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How to Buy and Sell 
 Real Estate at a Profit 
 
 A Handbook 
 
 for Everyone Interested in the 
 Subject of Real Estate 
 
 By 
 
 W. A. CARNEY 
 
 Author of " New Secretary's Manual " 
 
 Published by the Author 
 
 at Los Angeles, California 
 
 J905 
 
Copyright, 1905, by W. A. Carney 
 
 Printed and bound by Out West Co., Los Angeles 
 
PREFACE 
 
 In this book the author has endeavored to collect, 
 classify and arrange in an orderly manner information and 
 practical forms relating to the acquisition, ownership and 
 disposition of real estate. So far as the author is aware, no 
 book covering precisely the same ground has been published, 
 and he believes that the information contained within the 
 compass of these covers will serve a definite purpose and be 
 of determinate value to the public at large. 
 
 THE AUTHOR. 
 Los Angeles, Cal., April, 1905. 
 
CONTENTS 
 
 CHAPTER I 
 
 PAGE 
 
 Of Real Estate in General 5 
 
 CHAPTER II 
 Thrift ; or How to Accumulate Capital . . 11 
 
 CHAPTER III 
 How and Where to Buy 15 
 
 CHAPTER IV 
 Options and Purchase Agreements ... 31 
 
 CHAPTER V 
 Of Deeds 48 
 
 CHAPTER VI 
 
 How to Make a Loan, Including- Execution of Mort- 
 gages and Trust Deeds .... 75 
 
 CHAPTER VII 
 Transfer of Title in Escrow ; Taxes and Insurance 96 
 
 CHAPTER VIII 
 Homes and Homesteads 115 
 
 CHAPTER IX 
 Miscellaneous Matters Affecting Real Estate . . 133 
 
 CHAPTER X 
 Subdivisions ........ 181 
 
 CHAPTER XI 
 How and When to Sell 190 
 
 CHAPTER XII 
 Booms and Panics 202 
 
HOW TO BUY AND SELL 
 REAL ESTATE AT A PROFIT 
 
 CHAPTER I. 
 
 OF REAL ESTATE IN GENERAL. 
 
 Property Defined Lands, Tenements and Hereditaments Fixtures, Appurten- 
 ances and Estates Ownership Title Sources of Title Acquisition of Land Lim- 
 itations of the Subject. 
 
 Section i. Property is anything of which there may be 
 ownership. Land, buildings, clothing, domestic animals, copy- 
 rights, and the good will of a business, are examples of prop- 
 erty. There are two kinds of property real and personal. 
 
 Sec. 2. Real Property is divided into two classes cor- 
 poreal and incorporeal. 
 
 Sec. 3. Corporeal Real Property includes all things which 
 are visible and capable of possession, such as lands, mines, 
 rights of way, water courses, etc. 
 
 Sec. 4. Incorporeal Real Property consists of rights and 
 profits issuing out of and annexed to corporeal real property, 
 such as rents, etc. 
 
 Sec. 5. Land comprises the solid material of the earth, in- 
 cluding that which is visible, as well as that which lies under 
 lakes and rivers, and it extends from the center of the earth 
 to an indefinite distance upward. All things growing upon 
 or built on land, as well as all metals and mines beneath the 
 surface, are considered a part of the land. Buildings upon 
 land are so generally understood to be a part of the land that 
 they will pass with the land in a deed of conveyance without 
 being named. 
 
 Sec. 6. Lands, Tenements and Hereditaments. The 
 phrase, 'lands, tenements and hereditaments" includes: 
 
 (i.) The land itself. 
 
 (2.) Anything, either lands or buildings, which may be 
 held by a tenant. 
 
 (3.) Everything which passes from the ancestor to the 
 heir. 
 
6 HOW TO BUY AND 
 
 Sec. 7. A Fixture is an article which may be either real 
 or personal according to circumstances. A thing is said to be 
 affixed to land when it is attached to it by means of roots, as 
 in the case of trees, vines and shrubs ; or imbedded in it, as in 
 the case of walls ; or permanently resting upon it, as in the 
 case of buildings, or permanently attached to that which is so 
 permanent, as by means of cement, plaster, nails, bolts or 
 screws. 
 
 Sec. 8. An Appurtenance is that which is incidental to or 
 by right used with the land for its benefit, as in the case of a 
 fence, gate or windmill. 
 
 Sec. 9. An Estate is the degree, nature, quantity or in- 
 terest which one has in real property. In respect to the dura- 
 tion of their enjoyment, there are four estates in real property, 
 namely: 
 
 (i.) Estates of Inheritance, or perpetual estates. Every 
 such estate is a fee that is, an estate which may continue for- 
 ever, and is trie largest possible estate, and every such estate 
 which is not defeasible or on condition, is a fee simple or ab- 
 solute fee. 
 
 (2.) Estates for Life. A person, that is to say, Smith, 
 owning a parcel of land, may grant it to Jones, to be held by 
 Jones as long as Jones lives. In such case, Jones' interest in 
 the land would be termed a life estate, and Jones would be a 
 tenant for life. The duty of the life tenant is to so care for the 
 property as to prevent deterioration or waste from neglect or 
 decay. He may make reasonable use of wood on the premises 
 for fuel, fences or repairs. The tenant for life may lease the 
 property or occupy it himself. He cannot sell or mortgage the 
 property, nor dispose of it at his death, but he may sell or 
 mortgage his life-ownership or interest. 
 
 (3.) Estates for Years, or Leasehold Estates, are con- 
 tracts for the possession and profits of real estate for a fix^d 
 period with reservation of rents. 
 
 (4.) Estates at Will, are the letting of land by one person 
 to another, to be held at the will of the "party so letting it. Es- 
 tates at will have been found to be so uncertain that they 
 have become well nigh obsolete as the tendency of the courts 
 is to construe them to be tenancies from year to year. 
 
REAL ESTATE AT A PROFIT 7 
 
 Sec. 10. A Reversion is the residue of an estate left, by 
 operation of law, in the grantor or his successors. The fee 
 simple of all lands must abide in some one, and if he who be- 
 fore possessed the whole estate, carved a smaller estate out 
 of it and granted it away, whatever was not so granted, re- 
 mained in him. 
 
 Sec. ii. A Remainder is a future estate, other than a re- 
 version, and is dependent on some estate which preceded it. 
 Thus, in the case above, where Smith granted a life estate to 
 Jones, the interest which Smith still had in the land would be 
 an estate in reversion, as the land would revert to Smith, or 
 his successors, upon the death of Jones. Again, if Smith were 
 to grant a life estate to Jones, the land to become the property 
 of Brown upon the death of Jones, the interest which Brown 
 had in the land while Jones was in possession, would be called 
 an estate in remainder. A remainder is limited to a third per- 
 son ; a reversion belongs to the grantor. 
 
 Sec. 12. Ownership. The ownership of a thing is de- 
 fined to be the right of one or more persons to use and possess 
 it to the exclusion of others. The right of ownership in land 
 was recognized as far back as the days of the patriarch Abra- 
 ham. Persons are natural or artificial. A natural person is a 
 living human being. An artificial person, or a corporation, as 
 it is called, is a creature of the law and has certain powers and 
 duties of a natural person. The owner of the land in fee is en- 
 titled to the surface and to everything permanently situated 
 above or below it. He may grant the minerals and remain the 
 owner of the surface of the land ; or he may grant the use of 
 the surface of the land and remain the owner of the minerals 
 by specifically excepting the minerals in the grant. All prop- 
 erty has an owner. Public property is owned by the State ; 
 private property by individuals. Any person, capable of mak- 
 ing a contract, be he citizen or foreigner, may take, hold and 
 dispose of both real and personal property. Ownership may be 
 absolute or qualified. In absolute ownership, a single person 
 has absolute dominion over the property, and may use or dis- 
 pose of it at his pleasure, subject only to general laws. In 
 qualified ownership, two or more persons participate as owners, 
 or, the time of the enjoyment of the property is deferred or 
 
8 HOW TO BUY AND 
 
 limited, or, the use to which the property may be put is re- 
 stricted. 
 
 Sec. 13. Real Property in each State is governed by the 
 law of that State, except as to property the title to which is 
 in the government of the United States. 
 
 Sec. 14. Community Property is that acquired by hus- 
 band and wife, or either, during marriage, when not acquired 
 as the separate property of either. 
 
 Sec. 15. Curtesy is the life estate which a husband has in 
 the property of his wife after her death. 
 
 Sec. 16. Dower is the life estate which the wife has in her 
 husband's property which was acquired during their marriage, 
 and usually means one-third of the estate. 
 
 Sec. 17. Title is defined to be the means whereby the 
 owner has just possession of his property. 
 
 (i.) A Perfect Title is one that is good and valid beyond 
 all reasonable doubt. It should be free from litigation, pal- 
 pable defects and grave doubts, should consist of both the le- 
 gal and the equitable title, and should be fairly deducible from 
 the public records. 
 
 (2.) Titles are good, marketable, doubtful or bad. A 
 good title is one which entitled the owner of the property or 
 estate to the lawful possession thereof. 
 
 (3.) A Marketable Title is one which a court of equity 
 would consider to be so clear that it would enforce the accept- 
 ance of such title by a purchaser. 
 
 (4.) A Doubtful Title is one which a court of equity 
 would not enforce and yet one which would not be defective 
 enough for a court to declare bad. A bad title would convey 
 no property whatever. 
 
 Sec. 18. Under the English law the original source of 
 title is in the king, and under our laws it is in the government 
 of the United States. |In evidence of such original title, the 
 government issues a written instrument called a patent. In 
 some instances, notably in the case of the State of California, 
 some of the titles originated in a prior form of government 
 and were confirmed by the United States. The territory now 
 comprising the State of California was acquired from the Mex- 
 ican Republic, February 2, 1848, by the treaty of Guadalupe 
 Hidalgo. All rights or titles to land acquired by private par- 
 
ESTATE AT A PROFIT 9 
 
 ties or municipal corporations, under the Spanish or Mexican 
 Governments, prior to the above mentioned treaty, were by 
 such treaty recognized and granted, and subsequently were 
 officially ascertained and settled by a Board of Land Commis- 
 sioners, from whose decision appeal could be taken to the Fed- 
 eral Court. Letters patent of the United States were issued 
 upon final decision in favor of the claimant. These patents 
 have been held not to create a new title but to confirm and es- 
 tablish the former title. All lands in California, the title to 
 which were not so confirmed by the Board of Land Commis- 
 sioners or the Federal Court, became absolutely the property 
 of the United States. 
 
 Sec. 19. Acquisition of Land, or Acquiring Title. Lands 
 are acquired : 
 
 (i.) By occupancy, or the settling upon and holding of 
 lands for the terms prescribed by the laws' of the several States 
 (from ten to twenty years). Such occupancy confers a sufficient 
 title except as against those who have a better title to the same 
 premises. Such occupancy must be an "adverse possession," 
 as it is called; that is, the party in possession of the premises 
 must be there under some claim of right, and his possession of 
 the premises must be actual, open, notorious and continuous 
 during the whole period which the law says a man must be in 
 possession in order to acquire title in that way. A person who 
 acquires title in this manner is generally called a "squatter." 
 Title to the public lands cannot be acquired by a "squatter," as 
 the statute of limitations does not run against a State or 
 against the United States. Adverse possession is a sort of nega- 
 tive title which deprives others of the power of ousting the oc- 
 cupant. 
 
 (2.) By Accretion. Where land forms by imperceptible 
 degrees upon the bank of a stream, either by accumulation of 
 material or receding of the stream, such land belongs to the 
 owner of the bank. This process is called Alluvion. Any 
 property affixed by one person to the land of another, without 
 an agreement permitting its removal, belongs to the owner of 
 the land. 
 
 (3.) By Transfer. A transfer is an act of the parties, or of 
 the law, whereby the title to property is transferred from one 
 
10 HOW TO BUY AND 
 
 living person to another. Any person claiming the title to real 
 property may transfer it, although at the time it may be in the 
 adverse possession of another. The party making the transfer 
 is called the transferrer and the party receiving the transfer is 
 called the transferee. A transfer in writing is called a grant, or 
 conveyance, or bill of sale, and vests in the transferee the 
 actual title to the thing transferred, with all its incidents, un- 
 less a different intention is expressed. The transfer, however, 
 of the incident to a thing will not transfer the thing itself : thus, 
 the transfer of a farm will also transfer a well of water in it; 
 but the transfer of the well of water would not transfer the 
 farm. 
 
 (4.) By Succession, or the coming in of another to take 
 the property of one who dies without disposing of it by will. 
 This is also termed descent, or hereditary succession, and is 
 the title the heir at law acquires upon the death of his ancestor. 
 The law of descent has reference to real estate, which, if not 
 disposed of by will, descends to the heirs ; the law of distribu- 
 tion has reference to personal property, which if not be- 
 queathed, is to be distributed among the next of kin according 
 to the statutes of distribution. 
 
 (5.) By Will, or the disposition of real or personal prop- 
 erty by a person, called the testator, by his last will and testa- 
 ment, to take effect after his death. 
 
 Sec. 20. Personal Property includes all movable property 
 such as household furniture, monies, stocks and bonds of cor- 
 porations, live stock, evidences of debt, etc. 
 
 Sec. 21. Limitations of the Subject. The subject of real 
 estate is extensive and intricate, particularly with respect to 
 some sub-divisions of it, such as future estates, contingent re- 
 mainders, descent and distribution and the like, and the scope 
 of this work in relation to real estate in general is necessarily 
 limited to such definitions and data as will enable the student 
 or reader to follow intelligently the principal topic discussed, 
 namely, the buying and selling of real estate. 
 
REAL ESTATE AT A PROFIT H 
 
 CHAPTER II. 
 
 THRIFT, OR ACCUMULATION OF CAPITAL. 
 
 Real Estate the Highest Form of Property Real Estate a Necessity The Ac- 
 quisition of Property Implies Moral and Intellectual Qualities Capital is Needed to 
 Acquire Property Capital the Result of Saving How to Save The Saving Habit a 
 Valuable Asset and Easily Acquired No Time so Opportune as the Present Rules 
 of Thrift Laid Down by Russell Sage The Desirability of Owning a Home Setting 
 the Money to Work Going Judiciously Into Debt Savings Banks and Building and 
 Loan Associations What Sort of Investments to Avoid. 
 
 Sec. 22. Land, because of its immovability, its inde- 
 structibility, and its relative permanence in value, as well as on 
 account of the many fine sentiments' that cluster about its 
 ownership, always has been and is now esteemed above all 
 other forms of property. 
 
 Sec. 23. "Private property," says St. Thomas, "is neces- 
 sary to human life for three reasons : first, because everyone 
 is more solicitous to look after what belongs to himself alone 
 than what is common to all or many ; secondly, because human 
 affairs are handled more orderly when on each individual is 
 the care of managing something; thirdly, because thereby a 
 peaceful state of society is secured, while each one is content 
 with his own." 
 
 Sec. 24. Economists tell us that a man's capital is a fund 
 of wealth through which he expects to receive an income. The 
 acquisition of wealth implies certain moral and intellectual 
 qualities. The power of saving and of postponing enjoyment 
 is necessary to the formation of capital. A man who desires 
 to accumulate capital will have to pursue the object steadily 
 and under difficulties for a considerable length of time, and he 
 must have a will strong enough to curb his appetites and an 
 imagination broad enough to foresee the advantages which will 
 accrue from the possession of capital; and that by means of 
 capital he can lessen his toil and cease active efforts with a 
 sense of comparative security in his declining years. 
 
 Sec. 25. To acquire property, one must have some money. 
 It is difficult to save money and still more difficult to invest 
 it profitably. A man must succeed in something to be happy. 
 He must save to succeed. He can save, if he will make it a 
 fixed rule and principle of his life to invariably spend less than 
 he earns. If a man will do this, he will begin to accumulate 
 capital. 
 
12 HOW TO BUY AND 
 
 Sec. 26. In regard to saving, there is no time so oppor- 
 tune as the present in which to begin. If a man neglects to save 
 in his earlier years, he may not have as good an opportunity 
 to do so later in life. "No morning sun lasts the whole day." 
 The habit of saving must be formed. Habit is the regular 
 performance of an act until it becomes almost involuntary or 
 a second nature, requiring but little effort or thought. The 
 man or woman who acquires the habit of saving early in life 
 has a most valuable asset. Begin to save, repeat the act a 
 few times regularly and the habit will do the rest. 
 
 Sec. 27. When one first begins to save, he should place 
 his money in a savings bank, where it will draw interest, and 
 thus set the money to work. All reputable savings banks pay 
 about the same rate of interest, and such being the case, there 
 are but two points for the intending depositor to consider: 
 one is the safety of the deposit and the other is the selection 
 of a bank where his business relations will be pleasant and 
 agreeable. 
 
 Sec. 28. Savings banks are required to publish state- 
 ments annually, and an idea of the safety of a particular bank 
 can be obtained from its statement. Its resources should be 
 in cash or in items readily convertible into cash, such as coupon 
 bonds and corporate stocks. It should have a fair portion of 
 its assets in ready cash. Its liabilities should show a good 
 paid-up cash capital and proportionate deposits. There should 
 be an item of surplus or undivided profits, which will indicate 
 that the bank is prosperous and is making money. Its direc- 
 tors and its principal shareholders should be men who have ac- 
 cumulated fortunes in reputable, legitimate, non-speculative 
 lines of business. 
 
 Sec. 29. Or, the budding capitalist may invest his savings 
 in the stock of a building and loan association of known worth. 
 He should examine the annual statement, and inquire into the 
 standing of the directors and principal stockholders of the as- 
 sociation, and also make inquiry among outsiders as to the 
 reputation of the association. Such an association loans the 
 monies collected from its stockholders on improved real es- 
 tate, the appraised value of which is generally made by men of 
 excellent judgment, and the rule is to loan not over fifty per 
 
REAL ESTATE AT A PROFIT 13 
 
 cent of the appraised valuation. The loans made by the asso- 
 ciation are distributed over a large number of properties, so 
 that the security is apparently much safer than if the individ- 
 ual were himself to loan his money on one parcel only, and 
 the rate of interest is usually higher than that paid by a sav- 
 ings bank, being from 6 per cent to 10 per cent paid by the as- 
 sociation as against 4 per cent paid by the bank. 
 
 Sec. 30. Mr. Russell Sage, who has been known for many 
 years as one of the leading financiers of the world, has laid 
 down the following rules for the guidance of those who desire 
 to accumulate capital : Thrift is the foundation of success in 
 business, of contentment in the home and of standing in so- 
 ciety. Out of every dollar earned, save twenty-five cents ; save 
 seventy-five cents, if you can, but never less than twenty-five 
 cents. Don't gamble. Be circumspect in your amusements. 
 Be courteous in your manners ; bad manners often spring from 
 a bad heart. Be honest. Always have the courage to speak 
 the truth. Don't depend on others. Even if you have a rich 
 father, strike out for yourself. Cultivate independence at the 
 very outset. Learn the value of money. Realize that it stands, 
 when honestly made, as a monument to your value as a citi- 
 zen. This is a tremendously practical world, and no man can 
 get the most out of the world who is hampered by a constant 
 want of money. 
 
 Sec. 31. Every married man should make a vigorous ef- 
 fort to own a home. As soon as he has accumulated sufficient 
 money, he should invest in a home, where his family may live 
 permanently. A home owned is more than mere property ; it 
 speaks to the heart, enlists the sentiments and ennobles the 
 possessor. Viewed as a matter of economy, a man can occupy 
 a home of his own at less expense than he can rent, and avoid 
 the inconvenience and expense of frequent removals. In ad- 
 dition, if he buys right, he may have the satisfaction of know- 
 ing that his property is steadily increasing in value while he 
 occupies it. 
 
 Sec. 32. Credit is defined to be the trust or confidence 
 placed by one individual in another when he assigns him money 
 or other property in loan, and gives him a stipulated time for 
 repayment. The credit so extended is often spoken of as go- 
 
14 HOW TO BUY AND 
 
 ing in debt, and is viewed in some quarters with a sort of hor- 
 ror. Paradoxical as the assertion may seem, it is safe to say 
 that no man ever accumulated much property without ju- 
 diciously going in debt. The fact that a young man has the 
 courage to go into debt to provide a home for his family of 
 itself inspires confidence ; and so in the larger and more specu- 
 lative deals in real estate, the man who has the temerity to go 
 judiciously into debt, leaving a safe margin between his as- 
 sets and his liabilities, is looked upon with favor by bankers 
 and capitalists, who extend credit, as it is to their advantage 
 to keep their money employed on good security in earning in- 
 terest. If everyone were to wait until he could pay cash in 
 full for each parcel of real estate he purchased, the transactions 
 in real estate would be limited in number and a few individ- 
 uals would be large land owners. This state of things is over- 
 come by the partial payment of the purchase price in money 
 and by the giving of credit for the remainder. 
 
 Sec. 33. There are certain species of investment which 
 the investor who desires to be successful, will avoid, at least 
 until he has accumulated so much that a slight loss will not 
 materially embarrass him and until he is thoroughly familiar 
 with investments in general. Among the things to be avoided 
 are the treasury stocks of mining companies, rubber planta- 
 tion schemes, buying diamonds on the installment plan, and 
 in fact, every get-rich-quick scheme. No legitimate enterprise 
 can pay from 15 per cent to 300 per cent per annum, for any 
 great length of time, and meet its obligations. The corporate 
 bond, which apparently promises absolute security, is not al- 
 ways secure, and guaranteed stock is a misnomer. Every 
 young man and woman should make one resolve early in life, 
 and that is to buy no shares of treasury stock. Stock certifi- 
 cates, in many cases, are the equivalents of so much paper. 
 Paper is cheap. 
 
 Sec. 34. On the contrary, it may be stated, as a general 
 proposition, that real estate is the most judicious investment, 
 as it enhances in value the most steadily, and yields the best 
 returns. The security, the increase, and the income are the 
 three essentials to be sought for in making an investment. 
 
REAL ESTATE AT A PROFIT 15 
 
 CHAPTER III. 
 
 HOW AND WHERE TO BUY. 
 
