Cr. 
 
 Financial Accts. 
 Resor. Liab. 
 
 Speculative 
 Accts. 
 Loss Gain 
 
 Real Estate 
 Furniture 
 
 $30000. 
 360. 
 
 $30000. 
 360. 
 
 
 Gen. Expense . . 
 Opr. Expense . . 
 Taxes & Ins. . . 
 Interest 
 
 225. 
 560. 
 150. 
 
 480 
 
 
 $225. 
 
 560. 
 150. 
 480. 
 
 Bills Recvb 
 
 900 
 
 900. 
 
 
 Accts. Recvb. . . 
 Cash 
 
 38.75 
 871 25 
 
 38.75 
 871.25 
 
 
 J. N's Capital 
 Acc't 
 Bills Paybl 
 Voucher Acct. . . 
 Commissions 
 Rentals .... 
 
 $21778. 
 8000. 
 35. 
 1222. 
 2550 
 
 $8000. 
 35. 
 
 $1222 
 2550 
 
 
 
 
 
 
 $33585. $33585. 
 
 $32170. $8035. 
 
 $1415. $3772. 
 
 Total gains $ 3772 
 
 Total losses 1415 - 
 
 Net gain for year $2357. 
 
 Total resources $32170. 
 
 Total liabilities 8035 - 
 
 Present worth 24135 - 
 
 John Newman's Net Investment 21778. 
 
 Net gain '. $2357. 
 
 Dividing $2357 by 1% of $21778 (or $217.78) gives .1082 as rate 
 per cent of earnings for year. 
 
REAL ESTATE SELF-TAUGHT 
 
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50 REAL ESTATE SELF-TAUGHT 
 
 FORM NO. 167 ANOTHER FORM OF DECLARATION OF TRUST 
 FOR PLACING SUBDIVISION ON MARKET. 
 
 DECLARATION OF TRUST. 
 
 KNOW Au, MEN BY THESE PRESENTS. : That the FEDERAL TITLE 
 COMPANY, a corporation organized and existing under and by virtue 
 of the laws of the State of California, and having its principal place of 
 business at the City of Los Angeles, County of Los Angeles, State of Cali- 
 fornia, hereinafter called the "Trustee," hereby certifies and dclares that 
 ,Kt has received and accepted the assignment and transfer to it, of that cer- 
 tain agreement for the purchase of real estate made and entered into on 
 th I2th day of June, A. D. 1906, between L. M. Sellers, of the city of Los 
 Angeles, County of Los Angeles, State of California, and Alonzo Byers, 
 of the same place, which agreement is in words and figures as follows, 
 to-wit : 
 
 THIS AGREEMENT, made and entered into this I2th day of June, 
 in the year of our Lord one thousand nine hundred and six, BETWEEN 
 L. M. Sellers of Los Angeles City and County, State of California, and 
 party of the first part and Alonzo Byers of Los Angeles City and County, 
 State of California, the party of the second part. 
 
 WITNESSETH : That the said party of the first part, in consideration 
 of the covenants and agreements on the part of the said party of the 
 second part hereinafter contained, agrees to sell and convey unto tlte 
 said party of the second part, and the said second party agrees to buy, all 
 that certain lot or parcel of land, situate in the County of Los Angeles 
 and State of California, and bounded and particularly described as follows, 
 to-wit : 
 
 (DESCRIPTION.) 
 
 for the sum of Twenty Thousand ($20,000) Dollars, Gold Coin of the 
 United States; and that the said party of the second part, in considera- 
 tion of the premises, agrees to pay the said party of the first part the 
 said sum of Twenty Thousand ($20,000) Dollars, as follows, to-wit: 
 
 Two Hundred Fifty ($250.00) Dollars, cash in hand paid, the re- 
 ceipt whereof is hereby acknowledged; two thousand two hundred fifty 
 ($2,250.00) Dollars upon the delivery to the second party of an unlimited 
 certificate of title, issued by the Title Insurance and Trust Co., of the 
 City of Los Angeles, showing the above described property to be free 
 from all incumbrances to date, and the title thereto to be vested in the 
 said party of the first part; three thousand ($3,000) Dollars on or before 
 six months from date of this agreement ; three thousand ($3,000) Dollars 
 on or before one year from the date of this agreement; five thousand 
 seven hundred fifty ($5,750) Dollars on or before two years from date 
 of this agreement; and five thousand seven hundred fifty ($5,75) Dollars 
 on or before three years from date of this agreement, together with in- 
 terest on all deferred payments at the rate of six (6) pet cent, per annum, 
 interest payable quarterly. 
 
 And the said party of the second part agrees to pay all State and 
 County taxes or assessments of whatsoever nature, which are or may be- 
 come due on the premises above described. 
 