 This Chapter Concerns City Lands and Country Lands Importance of Close 
 Buying Exercising Good Judgment What Good Judgment Consists of Qualities 
 Requisite in the Successful Operator Most Successful Man is He Who Makes Closest 
 Analysis How to Strengthen the Judgment Suggestions from Real Estate Brokers 
 Points to be Kept in Mind Center of Business Expansion from Center Generally 
 in One Direction Object of Buying at Center Advance Information as to Contem- 
 plated Improvements Frontage Measure of Gain Corners Points to be Considered 
 in Buying a Home Place How to Get at the Facts Counseled to Buy Slowly 
 Elucidation of Old Maxim "Let Buyer Beware" Paying All Cash and Paying Part 
 Cash; Illustration Figuring Percentages; Importance of Knowing How Undesir- 
 able Properties; What the Investor Should Avoid Good Advice from a "Mortgage 
 Lifter" Modern Farming Reduced to a Science Opportunities in the Northwest 
 Farming Lands Steadily Growing in Value Farming Safe and Profitable Effect of 
 Suburban Trolley Lines on Farming Lands Big Demand for Newer and Cheaper 
 Lands Farm Buyer Must be Guided by His Health, Tastes and Previous Training 
 Real Estate Purchase Chart for City Buyers, with Comments Thereon. 
 
 NOTE. In this connection, read also Chapters on "Options and Purchase 
 Agreements," "Deeds," "Mortgages and Trust Deeds," "Taxes and Insurance," "Cer- 
 tificates and Abstracts of Title," "Escrows," "Making a Loan," and "How and 
 When to Sell." 
 
 Sec. 35. A man of excellent judgment, who had made a 
 close study of the matter, said : "The majority of people take 
 a long time in which to buy, a long time in which to sell, and 
 no time to study their investments ; whereas, they should study 
 the investment a long time, buy slowly and sell quickly when 
 prices have reached the goal point." 
 
 In any line of business, one may buy more readily than he 
 can sell ; therefore, it becomes necessary to exercise the greater 
 care in buying. In merchandising, good buyers assert that 
 more profit is made in close buying than in any other part of 
 the business. Judicious and economical buying depends on 
 the exercise of judgment. 
 
 Sec. 36. "Judgment is that faculty of the mind whereby 
 one thing is perceived of another and the reverse, and a ready 
 conception gained thereby of things and events." In order 
 to exercise judgment, one must cultivate the power of giving 
 attention. It is a power that may be cultivated by anyone, 
 and simply means to analyze, compare and weigh every report 
 that is brought to the mind by the senses. The acquisition 
 of accurate and exact knowledge of things and events can only 
 be gained by attention and application. He who so gains knowl- 
 edge must have full confidence in his own ability to correctly 
 compare one thing with another before he can impress that 
 
16 HOW TO BUY AND 
 
 ability upon others. Such ability is soon recognized and the 
 man possessing it is said to have "good judgment." If he be 
 a real estate dealer, cautious capitalists ask him to decide be- 
 fore they loan money on a mortgage or purchase real estate. 
 His advice is sought by rich and poor alike and a large portion 
 of the investing public waits on his word. His inherent ability 
 alone would not have sufficed ; it was by paying attention that 
 he acquired materials for reflection, formulated rules of action 
 and maxims of conduct, which at length cumulated into sa- 
 gacity or judgment, that quality of the mind which, above all 
 others, distinguishes one man from another. 
 
 Sec. 37. "Confidence, courage and capital," said a leading 
 real estate dealer of Los Angeles, "are the foundation stones 
 on which to rear a large city," and these also are the elements 
 requisite for the successful buying and selling of real estate. 
 The qualities requisite in the successful real estate operator 
 are: (i) aptness and resourcefulness; (2) ability to quickly 
 grasp and comprehend the conditions; (3) alertness to take 
 advantage of opportunities, (4) and the power to patiently 
 master detail. 
 
 Sec. 38. Men who have made a success in a particular 
 line of business are said to be "lucky" favored by fortune, 
 the multitudes think. Such men, consciously or unconsciously, 
 follow a system, pursue a method, and analyze a proposition 
 along lines that lead to success. The minute observation, 
 close study, serious thought and good judgment, exercised 
 by such men are overlooked or minimized. A war correspond- 
 ent states that the success of the Japanese at Port Arthur was 
 due to a previous thorough analysis of the method of reducing 
 that fortress. He writes: "The Japanese have a passion for 
 detail and a mania for precision ; they are so practical they 
 must plainly see on paper what they project. They live by 
 system. They have reduced accomplishment to a problem of 
 economics. They believe, with some of the greatest minds, 
 that the most successful man is he who makes the closest 
 analysis." 
 
 Sec. 39. The intending investor, even before he has ac- 
 cumulated any money, can cultivate and strengthen his judg- 
 ment by taking note of the sales of real estate. Let him as- 
 
REAL ESTATE AT A PROFIT 17 
 
 certain by inquiry as many details as possible of each sale and 
 the opinion of men apparently qualified to know, as to whether 
 or not the place was sold at a bargain price. He thus will be- 
 come acquainted with the value of property and when he is 
 prepared to buy will be in a position to buy to good advantage. 
 If one is too busy to look up a desirable place to purchase, he 
 should consult a reliable real estate broker, and ascertain if 
 the broker has on his lists any properties such as the purchaser 
 desires. If he has none, he will gladly seek them for the pro- 
 posed purchaser at no expense to the latter. The broker may 
 be able to give the purchaser valuable suggestions as to the 
 history and prospective value of any property examined. Real 
 estate brokers as a rule are ready talkers and the buyer should 
 receive their random recommendations with caution, and en- 
 deavor to cultivate his own judgment as to real estate values. 
 The writer does not wish to be placed on record as decrying 
 real estate brokers ; they have been sufficiently maligned. 
 Real estate brokers create and stimulate activity in real estate 
 transactions and without them, in many cases, real estate 
 values would decline and the real estate market be very dull 
 indeed. 
 
 Sec. 40. In buying real property, the buyer should keep in 
 mind four important points, viz: 
 
 (i.) The object or end for which the property is intended. 
 
 (2.) If the property in question fulfills, or will fulfill, 
 that object. 
 
 (3.) If the property can be purchased at the minimum of 
 cost. 
 
 (4.) Is the property readily salable at cost? 
 
 Sec. 41. In every city, there is a point which is conceded 
 to be the center of the business district. That point is appar- 
 ently determined by the number of people who pass a given 
 spot within a certain time. If fifty persons per minute pass a 
 given spot as against one person per minute at another point, 
 it is evident that the ratio between the two for advertising and 
 sale purposes is nearly fifty to one. For this reason, merchants 
 pay enormous rents for the sake of locating where the people 
 "most do congregate." From this center of business, there will 
 be lines of business radiating in all directions. With the advent 
 
18 HOW TO BUY AND 
 
 of new and a better class of improvements, the center of busi- 
 ness will change, and change, as a rule, in one direction, and 
 that direction will be determined by the length and width of 
 the principal business streets, and the character of the im- 
 provements thereon. As the change goes on, there will be a 
 "decaying" end and a "growing"' end of the city. To buy in the 
 "decaying" end, would be to buy where property is at a stand- 
 still or is depreciating. Property in a "decaying" section will 
 not be readily salable, as there will be little demand for it. 
 Merchants will be forced to leave the "decaying" end and come 
 as close as possible to the active center in order to retain cus- 
 tomers. The observant, judicious investor will take note of the 
 tendency of events in his city, and will buy, according to his 
 means, in advance of the growth of the business section, and 
 hold the property until a demand is created. Real estate at 
 the time he buys, may be dull and dormant ; so much the bet- 
 ter, as he will then be able to buy at a bargain price and upon 
 his own terms ; but he must have the foresight to see that there 
 surely will be a demand in the future for the property by rea- 
 son of expansion of business and increase in population. His 
 purchase should be something that somebody else eventually 
 must have. 
 
 Sec. 42. The ultimate object of acquiring land in the cen- 
 ter of the business district is to obtain the highest and most 
 continuous returns in the way of rent. The merchant, who is 
 the tenant, must pay a uniform rent whether trade is dull or 
 brisk. The merchant pays not only for the use of the land and 
 the improvements, but for whatever adds to the value or desir- 
 ability of the location. Where several separate parcels of land 
 are equally accessible and good, that which is most central 
 will be most desirable, provided the improvements thereon 
 are as good as those on the surrounding parcels. The center 
 is limited in area, of necessity, and the demand for it is greater 
 than the supply. Where the value of real estate consists prin- 
 cipally of buildings and improvements, as is the case in cities, 
 location becomes of paramount importance. Men naturally 
 like to measure their wealth and enterprise with their fellows, 
 and, if possible, to out-class them ; hence, when the increase 
 of population warrants capitalists in doing so, they erect new 
 and modern business buildings which draw tenants, even at 
 
REAI, ESTATE AT A PROFIT 19 
 
 higher rates of rental, from the older buildings of competing 
 capitalists. The highest types of modern business buildings are 
 almost always erected on corners where light and air are ac- 
 cessible on two sides thereof, and the change in the center of 
 business will leap along the principal street, from one cross 
 street to another, in the direction of improvement. 
 
 Sec. 43. The erection of new improvements sometimes 
 the report that new improvements are projected will give an 
 impetus to the values of adjoining properties, and the increase 
 in values will be the more pronounced if the improvements 
 are such as will concentrate a large number of people at a 
 given point. The improvements concentrate the people; the 
 people draw the merchants; the merchants demand the store 
 rooms ; the land owners either improve or sell to those who de- 
 sire to improve, and the demand being greater than the supply, 
 values rise. Advance information of projected improvements 
 enables one to buy in a choice locality and to the best advan- 
 tage. Transfers of real estate are reported through the med- 
 ium of the newspapers, by real estate agents, who take credit 
 for the sale, together with a statement of the nature of the pro- 
 jected improvements, and such reports are given out almost as 
 soon as the deals are made ; but the improvements many times 
 are not erected for months afterwards. By buying close to 
 where improvements are to be made, one may take advantage 
 of the rise in values which improvments will bring about. All 
 reports as to contemplated improvements should be investi- 
 gated thoroughly, as investments cannot be successfully made 
 on the strength of mere rumors. A source of great profit to 
 the owners of electric roads are the land companies organized 
 by them and which buy in advance of improvements along the 
 lines of such roads. 
 
 Sec. 44. Where the intending investor is unable to pay 
 several hundred dollars per front foot for close-in business 
 property, he should go farther out, where prices range lower, 
 or on to a side street, running parallel with the principal street, 
 and there buy. At various points along the principal streets, 
 usually at their intersection with cross streets, there is the 
 nucleus of a little business community, and at one of these 
 points the investment should be made. Corners are picked up 
 
20 HOW TO BUY AND 
 
 early and held firmly; they command higher prices than ad- 
 joining inside properties, but are generally more desirable as 
 they are capable of more advantageous improvement. If the in- 
 vestor cannot secure a corner, he should buy an inside im- 
 proved lot, from which he will obtain an income, and if that 
 be beyond his reach, should buy an inside vacant lot adjoining 
 or close to improved property. 
 
 Sec. 45. Where land is sold at so much per front foot, 
 frontage, even though a lot be irregular in shape or shallow in 
 depth, becomes the measure of increase in gain. The rate per 
 front foot should always be taken into account, as that is the 
 basis of comparing the relative value of two or more parcels, 
 although one parcel, because of advantageous location or other- 
 wise, may be more desirable than another. Extensive front- 
 age is always desirable, particularly if it be partially improved 
 and extends from a corner, and this is especially true if the 
 improvements are on that portion most distant from the cor- 
 ner. The return in the way of rental from the improvements 
 may be low as against the value of the entire parcel ; but if the 
 parcel be divided, and sufficient frontage retained for the im- 
 provements, the improved portion will show a higher and cred- 
 itable rate in the way of rent, and can be more readily sold; 
 and the corner, having an ample frontage on two sides for an 
 ordinary business building, can safely be held until it can sub- 
 sequently be sold at a considerable increase. 
 
 Sec. 46. Another means of gain open to the real estate 
 operator is the placing of sub-divisions on the market. This, 
 in effect, consists in buying land at wholesale and selling it at 
 retail. (See also Chapter on Sub-divisions.) 
 
 Sec. 47. If the object for which the property is intended 
 is a home, to be occupied by the purchaser and his family, it 
 is manifest that there will be many more things to be taken 
 into consideration than if the property be purchased as an in- 
 vestment merely. 
 
 When property is purchased for a home, it is important 
 to consider: 
 
 (i.) The general character of the neighborhood. 
 
 (2.) The reputation of the immediate neighbors. 
 
 (3.) The healthfulness of the locality. 
 
REAL ESTATE AT A PROFIT 21 
 
 (4.) The proximity to school and to the church edifice 
 which the family will attend. 
 
 (5.) The distance from the home to the business office 
 of the head of the family. 
 
 (6.) The situation of the "house with respect to receiving 
 the sun in front in the morning or in the afternoon. 
 
 (7.) The convenience of the interior arrangement of the 
 house. 
 
 (8.) The cheerful or gloomy aspect of trie structure, and 
 numerous other points favorable and unfavorable. 
 
 Sec. 48. In getting at the facts, the prospective buyer, 
 upon making "his first inquiry in regard to a property, should 
 let the owner or agent do most of the talking. The buyer 
 should pay strict attention to what is told him and make a 
 mental note of it as well as of everything shown him in con- 
 nection with the property. The buyer should view the prop- 
 erty by approaching it from several different directions. If 
 the prospective buyer is desirous of asking questions, 'he will 
 usually get better results by deferring his interrogatories until 
 his second visit. He should then take the initiative and prose- 
 cute his probing with rapid, decisive and leading questions, 
 not forgetting to introduce some inquiries which must, in the 
 very nature of things, be unexpected on the part of trie seller. 
 
 Sec. 49. The intending buyer should not immediately pur- 
 chase the parcel of real estate first offered him at the price first 
 named. He should ascertain the price, terms and other par- 
 ticulars of several like parcels in that and other localities, and 
 compare one with another for the purpose of determining which 
 offers the best investment. He should endeavor so to buy that 
 if he were to sell tomorrow he could sell at a price in advance 
 of that which he had paid ; in other words, to buy "under the 
 market." 
 
 Sec. 50. When the advantages of a particular piece of 
 property have been pointed out to an inexperienced buyer, and 
 he has allowed his imagination to revel in the possibilities of 
 profit, or his pride to expand at the prospect of hearing the 
 many compliments his friends would express were they to be- 
 hold him snugly installed in that cozy dwelling, he is apt to 
 manifest symptoms of feverish haste and a nervous anxiety to 
 
22 HOW TO BUY AND 
 
 purchase. The old rule to buy slowly should be adhered to 
 by the inexperienced on all occasions. The intending buyer 
 should disguise his anxiety, if he feels any, think the matter 
 over for a few days, and endeavor to get a clear, calm and un- 
 biased view of the proposition as an entirety. There may be- 
 come incidental or secondary considerations that have been 
 overlooked. The property may have been offered to others 
 at a lower figure and declined for some reason. 
 
 Sec. 51. The rule is that the buyer is bound to use his 
 eyes and ears to discover manifest defects in the thing sold. 
 He takes the risk upon himself where the thing is subject to 
 his examination, as it is in the case of real estate. "Let the 
 buyer beware," is the old maxim. "The law presumes," says 
 Curwen on Abstracts, "that the buyer will never rely on the 
 opinion or random recommendations of the seller; and there- 
 fore any representations on the part of the seller, or his agent, 
 as to his own opinion, or as to what others have told him re- 
 garding their opinion of the value of the property, or as to the 
 chance of its increasing in value, or as to the probability of its 
 being resold at an advance, even though the seller knows them 
 to be false, do not amount to fraud." An assertion by the 
 owner, or his agent, of a material fact, as, that the premises 
 bring a certain monthly rental, may be relied on, as the misrep- 
 resentation of such a fact, if it be a material inducement to the 
 other party in making his contract to purchase, entitles the 
 person on whom it is practiced, to repudiate the contract. An 
 action of deceit will lie against one who makes a false repre- 
 sentation of a material fact, knowing it to be false, or when 
 he makes it recklessly of his own knowledge without knowing 
 whether it is true or not, and upon which another acts to his 
 injury. 
 
 Sec. 52. The investor should understand that he will of- 
 tentimes not be required to pay cash in full when he buys. Oc- 
 casionally he can buy for one-third cash, and frequently for 
 one-half cash. Banks ordinarily will loan not over one-half 
 of the appraised value of the property, such appraisal being 
 placed on the property by the agent of the bank. Whenever 
 he can do so, the buyer should endeavor, in the event that he 
 is to pay only part cash, to have the seller take back a mort- 
 
REAL, ESTATE AT A PROFIT 23 
 
 gage for the unpaid portion. In this way, he can obtain a 
 larger loan on the property "he is to acquire than if he went 
 to a bank or some private party to obtain a loan. The 
 mortgage should run for from three to five years, and if the 
 borrower thinks he will be able to pay off the entire mortgage 
 before the expiration of that time, a clause can be inserted to 
 the effect that the borrower may pay off the mortgage at any 
 time by paying the interest to the date of payment, and inter- 
 est for one month additional as a bonus. Where a deal of this 
 sort is made, the seller makes a deed, conveying the premises 
 to the buyer, and the buyer, thereupon, pays part in cash and 
 in evidence of the remainder gives the seller the buyer's prom- 
 issory note, secured by mortgage on the premises. The deed 
 and the mortgage are placed on record almost simultaneously. 
 Let us suppose *he investor to be buying an improved prop- 
 erty, yielding an income in the way of rent of $20 per month, 
 or $240 per annum, and that the price is $4,000 ; that the seller 
 is willing to accept $2,000 in cash, the remainder to be evi- 
 denced by the mortgage note of the buyer for $2,000, such 
 note to 'be payable three years after date, to bear interest 
 at the rate of 6 per cent per .annum, net, payable quarterly, or 
 interest amounting to $120 per annum. If the buyer had paid 
 cash in full, the rental of $240 per annum would be equivalent 
 to 6 per cent on the purchase price ; as the buyer must care 
 for the taxes, insurance and repairs, his income will be dimin- 
 ished by these items. On the proposition as above outlined, 
 the buyer will receive an income of $240 per annum, and will 
 expend $120 for interest and something for taxes, insurance 
 and repairs, leaving an apparent surplus in his favor. His net 
 return, or rate of interest, on his cash investment of $2,000 
 will, of course, be less than 6 per cent. 
 
 Sec. 53. It is quite important that the investor should 
 be able to figure percentages. How to multiply a given amount 
 by a certain rate and obtain a correct result, is comparatively 
 easy, but how to ascertain the rate when the amount of the 
 percentage is given, is not so well understood. The rule is: 
 Divide the number considered the percentage by I per cent 
 of the other number. In the above illustration, let us suppose 
 the investor, at the end of two years, sold the property for 
 
24 HOW TO BUY AND 
 
 $5,000, the buyer to assume the mortgage, and that the insur- 
 ance per year was $10, the taxes, $16, and repairs, $14, a total 
 of $40 per annum, or $80 for the two years. In this case we 
 are considering the cost to the buyer as $2,000, as that was the 
 amount of cash he invested. The statement, therefore, would 
 be: 
 
 Gain $1,000.00 
 
 Rent received, $240 per annum x 2 480.00 
 
 Total gross gain $1,480.00 
 
 Less taxes, insurance and repairs, $40 per an- 
 num x 2 $ 80 
 
 Interest, $120 per annum x 2 240 320.00 
 
 Net gain $1,160.00 
 
 One per cent of investment, $2,000, is $20; dividing $1,160 
 by 20 equals 58, covering a period of two years, or 29% per an- 
 num, net. 
 
 Sec. 54. Undesirable properties should be avoided. 
 
 (i.) Don't buy key lots. To illustrate a key lot: Let us 
 suppose that the principal street is called Main and that a street 
 running at right angles with and across it is called Lincoln. 
 Lots face on Main and are 150 feet in depth. The lot facing 
 on Lincoln, immediately in the rear of the Main street lots, 
 even though an alley intervened, would be a key lot. If the 
 lots, as sub-divided, faced on Lincoln, instead of Main, and 
 were each 50 feet in width by 150 feet in depth, someone might 
 buy two of them and subdivide into three lots, each 50 by 100 
 feet, facing on Main, so that the third lot, in such case, would 
 be a key lot. A barn, or the rear of a store, in either case, 
 might obstruct the view of a house situate on the key lot. Some 
 banks will not make loans on key lots. 
 
 (2.) Don't buy lots adjoining saloons, livery stables, black- 
 smith shops, planing mills, undertaking parlors, and the like. 
 The inhabitants of houses close to this class of improvements 
 are apt to be troubled with flies, disagreeable odors, noises or 
 uncanny sensations. 
 
 (3.) Don't buy a corner lot on a street, the inhabitants of 
 which take so much pride in the street and in its exclusiveness 
 
REAL ESTATE AT A PROFIT 25 
 
 as a residence street that they would not trade with the occu- 
 pant of the corner if it were improved. 
 
 Sec. 55. The real estate investor should buy and sell phil- 
 osophically. If he finds, after having purchased, that he could 
 have bought that particular lot at a lower price, or could have 
 bought a more desirable lot at the same price, or after having 
 sold, ascertains that he sold at too low a price on an advancing 
 market, he should not do, as some have done, play the baby act 
 and blubber, but rather should think a few intense thoughts. 
 He should seek to know wherein his weakness lies and whether 
 or not he had bought or sold too hastily and without sufficient 
 investigation, and should make firm resolutions as to future 
 conduct in this respect ; otherwise, his subsequent transactions 
 will be a repetition of previous errors. He should not worry ; 
 worry irritates but does not benefit. A calm analysis of the 
 cause of the failure should lead to the determination to apply 
 an efficient remedy in the future, and this course will strength- 
 en the judgment. One should crystallize past experience into 
 fixed principles for future guidance, and even go so far as to set 
 down, briefly and tersely, such principles in a memorandum 
 book, where they can be reviewed occasionally and kept fresh 
 in the memory. The investor, before investing, should make 
 up his mind to lose gracefully, if lose he must. As old Cargill 
 said: "Any fool kin be a good winner, but the public has a 
 lingerin' an' strong affection for the feller that kin smile when 
 he's losin'. He's the real sport; 'lie's the man they like." 
 
 Sec. 56. Several years ago a book entitled "Mortgage 
 Lifters" was published, and in the introduction it is stated that 
 "There are thousands and thousands of farmers in this great 
 country who have bought farms with but very little cash to 
 pay down, have given a mortgage for the balance, and in the 
 course of a shorter or longer period have paid it off, and now 
 own their farms free of all incumbrance." One of these "Mort- 
 gage lifters" gives the following good advice : "Marry a good 
 wife, buy a farm, be honest, industrious and saving, trust in 
 God, and go ahead." A young man should not fear to go in 
 debt to a reasonable amount for a farm, provided he is healthy, 
 industrious and ambitious. What constitutes a "reasonable 
 amount" must be decided by each individual in view of all the 
 circumstances. 
 
26 HOW TO BUY AND 
 
 Sec. 57. Farming in the twentieth century is not a mere 
 matter of guess. Farming is being reduced to a science. The 
 farmer studies the soil and its needs. The modern farm is a 
 field of diversified interests. A portion is devoted to forage 
 plants; another portion is set to an orchard of desirable trees 
 and vines. The barnyards and barns are well arranged and en- 
 close only the best of live stock. Every avenue is made to 
 pay a profit on the investment. The farmer studies the soil 
 and its needs. Irrigation to him is an agency of perfection in 
 soil cultivation. Irrigation supplies moisture at the time when 
 plants and trees require it and in the ratio demanded for cor- 
 rect growth. With judicious cultivation, seed time and har- 
 vest are certainties. The modern farmer is an educated power 
 in the land. His influence is noticeable everywhere that men 
 of determination and force of character are wanted. Many of 
 our modern farmers are making from three thousand to ten 
 thousand dollars per annum. 
 
 Sec. 58. Parts of Washington, Oregon and California, 
 and other western states, offer good farming opportunities, and 
 possess all of the natural conditions and few of the disadvant- 
 ages of the older settled districts. The soil is good, climate 
 desirable and natural conditions are adapted to general farm- 
 ing. No section, however, offers homes to men who will not 
 work. Farms are made and not found. The location selected 
 must be converted into a farm by the owner. Opportunities 
 await the industrious and energetic young man throughout the 
 Northwest, and the young man who can and will do something 
 is welcome in every locality. 
 
 Sec. 59. The desirable farming lands in the United States 
 are steadily growing more valuable. There has been an aston- 
 ishing demand for more land in northwest during the past few 
 years. A prominent agricultural journal (the Orange Judd 
 Farmer), which has investigated the causes for this, sum- 
 marizes the situation as follows: 
 
 (i.) The choice agricultural lands of the central Missis- 
 sippi valley have reached extraordinarily high prices. Some 
 Illinois farmers have sold at $200 per acre land that they them- 
 selves "took up" as a free gift under the homestead act farm- 
 ing land only, in central Illinois, which has reached this figure 
 
REAL ESTATE AT A PROFIT 27 
 
 because farming pays good interest on that valuation, not be- 
 cause of proximity to cities. In Iowa, indeed all through the 
 central valleys, land values have also risen enormously. 
 
 (2.) The extension of electric trolley lines from the large 
 cities through farming sections to suburban towns has made a 
 demand for farming lands along these lines. Wealthy indi- 
 viduals in the cities have bought up farms along the electric 
 lines, have demolished the old-time farm houses, and have 
 erected fine residences, which are occupied chiefly in summer. 
 Some of these new owners carry on experimental farming on a 
 magnificent scale and with but very little profit. 
 
 (3.) Farming in the central west is so profitable, so safe, 
 and still further advances in land values are so constantly ex- 
 pected, that men of large means are buying these central lands 
 and operating them on a large scale. Farming is becoming 
 as fashionable as it is profitable, but in the central west agri- 
 culture requires more and more capital. 
 
 (4.) Many thousands of farmers in moderate circum- 
 stances, hired men or others, who would like to go to farming 
 but who cannot afford to pay from $50 to $200 per acre for land, 
 are casting about for good lands that can be bought at moderate 
 prices. The great majority of these people want such lands 
 located in the western and northwestern states or the Canadian 
 northwest, because they prefer the inspiring climate and the 
 social conditions of that favored region. 
 
 (5.) But little privation is now required from settlers who 
 move onto these newer lands in northern Michigan, Wiscon- 
 sin, Minnesota or the northwest of the states or Canada. Al- 
 most every part of these regions is within convenient reach 
 of railroad transportation. If in any section the mails, 
 schools, churches, etc., are at all deficient, they are rapidly 
 brought to perfection as population increases. It is easy to 
 develop homes and farms on the cheaper lands of the west and 
 northwest, compared to the privations suffered by the early 
 settlers in the central west. 
 
 (6.) The man who can sell out in the central west at from 
 $50 to $200 per acre, and buy lands in the newer sections at 
 from $3 to $25 per acre, is very much disposed to do so. He 
 has had one taste of the enormous profit accruing from the 
 
28 HOW TO BUY AND SELL 
 
 natural increase in the value -of land. He is hungry for an- 
 other dose of such profits. He is still hungrier for more acres 
 for himself and his children. If he can sell out at a price that 
 will enable him to pay for 160 acres or more for each member 
 of his family, and also have a snug capital left he is very much 
 disposed to do so. 
 
 (7.) Each of the foregoing reasons is enough to warrant 
 the present activity in the real estate market throughout the 
 west. An uncontrollable impulse for more land has got con- 
 trol of many people's minds. They are ready to "swarm" 
 onto the newer and cheaper lands. This movement of popula- 
 tion promis.es to be even larger in the future than ever before. 
 The fever to migrate and to open up new land has occurred 
 about once in every decade, but has been most powerful at 
 periods of about 20 to 30 years apart. 
 
 Sec. 60. The "Real Estate Purchase Chart" (Form No. 
 i), which follows, is designed to afford the intending investor 
 a systematic guide in the matter of covering all the points of 
 his intended purchase, and it may also be used as a memoran- 
 dum of purchase and sale. In commenting on this Form, 
 would say : 
 
 (i.) "Description." It is well, at the outset, to obtain an 
 accurate, legal description of the premises, as such description 
 is convenient in preparing the deed and other papers and as a 
 means of checking the description given in the certificate of 
 title and other instruments. See also Chapter on Deeds. 
 
 (2.) "Side of Street." In real estate parlance there are two 
 sides to a street the "clean" side and the "dirty" side. The 
 "dirty" side is that towards which the wind blows and conse- 
 quently the side which receives the most dust; the "clean" 
 side is the opposite side. 
 
 (3.) "Restrictions." Restrictions in some cases are bur- 
 densome and in others are beneficial. Beauty and uniformity 
 are secured on a residence street by providing that no business 
 buildings shall be erected and that all houses shall cost not 
 less than a specified sum and shall be placed a certain distance 
 from the street. The question of restrictions is important and 
 should be looked into while the intending purchaser is conduct- 
 ing his negotiations. 
 
REAIy ESTATE AT A PROFIT 29 
 
 (4.) The purchaser should ascertain if sewer is laid and 
 connections made with it; also if the assessments for sewer, 
 sidewalk, grading and curbing have been paid. 
 
 (5.) "Things the Owner will Throw In." In some in- 
 stances the owner of a house, in order to make a sale, will 
 "throw in" a gas stove, or coal stove, or carpets or mattings on 
 the floors. The buyer, of course, should not mention this part 
 of the transaction until he believes he has reached a bed-rock 
 price. 
 
 (6.) "Shades, Gas and Electric Light Fixtures." In Cali- 
 fornia, the custom is, when a house is newly completed, to put 
 shades on all windows, and (these shades and their renewals re- 
 main as part of the realty when the house changes hands. 
 Lighting fixtures are presumably, but not necessarily, a part of 
 the realty. Whether or not the shades and lighting fixtures 
 are to remain as a part of the realty, and be included in the 
 purchase price, should be specified in every agreement of sale, 
 for the sake of avoiding misunderstandings. 
 
 (7.) For explanations in regard to Insurance, Taxes, Title, 
 and Escrow, see Chapters with these captions. 
 
 FORM NO. i REAL ESTATE PURCHASE CHART, 
 
 Official Description of Premises is: Known as No. ..., 
 
 street, between street and street, on side of 
 
 street Fronts Size of lot feet. Building restric- 
 tions Alley feet. Street is Sewered 
 
 Sidewalked Graded Curbed 
 
 Paved Water Key lot Corner lot 
 
 BUILDINGS. 
 
 story, rooms. Erected about years 
 
 since Modern , bath , toilet fuel gas 
 
 , gas and electricity , fireplace , mantel 
 
 hall , cellar , furnace , inside finish is 
 
 walls are , shades , floors , sideboard 
 
 Stable Lawn Trees , flowers Rents for 
 
 $ per month. Water rate is , paid by Key 
 
 at Things owner will "throw in" Insured for 
 
 $ Expires Will be transferred with charge 
 
 PRICES AND TERMS. 
 Price (including shades, gas and electric light fixtures, and. 
 
 is $ , payable as follows : 
 
 $ as a deposit and part payment. 
 
30 
 
 HOW TO BUY AND SEU, 
 
 $ by a negotiable promissory note, secured by a mortgage on 
 
 said premises, note to bear date , be payable after date, 
 
 with interest at rate of % per annum, net, payable and be 
 
 executed by in favor of 
 
 $ being balance, to be paid in cash upon delivery of 
 
 deed. 
 
 of taxes for to be paid by 
 
 Title . 
 
 DIAGRAM OP LOCATION. 
 
 J I NORTH I L 
 
 
 
 Street 
 
 
 fc 
 
 
 
 
 o 
 
 
 
 
 
 V 
 
 
 
 
 
 
 
 
 
 
 
 
 
 H 
 
 ID 
 CD 
 
 
 
 
 w 
 K 
 III 
 
 
 OJ- 
 
 
 
 
 
 1 
 
 
 
 
 
 
 Strcot 
 
 
 
 
 
 
 
 
 
 UMMAU 
 
 II 
 
 SOUTH. 
 
 ir 
 
 the price and upon the terms aforesaid. 
 
 cer- 
 tificate of title, issued by 
 
 to be furnished 
 
 by owner, showing mar- 
 ketable title in 
 
 free and clear of incum- 
 brances, except 
 
 Escrow. All papers 
 and the said monies to 
 be placed in escrow 
 
 with within 
 
 days from this 
 
 date. 
 
 In consideration of 
 
 $ , being the de- 
 
 'posit and part payment 
 above mentioned, the re- 
 ceipt whereof is hereby 
 acknowledged, I hereby 
 ^sell the premises above 
 'described to . . . at 
 
 Dated at 
 
 (Seal) 
 
 -., 190 
 
REAL ESTATE AT A PROFIT 31 
 
 CHAPTER IV. 
 
 OPTIONS AND PURCHASE AGREEMENTS, 
 
 Contract Defined Certain Contracts Invalid Unless in Writing Contract Must 
 Contain the Whole Agreement Excludes All Prior Negotiations Seller Must Produce 
 Marketable Title Performance or "Tender"; How Effected Full Instructions as to 
 Buying the Property and Executing the Contract Specific Performance Rights of 
 Buyer and Seller Meaning of "Incumbrances" and of "Usual Covenants" Vendor's 
 Lien Damages for Breach of the Contract Extinguishing or Rescinding the Con- 
 tract Practical Forms, Nos. 2 to 12, of Options, Contracts, Etc. 
 
 Sec. 61. A contract is an agreement between competent 
 parties to do or not to do a certain thing. 
 
 Sec. 62. A real estate contract may be (i) an agreement 
 to sell, (2) an agreement to buy, or (3) an agreement to buy 
 and sell and relating to the transfer by one party to another 
 of a certain property at a certain price and upon certain terms. 
 
 Sec. 63. The following contracts are invalid unless the 
 same, or some note or memorandum thereof, is in writing and 
 subscribed by the party to be charged or his agent, namely: 
 
 (i.) Every contract for the sale of lands, or any interest 
 therein ; 
 
 (2.) Every contract that by its terms is not to be per- 
 formed within one year from the making thereof; 
 
 (3.) Every contract to answer for the debt, default or 
 misdoings of another. 
 
 (4.) In California an agreement employing or authoriz- 
 ing an agent or broker to purchase or sell real estate for com- 
 pensation or commission, must be in writing. 
 
 (5.) Also, such an agreement, if made by the agent of the 
 party sought to be charged, is invalid, unless the authority of 
 the agent be in writing subscribed by the party sought to be 
 charged. 
 
 Sec. 64. Not only should a contract for the purchase or 
 sale of real estate be in writing, but it should contain within 
 itself, without resort to external evidence, the whole agree- 
 ment, including the names of the contracting parties, the price 
 to be paid, and all of the stipulations intended to bind the par- 
 ties, and such a description of the land as will enable any one 
 acquainted with it to learn, upon reading the contract, what 
 property was intended to be sold. It is not necessary that the 
 memorandum should be in one written instrument. The ne- 
 
32 HOW TO BUY AND 
 
 gotiations containing the offer and acceptance may have been 
 conducted by means of correspondence. All writings so con- 
 nected by their own internal evidence constitute one document 
 in law. (Curwen on Abstracts.) 
 
 Sec. 65. A contract, when once reduced to writing, and 
 executed and delivered by the parties thereto, becomes the sole 
 repositary of the agreement between them, and excludes all 
 prior negotiations and conferences on the subject. If the 
 terms of the written agreement are ambiguous, they may be 
 explained verbally; but no evidence to contradict what is in- 
 corporated in the writing can be offered to show that the par- 
 ties at the time intended something different, unless it is 
 proven that there was fraud in the transaction. The writing 
 must be signed by the party to be charged and is valid though 
 not signed by the party insisting on the performance of it. It 
 is not necessary that the signing should be at the end of the 
 paper. 
 
 Sec. 66. It is an implied condition in all sales that the 
 seller shall produce a fair marketable title to which no reason- 
 able objection can be made. For definition of marketable title, 
 see Chapter I, Sec. 17. If, upon investigation of the title, it 
 is discovered, before the deed is delivered, that the seller does 
 not possess title to the extent required by the contract, he is 
 not liable in damages for the defect ; the buyer is at liberty to 
 take the land with the defect, abating a proportionate part of 
 the price ; or, if the defect is material, the buyer may decline to 
 go on with the bargain. If there are any incumbrances on the 
 property not disclosed at the time of the sale, the buyer may 
 require them to be paid off before he takes his deed. No pur- 
 chaser is bound to accept a title dependent upon doubtful ques- 
 tions of law or upon facts which are impracticable for him to 
 investigate with satisfactory results at the time the deed is 
 tendered. (Curwen on Abstracts.) 
 
 Sec. 67. It sometimes happens, after one has entered into 
 an agreement to purchase a certain piece of land, that the seller 
 declines to execute and deliver a deed, in performance of his 
 part of the agreement. The obligation of the buyer in such 
 case is complied with by an offer of performance, or "tender" 
 as it is called. A tender to be good must be absolute, uncon- 
 
REAL ESTATE AT A PROFIT 33 
 
 ditional and strictly within the terms of the contract. A tender 
 does not bar nor extinguish the debt; tht debtor is still liable 
 to pay it; but tender bars the claim to subsequent damages, 
 interests and costs. The offer may be made to the seller wher- 
 ever he can be found. The tender must be made in United 
 States gold coin, or in legal tender certificates. It is always 
 safe to produce and show the money. A tender for more 
 money than is due is good for what is due. The seller some- 
 times purposely evades the buyer in order that tender cannot 
 be made. In such a case, the buyer must use reasonable dili- 
 gence to find the seller within a reasonable distance from the 
 residence, or place of business of the seller. If the contract 
 of sale fixes a time for the tender, it must be made at that time, 
 within reasonable hours, and not before nor afterwards. In 
 California, the obligation for the payment of money is extin- 
 guished by a due offer of performance, if the amount is imme- 
 diately deposited in the name of the creditor in a bank of good 
 repute, and notice thereof is given to the creditor. An offer of 
 partial performance is of no avail ; nor is an offer of complete 
 performance of any effect unless the person making it is able 
 and willing to perform according to the offer. 
 
 Sec. 68. A majority of real estate sales are made through 
 real estate agents or brokers. Each agent has his own form of 
 agreement. The buyer makes a deposit of say from $50 to 
 $500, according to the magnitude of the transaction, when he 
 signs the contract of sale. The larger the deposit the less 
 likely the buyer is" to forfeit it. The agent then brings the 
 contract of sale to the seller for his signature, by way of ratifi- 
 cation of what the agent has done. At least, that is what the 
 agent should do. This brings the terms of the contract of sale 
 before both the buyer and the seller, and each is then com- 
 mitted in writing to the transaction. The seller should make 
 it a rule to receive the deposit into his possession, and if it is 
 in the form of a check, to have check converted into cash as 
 quickly as possible. The seller should see that agreement 
 provides that if the buyer does not pay the balance of the pur- 
 chase price within a certain time, (say ten to fifteen days) the 
 deposit shall be forfeited to the seller as liquidated damages. 
 The seller should have an understanding with the agent to the 
 
34 HOW TO BUY AND 
 
 effect that if the deposit is forfeited and the sale not consum- 
 mated, the agent will accept 5% of the amount of the deposit 
 for his services in the matter. The contract should also pro- 
 vide who is to pay the taxes, if any, which have been assessed 
 but are unpaid at the date of the sale, or which have been 
 partially paid. If there is a mortgage on the premises, which 
 the debtor is to assume, the agreement should so provide, with 
 a statement to the effect that the seller will pay the interest on 
 the mortgage to the date of the transfer. If the premises are 
 insured, the agreement should provide for the transfer of the 
 unexpired policy of insurance, and should state whether or not 
 the same is to be assigned to the buyer, without charge. In 
 short, the more complete the agreement, the more smoothly 
 and effectually will the deal be carried through after the con- 
 tract has been signed. The contract should be executed in du- 
 plicate by both of the parties and one copy be delivered to and 
 retained by each party. The purchaser, where he buys through 
 a real estate broker, has nothing to do with the payment of the 
 broker's commission, although he does, as a matter of fact, pay 
 it indirectly. The commission must be borne by the seller, 
 and arranged for by him. It sometimes happens that some 
 miserly chap will not allow a commission on the sale of his 
 property, and in case the seller will deal only through and 
 upon the advice of a certain broker, the buyer, if he ardently 
 desires the property, may find it expedient to arrange to pay 
 the broker a commission. The contract, in any case, is the 
 final act of purchase and sale ; and a complete agreement pre- 
 supposes a prior investigation into facts on which to base it ; 
 this investigation in the case of real estate will be more read- 
 ily attained by following the "Real Estate Purchase Chart" 
 (Form No. i) hereinbefore given. 
 
 Sec. 69. Where the contract is for value, and is made by 
 persons competent on both sides to bind themselves, gives 
 rights which the parties may mutually enforce against each 
 other, and its enforcement in terms is practicable and neces- 
 sary for the purpose of complete justice, a court of equity will 
 ordinarily, in its sound discretion, at the suit of either buyer 
 or seller, decree a specific performance of the agreement by re- 
 quiring the buyer to pay the price and the seller to execute a 
 deed. (Curwen on Abstracts.) 
 
REAt ESTATE AT A PROFIT 35 
 
 Sec. 70. Where the contract of sale is silent on the sub- 
 ject, the seller is entitled to the possession of the premises un- 
 til he delivers his deed and receives payment in full; but the 
 buyer is considered as the equitable owner from the date of the 
 contract and is entitled to any increase in the value of the land, 
 and is subject to the risk of any decrease or loss. 
 
 Sec. 71. In Form No. 2, it will be noted that the premises 
 are to be conveyed "free and clear of incumbrances." In Cali- 
 fornia the word "incumbrances" includes taxes, assessments 
 and all liens upon real property. 
 
 Sec. 72. In California, the law provides that where the 
 seller inserts in an agreement for the sale of real property, the 
 phrase "to give the usual covenants," he thereby binds himself 
 to insert in the deed, conveying the property, the following 
 covenants : "Seisin," "quiet enjoyment," "further assurance," 
 "general warranty" and "against incumbrances." (See also 
 Chapter on Deeds). 
 
 Sec. 73. Where a sale of lands is made by one person to 
 another, and the seller retains the legal title as security for 
 the payment of the remainder of the purchase price, the seller 
 is called the vendor and the buyer, the vendee, and the seller 
 has what is called a vendor's lien on the premises. "A vendor 
 retaining the title may sue at law for the balance of the pur- 
 chase money, or file his bill in equity for the specific perform- 
 ance of the contract, and take an alternative decree that if the 
 purchaser will not accept a conveyance and pay the purchase 
 price, the premises be sold to raise such money, and that the 
 vendee pay any deficiency remaining after the application of 
 the proceeds upon such sale. The vendor is at liberty to ask 
 either for a decree, directing performance, and in case of re- 
 fusal, a sale of the premises, or a decree barring the right of 
 the vendee to claim a conveyance under the contract. He may, 
 however, insist upon the sale where the performance is re- 
 fused, and is not bound to take a mere foreclosure of the 
 vendee's right to a deed." (Sparks vs. Hess, 15 Cal. 186.) 
 See Forms Nos. 4, 5 and 7. 
 
 Sec. 74. In the case of a breach of a contract to convey 
 real estate, the detriment caused is deemed to be the price paid 
 and the expense properly incurred in examining the title and 
 
36 HOW TO BUY AND 
 
 preparing the necessary papers, with interest thereon. If the 
 party failing to convey has acted in bad faith, there is also to 
 be added the difference between the price agreed to be paid 
 and the value of the estate agreed to be conveyed, at the time 
 of the breach, and the expenses properly incurred in preparing 
 to enter upon the land. (California Civil Code, Sec. 3306.) 
 
 Sec. 75. In case of a breach of a contract to purchase an 
 estate in real property, the detriment is deemed to be the 
 excess, if any, of the amount which would have been due to 
 the seller, under the contract, over the value of the property 
 to him. (Cal. C. C, Sec. 3307.) 
 