 It is further agreed that time is the essence of this contract, and in 
 the event of a failure to comply with the terms hereof, by the said party 
 of the second part, the said party of the first ^part shall be released from 
 all obligations in law or equity to convey said property, and said party 
 of the second part shall forfeit all right thereto, and to moneys thereto- 
 fore paid under this contract and his interest in or to said moneys, and 
 to said property shall thereupon immediately cease, as fully as if said 
 
REAL ESTATE SELF-TAUGHT 51 
 
 money had never been paid, or this agreement entered into. And the 
 said party of the first part on receiving such payment at the time and 
 in the manner above mentioned, agrees to execute and deliver to the 
 said party of the second part, or to his heirs, or assigns, a good and 
 sufficient deed of grant, bargain and sale, conveying to said party of the 
 second part, or his assigns, the title to said premises. 
 
 Upon the payment of eight thousand five hundred ($8,500) Dollars 
 hereunder, together with interest on all deferred payments herein, first 
 party, or his assigns, will execute and deliver to the said party of the 
 second part, or his assigns, a good and sufficient deed of grant, convey- 
 ing to said second party or his assigns, the above described property, 
 subject however, to mortgage, executed by said second party or his as- 
 signs, in favor of said first party, which said mortgage shall be a first 
 lien on the above described premises, and shall secure the payment 
 of two promissory notes, each in the sum of five thousand seven hundred 
 fifty ($5,750) Dollars, one to mature on or before two years from date 
 hereof and the other on or before four years from, date hereof, each of 
 said notes, to bear interest at the rate of six (6) per cent per annum, 
 which said interest shall be payable quarterly. The said mortgage so to 
 be executed, together with the said notes shall be of the form employed 
 by the said Title Insurance and Trust Co. Said notes shall provide in 
 each case a thirty days' notice in writing prior to payment thereof must 
 be given by second party to first party before such payment can, be 
 made. At the expense of second party at the time of the execution of 
 said mortgage said certificate of title shall be continued by said com- 
 pany, showing title in said herein described property, vested in second 
 party, subject to said mortgage. 
 
 First party agrees to release any parcel or lot or subdivision of the 
 above premises, having a depth not exceeding one hundred and fifty 
 feet upon payment of a sum of money reckoned at the rate of sixteen 
 dollars per front foot for property on Belmont Avenue ,twelve dollars 
 per front foot on Carter Avenue; and eight dollars per front foot for 
 all other frontage on streets which said property may have. All moneys 
 paid for releases during the first year hereof shall be applied on the last 
 two deferred payments herein. First party agrees to join the second party 
 in dedication of streets in said property within a reasonable limit. 
 
 And it is understood that the stipulations aforesaid are to apply to 
 and bind the heirs, executors, administrators and assigns of the, respective 
 parties. 
 
 IN WITNESS WHEREOF, the said parties of these presents have here- 
 unto set their hands and seals the day and year first above written. 
 
 L. M. SELLERS. (SEAL). 
 ALONZO BYERS. (SEAL) 
 Duly acknowledged. 
 
 That the portion of the purchase price of the property described in 
 said agreement heretofore paid, was paid by Alonzo Byers, John Ensign 
 and Charles Davis, hereinafter called the "Beneficiaries", and no part 
 thereof has been paid or is to be paid by said Trustee. 
 
 That the said transfer and assignment, while absolute in form, is never- 
 theless in trust and said Trustee holds and shall hold said agreement in 
 trust for the purpose of selling the property therein described and ap- 
 plying and disposing of the proceeds arising from the sale thereof as 
 hereinafter specified and provided. 
 
 For the purpose of effecting the sale of said real estate and carry- 
 ing out the trusts herein set forth, the said Trustee shall have the power 
 and authority: 
 
 FIRST, To sell and transfer the land and premises described in said 
 
52 REAL ESTATE SELF-TAUGHT 
 
 agreement either as a whole or in parcels of one lot or more, as per map 
 of the Subdivision of said property recorded in Book 2, Page 100 of Maps, 
 in the office of the County Recorder of Los Angeles County, to such per- 
 son or persons and at such price and upon such terms as said Trustee shall 
 deem best; Provided, that no part, parcel or lot of said property shall 
 be sold at a less price than that fixed by a schedule of prices to be here- 
 after agreed upon by and between the said beneficiaries and the said Trus- 
 tee, which schedule of prices, when prepared, shall be affixed hereto and 
 be and become a part hereof, the same as though it were attached hereto 
 at the time of the signing hereof; and provided further, that the said 
 Trustee shall not sell said property or any portion or parcel thereof to 
 any person or persons other than of the White or Caucasian Race. 
 