 Sec. 76. A contract may be extinguished by its rescission, 
 and if the contract has not been recorded, this may be accom- 
 plished by the destruction or cancellation of the contract, or of 
 the signatures of the parties liable thereon, by the consent of 
 all such parties. Where the contract has been recorded, its 
 extinguishment may be effected by means of a written instru- 
 ment of rescission, duly signed and acknowledged by all of the 
 parties liable on the contract, and when such instrument of 
 rescission has been placed of record it becomes notice to all 
 parties that the recorded contract has been extinguished. 
 
 Sec. 77. A party who has made a contract, may rescind 
 without the consent of the other parties to the contract, if he 
 finds that his consent was given or obtained by means of 
 duress, menace, fraud or undue influence exercised by or with 
 the connivance of the other party to whom he rescinds or of 
 any other party to the contract jointly interested with the 
 party rescinding, or if the consideration of such other party 
 fails or becomes entirely void, or if such consideration, before 
 being rendered to the party rescinding, fails in a material 
 respect. The party rescinding, upon discovering facts which 
 entitle him to rescind, must rescind promptly, and must re- 
 store to the other party everything of value received from 
 him under the contract ; or he must offer to restore the same 
 upon the condition that the other party shall do likewise, unless 
 the latter is unable or positively refuses to do so; in other 
 words, the parties must place themselves in the positions in 
 which they were just prior to entering into the contract. (Cal. 
 Civil Code.) 
 
REAL, ESTATE AT A PROFIT 37 
 
 Sec. 78. Every person who has a considerable number 
 of real estate deals to transact, should be sufficiently familiar 
 with agreements of purchase and sale to draw up an agree- 
 ment such as will fully and clearly .set forth the terms of each 
 transaction. In submitting the following forms in this con- 
 nection, the author does so in the hope that the user will find 
 them concise, pertinent and specially adapted to ordinary 
 transactions of the kind. 
 
 Sec. 79. A corporation, with respect to its contracts, is 
 placed on a different footing than an individual. The powers 
 of a corporation are m its Board of Directors. (See Section 
 87-b-c.) The President or other officer of a corporation can- 
 not give a binding option or other contract for sale of land 
 unless such act is authorized or ratified by the Board of Di- 
 rectors of the Corporation. For form of resolution authorizing 
 such sale see Form No. 12. 
 
 FORM NO. 2 BRIEF MEMORANDUM OF SALE. 
 
 Los ANGELES, CAL., Feb. 5th, 1905. 
 
 Received of George BHsh, the sum of Five Hundred Dollars ($500.00), 
 being a deposit and part payment on Lot Thirty-three (33) in Block Fif- 
 teen (15) of the Downey Tract, in the City of Los Angeles, State of Cal- 
 ifornia, as per sale thereof made this date through Jones & Johnson to 
 said Blish for the sum of Six Thousand Dollars ($6,000.00), payable 
 in cash, the undersigned to furnish an unlimited certificate of title show- 
 ing said premises free and clear of all incumbrances at this date, and a 
 grant, bargain and sale deed, conveying said premises to said Blish; the 
 balance of said money and the said deed to be placed in escrow with the 
 Title Insurance & Trust Company of Los Angeles, within ten (10) days 
 from this date. If the balance of Five Thousand Five Hundred Dollars 
 ($5,500.00) be not paid, as aforesaid, within said ten (10) days, the above 
 deposit shall be forfeited to the undersigned as liquidated damages. 
 
 (Signed) PETER JACKSON. 
 
 The above memorandum of sale is hereby agreed to. 
 
 (Signed) GEORGE BLISH. 
 
 FORM NO. 3 A MORE COMPLETE MEMORANDUM OF SALE. 
 
 Memorandum of Sale, in duplicate, made this loth day of February, 
 1905, between and for the account of Hiram Balch, the Seller, to Samuel 
 Smith, the Buyer, by Byron & Clark, agents, of the following described 
 premises, situate in the County of Los Angeles, State of California, to-wit : 
 
 Lot 15 of the Alexandre Weill Tract, in the City of Los Angeles, as 
 per map of said tract recorded in the office of the County Recorder of said 
 .County of Los Angeles, in Book 6 of Miscellaneous Records, at page 300, 
 
38 HOW TO BUY AND 
 
 for the sum of Two Thousand Dollars ($2,000.00) in United States Gold 
 
 Coin, on the following terms : 
 
 $200.00 as a deposit and part payment, the receipt whereof, by the seller, 
 
 is hereby acknowledged. 
 
 $800.00 to be evidenced by a negotiable promissory note, executed by the 
 buyer in favor of the seller, and secured by a mortgage on said 
 premises, said note to bear date February loth, 1905, and to be pay- 
 able three years after date, with interest at the rate of 6 per cent 
 per annum, net, payable quarterly. 
 
 $1000.00, being the balance of the purchase price, to be paid in cash within 
 fifteen days from the date hereof. 
 
 The seller, within said fifteen days, is to furnish an unlimited certifi- 
 cate of title, made by the Title Insurance and Trust Co., of Los Angeles, 
 Cal., showing title vested in seller, free and clear of incumbrances, and 
 a good and sufficient deed, conveying said premises to the buyer ; and the 
 buyer, within said time, is to execute and deliver said note and mortgage, 
 and pay the balance of said purchase price; all papers to be exchanged, 
 and the said monies to be paid, at the office of said Byron & Clark, within 
 said fifteen days. 
 
 In the event this contract is not approved by the seller, or if seller 
 cannot furnish a marketable title to said premises, the above mentioned 
 deposit is to be returned to the buyer. 
 
 If the buyer shall fail to comply with his part of this agreement 
 within said fifteen days, the buyer shall retain for himself the aforesaid 
 deposit as liquidated and stipulated damages. 
 
 Witness the hands and seals of the Seller, the Buyer, and the said 
 Agents, the day and year first above written. 
 
 HIRAM BALCH, (Seal) 
 
 SAMUEL SMITH, (Seal) 
 
 BYRON & CLARK, Agents, 
 Per L. A. BYRON. 
 
 FORM NO. 4 A FORMAL AGREEMENT. 
 
 AGREEMENT FOR SALE OF REAL ESTATE. 
 
 This agreement, made and entered into this 20th day of June, A. D. 
 1905, by and between Frank Smith, of the City and County of San Fran- 
 cisco, State of California, hereafter called the vendor, the party of the 
 first part, and James Jackson, of the County of Los Angeles, State afore- 
 said, hereinafter called the purchaser, party of the second part, 
 
 WITNESSETH : That the said vendor agrees to sell and convey, and 
 the said purchaser agrees to purchase, upon the terms and conditions 
 hereinafter expressed, all that certain tract of land situate in the County 
 of Los Angeles, State of California, bounded and more particularly de- 
 scribed as follows, to-wit: 
 
 (Description.) 
 
 The purchase price, payable for said property, is the sum of $20,- 
 
REAL ESTATE AT A PROFIT 39 
 
 ooo.oo, in United States gold coin, of which the sum of $5,000.00 has 
 this day been paid, the receipt whereof is hereby acknowledged; and the 
 further sum of $5,000.00 shall be paid on the 20th day of July, 1905, and 
 the remainder of the purchase money, to-wit: the sum of $10,000.00, 
 shall be paid upon the consummation of the purchase as herein provided. 
 All payments shall be made at the office of the German Savings & Loan 
 Society in the City and County of San Francisco, for the account of said 
 vendor. 
 
 The purchaser shall have 20 days from and after this date in which 
 to examine the title to said property ; if, upon such examination, the title 
 be found to be good and valid, the purchase shall be consummated within 
 five days thereafter. If, however, upon such examination, the title be 
 found not to be good and valid, the purchaser shall specify in writing 
 his objections thereto, and furnish the same to the vendor, who shall 
 have 20 days thereafter in which to perfect the title. Upon such title 
 being perfected, the vendor shall give the purchaser written notice thereof, 
 by registered mail, addressed to said purchaser at Room 420 Byrne 
 Block, in the City of Los Angeles, California, and the purchase shall be 
 consummated within five days thereafter. If the title be not so perfected, 
 within the said 20 days, however, this agreement shall be cancelled and 
 all monies paid on account thereof shall be returned to the purchaser. 
 If the title be or be made good and valid, and the purchaser shall fail 
 to consummate the purchase as herein provided, the vendor shall retain 
 for himself all moneys received on account hereof, as liquidated and 
 stipulated damages. 
 
 Upon the consummation of the purchase, the purchaser shall pay 
 the further sum of $5,000.00 in cash, and for the balance of $5,000.00 he 
 shall execute to the vendor his negotiable promissory note for said sum, 
 payable on or before one year thereafter, with interest from date, until 
 >aid, at the rate of 8 per cent, interest payable quarterly, together witih 
 a deed of trust to a trustee, to be named by the vendo^ conveying said 
 property in trust as security for the payment of said note, which deed 
 of trust shall be a first lien on said property ; and the vendor, if required, 
 shall execute a tax agreement in the form now in use by the said Ger- 
 man Savings & Loan Society, providing, in effect, that if the purchaser 
 shall pay all taxes upon said deed of trust, the vendor shall account for 
 all interest upon said promissory note in excess of 5 P er cen t P e r annum. 
 
 The said purchaser, upon consummation of the purchase, may take 
 possession of said lands and he hereby agrees to pay all taxes and as- 
 sessments of whatsoever nature or kind that may be levied or assessed 
 hereafter against said premises or any part hereof, whenever the same 
 or any of them shall be due and payable. 
 
 The said purchaser agrees not to commit any waste in or upon said 
 premises. 
 
 All of the stipulations, agreements, covenants, provisos and condi- 
 tions herein shall bind the heirs, legal representatives, successors or as- 
 signs of the parties hereto and each of them. 
 
40 HOW TO BUY AND SELL 
 
 Time is of the essence of this agreement and of all the obligations 
 hereof. 
 
 In Witness Whereof, the parties hereto have hereunto set their hands 
 and seals the day and year first above written. 
 
 FRANK SMITH, (Seal) 
 
 JAMES JACKSON. (Seal) 
 
 FORM NO. 5 AGREEMENT FOR SALE OF LOTS, AND PROVID- 
 ING FOR BUILDING RESTRICTIONS, ETC 
 
 THIS AGREEMENT, made and entered into, in duplicate, this tenth day 
 of June, 1905, between James A. Garfield, the party of the first part here- 
 to, and Alfred A. Spinks, 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 party of the second 
 part hereinafter contained, agrees to sell and convey unto the said party 
 of the second part, and said party of the second part agrees to buy, all those 
 certain lots or parcels of land, situate in the City of Los Angeles, County 
 of Los Angeles, State of California, bounded and particularly described 
 as follows, to-wit: Lots Numbers Five (5) and Six (6), in Block 21 of the 
 West Adams Tract, as per map recorded in the office of the County Re- 
 corder of the County of Los Angeles, State of California, in Book 2, page 
 53 et seq., of Maps, Records of said County, for the sum of Three Thou- 
 sand Dollars ($3,000.00) gold coin of the United States, and said party 
 of the second part agrees, in consideration of the premises, to pay to the 
 said party of the first part, in the City of Los Angeles, State of California, 
 the said sum of Three Thousand Dollars, as follows: 
 
 Five Hundred Dollars ($500.00) cash on the signing and delivery 
 of these presents, tne receipt whereof is hereby acknowledged, ana tnc 
 balance, or sum of Fifteen Hundred Dollars ($1500.00) on or before the 
 tenth day of October, 1906, and One Thousand Dollars ($1000.00) on or 
 before the tenth day of December, 1007; all deferred payments to bear 
 interest at the rate of six per cent per annum, payable half yearly. 
 
 Said party of the second part agrees to pay all taxes and assessments 
 levied or assessed against the said property after the date hereof before 
 the same become delinquent, and upon failure so to do the party of the first 
 part shall have the right to pay the same, with whatever costs and per- 
 centages that may be added, and the amount so paid with interest thereon, 
 from the date of payment until repaid, shall be secured hereby, and shall 
 be repaid by said party of the second part to said party of the first part 
 on demand. 
 
 It is further agreed that if the party of the second part shall fail 
 or make default in any of the payments by said party of the second part 
 herein promised to be paid, as the same mature or become due, or of any 
 installment of the interest, or shall fail to pay said taxes or assessments 
 as in this contract provided, then the whole sums in this contract to be 
 paid shall become immediately due and payable at the option of the party 
 of the first part, and suit may be commenced by the said party of the first 
 
REAL .ESTATE AT A PROFIT 41 
 
 part to foreclose this contract, or to enforce the payment of said sum, 
 or for the foreclosure of this contract and sale of the lands herein described. 
 
 Said party of the second part is to have immediate possession of the 
 said land and may continue in such possession so long as he performs 
 and observes this contract ; and upon failure to keep any of the covenants 
 and agreements herein contained, the right of said second party to such 
 possession shall immediately cease. 
 
 As soon as the party of the second part shall have made said pay- 
 ments, including taxes and assessments, as aforesaid, if made within the 
 time and manner aforesaid, said party of the first part shall, and does 
 hereby aeree to, convey said premises by a deed of bargain and sale to the 
 said party of the second part, and to furnish a certificate of title, showing 
 his title to said lands to be good, and free of incumbrances. 
 
 This sale is made subject to the following conditions, and the said 
 deed, to be made pursuant to this contract, shall contain the following 
 clauses, namely: 
 
 "PROVIDED, however, that this conveyance is made and accepted upon 
 each of the following conditions, which shall apply to and be binding 
 upon the grantee, his heirs, devisees, executors, administrators and assigns, 
 namely: That said premises shall be used for residence purposes only; 
 that no cottage, apartment house, double house, flat, lodging house, hotel, 
 nor any building or structure whatever other than a first-class private resi- 
 dence at least two stories in height, with the customary out-buildings, 
 including a private stable, shall be erected, placed or permitted on said 
 premises, or any part thereof; that such residence shall cost and be fairly 
 worth not less than Two Thousand Dollars, and shall be located not less 
 than 30 feet from the front line of said premises, and shall face the front 
 line of said premises, namely, on Esmeralda Street; that no out-building 
 or private stable shall be erected, placed or permitted upon said premises 
 at a distance of more than thirty feet from the rear line of said premises, 
 nor until such a residence shall have been erected on said premises. 
 
 "PROVIDED, that as to the grantor herein, the breach of any of the 
 foregoing conditions shall cause said premises to revert to the said grantor, 
 his heirs and assigns, each of whom respectively shall have the right 
 of immediate re-entry upon said premises in the event of any such breach ; 
 and as to the owner, and the heirs, devisees, executors, administrators or 
 assigns of any owner, of any other lot or lots in said West Adams tract 
 adjoining the above described premises, the above mentioned conditions 
 shall operate as covenants running with the land, for the benefit of all 
 such adjoining lots and owners of such adjoining lots in said tract, their 
 heirs, devisees, executors, administrators or assigns, and the breach of any 
 such covenant, or the continuance of any such breach may be enjoined, 
 abated or remedied by appropriate proceedings by any or either of 
 such owners, their heirs devisees, executors, administrators or assigns. 
 
 "PROVIDED, also, that the breach of either of the foregoing conditions, 
 or any re-entry by reason of such breach, shall not defeat or render invalid 
 the lien of any mortgage or deed of trust made in good faith, for value, 
 
42 HOW TO BUY AND 
 
 as to said land, and any such residence, out-building or private stable lo- 
 cated as above provided, or any part thereof; provided, however, that the 
 breach of either of said conditions or the continuance of any such breach 
 may be enjoined, abated or remedied by appropriate proceedings, and pro- 
 vided also, that each of the foregoing conditions shall remain at all times 
 in full force and effect as against any owner of said premises, or any part 
 thereof, by reason of any breach thereof by any such owner, whether such 
 ownership is acquired by purchase, foreclosure, devise inheritance or in 
 any other manner. 
 
 "PROVIDED, that all and each of the restrictions, conditions and cove- 
 nants herein contained shall in all respects terminate and end, and be of 
 no further effect, either legal or equitable, either on any property in said 
 West Adams tract or on the parties hereto, their heirs, successors, devisees, 
 executors, administrators or assigns, on and after January i, A. D. 1920." 
 
 Time is hereby made of the essence of this contract. 
 
 In Witness Whereof, the said parties hereto have hereunto set their 
 hands and seals the day and year first above written. 
 
 JAMES A. GARFIELD, (Seal) 
 ALFRED A. SPINKS. (Seal) 
 
 FORM NO. 6 BRIEF OPTION. 
 
 DENVER, COLO., June loth, 1905. 
 
 Received of C. B. True, the sum of Two Hundred Dollars, as part 
 payment for the following described Real Estate, to-wit: Lot 7, in Block 
 10, of the Marlin Tract, in the city of Denver, Colorado, as per map 
 of said tract recorded in the office of the County Recorder of Gunnison 
 County, in Book 300 of Miscellaneous Records, at page 29. The entire 
 price to be paid for said above described Real Estate is $1200 (Twelve 
 Hundred Dollars), and same is to be paid as follows: The remainder 
 of $1000 to be paid in U. S. Gold Coin within ninety days from this date. 
 Title to be perfect; and a good and sufficient Grant Deed to be executed 
 and delivered by the undersigned to said C. B. True, his heirs or assigns, 
 on or before the loth day of September, 1905, together with an unlimited 
 certificate of title by a reputable title company, showing said premises 
 vested in undersigned clear of incumbrances. 
 
 Provided, however, that the payment of $1000 is tendered or paid on 
 or before said date. If the said payment of $1000 is not paid or tendered 
 on or before the said 2Oth day of June, 1905, then this contract sh ; all be void 
 and of no further effect, and both parties shall be released from all obli- 
 gations hereunder; and in that event the said $200 pai4 on this date is 
 to be retained by undersigned as liquidated damages. 
 
 JOHN GAYLORD. 
 
 FORM NO. 7 FORMAL OPTION, PROVIDING FOR MONTHLY 
 
 PAYMENTS. 
 
 This Option and Agreement, in duplicate, dated this I9th day of 
 February, 1905, made by and between Joel Jenkins, of the County of Los 
 
REAL ESTATE AT A PROFIT 43 
 
 Angeles, State of California, party of the first part, and the Builders' 
 Wrecking Company, a corporation organized and existing under the laws 
 of said State, and having its principal place of business at Los Angeles, 
 California, party of the second part; 
 
 WITNESSETH, That the said party of the first part, for and in con- 
 sideration of the sum of Five Hundred Dollars ($500.00), receipt whereof 
 is hereby acknowledged, does hereby give unto the said party of the 
 second part the exclusive option to purchase from him at any time within 
 thirty (30) days from the date hereof, the following described real prop- 
 erty situated in the City of Los Angeles, County of Los Angeles, State 
 of California, viz: 
 
 Lots Numbers Three (3) and Four (4) of the Dumas Tract, for 
 the sum of Five Thousand Dollars ($5000.00), Gold Coin of the United 
 States, on the following terms and conditions : 
 
 The party of the first part agrees to renew this option from month 
 to month upon the payment to him of the sum of One Hundred Dollars 
 ($100), which said sum is to be paid on or before the iQth day of each 
 calendar month, commencing witht the ipth day of March, 1905 ; together 
 with interest at the rate of 6 per cent per annum from date until paid on 
 the monthly balance remaining unpaid at the close of each preceding 
 calendar month, said interest also to be payable monthly on the said 
 iprh day of each calendar month, commencing March igth, 1905, as 
 aforesaid, and when said payments made for said option and for the re- 
 newals thereof shall amount to the sum of Five Thousand Dollars 
 ($5000.00) (provided said monthly installments of interest shall have been 
 paid in the meantime, as hereinabove mentioned), or uoon the payment 
 of said last named sum at any time while this option is in force, the 
 party of the first part agrees to deliver to the party of the second part 
 an unlimited certificate of title to be issued by the Title Insurance & Trust 
 Company of Los Angeles, California, showing the title to the said prem- 
 ises vested in said party of the first part, free and clear of all incum- 
 brances, except such taxes and liens for street or other improvements as 
 may be assessed against said property from the date hereof, together with 
 a good and sufficient deed for said property, conveying the same free and 
 clear of all incumbrances, except as aforesaid. 
 
 All payments made hereunder shall be made at the office of the party 
 of the second part, corner First and Spring Streets, in the City of Los 
 Angeles, Cal. 
 
 The party of the second part may take possession of said premises 
 and improve the same, and may continue in such possession so long as it 
 performs and observes this contract. 
 
 In the event of a failure of the party of the second part to mjake 
 said monthly payments of principal, or any of them, or said monthly 
 installments of interest, or any of them, or to pay before delinquency 
 said taxes or street assessments, or anv of them, or to exercise this option 
 within the time limited as originally given or as thereafter extended, then, 
 in any such event, this instrument shall be void and at an end and cannot 
 
44 HOW TO BUY AND 
 
 thereafter be exercised, and the amounts which have been paid by the 
 party of the second part hereunder shall be retained by the party of the 
 first part as the consideration for the granting of this option and the 
 extensions thereof; and in the event of such forfeiture, the right of the 
 party of the second part to the possession of said premises shall imme- 
 diately cease, and all improvements placed on said premises by said 
 party of the second part shall forthwith become vested in the party of 
 the first part, and said party of the first part may re-enter said premises 
 and remove all persons therefrom. 
 
 In no event shall the party of the second part acquire any right 
 or title in or to said premises, or any part thereof, either in law or equity, 
 until the execution and delivery of the deed therefor. 
 
 Time is of the essence of this option and of all and singular its 
 covenants and conditions. 
 
 Each and all of the covenants and conditions of this option and 
 agreement shall inure to the benefit of and be binding upon the heirs, 
 executors, administrators, successors and assigns of the respective parties, 
 hereto. 
 
 In Witness Whereof, the said party of the first part has hereunto 
 set his hand and seal, and the said party of the second part has hereunto 
 caused its corporate name and seal to be affixed by its President and Sec- 
 retary, thereunto duly authorized by resolution of its Board of Directors, 
 the day and year herein first above written. 
 
 JOEL JENKINS, (Seal) 
 
 (Corporate Seal) BUILDERS' WRECKING COMPANY, 
 
 By its President: ANDREW ADAMS. 
 By its Secretary : EBEN EDWARDS. 
 (Acknowledgments.) 
 
 FORM NO. 8-ASSIGNMENT OF CONTRACT OF SALE. 
 
 KNOW ALL MEN BY THESE PRESENTS, that I, Alfred A. Spinks, 
 of the County of Los Angeles, State of California, in consideration of 
 the sum of One Hundred Dollars ($100.00), Gold Coin of the United 
 States, to me in hand paid, receipt whereof is hereby acknowledged, do by 
 these presents, sell, assign and transfer and set over unto Silas Shock- 
 ing, that certain agreement of sale dated the loth day of June, 1905, 
 made between James A. Garfield, as party of the first part, and said 
 Alfred A. Spinks, as party of the second part, and providing for the 
 sale of Lots Five (5) and Six (6) of the West Adams Tract, in the said 
 County of Los Angeles, State of California, which said agreement is re- 
 corded in the office of the County Recorder of said County of Los Angeles, 
 in Book 30 of Miscellaneous Records, at page 20, to which said agreement 
 and the said record thereof reference is hereby made as a part hereof; 
 To HAVE AND TO HOLD the same and the lands therein described unto 
 the said Silas Shocking, his heirs and assigns, for his and their 
 use and benefit, forever; subject, nevertheless, to the covenants, condi- 
 tions and payments therein also mentioned ; which payments and cove- 
 nants the said Silas Shocking also hereby assumes and agrees to 
 
REAL, ESTATE AT A PROFIT 45 
 
 fully satisfy and discharge, and to keep and save harmless the said 
 Alfred A. Spinks of and from all personal liability therefor. And 
 the said Alfred A. Spinks hereby fully authorizes and empowers the said 
 Silas Shocking, upon his performance of the said covenants and con- 
 ditions, to demand and receive of the said James A. Garfield the deed 
 covenanted to be given in said contract, in the same manner, to all in- 
 tents and purposes, as the said Alfred A. Spinks might or could do were 
 these presents not executed. 
 
 In Witness Whereof, said Alfred A. Spinks has hereunto set his 
 hand and seal this 23rd day of August, 1905. 
 
 (Signed) ALFRED A. SPINKS. (Seal) 
 (Acknowledgment.) 
 
 FORM NO. 9 ASSIGNMENT TO BE ANNEXED TO INSTRUMENT. 
 
 KNOW ALL MEN BY THESE PRESENTS, that I, Alfred A. Spinks, 
 named in the annexed instrument, in consideration of the sum of One 
 Hundred and Fifty Dollars, Gold Coin of the United States, to me in 
 hand paid by Silas Shocking, of the City and County of San Fran- 
 cisco, and State of California, the receipt whereof is hereby acknowledged, 
 do, by these presents, sell, transfer, assign and set over to the said Silas 
 Chocking, his heirs and assigns, the said instrument, and all my right, 
 title and interest in and to the same, authorizing him in my name, or 
 otherwise, but at his own cost, charge and expense, to enforce the same 
 according to the tenor thereof, and to take all legal measures which may 
 be proper or necessary for the complete recovery and enjoyment of the 
 assigned premises. 
 
 In Witness Whereof, I have hereunto set my hand and seal this 
 i6th day of December, in the year of our Lord, one thousand nine hundred 
 
 and five. 
 
 ALFRED A. SPINKS. (Seal) 
 (Acknowledgment.) 
 
 FORM NO. 10 ASSIGNMENT INDORSED UPON AN INSTRU- 
 MENT. 
 
 FOR VALUE RECEIVED, I do hereby sell, assign, transfer and set over 
 to Silas Shocking, his heirs and assigns forever, all my right, title, 
 and interest, in, to, and under the within instrument, and to the lands 
 therein described. 
 
 Witness my hand and seal this fifth day of May, A. D. 1905. 
 
 ALFRED A. SPINKS. (Seal.) 
 (Acknowledgment.) 
 
 FORM NO. ii TITLE BOND FOR MINING PROPERTY. 
 
 KNOW ALL MEN BY THESE PRESENTS, that John Collins and 
 Patrick Murphey, of the County of Lake, and State of Colorado, 
 are held and firmly bound unto T. S. Eaton, his heirs, executors, adminis- 
 trators and assigns, in the penal sum of Five Thousand Dollars, lawful 
 money of the United States, for the payment of which sum, well and truly 
 to be made, we hereby bind ourselves, our heirs, executors and administra- 
 
46 HOW TO BUY AND 
 
 tors, firmly by these presents. Witness our hands and seals this 3Oth day 
 of January, A. D. 1905. THE CONDITION of the above obligation is 
 such, That if the above bounden obligors, Collins and Murphey, shall, on 
 the twentieth day of March, A. D. one thousand nine hundred and five, 
 make, execute, and deliver unto the said T. S. Eaton, or to his assigns 
 (provided that the said Eaton shall, on or before that dav have paid to 
 the said obligors the sum of five thousand dollars, gold coin of the United 
 States of America, or shall deposit said sum to their credit in the Banking 
 House of First National Bank, in the City of Denver, Colorado, the price 
 by said Eaton agreed to be paid therefor), a good and sufficient deed for 
 conveying and assuring to the said T. S. Eaton, free from all incum- 
 brances, the following described property lying, being and situate in the 
 County of Gilpin and State of Colorado, to-wit : The "Bully Boy" mine, 
 located by said Collins and Murphey January 2, 1905, as per loca- 
 tion notice recorded in the office of the County Recorder of the County of 
 Gilpin, in Book 10 of Mining Claims, at page 384, in Moctezuma Mining 
 District, then this obligation to be void; otherwise to remain in full force 
 and virtue. 
 
 JOHN COLLINS, (Seal) 
 
 PATRICK MURPHEY, (Seal) 
 Signed, Sealed and Delivered in Presence of: 
 DENNIS FEARON, 
 THEO. EINSTEIN. 
 
 FORM NO. 12. COPY OF RESOLUTION OF BOARD OF DIREC- 
 TORS OF CORPORATION, AUTHORIZING THE GIVING 
 OF AN OPTION. 
 
 RESOLVED, That the Blue Bird Oil Company, a corporation, give Ber- 
 nard Baker & Co., real estate brokers, the exclusive option and privilege 
 of purchasing from this corporation, at any time on or before ninety days 
 from the 21 st day of January, 1905, all that certain lot, niece or parcel of 
 land, situate, lying and being in the County of Riverside, State of Califor- 
 nia, and bounded and particularly described as follows, to-wit : 
 
 (Description.) 
 
 For the sum of Five Thousand Dollars ($5,000), in United States gold 
 coin, payable as follows: $500, upon the execution and delivery of said 
 written option agreement, which said sum shall constitute a deposit and 
 part payment in case said option shall be exercised within the time lim- 
 ited as aforesaid, and the remainder, to-wit: the sum of $4,500, to be paid 
 upon the exercise of said option ; said option agreement to provide that 
 said deposit of $500 shall be forfeited to this corporation as liquidated and 
 stipulated damages in the event said option shall not be exercised as here- 
 finabove mentioned; this corporation, in event of consummation of sale, 
 to furnish the purchaser an unlimited certificate of title, to be issued by the 
 Riverside Abstract Company, showing said premises free and clear of all 
 incumbrances. And the President and the Secretary of this corporation 
 
REAL ESTATE AT A PROFIT 47 
 
 be, and they are hereby, authorized and directed to execute and deliver, in 
 the name, on behalf and under the corporate seal of this corporation, an 
 option agreement as above provided, and in the event of consummation of 
 sale, said President and Secretary are also likewise authorized and directed 
 to execute and deliver to the purchaser a deed, grant, bargain and sale in 
 form, of said above described property, and to execute all papers and per- 
 form any and all acts which are or may be necessary to effectuate the pur- 
 poses of this resolution. 
 
 (Corporate Seal.) (Certificate of Secretary: See Form No. 18.) 
 
48 HOW TO BUY AND SELL 
 
 CHAPTER V. 
 
 DEEDS. 
 
 Deed Defined Essential Requisites of Orderly Parts of The Several Kinds 
 of Deeds Two Estates in One Parcel of Land; Deeds Conveying Same Control 
 of Husband Corporation Deeds Ratification by Stockholders of Mining Ground 
 Acknowledgment: Particulars as to Taking and Certifying Same Delivery: Abso- 
 lute and in Escrow Recording: Object of the Recording Laws What is Necessary 
 to Entitle an Instrument to Record Unrecorded Instrument Void, When Who 
 is a purchaser in Good Faith Analysis of a Deed, Showing the Several Orderly Parts, 
 With Examples of the Apt Words and Phrases Ordinarily Employed in Each Part, Ex- 
 hibiting to the Reader of What the Several Parts Consist, and Enabling Him To See 
 Them All, Lying Together, in Minute Detail, According to Some System Com- 
 ments on the Foregoing Analyzed Deed, and Explaining Fully as to Date, Parties, 
 Recitals, Consideration, Operative Words, the Use of the Word "Grant," Descrip- 
 tion, the Three means of Ascertaining the Quantity of Land Reservation, Haben- 
 dum, Conditions, Covenants, Personal, and Running With the Land Testatum Clause 
 Signature, Seal and Witnesses, 
 
 Note. See also chapter on "Making a Loan," wherein is given Forms of 
 Deed of Trust, Mortgage, Etc., and Chapter on "Miscellaneous Matters Affecting 
 Real Estate." 
 
 Sec. 80. A Deed is an executed contract in writing. It 
 differs from some executed contracts in this respect, that it is 
 signed ordinarily by only one of the parties. A deed, by the 
 owner of land, duly signed and acknowledged by him and de- 
 livered to the grantee, conveying land to the latter in fee 
 simple, is one of the most solemn of civil acts. 
 
 Sec. 81. The essential requisites or circumstances attend- 
 ing the execution of a deed, are : 
 
 (i.) The writing of the deed on paper or parchment. 
 
 (2.) Parties competent to make a contract. 
 
 (3.) Sufficient consideration. 
 
 (4.) A description of the land conveyed sufficient to 
 identify it. 
 
 (5.) The signing of the deed. 
 
 (6.) The delivery of the deed by the grantor to the 
 grantee. 
 
 Sec. 82. Tlhe Orderly Parts of a deed are : 
 
 (i.) The Premises The date; the names of the parties, 
 the grantor and the grantee, and their places of residence; 
 the recitals, if any; the consideration, and the receipt thereof. 
 
 (2.) The granting clause, to indicate the estate trans- 
 ferred. 
 
 (3.) The description of the land. 
 
REAL ESTATE AT A PROFIT 49 
 
 (4.) The exceptions, if any. (This clause is known as 
 the "Reddendum.") ' 
 
 (5.) The Habendum, or clause beginning "To Have and 
 to Hold." 
 
 (6.) Covenants of warranty and the like. 
 
 (7.) Conclusion Testatum clause; signature; acknowl- 
 edgment. 
 
 Sec. 83. The several kinds of deeds take their designa- 
 tions or titles from the quantity of the estate conveyed, or from 
 the capacity in which the party acts who executes them, and 
 are known as Grant, Bargain and Sale Deeds, Quitclaim 
 Deeds, Warranty Deeds, Deeds of Gift, Sheriff's Deeds, Tax 
 Collector's Deeds, Guardian's Deeds, Administrator's Deeds, 
 Corporation Deeds, etc. Deeds executed by Sheriffs, Tax Col- 
 lectors, Guardians, etc., are made under order of court or in 
 pursuance of law. The correct forms of deeds for the several 
 States may be obtained from stationers. 
 
 Sec. 84. A Quitclaim Deed is used to dispose of any ap- 
 parent interest which one may have in real estate, in order to 
 perfect the title in the grantee, or present owner. 
 
 Sec. 85. There may be two estates (Sec. 9) in the same 
 parcel of land, each owned by different individuals or corpora- 
 tions, as, for instance, a mineral estate and an agricultural 
 estate. See Form No. 18 where the surface is conveyed and 
 the minerals retained, and Form No. 19 where the minerals 
 (oil, etc.) are conveyed. 
 
 Sec. 86. The subject of Deeds will be considered under 
 the successive steps of execution, acknowledgment, delivery 
 and recording. For other particulars, not here given, see 
 "Analysis of a Deed," and comments thereon, Sees. 91 and 92. 
 
 Sec. 87. Execution. 
 
 (a.) The husband has the management and control of the 
 community property (defined Chapter i, Sec. 14) with as abso- 
 lute power of disposition, other than testamentary, as he 
 would have of his separate property ; but he cannot make a gift 
 of it, or convey it without a valuable consideration, unless the 
 wife consents in writing thereto. For this reason, the practice 
 is to have the wife join with the husband as a party to, and 
 in the execution of, all deeds executed by them during mar- 
 
SO HOW TO BUY AND 
 
 riage. The separate property of the husband or wife is that 
 owned by either before marriage and that acquired afterward 
 by either, by gift, bequest, devise or descent. The wife may, 
 without the consent of her husband, convey her separate prop- 
 erty. Such is the rule in California. 
 
 (b.) A deed executed in the name of a corporation, must 
 be authorized by its Board of Directors. The powers of a cor- 
 poration must be exercised and its property controlled by its 
 Board of Directors, and a decision of a majority of the Board 
 made, when duly assembled, is valid as a corporate act. The 
 Directors, when not acting as a Board, have not the necessary 
 power. The corporate seal should be affixed to a deed, or any 
 other instrument relating to real estate, executed by the offi- 
 cers of a corporation. Unless the statutes require, it is not es- 
 sential to the validity of a deed by a corporation that the deed 
 contain a recital of the authority to execute the deed. The 
 evidence of the authority of the officers of a corporation to 
 execute a deed is contained in the resolution of the Board of 
 Directors. In California, a certificate signed by the Secretary 
 of a corporation, with the corporate seal affixed, is prima facie 
 evidence of the facts therein recited. Among conveyancers, 
 the best practice is to prefix or affix a certified copy of the 
 resolution to the deed to which it relates, and the two then go 
 of record together, thus making the record more complete. 
 (See Form No. 18.) Where a corporation has a number of deeds 
 to be executed at various dates, a general resolution (See 
 Form No. 20) may be adopted, and when certified, acknowl- 
 edged and recorded, it has the same effect as would a corporate 
 power of attorney. 
 
 (c.) In California, it is not lawful for the Directors of 
 any mining corporation including oil mining companies to 
 sell, lease, mortgage or otherwise dispose of the whole or any 
 part of the mining ground owned or held by such corporation, 
 nor to purchase or obtain in any way, except by location, any 
 additional mining ground, unless same be ratified by the 
 holders of at least two-thirds of the stock then outstanding. 
 Such ratification may be made as indicated in Form No. 19, 
 and attached to the instrument acquiring or disposing of the 
 mining ground. 
 
 Sec. 88. Acknowledgment. 
 
REAL ESTATE AT A PROFIT 51 
 
 (a.) Acknowledgment is the only mode provided by law 
 for authenticating the acts of the parties to a transfer, so as to 
 entitle the instrument of conveyance to record, and to make 
 such conveyance notice to subsequent purchasers and encum- 
 brancers, and to entitle it to be read in evidence without 
 further proof. 
 
 (b.) An acknowledgment is made by the party executing 
 a deed or other instrument going before a notary public or 
 other officer authorized to take acknowledgments of real prop- 
 erty, and presenting the signed instrument to him, and saying 
 to him : "I desire to acknowledge this instrument ; this is my 
 signature," or "I acknowledge this to be my signature." 
 
 (c.) The Civil Code of California (Sec. 1185) provides 
 that "The acknowledgment of an instrument must not be 
 taken, unless the officer taking it knows, or has satisfactory evi- 
 dence, on the oath or affirmation of a credible witness, that 
 the person making such acknowledgment is the individual 
 who is described in and who executed the instrument; or if 
 executed by a corporation, that the person making such ac- 
 knowledgment is the person who executed it on behalf of such 
 corporation." "The notary is expressly forbidden to take an 
 acknowledgment," says the Supreme Court of California, in 
 commenting on this Section, "unless he knows that the person 
 making the acknowledgment is the person described in the in- 
 strument. If he did not know this, it should have been proved 
 by the oath of a credible witness, whose name must be stated. 
 It is not enough that the person be introduced to the notary 
 by a responsible person. To take an acknowledgment upon 
 such introduction, without the oath, is negligence sufficient 
 to render the notary liable in case the certificate turns out to 
 be untrue." 
 
 (d.) The officer taking the acknowledgment of an instru- 
 ment must indorse thereon, or attach thereto, a certificate, 
 signed by the officer, and having his official seal affixed, and 
 certifying that the person making the acknowledgment is the 
 person described in the instrument. The laws of each State 
 prescribe the form of the certificate of acknowledgment to be 
 used, and where the instrument affecting real property situate 
 in one State, is acknowledged in another State, the certificate 
 of acknowledgment should conform to the laws of the State 
 
52 HOW TO BUY AND 
 
 where the property is situate. Moreover, in such case, the 
 party executing the instrument, should obtain from the County 
 Clerk of the County in which the officer taking the acknowl- 
 edgment is acting, a certificate to the effect that the officer 
 certifying the instrument is authorized so to do, and that his 
 signature is true and genuine, such certificate of the County 
 Clerk to be also attached to the instrument. 
 
 (e.) In California, the certificate of acknowledgment of a 
 justice of the peace, when used in any county other than that 
 in which he resides, must be .accompanied by a similar certifi- 
 cate of the Clerk of the County in which the justice resides. 
 
 (f.) A notary or other officer who is related to the 
 parties or who is interested in the property described in the 
 instrument, is disqualified from taking such acknowledgments. 
 A notary who is a stockholder in a corporation is disqualified 
 from taking the acknowledgments of the officers of the cor- 
 poration. 
 
 (g.) If a purchaser neglects to have his deed properly 
 acknowledged and recorded, he will be liable to have his title 
 divested by a subsequent conveyance to an innocent party, and 
 to the further inconvenience of being compelled to prove the 
 execution of his deed when called upon to put it in evidence. 
 
 (h.) Some of the forms of acknowledgment in use in 
 California are given in Forms Nos. 22 to 26. For forms 
 of acknowledgments for all the States, see the "American Not- 
 ary Manual." (See advertising pages of this book.) 
 
 Sec. 89. Delivery. 
 
 (a.) A deed takes effect, so as to vest the interest in- 
 tended to be conveyed, only upon its delivery by the grantor. 
 A deed, duly executed, and in the possession of the grantee, 
 is presumed to have been delivered at its date. Acceptance 
 by the grantee is necessary to complete the delivery. Accept- 
 ance will always be presumed if the deed be found in the 
 grantee's possession. The grantor must divest himself of 
 all dominion over the deed. The delivery should be made to 
 the grantee himself or to his agent. The deed should be read, 
 and read correctly, at the time of delivery, if either party re- 
 quires it. No particular form of delivery is necessary; any 
 act is sufficient which indicates the intention of the grantor 
 to put the deed in the possession of the grantee. 
 
REAL ESTATE AT A PROFIT 53 
 
 (b.) A deed cannot be delivered to the grantee condition- 
 ally. Delivery to him or to his agent is necessarily absolute, 
 and thereupon the instrument takes effect, discharged of any 
 condition on which the delivery was made. 
 
 (c.) A deed may be deposited by the grantor with a 
 third person to be delivered on the performance of a condition, 
 such as the payment of a sum of money or the like, and on de- 
 livery by the depositary it will take effect. While in the pos- 
 session of the third person and subject to the condition, such 
 delivery is called an escrow. The depositary is the agent of 
 both the parties to the escrow. Written instructions are de- 
 livered to the depositary, specifying the condition and the 
 time within which it is to be performed, and signed by both 
 parties or by one of them. (See Escrows.) 
 
 (d.) Where the owner of land desires to convey the 
 same to a grantee, and not have the deed take effect until after 
 his death, he may do so in two ways: (i) by a deed, in which 
 he will reserve to himself a life estate in the premises, and 
 such deed he may deliver directly to the grantee ; or (2) he 
 may convey the premises to a certain grantee, by deed, which 
 deed he will place in the custody of a third person, with in- 
 structions to pass it on to the grantee named in the deed after 
 the death of the grantor. Such a delivery is irrevocable, and 
 the grantor cannot reach out and take the deed at his pleasure, 
 as, by delivering the deed to the depositary, he constituted the 
 latter a trustee for the grantee, and created in himself a ten- 
 ancy for life in the premises. Such a delivery will take effect 
 upon the happening of the contingency, and will relate back 
 so as to divest the title of the grantor from, the first delivery, 
 and the depositary has no right to return the deed to the 
 grantor. 
 
 Sec. 90. Recordation. 
 
 (a.) To entitle an instrument to record, it must be ac- 
 knowledged and certified, and such instruments, in California, 
 must be recorded in the office of the County Recorder of the 
 county in which the real property affected thereby is situate. 
 Deeds are recorded in one set of books, and mortgages in 
 another. 
 
 (b.) An instrument, duly acknowledged and certified, 
 is deemed to be recorded from the time that it is deposited in 
 
54 HOW TO BUY AND 
 
 the recorder's office, with the proper officer, for record. The 
 recorder must indorse on the instrument the amount of his fee 
 for recording it. 
 
 (c.) Every conveyance of real property, acknowledged, 
 certified and recorded, as prescribed by law, is, from the time 
 it is filed with the recorder for record, constructive notice of 
 its contents to subsequent purchasers and mortgagees. 
 
 (d.) Every conveyance, except a lease for a term not ex- 
 ceeding one year, not placed of record is void as against any 
 subsequent purchaser or mortgagee of the same property, or 
 any part thereof, in good faith and for a valuable consideration, 
 whose conveyance is first duly recorded. 
 