 SECOND: To impose conditions, restrictions and covenants upon said 
 property, prohibiting the sale thereof to objectionable persons and for ob- 
 jectionable purposes, and restricting the cost, class and location of buildings 
 thereon, 
 
 THIRD: To employ said Alonzo Byers, or any other person, firm or 
 corporation as it may deem best as its agents in the selling of said 
 property and in the transaction of the business necessary in the adminis- 
 tration of this trust, and the said Trustee shall not be liable for afty 
 default, defalcation or wrong-doing by any person, firm, or corporation 
 which it may employ as agents to make sales. 
 
 FOURTH: To delegate to agents employed to effect the sale of said 
 property, the supervision and direction of all improvements of whatsoever 
 kind or nature made or placed thereon ; the power to appoint sub-agents 
 to assist in making sales of said property, also the matter of directing the 
 advertising of said property and placing the same on the market, and 
 also the right and authority generally to represent the said Trustee 
 in marketing and selling said property; provided, that the compensation 
 to be paid to such agent or agents for handling said property and per- 
 forming all services in connection therewith, including those specified 
 above, shall not exceed 10 per cent. o : f the selling price of said prop- 
 erty. -. ; i 
 
 FIFTH : To grade or cause to be graded, the streets laid out on said 
 Tract, and also to put in sidewalks and curbs, lay water mains and pipes 
 throughout said tract and make and place thereon such other improvements 
 as it shall deem best to facilitate the sale of said property. 
 
 The said Trustee shall apply and dispose of the proceeds arising from 
 the sale of said property as follows : 
 
 FIRST : To the charge of the Trustee for the preparation and is- 
 suance of this Declaration of Trust and for the performance and execu- 
 tion of the trusts herein set forth hereby fixed at $275.00, which fees and 
 charges shall be deemed to be earned upon the signing of this Declaration 
 of Trust. 
 
 SECOND : To the payment of the fees for recording said agreement 
 assigned to said Trustee as aforesaid, and for the recording of the deed 
 hereafter to be made and received pursuant to said agreement and also 
 to the payment of the expenses and fees for obtaining and filing for 
 record any deeds for lots or parcels of said land that may be required and 
 obtained from time to time under the terms of said agreement, prior to 
 the execution and delivery of the deed conveying the whole of said tract 
 to said Trustee, and also for obtaining and recording any other instruments 
 that may be required in connection with this trust. 
 
 THIRD : To the payment of the unpaid portion of the purchase price 
 of said real estate as specified in agreement hereinbefore set forth to 
 ;said L. M. Sellers, together with interest on deferred payments as such 
 
REAL ESTATE SELF-TAUGHT 53 
 
 principal and interest shall become due and payable under the terms and 
 provisions of said agreement. 
 
 FOURTH: To the payment of taxes levied, assessed or imposed on 
 or against said property and any assessments levied by municipal or other 
 authorities for the improvement of said property, not payable by pur- 
 chasers thereof. 
 
 FIFTH : To the payment of all bills for grading streets laid out 
 in said Tract and for the construction of sidewalks and curbs thereon 
 and for laying water mains or pipes and making any other improvements 
 upon said property. 
 
 SIXTH : To the payment of commissions to agents effecting the sales 
 of said property not to exceed 10 per cent, of the selling price as fixed 
 by the schedule referred to above, payable out of the first payment made 
 on any contract of purchase. 
 
 SEVENTH : The remainder of the proceeds received from sales shall 
 be distributed and paid as follows : 
 
 To Alonzo Byers, 1-3 thereof, 
 
 To John Ensign 1-3 thereof, 
 
 To Charles Davis . 1-3 thereof, 
 
 Provided, however, that no distribution of any portion of the pro- 
 ceeds arising from the sales of said property shall be made to the bene- 
 ficiaries hereunder until the said Trustee shall have on hand a sufficient 
 sum of money accruing from said sales to meet the payments that shall 
 become due on the purchase price of said property under the provisions of 
 the agreement hereinbefore set forth. Any surplus in the hands of said 
 Trustee over and above such sum or sums shall be disbursed as dividends 
 from time to time as the majority of the interests hereunder shall di- 
 rect. 
 
 In case the moneys received from the sales of said property shall 
 be insufficient at any time to meet the payments that shall fall due under 
 the provisions of the agreement set out above, then the said Trustee shall 
 demand of the said beneficiaries respectively their proportionate shares of 
 the sum or sums necessary to pay such deficiency, the share to tye paid in 
 such case being measured by their respective interests in said property 
 as hereinabove set forth. Should any of the said beneficiaries, however, 
 fail or default in the payment of his portion or share as aforesaid, of 
 the moneys required to be advanced to make the payments in compliance 
 with the terms of said agreement, then the said Trustee shall notify the 
 other beneficiaries of such default and they shall thereupon have the 
 right to purchase and take over the interest hereunder of such defaulting 
 party, either jointly or with the consent of the other beneficiaries, and 
 such interest may be taken by any one or more of the said parties of 
 interest; in any event, if it is necessary to protect his rights and interests 
 hereunder and in said land, any one of said beneficiaries may advance the 
 share of the party in default and the interest herein of the delinquent party 
 shall thereafter be held by said Trustee as security for the sum or sums thus 
 paid and advanced. The defaulting party in such case shall be entitled to 
 have refunded to him the actual cash theretofore paid hereunder, without 
 interest, and upon such sum being paid, he shall forfeit all rightj title 
 and interest in and to the said land, and the proceeds of the sale thereof 
 and his interest hereunder, including the attendant obligations and bene- 
 fits, shall pass and belong to the purchaser thereof. 
 