 (e.) The object of the recording laws is to impart notice 
 and to prevent fraud. A deed which is neither acknowledged 
 nor recorded, or which is acknowledged but not recorded, is 
 good as between the parties to it. If the grantor of such un- 
 recorded deed should convey the same property to a bona fide 
 purchaser, the latter purchasing in good faith and for a valua- 
 ble consideration, and such bona fide purchaser should place 
 his deed of record, the holder of the prior unrecorded deed 
 would lose his title. The policy of the law is to cause pur- 
 chasers to rely upon the records. Anyone who acts with the 
 knowledge of any unrecorded deed or mortgage cannot take 
 advantage of the fact of its not being recorded. A purchaser 
 in good faith is a person who has no knowledge, at the time 
 of his purchase, that his grantor had, before that time, made 
 a conveyance of the same property to another person who 
 holds an unrecorded deed. To entitle such purchaser to pro- 
 tection, he must aver and prove the possession of his grantor, 
 the purchase of the premises, the payment of the purchase 
 money in good faith and without notice, actual or constructive, 
 down to the very moment of payment. 
 
 SEC. 91 ANALYSIS OF A DEED, 
 
 showing the several orderly parts, with examples of the apt words and 
 phrases ordinarily employed in each part, exhibiting to the reader of 
 what the several parts consist, and enabling him to "see them all, lying 
 together, in minute detail, according to some system." It should be 
 borne in mind that all the parts here introduced are rarely, perhaps never, 
 employed in any one deed. 
 
REAL ESTATE AT A PROFIT 55 
 
 FORM NO. 13. AN ANALYZED DEED. 
 
 (a) Date. 
 
 THIS INDENTURE, made the loth aav of January, in the year of our 
 Lord, one thousand nine hundred and five, 
 
 (b) Parties. 
 
 Between James W. Robertson, an unmarried man, of the Town of Co- 
 vina, County of Los Angeles, State of California, the party of the first 
 part, and Joseph D. Wiggins, of said County and State, the party of the 
 second part ; 
 
 (c) Recital 
 
 WHEREAS, In a certain deed of conveyance, dated the loth day of De- 
 cember, 1004, made by and between the parties hereto, and recorded in the 
 office of the County Recorder of the County of Los Angeles, in Book 1304 
 of Deeds, at page 326, the lands hereinafter mentioned are described las 
 being in Township One North, Range Two West, instead of in Range 
 Twenty-six (26) West, as hereinafter set forth ; and 
 
 WHEREAS, To prevent difficulties hereafter, it is expedient to correct 
 said error: 
 
 Now, THEREFORE, This Indenture 
 
 (d) Consideration. 
 
 WITNESSETH : That the said party of the first part, for and in con- 
 sideration of the sum of Four Hundred Dollars ($400), gold coin of the 
 United States of America, to him in hand paid by said party of the sec- 
 ond part, the receipt whereof is hereby acknowledged, 
 
 (e) Operative Words. 
 
 does by these presents grant, bargain and sell, convey and confirm unto 
 the said party of the second part, and to his heirs and assigns forever, 
 
 (f) Description. 
 
 all that certain lot, piece or parcel, of land situate, lying and being in the 
 County of Los Angeles, State of California, and bounded and particularly 
 described as follows, to-wit: 
 
 The Northwest one-quarter of the Southeast one-quarter (N. W. }4 
 of S. E. J4) of Section Eighteen (18), Township One (i) North of Range 
 Twenty-six (26), West of San Bernardino Base and Meridian, containing 
 forty (40) acres, according to the Government survey thereof, be the 
 same more or less : 
 
 (g) Reservation (called the "Reddendum"). 
 
 EXCEPTING from the operation of this conveyance, and reserving unto 
 said party of the first part, his heirs and assigns, out of the land herein- 
 above described and hereby conveyed, the right, privilege and easement 
 of entering in and upon so much of said land as may be necessary, and 
 therein to lay, operate and maintain a pipe line and pumping plant for the 
 purpose of conducting and transporting water from a certain artesian 
 well near the northeast corner of said lands, and of sunolying said water 
 to the occuoants of other lands in said Section 18, now belonging to said 
 party of the first part, so long as such other lands to be supplied with 
 
56 HOW TO BUY AND SELL 
 
 water as aforesaid shall belong to said party of the first part, or his legal 
 representatives. 
 
 Together with all and singular the tenements, hereditaments and ap- 
 purtenances thereunto belonging, or in any wise appertaining, and the re- 
 version and reversions, remainder and remainders, rents, issues and profits 
 thereof. 
 (h) Habendum. 
 
 To HAVE AND TO HOLD, all and singular the said premises, together 
 with the appurtenances, unto the said party of the second part, and to his 
 heirs and assigns forever. 
 (i) Conditions. 
 
 (1) This conveyance is made upon the EXPRESS CONDITION that 
 the grantee herein shall, as a part of the consideration, assume and pay on or 
 before maturity, a certain note in the sum of $900, dated November i2th, 
 1003, in favor of the Union Bank of Savings, of Los Angeles, California, 
 secured by a mortgage on the premises hereby conveyed, which said mort- 
 gage and the debt thereby secured, the grantee herein, by the acceptance 
 of this conveyance, agrees to fully pay, satisfy and discharge, and to keep 
 and save harmless the said grantor, his heirs and assigns, of and from 
 all personal liability therefor, or in connection therewith, including defi- 
 ciency judgments; and on the further condition that said grantee shall pay 
 all taxes levied or assessed against said premises for the fiscal year 
 1905-06. 
 
 (2) This conveyance is made upon the FURTHER EXPRESS 
 CONDITION that neither the said grantee, his heirs, executors, adminis- 
 trators or assigns, nor those claiming under them, shall ever manufacture, 
 sell or dispose of, or permit the sale, manufacture or disposal of, spirituous 
 or intoxicating liquors in any place of public resort on any portion of the 
 premises hereinabove described ; and in case said condition is broken by 
 said grantee, his heirs, executors, administrators, assigns or legal repre- 
 sentatives, or those claiming under them, then and in that case the title to 
 the premises hereby conveyed shall immediately revert to and vest again 
 in the grantor herein, the same as though this deed had never been ex- 
 ecuted ; and the said grantee, by the acceptance of this deed, hereby accepts 
 and assents to and agrees to keep unbroken the conditions hereinabove set 
 forth. 
 
 (j) Covenant of Seisin. 
 
 And the said party of the first part, for his heirs, executors and ad- 
 ministrators, does covenant, grant and agree to and with the said party of 
 the second part, his heirs and assigns, that the said party of the first part, 
 at the time of the sealing and delivery of these presents, is lawfully seized 
 in fee simple absolute of and in all and singular the above granted and 
 described premises, with the appurtenances; 
 (k) Covenant of Right to Convey. 
 
 and has good right, full power and lawful authority, to grant, bargain, sell 
 and convey the same, in manner aforesaid ; 
 
ESTATE AT A PROFIT 57 
 
 (I) Covenant Against Grantor's Own Acts. 
 
 And said party of the first part, for himself and his heirs, executors and 
 administrators, does hereby covenant and agree to and with said party of 
 the second part, his heirs, executors, administrators and assigns, that he 
 has not made, done, committed, executed or suffered, any act or acts, thing 
 or things whatsoever, whereby or by means whereof the said premises> or 
 any part or parcel thereof, now are, or at any time hereafter shall, or may, 
 be impeached, charged or incumbered, in any manner or way whatsoever. 
 (m) Covenant Against Incumbrances. 
 
 And that said premises now are free, clear, discharged and unincumbered, 
 of and from all former and other grants, titles, charges, estates, judgments, 
 taxes, assessments and incumbrances, of what nature or kind soever. 
 (n) Covenant for Quiet Enjoyment. 
 
 And that the said party of the second part, his heirs and assigns, shall and 
 may, at all times hereafter, peaceably and quietly have, hold, use, occupy, 
 possess and enjoy the above granted premises, and every part and parcel 
 thereof, with the appurtenances, without any let, suit, trouble, molestation, 
 eviction or disturbance of said party of *he first part, his heirs and assigns, 
 or of any other person or persons lawfully claiming or to claim the same. 
 (o) Covenant That the Vendor Will Defend. 
 
 And the said party of the first part, for himself and his heirs, the above- 
 described premises, and every part and parcel thereof, with the appurte- 
 nances, unto the said party of the second part, his heirs and assigns, against 
 the said party of the first part, and his heirs, and against all and every! 
 person and persons whomsoever, lawfully claiming or to claim the same, 
 shall and will warrant, and by these presents forever defend. 
 (p) Covenant of Further Assurance. 
 
 And also, that the said party of the first part, and his heirs, and all and 
 every person or persons whomsoever, lawfully or equitably deriving any 
 estate, right, title or interest, of, in or to the hereinabove granted prem- 
 ises, by, from, under or in trust for him, shall and will at any time or times 
 hereafter, upon the reasonable request and at the proper costs and charges 
 in the law, of the said party of the second part, his heirs and assigns, make, 
 do and execute, or cause to be made, done, and executed, all and every such 
 further and other lawful and reasonable acts, conveyances and assurances 
 in the law, for the better and more effectually vesting and confirming the 
 premises hereby granted, or so intended to be, in and to the said party of 
 the second part, his heirs and assigns forever, as by the said party of the 
 second part, his heirs or assigns, or his or their counsel learned in the law, 
 shall be reasonably advised or required. 
 (q) Testatum Clause. 
 
 IN WITNESS WHEREOF, the said party of the first part has hereunto 
 set his hand and seal, the day and year first above written. 
 (r) Signature, Seal and Witnesses. 
 
 JAMES W. ROBERTSON. (Seal) 
 
 Signed, Sealed and Delivered in Presence of 
 JOHN JONES, 
 B. W. LEE. 
 (s) Acknowledgment. 
 
58 HOW TO BUY AND SKU, 
 
 SEC 92 COMMENTS ON THE FOREGOING FORM. 
 
 The following letters which are in parenthesis have reference to sec- 
 tions of the foregoing form of deed lettered in like manner : 
 
 (a) Date. It is customary to date a deed at the beginning of the 
 instrument. The deed does not take effect, however, until the time of its 
 delivery, which is supposed to coincide with the date of the deed. 
 
 (b) Parties, (i) Any person, either natural or artificial (see Chap- 
 ter i, Sec. 12) capable of making a contract, may make a deed. The party 
 making the deed is called the grantor, and in the deed is referred to as 
 the party of the first part, and the party receiving the deed is called the 
 grantee, and in the deed is referred to as the party of the second part. 
 
 (2) If the grantor is married, his wife should join in the deed. If 
 the property is community property, and stands in the name of the wife, 
 the husband should join in the deed as a party thereto. 
 
 (3) Any person, male or female, in whom the title to real estate is 
 vested, and whose name is afterwards changed, should, in any conveyance 
 of such property, set forth the name in which it was acquired as well as 
 that by which it is conveyed. 
 
 (4) The deed of an infant, that is, a person under legal age, is not 
 void but voidable. Such deeds are generally made by the guardian of the 
 infant upon order of Court. 
 
 (5) A deed by an Indian to a white person passes no title. Such 
 a conveyance is contrary to the policy of the Spanish, Mexican and Ameri- 
 can law. 
 
 (6) Description of Parties. Husband and Wife. "By and between 
 Henry Hudson and Sarah Hudson, his wife, of the County of Los Angeles, 
 State of California, the parties of the first part," etc. 
 
 Wife and Husband. "Between Sarah Hudson and Henry Hudson, her 
 husband, of the County of," etc. 
 
 Co-Partners. "Between Henry Hudson and James Wilson, doing 
 business under the firm name and style of Hudson & Wilson, of the County 
 of," etc. 
 
 Corporation. "Between Golden Rod Mercantile Company, a corpora- 
 tion, duly organized and existing under the laws of the State of California, 
 and having its principal place of business at Los Angeles, County of Los 
 Angeles, State of California, the party of the first part." 
 
 (7) The setting forth in the deed of the places of residence is for 
 the purpose of more clearly identifying the parties. 
 
 (c) Recitals in a deed or other instrument are inserted to explain 
 why the deed was made, or to set forth the pre-requisite steps and proceed- 
 ings taken by or on behalf of the grantor, as, that he was acting under order 
 of Court, etc. 
 
 (d) The Consideration is the inducement which moves the grantor 
 to make the conveyance. It may be good or valuable. A good considera- 
 tion is blood relationship or affection. A valuable consideration is money 
 or that which in law is ratable as money, as shares of stock, other lands, 
 etc. Love and affection is a sufficient consideration from a husband to his 
 
REAL ESTATE AT A PROFIT 59 
 
 wife. Courts of equity will enforce such a deed, where it is for the benefit 
 of the wife and no rights of creditors intervene. It is not necessary to 
 set forth the full or exact consideration in the deed, and oftentimes is not 
 advisable to do so. A nominal consideration, such as "One dollar," or 
 "Ten dollars," is sufficient. Where the full consideration is given, a sub- 
 sequent intending purchaser, by referring to the records, might obtain in- 
 formation which would defeat a sale. 
 
 (e) Operative Words. The rule is that everything essential to the 
 beneficial use and enjoyment of the property designated is to be construed 
 as passing to the grantee, in the absence of language to the contrary, indi- 
 cating a different intention on the part of the grantor. The kind of title 
 conveyed is indicated in this part, and deeds are distinguished by the words 
 used, as "grant, bargain and sale," or "quit-claim," etc. The duration of 
 the estate conveyed is limited in the Habendum clause. 
 
 In California the use of the word "grant" in any conveyance by which 
 an estate of fee simple or inheritance is to be passed, implies on the part 
 of the grantor, for himself and his heirs, to the grantee, unless restricted 
 by express terms, the making of the following covenants, which may be 
 sued upon as though they had been expressly inserted in the deed, namely: 
 
 That previous to the time of the execution of the conveyance the 
 grantor has not conveyed the same estate, or any right, title or interest 
 therein, to any person other than the grantee ; and that such estate is free 
 from incumbrances done, committed or suffered by the grantor or any per- 
 son claiming under him. 
 
 (f) Description, (i) The land conveyed should be accurately and 
 clearly described. The boundary lines are determined bv physical objects, 
 such as monuments, courses and distances, the number of acres, etc. All 
 of the land in the United States^ outside of the original thirteen colonies, 
 is supposed to have been surveyed bv the general government, and the 
 boundaries determined by fixed monuments. Government surveys are 
 made on the rectangular system, east and west lines being run with the 
 parallels of latitude and north and south township lines with the meridians 
 of longitude. A tier of townships running north and south is called a 
 "range" and each range is numbered according to whether it is east or 
 west of the principal meridian. Each township is also numbered as it is 
 north or south of the base line. 
 
 (2) The description for a conveyance is ordinarily obtained from 
 the deed in the possession of the grantor, or from the certificate of title, 
 and it is safe to follow either of these. Where land is subdivided and a 
 portion only sold, it is necessary, of course, to have the land surveyed, 
 and boundarv stakes or other monuments set, and the land conveyed ac- 
 cording to the description furnished by the surveyor. In case the transfer 
 is passed in escrow through a title company, as is now done in large cities, 
 if there are any defects in the surveyor's description, the same will be 
 pointed out and an accurate description required before the deed will be 
 placed of record. 
 
 In the absence of any qualifying term, the designation in a con- 
 
60 
 
 HOW TO BUY AND SELL 
 
 veyance of any physical object or monument as a boundary implies the 
 middle or central point of such boundary, as, for example, if the boundary 
 be a road or highway or a stream, the thread of the roau or stream will be 
 intended ; if a rock, a heap of stones, or a tree be the boundary, the central 
 point of such tree or rock or heap of stones will be intended. 
 
 (3) A township is 36 sections, each a mile 
 square. A section is 640 acres. A quarter sec- 
 tion, half a mile square, is 160 acres. An 
 eiarhth of a section, half a mile long-, north and 
 south, and a quarter of a mile wide, is 80 acres. 
 A sixteenth of a section, a quarter of a mile 
 square, is 40 acres. 
 
 The sections are all numbered 1 to 36, com- 
 mencing- at northea&t 
 corner, thus : 
 
 The sections are 
 all divided in quar- 
 ters, which are named 
 by the cardinal poi nts, 
 as in section 1. The 
 
 
 
 
 
 
 N 
 
 
 NE 
 
 
 
 
 W 
 
 N 
 
 
 N E 
 
 
 
 
 E 
 
 S 
 
 
 S E 
 
 
 
 
 W 
 
 N 
 
 
 N E 
 
 
 
 
 E 
 
 N 
 
 
 N E 
 
 
 
 
 W 
 
 S 
 
 
 S E 
 
 
 
 
 E 
 
 s\ 
 
 f 
 
 S E 
 
 
 
 
 W 
 
 S 
 
 : 
 
 S E 
 
 quarters are divided 
 in the same way, as 
 shown in the smaller 
 diagram. The description of 
 
 
 
 
 
 iNWNE 
 
 6 
 
 5 
 
 4 
 
 8 
 
 2 
 
 ... .- ... 
 
 
 
 
 
 
 6W 8E 
 
 7* 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 
 
 
 i 
 
 
 
 
 1 
 
 
 
 18 
 
 17 
 
 16 
 
 15 
 
 14 
 
 13 
 
 19 
 
 2Q 
 
 21 
 
 
 
 28 
 
 A 
 
 80 
 
 2D 
 
 28 j 27 
 
 26 
 
 25 
 
 81 
 
 S2 
 
 88 
 
 34 
 
 85 
 
 36 
 
 a forty-acre lot would 
 read : The south half of the west half of the southwest quarter, or the north- 
 east quarter of the northeast quarter, as the case mig-ht be, of section 1 in town- 
 ship 24 north, of rang-e 7 west, Mount Diablo Base and Meridian. A section or 
 quarter section will sometimes fall short and sometimes overrun the number of acres 
 it is supposed to contain. 
 
 (4) Monuments, courses and distances, and the number of acres, gov- 
 ern as to the quantity of land in the order named . 
 
 Monuments are permanent land marks specially made use of for in- 
 dicating boundaries. They are usually set by the surveyor, or are referred 
 to by him in his description of the survey, and may consist of stakes*, 
 stones, trees, streams, springs, etc. If ten acres were mentioned in a cer- 
 tain deed as the number of acres intended to be conveyed, and the quan- 
 tity was found by survey to consist of only eight acres, the monuments 
 would govern, and only eight acres would be conveyed. If the seller truly 
 points out the boundaries, the buyer has no redress, even if the seller were 
 to overstate the number of acres ; but the buyer would be released from the 
 sale if the seller were to make a fraudulent statement as to the boundaries. 
 Monuments are, therefore, the first means of ascertaining the boundaries. 
 
 (5) Courses and distances!, or metes and bounds, as they are some- 
 times called, are the second means of ascertaining the boundaries. Courses 
 and distances are the lines followed by the surveyor in going around a 
 piece of land. The surveyor's chain is 66 feet long, is divided into 100 
 links, and each link is 7.92 inches; 625 square links make a square pole, 
 16 square poles a square chain, and 10 square chains an acre. An acre 
 contains 43,560 square feet. Boundaries are usually expressed in feet, and 
 the following table will assist in making an accurate estimate of land for 
 the dimensions given, namely: 
 
ESTATE AT A PROFIT 
 
 61 
 
 10 rods 
 
 X 
 
 16 rod 
 
 s'= 1 
 
 8 " 
 
 X 
 
 20 
 
 =r= 
 
 5 " 
 
 X 
 
 32 
 
 
 
 4 " 
 
 X 
 
 40 " 
 
 ~ 
 
 5 yards 
 
 10 " 
 
 X 
 X 
 
 968 " 
 484 yar 
 
 ds = 
 
 20 " 
 
 X 
 
 242 
 
 . = 
 
 40 " 
 
 X 
 
 121 * 
 
 
 80 " 
 
 X 
 
 60!4 ' 
 
 
 
 70 " 
 
 X 
 
 69/ 2 ' 
 
 OB 
 
 220 feet 
 
 X 
 
 198 fe 
 
 3t = 
 
 440 " 
 
 X 
 
 99 
 
 
 110 M 
 
 X 
 
 369 ' 
 
 
 
 GO M 
 
 X 
 
 726 * 
 
 =1: . 
 
 120 " 
 
 
 363 
 
 = 
 
 240 " 
 
 X 
 
 18l'/2 ' 
 
 -^= 
 
 200 " 
 
 X 
 
 1089-10' 
 
 k = i 
 
 100 " 
 
 X 
 
 1452-10' 
 
 1 = : - 
 
 Acre. 
 
 100 ft. X 1089-10 ft. = K AC 
 25 " X 100 " = .0574 
 25 " X 110 = .0631 
 25 " X 120 " = .0688 
 25 " X 125 " = .0717 
 25 " X 150 " = .109 
 
 2178 square feet = .05 
 
 4356 " " = .10 
 
 6534 " " = .15 
 
 8712 " " = .20 
 
 10890 
 
 .25 
 
 13068 
 
 = .30 
 
 15246 
 
 14 = 3& 
 
 17424 
 
 ." =.40 
 
 19603 
 
 44 = .45 
 
 21780 
 
 " = .50 
 
 32670 
 
 = .75 
 
 34848 " M = .80 ' 
 
 (6) The third means of ascertaining the boundaries is by reference 
 to the number of acres, or old maps, or lines of adjoining surveys, etc. If 
 a map is referred to, and the map is of record, the effect, so far as the 
 boundaries are concerned, will be the same as if the boundaries were in- 
 serted in the deed. 
 
 (7) Maps may be referred to by designating the map and the num- 
 ber of the lot as laid down thereon. 
 
 (g) Reddendum means a reservation made by the grantor to himself 
 out of the estate granted z and the reservation must be described so as to be 
 readily identified. 
 
 (h) The Habendum. The duration of the estate conveyed, and 
 sometimes the use, are limited by this clause. Under ordinary circum- 
 stances the words of limitation in the "grant" or "operative words," and 
 in this clause should be the same. 
 
 The phraseology of a deed conveying the life estate to one person, 
 with the remainder to another, would be as follows : 
 
 "To Have and to Hold all and singular, the above granted premises, 
 together with the appurtenances, and every part thereof, unto the said 
 Pascal Irwin, and his assigns, for and during the natural life of the said 
 Pascal Irwin, and upon his death, then unto Alphonse Irwin, his heirs and 
 assigns, forever." 
 