 In the event, however, that the other beneficiaries hereunder decline 
 to purchase the share and interest of a defaulting party on the terms and 
 conditions recited above, then the said Trustee shall sell such share and 
 interest at public auction to the highest bidder and the purchaser at such 
 sale shall be substituted in the place and stead of the party in default 
 
54 REAL ESTATE SELF-TAUGHT 
 
 in his relation to this trust; and shall thereupon assume all obligations 
 and enjoy all benefits as beneficiary hereunder, incident to the share and 
 interest thus acquired. The other beneficiaries herein may be purchasers 
 at such public sale under the same conditions as a stranger to this trust 
 
 The sums received for the interest of the delinquent party at the pub- 
 lic sale, shall be applied first to the payment of all obligations and claims 
 attached hereunder to the share of interest sold, and any surplus remaining 
 shall be paid to the party suffering default, and upon receiving such sum, 
 all of his right, title and interest hereunder shall be forfeited and this 
 trust as to him, shall cease and determine. 
 
 The schedule of prices referred to above may be changed at any 
 time, and a new schedule substituting therefor, provided that such 
 new schedule shall not be operative until signed by a majority of the 
 parties hereto. 
 
 The trustee shall be under no obligations to make the payments that 
 shall become due under the aforesaid agreement for the purchase of said 
 real estate, or to pay the taxes or make any other payments required to 
 be made hereunder, unless there be sufficient funds in its hands to make 
 said payments. 
 
 This trust shall not cease or determine until the fees and expenses 
 of the said Trustee shall have been fully paid and it shall have been 
 reimbursed for all expenses incurred and moneys expended in connection 
 with this trust. 
 
 Every stipulation and agreement herein shall iiiure to the benefit of 
 the heirs, executors, administrators, successors and assigns of the re- 
 spective parties. 
 
 IN WITNESS WHEREOF, the FEDERAL TITLE COMPANY has 
 hereunto caused its corporate name to be subscribed by its President and 
 its Secretary, and its corporate seal to be affixed, this isth day of June, 
 1906. 
 
 FEDERAL TITLE COMPANY, 
 
 (SEAL) By ARNOLD NIXON, President. 
 
 By ALBERT BALLES, Secretary. 
 
 We, the undersigned, being the beneficiaries under the above and fore- 
 going Declaration of Trust, do hereby certify and declare that said De- 
 claration of Trust correctly and accurately sets forth and discloses the 
 trusts under and by which the said Trustee holds and shall hold said 
 agreement for the purchase of real estate, and we do hereby (ratify, ap- 
 prove and confirm the same in all its parts, and do hereby make, constitute 
 and appoint the said FEDERAL TITLE COMPANY, our true and law- 
 ful attorney, irrevocable, in our name, or other wise, to do and perform 
 all and every act and thing whatsoever requisite and necessary to be done 
 in and about the premises as fully, to all intents and purposes, as we 
 might or could do if personally present; hereby ratifying an4 confirming 
 all that our said attorney shall lawfully do, or cause to be done, by virtue 
 of these presents. 
 
 IN WITNESS WHEREOF, we have hereunto set our hands and seals 
 this 15th day of June, 1906. 
 
 ALONZO BYERS. (SEAL). 
 
 JOHN ENSIGN. (SEAL). 
 
 CHARLES DAVIS. (SEAL). 
 
REAL ESTATE SELF-TAUGHT 
 
 55 
 
 FORM NO. 168 MISSION STYLE ENTRANCE ARCHWAY, FLOR- 
 
 ENCITA PARK, LOS ANGELES. RED TILE ROOF, 
 
 PLASTER SIDES. 
 
THIS BOOK IS DUE ON THE LAST DATE 
 STAMPED BELOW 
 
 AN INITIAL FINE OF 25 CENTS 
 
 > ''i v* 
 
 WILL BE ASSESSED FOR FAILURE TO RETURN 
 THIS BOOK ON THE DATE DUE. THE PENALTY 
 WILL INCREASE TO SO CENTS ON THE FOURTH 
 DAY AND TO $1.OO ON THE SEVENTH DAY 
 OVERDUE. 
 
 ..*K 29 1935 
 
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