 (i) Conditions in a deed relate to the title or to the mode of en- 
 joying the estate. When set forth in the deed, they are called express 
 conditions. A condition precedent is one which must happen or be per- 
 formed before the estate can vest. A condition subsequent is one upon 
 the failure of which an estate already vested may be defeated. Non-per- 
 formance of a condition precedent prevents the estate from vesting. Non- 
 performance of a condition subsequent gives the grantor, or his heirs, 
 the right to enter and defeat the estate. 
 
 Where a grantor conveys property on which he has given a prior 
 mortgage, it becomes necessary in the deed to bind the purchaser to as- 
 sume and pay the mortgage. Deeds are construed most strongly against 
 the grantor, and, unless the purchaser agrees to assume the mortgage, no 
 implied obligation arises on his part to do so. If the purchaser should 
 be unable to pay the mortgage, and it should be foreclosed, and the pro- 
 
62 HOW TO BUY AND 
 
 ceeds of sale should be insufficient to pay the debt, a deficiency judgment 
 might be rendered against the grantor. 
 
 See also Form No. 5, where RESTRICTIONS or conditions as to the 
 value of the improvements, and the distance the same are to be placed from 
 the front line of the premises, are provided for. 
 
 (j to p) Covenants are of two kinds, Personal and those Running 
 with the Land. 
 
 (1) Personal Covenants, or Covenants of Title, are: 
 
 Seisin ; 
 
 Right to Convey; 
 
 Against Grantor's Own Acts ; 
 
 Against Incumbrances. 
 
 (2) Covenants Running with the Land, or Covenants relating to 
 Possession : 
 
 Quiet Enjoyment; 
 
 That Vendor Will Warrant and Defend; 
 
 Further Assurance. 
 
 (j) The Covenant of Seisin implies that the grantor is in posses- 
 sion of the land. Possession may be actual or constructive. Actual pos- 
 session is where the owner or party entitled to possession actually occupies 
 or resides upon the land. In constructive possession, the land, although 
 the owner or person entitled to possession does not live upon it, is, in 
 contemplation of law, in his possession. The owner is deemed to be con- 
 structively in possession, although neither he nor any one else lives upon 
 the land. 
 
 (i) A Covenant Running with the Land is a condition inserted in 
 a deed by the grantor, binding the grantee to do something upon, or ltd 
 abstain from some prohibited use of, the land conveyed. A common re- 
 straint or restriction in modern times is against the erection of buildings 
 of a certain height or kind, or against the carrying on of offensive trades. 
 If the grantor, or his heir, enters for breach of the condition, and termi- 
 nates the estate of the grantee, all conveyances and incumbrances made 
 subsequent to the date of the deed containing the condition, are, so far 
 as they affect the premises, thereby destroyed. The rights of the grantee, 
 and of his grantees and mortgagees, in the premises, are as if they had 
 never existed. (Curwen on Abstracts.) 
 
 (r) The name of the grantor should be set forth correctly at the 
 beginning of the deed, and the deed should be signed accordingly. If a 
 man should sign ordinarily as "J. S. Williams," and his name should be 
 inserted in the body of the deed as "John S. Williams," John being his 
 given name, he should so sign. If the grantor is unable to write, his 
 name can be signed to the deed by some other person, and the grantor can 
 make his mark, which should be witnessed by some one who saw the 
 grantor make the mark. The signature of the grantor should be written 
 opposite the printed seal on the deed. In some of the States and in Eng- 
 land, a scroll for a seal will not be accepted; a wafer or impression upon 
 
ESTATE AT A PROFIT 63 
 
 wax is required. The witness clause, where the signature is to be by an 
 attorney in fact, is as follows : 
 
 "!N WITNESS WHEREOF, the said party of the first part has hereunto 
 set his hand and seal, by James Wilson, his attorney in fact, the day and 
 year first above written." 
 
 HENRY HUDSON. 
 By JAMES WILSON, 
 
 His Attorney in Fact. 
 
 FORM NO. 14 QUITCLAIM DEED. 
 
 THIS INDENTURE, made the tenth day of April, in the year of our 
 Lord one thousand nine hundred a\id five, between Frank Wright, of the 
 City and County of San Francisco, State of California, the party of the 
 first part, and Asa White and John Black, of the said City and County, the 
 parties of the second part, witnesseth : That the said party of the first 
 part, for and in consideration of the sum of One Hundred Dollars, lawful 
 money of the United States of America, to him in hand paid by the said 
 parties of the second part, the receipt whereof is hereby acknowledged, 
 does by these presents remise, release, and forever quitclaim unto the said 
 parties of the second part, and to their heirs and assigns, all that certain 
 lot, piece, or parcel of land, situate in the said City and County of Sam 
 Francisco, State of California, and bounded and particularly described as 
 follows, to-wit : 
 
 (Description.) 
 
 Together with all and singular the tenements, hereditaments and 
 appurtenances thereunto belonging, or in anywise appertaining, and the 
 reversion and reversions, remainder and remainders, rents, issues and 
 profits thereof. 
 
 To have and to hold, all and singular the said premises, together with 
 the appurtenances, unto the said parties of the second part, and to their 
 heirs and assigns forever. 
 
 In witness whereof, the said party of the first part has hereunto set 
 his hand and seal the day and year first above written. 
 
 FRANK WRIGHT. (Seal) 
 (Acknowledgment. ) 
 
 FORM NO. 15 DEED FROM HUSBAND TO WIFE. 
 
 DEED OF GIFT. 
 
 THIS INDENTURE, made the 5th day of March, in the year of our 
 Lord nineteen hundred and five, between Leander Lilly, of the County 
 of Los Angeles, State of California, the party of the first part, and Lucy 
 Lilly, the wife of said Leander Lilly, of the County of Los Angeles, State of 
 aforesaid, party of the second part, witnesseth : That the said party of 
 the first part, for and in consideration of the love and affection which the 
 said party of the first part, has and bears unto said party of the second 
 part, as also for the better maintenance, support, protection and livelihood 
 of said party of the second part, does by these presents, give, grant, alien 
 and confirm, unto the said party of the second part, and to her heirs and 
 
64 HOW TO BUY AND 
 
 assigns forever, all that certain lot, piece, or parcel, of land situate, lying 
 and being in the City of Los Angeles, County of Los Angeles, State of 
 California, and bounded and particularly described as follows, to-wit : 
 
 (Description.) 
 
 Together with all and singular the tenements, hereditaments and 
 appurtenances thereunto belonging or in anywise appertaining, and the 
 reversion and reversions, remainder and remainders, rents, issues and 
 profits thereof. 
 
 To have and to hold, all and singular the said premises, together 
 with the appurtenances and privileges thereunto incident, unto the said 
 party of the second part, her heirs and assigns forever. 
 
 In witness whereof, the said party of the first part has hereunto set 
 his hand and seal, the day and year first above written. 
 
 LEANDER LILLY. (Seal.) 
 
 Signed, Sealed and Delivered in the presence of 
 NATHAN OLIVER, 
 Luis BLANCO. 
 
 (Acknowledgment.) 
 
 FORM NO. 16 MINING DEED. 
 
 THIS INDENTURE, Made the loth day of March, in the year of our 
 Lord one thousand nine hundred and five, between Abner Parmely, Alonzo 
 Jones, Charles O'Hara and Jerome Curtis, of the County of Ventura, 
 State of California, the parties of the first part, and J. D. Foster, of the 
 County and State aforesaid, the party of the second part, witnesseth : 
 That the said parties of the first part, for and in consideration of the sum 
 of Five Hundred Dollars, gold coin of the LTnited States of America, to 
 them in hand paid by said party of the second part, the receipt whereof 
 is hereby acknowledged, have granted, bargained, sold, remised, released, 
 and forever quit-claimed, and by these presents do grant, bargain, sell, 
 remise, release and forever quit-claim, unto the said party of the second 
 part, and to his heirs and assigns, that certain placer mining ground, sit- 
 uate, in the County of Ventura, State of California, in the Little Sespe 
 Placer Mining District, known as and called "My Dream Mine," con- 
 taining 80 acres, more or less, located January i, 1905, the location notice 
 thereof being of record in the office of the County Recorder of said County 
 oi Ventura, in Book 12 of Mining Claims, at page 231, to which said 
 notice and the said record thereof reference is hereby made, as a part 
 hereof, for the purposes of description; together with all the dips, spurs 
 and angles, and also all the metals, ores, gold and silver bearing quartz, 
 rock and earth therein ; and all the rights, privileges and franchises thereto 
 incident, appendant and appurtenant, or therewith usually had and en- 
 joyed; and also, all and singular the tenements, hereditaments and appurte- 
 nances thereto belonging, or in anywise appertaining, and the rents, issues 
 and profits thereof; and, also, all the estate, right, title, interest, property, 
 possession, claim and demand whatsoever, as well in law as in equity, of 
 the said parties of the first part, of, in, or to the said premises, and every 
 part and parcel thereof, with the appurtenances. 
 
REAL, ESTATE AT A PROFIT 65 
 
 [NOTE In a conveyance of oil lands, the wording would be: "To- 
 gether with all and all kinds of oil, petroleum, maltha, asphaltum, brea, 
 and rock and earth containing these and other hydro-carbon and kindred 
 substances therein," etc.] 
 
 To have and to hold, all and singular, the said premises, together 
 with the appurtenances and privileges thereto incident, unto the said party 
 of the second part, and to his heirs and assigns forever. 
 
 In witness whereof, the said parties of the first part have hereunto 
 set their hands and seals, the day and year first above written. 
 
 ABNER PARMELY, (Seal) 
 
 ALONZO JONES, (Seal) 
 
 CHARLES O'HARA, (Seal) 
 JEROME CURTIS. (Seal) 
 
 (Acknowledgment.) 
 
 FORM NO. 17 DEED TO COUNTY FOR RIGHT OF WAY FOR 
 
 ROAD. 
 
 State of California, County of Santa Barbara, ss. 
 
 WHEREAS, Jesse Hall, James Roach, N. O. Nelson and Elmer Stearns, 
 inhabitants of Road District number Ten of Santa Barbara County, tax- 
 able therein for road purposes, have petitioned in writing the Board of 
 Supervisors of said Santa Barbara County to lay out a new road therein, 
 as set forth in their petition, dated the fourth day of April, 1905, and filed 
 with the Clerk of said Board, which said road is proposed to be located fifty 
 (50) feet in width in said Road District No. 10, County and State aforesaid, 
 as follows, to-wit : Twenty-five (25) feet on each side of the following 
 described line : Commencing at a post on the East side of the Santa Ynez 
 River, etc., to a post in the center of the County Road, and the terminus 
 of the road petitioned for. 
 
 Now, therefore, in consideration of the location and establishment 
 of said road as above described, and of the benefits to accrue to us and 
 each of us by such location, we, the undersigned, owners, occupants and 
 claimants of land required for road purposes on the line of the foregoing 
 designated route, hereby signify our approval of the location of said road, 
 and do hereby consent thereto; and we do hereby grant and dedicate the 
 lands belonging to us and each of us, so far as the same may be required 
 for such road, to said County of Santa Barbara, to that purpose and for the 
 use of such road ; and we hereby waive all claims for damage for and on 
 account of the same. 
 
 The grant of said lands to said County by said grantors is made on 
 the condition that should the said grantee for any reason fail to use the 
 lands hereby granted as a public highway, then the title hereby granted 
 shall revert back to the grantors herein, their heirs or assigns, without 
 incumbrance. 
 
 In witness whereof, we hereunto set our hands and seals, this 25th day 
 of April, 1905. 
 
 JESSE HALL, (L. S.) 
 
 JAMES ROACH, (L. S.) 
 N. O. NELSON, (L. S.) 
 ELMER STEARNS. (L. S.) 
 
66 HOW TO BUY AND SELL 
 
 FORM NO. 18 CERTIFIED COPY OF RESOLUTION PREFIXED 
 
 TO DEED OF CORPORATION CONVEYING 
 
 AGRICULTURAL RIGHTS. 
 
 RESOLVED, That this Corporation, Blue Bird Oil Company, sell to 
 Oliver Owlett, in consideration of Ten Dollars ($10.00) and other good 
 and valuable considerations, all the right, title and interest of this corpora- 
 tion to the possession, occupation and use of the soil or surface of the 
 ground for the purpose of agriculture, horticulture and grazing only, of, 
 in and to all that certain mining claim known as "My Dream" Placer Mining 
 Claim, situated in the County of Orange, State of California, and being 
 the Southwest Quarter of the Southeast Quarter of Section One (i), in 
 Township 30 North, Range 20 West, San Bernardino Meridian, reserving 
 the petroleum and other mineral substances thereunder, said deed to be in 
 such form as the attorney of this Corporation may determine; and the 
 President and Secretary of this Corporation be, and the-' are hereby author- 
 ized and directed, in the name, on behalf and under the seal of this Cor- 
 poration, to execute and deliver said deed, and to perform any and all acts, 
 and execute all papers, or cause the same to be done, which are, or may be 
 necessary to fully carry out and complete such transfer. 
 
 I, Prester John, Secretary of the Blue Bird Oil Company, hereby 
 certify the foregoing to be a full, true and correct copv of a resolution 
 duly passed and adopted by the Board of Directors of said Corporation at 
 a regular meeting of said Board, held on the loth day of April, 1905, a't 
 which meeting a majority of the said Board was present and voted in 
 favor of the adoption of said resolution, and that the same now is in full 
 force and effect. 
 
 "Witness my hand and the seal of said Blue Bird Oil Company, this 
 loth day of April, 1905. 
 (Corporate Seal) PRESTER JOHN, 
 
 Secretary Blue Bird Oil Company. 
 
 THIS INDENTURE, Made this loth day of April, A. D. 1905, oy and 
 between Blue Bird Oil Company, a Corporation organized and existing 
 under the laws of the State of California, and having its principal place of 
 business at the City of Los Angeles, in said State, party of the first part, 
 and Oliver Owlett, of the County and State aforesaid, party of the second 
 part; 
 
 Witnesseth : That the said party of the first part, for and in considera- 
 tion of the sum of Ten (10) Dollars, gold coin of the United States of 
 America, to it in hand paid by said party of the second part, the receipt 
 whereof is hereby acknowledged, and for other good and sufficient con- 
 siderations it thereunto moving, doth remise, release and quitclaim, sub- 
 ject to all and several the conditions, reservations and exceptions herein- 
 after expressed, unto said party of the second part, his heirs and assigns 
 forever, all the right, title and interest of said party of the first part to the 
 possession, occupation and use of the soil or surface of the ground, for the 
 purposes of agriculture, horticulture and grazing only, of, in and upon that 
 certain mining claim known as the "My Dream Placer Mining Claim," sit- 
 
ESTATE AT A PROFIT 67 
 
 uated in the County of Orange, State of California, and being the South- 
 west Quarter V S. W. J4) of the Southeast Quarter (S. E. l / 4 } of Section 
 One (i), Township Thirty (30) North, Range Twenty (20) West, San 
 Bernardino Base and Meridian; said My Dream Placer Mining Claim 
 having been conveyed to the party of the first part by Letters Patent 
 of the United States of America, bearing date the 22nd day of June, one 
 thousand nine hundred and four. 
 
 It is expressly stipulated, covenanted and agreed by and between 
 the parties hereto, that the party of the second part acquires by this con- 
 veyance no further right, title, interest, estate or privileges in, to or upon 
 the said tract of land above described than those above expressly described 
 and conveyed, and especially and particularly that he acquires no right, 
 title or interest in and to the petroleum oil, asphaltum and other hydro- 
 carbon substances, or to any mineral substance of any kind whatsoever 
 situated and contained in the said lands. And the party of the first part 
 hereby expressly excepts, reserves and retains to and for the benefit of 
 itself, its successors and assigns, all and all kinds of mineral substances 
 contained in said lands, and especially and particularly all and all kinds 
 of petroleum oil, maltha, asphaltum, mineral or oil bearing rocks and 
 sand, gravel, earth, and other material containing, bearing or yielding said 
 substances, or any of them ; and also all natural gas, or other hydro-carbon, 
 or other similar or kindred substances in, upon, under or underneath said 
 lands. 
 
 And it is understood, covenanted and agreed that the right of the party 
 of the second part, his heirs and assigns, to the use, possession and occu- 
 pation of the surface and soil of said lands for the purposes aforesaid, is 
 subject to the paramount right of the party of the first part, its successors 
 and assigns, to the use, possession and occupation of the said surface and 
 soil of said lands so far as the same shall be necessary for its use in dig- 
 ging, mining and boring for and otherwise exploring for and obtaining, 
 extracting and producing said substances, or any of them, in and upon 
 said parcel of land, and for taking away and removing the said substances 
 therefrom; and the party of the first part doth hereby except and reserve 
 the perpetual and exclusive right to so dig, mine and bore for, and other- 
 wise to explore for and obtain, extract and produce said substances!, or 
 any of them, in and upon said parcel of land, and to take away said sub- 
 stances therefrom; together with all rights of entry and rights of way in, 
 upon and over said parcel of land, and every part thereof, for roads, pipe 
 lineb, telephone lines, and for all other purposes that may be necessary for 
 the enjoyment of the estate, rights and interests hereby reserved and ex- 
 ecuted, and for the carrying on of mining operations on said lands, and 
 for the securing and transporting of said substances in, upon, over and 
 through said parcel of land; together with all rights of way and rights of 
 entry in, upon and over said parcel of land which may be necessary or con- 
 venient to give ingress to and egress from said lands, or to and from any 
 adjoining lands that may be operated for oil or other minerals by said 
 party of the first part, and for conveying machinery, tools, materials, sup- 
 plies, water, oil, and other substances to and from said adjoining lands. 
 
68 HOW TO BUY AND SELL 
 
 It is understood and agreed that the party of the second part shall 
 have the right to so much of the water now flowing, or which may here- 
 after be developed, upon the lands above described, as shall not be needed 
 and used by the said party of the first part in carrying on said mining- 
 operations ; also that said party of the first part shall and will at its own 
 cost and expense, provide, so far as is practicable and reasonable, for the 
 disposal of sand, rock, earth, gravel, water, oil, and other substances which 
 may be encountered and removed to the surface in boring of wells for 
 oil or water, or in any other mining operations carried on by it in and upon 
 said parcel of land, and for the conveyance of the same by open ditches 
 wherever practicable to water channels or gulches within the boundaries 
 of said parcel of land; and also that said party of the first part shall lay 
 any pipe lines which it may locate upon the tillable portions of said land 
 under the surface of the soil so that the same shall not interfere with the 
 plowing or cultivation of said lands. 
 
 In witness whereof, said party of the first part hath hereunto caused 
 its corporate name to be subscribed and its corporate seal to be affixed by 
 its President and its Secretary, thereunto duly authorized, the day and year 
 herein first above written. 
 
 BLUE BIRD OIL COMPANY. 
 (Corporate Seal) By PETER PRIOR, Its President. 
 
 By PRESTER JOHN, Its Secretary. 
 (Acknowledgment.) 
 
 FORM NO. 10 DEED FROM INDIVIDUALS TO CORPORATION, 
 CONVEYING MINING RIGHTS, TOGETHER WITH 
 STOCKHOLDER'S RATIFICATION OF AC- 
 QUISITION OF SAME. 
 
 THIS INDENTURE, Made' this 2Oth day of March, A. D. 1905, by and 
 between John Kingsley and Ella Kingsley, his wife, of the County of Los 
 Angeles, State of California, parties of the first part, and Blue Bird Oil 
 Company, a Corporation, incorporated and existing under the laws of 
 the State of California, and having its principal place of business at Los 
 Angeles, California, the party of the second part, 
 
 Witnesseth : That the parties of the first part, for and in considera- 
 tion of the sum of Ten Dollars ($10.00) lawful money of the United 
 $tates, to them in hand paid by the said party of the second part, and 
 other good and valuable considerations them thereunto moving, the receipt 
 whereof is hereby acknowledged, do by these presents grant, bargain, sell, 
 convey, assign, transfer and set over unto the said party of the second 
 part, and to its successors and assigns, forever, all petroleum, coal oil, 
 naphtha, natural gas, and other hydro-carbons and like substances, includ- 
 inar asphaltum and brea, in, upon and under all those certain lands situated 
 in the County of Los Angeles, State of California, to-wit: 
 
 (Description.) 
 
 Together with the right, privilege and easement to enter in and upon 
 
ESTATE AT A PROFIT 69 
 
 said parcels of land above described, and any part or parcel thereof, in such 
 manner and with such machinery, engines, tools, rigs, materials, and sup- 
 plies as .may be proper, necessary or usual, and therein to explore, dig 1 , 
 mine and drill for the substances above named; and also the right to erect 
 buildings, derricks, tanks, and other structures usual, nroper or necessary 
 to extract, sever and remove all or any of said substances from said lands ; 
 and in and upon said land to collect, save, store, and handle for market 
 anv and all of said substances ; to have, take, and remove said substances, 
 or any of them, from said premises, for the sole and exclusive use, benefit 
 and behoof of the said party of the second part, its successors or assigns ; 
 and also the full, free and perpetual right of ingress and egress therefrom 
 at reasonable and proper places, and rights of way upon and over the said 
 lands above described for the purposes herein provided, convenient and 
 necessary for the exercise of the rights hereby granted ; together with rea- 
 sonable rights of way for telephone and telegraph lines and for roads; 
 together with reasonable rights of way for pipe lines for conveying to, 
 from and across the lands hereinbefore described, oil, gas or water, or 
 other kindred substances wherever produced ; together with all necessary and 
 reasonable rights of location upon the lands above described, for wells, 
 derricks, rigs, hoisting works, tanks, pumps, engines, and other necessary 
 machinery, materials and supplies, and for houses, work shops, pumping 
 stations, and such buildings or structures as may be necessary or proper 
 for the proper exercise of the rights hereby granted. 
 
 Provided, however, that all pipe lines constructed upon said lands 
 for the purposes of any of the uses hereby authorized, or for the convey- 
 ance of any of the s-ubstances hereby granted, shall be buried in the soil 
 to such a depth and in such a manner that they will not interfere with the 
 cultivation of the soil, and that said pipe lines and telephone lines shall 
 always be so maintained and operated as not improperly to interfere with 
 or obstruct the cultivation of the land, or the use thereof for live-stock 
 purposes, or the passage thereover of persons or of live-stock. 
 
 Together with the right to the use of wnatever water may be de- 
 veloped from such wells as may be sunk by the party of the second part, 
 or its successors or assigns, for the purpose of exploring or taking from 
 said lands the said mineral products. 
 
 To have and to hold all the said property, and every part and parcel 
 thereof, with the appurtenances, unto the said party of the second part, its 
 successors and assigns, forever. 
 
 In witness whereof, the parties of the first part have hereunto set 
 their hands and seals the day and year herein first above written. 
 
 JOHN KINGSLEY. (Seal) 
 ELLA KINGSLEY. (Seal) 
 (Acknowledgment.) 
 
 We, the undersigned stockholders of the Blue Bird Oil Company, a 
 corporation, organized and existing under the laws of the State of Califor- 
 nia, and having a capital stock of Fifty Thousand Dollars ($50,000.00), 
 divided into 500 (Five Hundred) shares of the par value of One Hundred 
 
70 HOW TO BUY AND 
 
 Dollars ($100.00), each, and severally the owners and holders on the books 
 of said corporation of the number of shares of said corporation set oppo- 
 site our respective signatures, and together owning and holding more than 
 two-thirds of the entire issued and outstanding shares of said corporation, 
 do ratify, approve and confirm a certain deed, dated the tenth day of April, 
 1905, made by John Kingsley and Ella Kingsley to this corporation, where- 
 by this corporation acquired the additional mining ground therein described 
 and the rights and interests therein set forth for the consideration therein 
 mentioned ; and we do also hereby ratify and approve the act and acts of 
 the Board of Directors and officers of the said Blue Bird Oil Company in 
 the acquisition of the additional mining ground in said conveyance men- 
 tioned. 
 
 IN WITNESS WHEREOF, we have hereunto set our hands and seals this 
 nth day of April, 1905. 
 
 Name. No. of Shares. 
 
 F. X. BROWN, (Seal) 213 
 
 L. W. COYNE, (Seal) 5 
 
 SAMUEL SILENT, (Seal) 87 
 
 PETER PRIOR, (Seal) 112 
 
 ROGER BROWN, (Seal) 27 
 
 PRESTER JOHN, (Seal) 12 
 
 (Acknowledgments of Stockholders.) 
 
 I, the undersigned Secretary of the Blue Bird Oil Company, a cor- 
 poration, hereby certify that the capital stock of said corporation is di- 
 vided into Five Hundred (500) shares of the par value of One Hundred 
 Dollars ($100.00), each, aggregating Fifty Thousand Dollars ($50,000.00), 
 all of which has been issued and is now outstanding, and that the books of 
 said corporation show that the following persons are the owners and 
 holders of the number of shares of said stock set onnosite their respective 
 names, to-wit: 
 
 Name. No. of Shares. 
 
 F. X. BROWN, 213 
 
 L. W. COYNE, 5 
 
 SAMUEL SILENT, 87 
 
 PETER PRIOR, 112 
 
 ROGER BROWN, 27 
 
 PRESTER JOHN, 12 
 
 MANUEL MASON, 44 
 
 And that the persons whose names are signed to the foregoing rati- 
 fication, aggregating 456 shares, constitute more than two-thirds of the 
 issued and outstanding shares of the capital stock of said corporation. 
 
 WITNESS my hand and the seal of said corporation this nth day of 
 April, 1905. 
 (Corporate Seal) PRESTER JOHN, 
 
 Secretary of Blue Bird Oil Company. 
 State of California, County of Los Angeles, ss. 
 
 Qn this nth day of April, in the year of Our Lord, One Thousand 
 
REAL ESTATE: AT A PROFIT 71 
 
 Nine Hundred and Five, before me, Samuel Bristow, a Notary Public in 
 and for said County of Los Angeles, State of California, residing therein, 
 duly commissioned and sworn, personally appeared Prester John, known 
 to me to be the Secretary of the Blue Bird Oil Company and known to 
 me to be the person whose name is subscribed to the foregoing instrument, 
 and he acknowledged to me that he executed the same. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my 
 official seal the day and year in this certificate first above written. 
 (Notarial Seal) SAMUEL BRISTOW. 
 
 Notary Public in and for the County of Los Angeles, State of California. 
 
 FORM NO. 20. CERTIFIED COPY OF RESOLUTION OF COR- 
 PORATION, AUTHORIZING OFFICERS 
 
 TO EXECUTE DEEDS. 
 State of California, County of Los Angeles, ss. 
 
 If David Davis, do hereby certify that I am Secretary of the Union 
 Land Company, a corporation, organized and existing under the laws of 
 the State of California, and having its principal place of business in the 
 City of Los Angeles, County of Los Angeles, State of California; that at 
 A meeting of the Board of Directors of said corporation, which said meet- 
 ing was duly and regularly called in accordance with the by-laws of said 
 corporation, and held on the 6th day of February, A. D. 1905, a resolution, 
 of which the following is a full, true and correct copy, was duly passed, 
 adopted and concurred in, and appears of record' in the minute book of 
 said corporation as a part of the record of the minutes of said Board of 
 Directors held on the day last above mentioned, and is as follows, to-wit: 
 
 "RESOLVED, That the President, or in his absence or inability to act, 
 then the Vice President, of this corporation, Union Land Company, be, 
 and he is hereby, instructed, authorized, empowered and directed, in the 
 name of and on behalf of this corporation, and as its corporate act and 
 deed, to make, execute and deliver any and all deeds of property standing 
 in the name of or owned by this corporation; and that the Secretary of 
 this corporation be, and he is hereby, instructed, authorized, empowered 
 and directed to affix to the said deeds the corporate seal of this corpora- 
 tion and to attest the same by his signature; and the said President, or in 
 his absence or inability to act, then the said Vice President, and the said 
 Secretary, or any or either of them, are hereby authorized, instructed and 
 empowered to acknowledge, in the name and behalf of this corporation, 
 any and all such deeds so as to entitle the same to be recorded, and to do 
 and perform any other act or thing whatsoever, or cause the same to be 
 done, requisite or necessary to fully carry out the purposes of this reso- 
 lution according to the true intent and meaning of the same. Also 
 
 "RESOLVED, That the Secretary be, and he is hereby, instructed to 
 file a certified copy of this resolution, over his signature, with the corporate 
 seal affixed thereto, and duly acknowledged by him as the act of and in 
 behalf of this corporation, in the office of the County Recorder of the 
 County of Los Angeles, and in the offices of the County Recorders of such 
 
72 HOW TO BUY AND 
 
 other Counties wherein is situate any property belonging to this corpora- 
 tion." 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed 
 hereto the corporate seal of said corporation, Union Land Company, this 
 6th day of February, A. D. 1905. 
 (Corporate Seal) DAVID DAVIS, 
 
 Secretary of Union Land Company. 
 (Corporation Acknowledgment.) 
 
 FORM NO. 21 DEED TO BE IMMEDIATELY DELIVERED, BUT 
 RESERVING LIFE ESTATE. 
 
 This Indenture, made the ninth day of April, in the year of our Lord 
 one thousand nine hundred and five, between Henry Hatfield, of the 
 County of Los Angeles, State of California, the party of the first part, and 
 Hiram Hatfield, of the County and State aforesaid, the party of the sec- 
 ond part 
 
 Witnesseth, That the said party of the first part, for and in considera- 
 tion of the sum of Ten Dollars, Gold Coin of the United States of 
 America, to him in hand paid by said party of the second part, the re-i 
 ceipt whereof is hereby acknowledged, does by these presents, Grant, Bar- 
 gain and Sell, convey and confirm, unto the said party of the second part, 
 and to his heirs and assigns forever, all those certain lots, pieces or par- 
 cels of land situate, lying and being in the County of Los Angeles, State 
 of California, and bounded and particularly described as follows, to-wit: 
 
 (Description.) 
 
 Together with all and singular the tenements, hereditaments and ap- 
 purtenances thereunto belonging or in anywise appertaining, and the re- 
 version and reversions, remainder and remainders, rents, issues and profits 
 thereof : 
 
 To have and to hold all and singular the said' premises, together 
 with the appurtenances, from and after the death of the party of the first 
 part, unto said party of the second part, his heirs and assigns, forever; 
 reserving unto said party of the first part all and singular the said prem- 
 ises and each and every part thereof during the lifetime of said party of 
 the first part, for his sole use, benefit and behoof, with the right to have, 
 hold, occupy and enjoy the aforesaid premises, together with the rents, is- 
 sues, profits and proceeds arising therefrom, wholly free from the control, 
 interference, debts and liabilities of said party of the second part or any 
 other person whomsoever. 
 
 IN WITNESS WHEREOF, The said party of the first part has hereunto 
 set his hand and seal the day and year first above written. 
 
 HENRY HATFIELD. (Seal.) 
 
 ( Acknowledgment. ) 
 
 FORM NO. 22 GENERAL ACKNOWLEDGMENT. (CALIFORNIA.) 
 
 State of California, County of Los Angeles, ss. 
 
 On this thirteenth day of April, in the year of our Lord, One Thou- 
 sand Nine Hundred and Five, before me, Harry Henry, a Notary Public 
 
REAL ESTATE) AT A PROFIT 73 
 
 in and for said County of Los Angeles, State of California, residing there- 
 in, duly commissioned and sworn, personally appeared Lemuel Belding, 
 known to me to be the person described in and whose name is subscribed 
 to the foregoing instrument and he acknowledged to me that he executed 
 the same. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my 
 official seal the day and year in this certificate first above written. 
 (Notarial Seal) HARRY HENRY. 
 
 Notary Public in and for the County of Los Angeles, State of California. 
 
 FORM NO. 23 CORPORATION ACKNOWLEDGMENT. 
 
 (CALIFORNIA.) 
 State of California, County of Los Angeles, ss. 
 
 On this second day of February, A. D. 1903, before me, N. W. 
 Tilden, a Notary Public in and for the said County of Los Angeles, 
 State of California, duly commissioned and sworn, personally appeared 
 William H. Brown, known to me to be the President, and O. P. Carle, 
 known to me to be the Secretary of the Century Building Company, 
 said Company having its principal place of business in the said City 
 of Los Angeles and being one of the corporations that executed the within 
 instrument, and they acknowledged to me that such corporation executed 
 the same. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my 
 official seal the day and year in this certificate first above written. 
 (Notarial Seal) N. W. TILDEN. 
 
 Notary Public in and for the County of Los Angeles, State of California. 
 
 FORM NO. 24. PARTY PROVEN ON OATH OF CREDIBLE 
 WITNESS, AND ACKNOWLEDGMENT OF 
 
 PARTY. (CALIFORNIA.) 
 State of California, County of Los Angeles, ss. 
 
 On this twelfth day of April, in the year Nineteen Hundred and 
 Five, before me, Samuel Bristow, a Notary Public in and for the said 
 County of Los Angeles, State of California, residing therein, duly com- 
 missioned and sworn, personally appeared Lemuel Belding, proved to me 
 on the oath of Eugene Cowles, a competent and credible witness for that 
 purpose, by me duly sworn, to be the person described in, whose name is 
 subscribed to, and who executed the within instrument and acknowledged 
 to me that he executed the same. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my 
 official seal the day and year in this certificate first above written. 
 (Notarial Seal) SAMUEL BRISTOW, 
 
 Notary Public in and for the County of Los Angeles, State of California. 
 
 FORM NO. 25 ACKNOWLEDGMENT ATTORNEY-IN-FACT. 
 State of California, County of Los Angeles, ss. 
 
 On this tenth day of April, in the year Nineteen Hundred 
 and Five, before me, Samuel Bristow, a Notary Public in and for 
 
74 HOW TO BUY AND 
 
 said County of Los Angeles, State of California, residing therein, duly 
 commissioned and sworn, personally appeared E. J. Blair, known to me to 
 be the person whose name is subscribed to the within instrument, as the 
 attorney-in-fact of M. T. Brooks, and acknowledged to me that he sub- 
 scribed the name of M. T. Brooks thereto as principal, and his own name as 
 attorney-in-fact. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my 
 official seal the day and year in this certificate first above written. 
 (Notarial Seal) SAMUEL BRISTOW, 
 
 Notary Public in and for the County of Los Angeles, State of California. 
 
 FORM NO. 26 SUBSCRIBING WITNESS. 
 
 State of California, County of Los Angeles, ss. 
 
 On this tenth day of April s in the year Nineteen Hundred and Five, 
 before me, Samuel Bristow, a Notary Public in and for said County of 
 Los Angeles, State of California, residing therein, duly commissioned and 
 sworn, personally appeared Eben J. Blair, known to me to be the person 
 whose name is subscribed to the within and annexed instrument as a wit- 
 ness thereto, who, being by me duly sworn, deposed and said: That he 
 resides in the City of Los Angeles and that he was present and saw Willis 
 P. Lighthead, personally known to him to be the same person whose name 
 is subscribed to the within and annexed instrument, sign, seal and deliver 
 the same, and he acknowledged in the presence of said affiant that he ex- 
 ecuted the same; and that said affiant subscribed his name thereto as a 
 witness. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my 
 official seal the day ana year in this certificate first above written. 
 (Notarial Seal) SAMUEL BRISTOW, 
 
 Notary Public in and for said County and State of California. 
 
REAL ESTATE AT A PROFIT 75 
 
 CHAPTER VI. 
 
 MAKING A LOAN, INCLUDING EXECUTION OF MORTGAGES AND 
 DEEDS OF TRUST. 
 
 Lord Burleigh's Advice on Making a Loan Keeping Accounts with Banks 
 Applying For a Loan Cringing Applicants Receive Few Financial Favors Loans 
 From Building and Loan Associations Executing Mortgage or Trust Deed, and 
 Forms Thereof Two Short Rules For Computing Interest Reserving Right to Pay 
 Note Before Maturity Punctuality In Paying Interest Selling Mortgaged Property 
 Particulars Relating to the Execution, Assignment, Partial Release, Full Satisfaction, 
 Foreclosure and Redemption of Mortgages, and to the Execution and Re-Conveyance 
 of Trust Deeds. 
 
 Sec. 93. In regard to making a loan, the advice of Lord 
 Burleigh may not be amiss : "Borrow not money of a neigh- 
 bor, or a friend, but of a stranger, where, paying for it, thou 
 S'halt hear no more of it. Otherwise thou shalt eclipse they 
 credit, lose thy freedom, and yet pay as dearly as to another. 
 But in borrowing of money be precious of thy word, for he 
 that hath care of keeping days of payment is lord of another 
 man's purse." 
 
 Sec. 94. Every person who is accumulating capital will 
 find it to his. advantage to keep an account with some bank. 
 All monies received by him, should be deposited in the bank, 
 and all withdrawals made by means of checks. The bank thus 
 becomes his book-keeper, and he does not run the risk of los- 
 ing money or of making mistakes in counting it. In opening 
 an account with a bank, it is advisable to have a personal in- 
 troduction to the cashier from some friend known to the bank 
 officers. This is not necessary, however, if one has a consid- 
 erable sunn of money to deposit, as the money is the best refer- 
 ence. At the time the deposit is made, the depositor should 
 obtain a passbook in which to have his deposits entered up, and 
 a check book, with which to draw checks. 
 
 Sec. 95. In real estate deals, where the buyer cannot pay 
 the purchase price in full, in cash, and the seller will not take 
 back a mortgage, it becomes necessary for the buyer to make a 
 loan on the premises. He can obtain the money therefor from 
 a private individual or from a bank. Private parties oftentimes 
 desire a higher rate of interest, and are more difficult to deal 
 with, than is a bank. A national bank is not permitted to make 
 loans on real estate security, so that such loans, when not 
 
76 HOW TO BUY AND 
 
 made with private individuals, must be made with savings 
 banks, State banks or building and loan associations. 
 
 Sec. 96. Savings banks and building and loan associations 
 make loans in a systematic manner. The first step for the bor- 
 rower to take is to sign an application for a loan. (See Forms 
 Nos. 27 and 33.) In a booklet issued by a savings bank, occurs 
 this sentence: "You do the bank a favor when you ask for a 
 loan on good security." The application blank, when filled up 
 by the proposed borrower, will or ought to contain all of the 
 facts which the bank requires to prepare the papers, etc. In 
 an application blank, or a personal interview, the applicant 
 should not fear to tell the whole truth and it should be told 
 in as few words as possible. When the application has been 
 filed, the bank will send its appraiser to value the property and 
 report to the appraisal or loan committee. Real estate loans 
 require more time for investigation than do loans made on cer- 
 tificates of stock, bonds and other collateral securities. The 
 bank officials will advise the applicant when the committee 
 meets and when his application will be passed upon, and will 
 carefully guide the applicant through the necessary steps to 
 perfect the loan, if granted. One of these steps is the execu- 
 tion of a mortgage or deed of trust. In making his application 
 to the officers of the bank, the applicant should do so in a dig- 
 nified, business-like way. He who cringes, and pleads for fi- 
 nancial favors, creates an unfavorable impression. "The man 
 who cries when he comes to borrow, will cry when asked to 
 pay," said Stephen Girard, one of the early bankers of America. 
 
 Sec. 97. The bank makes no charge for appraising the 
 property nor for preparing the mortgage, note, etc. Some 
 banks charge for the acknowledgment ; others do not. The ap- 
 plicant must pay for recording the mortgage and for all ex- 
 penses connected with the loan, and bring down the certifi- 
 cate of title to show the property vested in the borrower, sub- 
 ject to the loan to the bank as a first lien. Some building 
 and loan associations charge an admission fee of $1.00 per 
 share for each $100 borrowed ; an appraisal fee for city prop- 
 erty of $3.00, and charge for the recording of the papers, and 
 an attorney's fee, where an abstract of title is furnished in- 
 stead of a certificate of title. Where the property is situate 
 
ESTATE AT A PROFIT 77 
 
 in the country, there must be added the expense incurred by 
 the appraiser in viewing the property. 
 
 Sec. 98. Buildings loans are more difficult to obtain than 
 are loans on improved or unimproved property, as there may 
 be occasion for trouble between the contractor and the me- 
 chanics, laborers or material men while the building is in pro- 
 cess of erection. In applying for such a loan, the borrower 
 must submit to the lender all plans, specifications and bonds 
 of the contractor connected with the building, and, in some 
 cases, building and loan associations require that the appraisal 
 and building committee of such association shall see that the 
 work is properly done and they audit the bills therefor, and see 
 that the proper completion notice is filed when the building 
 is completed. (See also Chapter on Homes and Homesteads.) 
 
 Sec. 99. Some banks will not loan on "key lots," (See 
 Sec. 60) nor on houses of less than four rooms, nor on "Cali- 
 fornia" houses. Before buying, it would be well for the in- 
 tending borrower to ascertain what the rules are, if any, in 
 regard to loans of the bank fromi which he intends to borrow. 
 Banks usually will not loan over fifty per cent of the value of 
 city improved property, and not over forty per cent of the 
 value of desirable vacant city property; and about $100.00 to 
 $150.00 per acre on country lands worth from $700 to $1000 
 per acre ; the values in each case being fixed by the appraiser 
 of the bank. 
 
 Sec. loo. If the application is granted, the borrower is re- 
 quired to execute a note and mortgage in form required by 
 the lender, and to furnish, at expense of borrower, a certificate 
 or abstract of title, and a transfer of the policy of insurance, 
 if the premises are insured, and have a "mortgage clause" 
 attached. 
 
 Sec. 101. The mortgage, the note, the certificate of title 
 or abstract, and the policy of insurance, if the premises are im- 
 proved, remain with the lender while the loan is in force. 
 
 Sec. 102. Two short-cut rules for computing interest : 
 
 (i.) Reduce the time to days. Multiply the principal by 
 the number of days, and for 5 per cent divide by 72 ; for 6 per 
 cent, by 60 ; for 7 per cent by 52 ; for 8 per cent by 45, and for 
 9 per cent by 60. Example : What is the interest on $5,000 for 
 
78 HOW TO BUY AND 
 
 65 days at 6 per cent. Solution: 5000 times 65 equals 325,000; 
 325,000 divided by 60 equals $54.17. 
 
 (2.) Reduce the time to days. Place the amount, the 
 rate and the time in days above the line, and the figures 3, 3, 4 
 below, thus: 
 
 $5000 65 6% 
 
 334 
 
 Eliminate factors by cancellation. Then multiply together 
 the figures above the line and divide by the product of the 
 figures below the line. 
 
 In either of above rules, if principal is in even dollars, 
 point off three decimal places ; if in dollars and cents, point off 
 five decimal places; the result will be the amount of the in- 
 terest in dollars, or in dollars and cents, as the case may be. 
 
 One of the above methods may be used to verify the 
 other, or to verify interest figured by any other method. 
 
 Sec. 103. The maker of a note may reserve the right to 
 pay it off at any time before maturity by paying a bonus of 
 interest. This may be stated in the note as follows : "I hereby 
 reserve the right to pay this note at any time before maturity 
 by paying the principal, accrued interest, and thirty days ad- 
 ditional interest as a bonus." 
 
 Sec. 104. Where a mortgage is given by the purchaser 
 to the seller as a part of the purchase price, it is proper 
 to insert in the mortgage these or equivalent words: "This 
 mortgage is given to secure the balance of the purchase price 
 for the above described premises." This is called a "purchase 
 money mortgage," and imports on its face its full considera- 
 tion, and the title companies will pass such a mortgage even 
 though it be on community property and be signed by the hus- 
 band only. 
 
 iSec. 105. Where property encumbered by a mortgage is 
 sold to a person who assumes the mortgage, such assumption 
 by the purchaser should be set forth in the deed conveying the 
 property in express words, so that there cannot be any room 
 for misunderstanding. (See Form No. 13-!-!.) 
 
 Sec. 106. The borrower should be very punctual in pay- 
 ing the interest on his loan. Building and loan associations 
 require payment of interest and a payment on account of the 
 
REAL, ESTATE AT A PROFIT 79 
 
 principal, to be made monthly; but whenever he can do so, the 
 borrower should make his interest payable quarterly. If made 
 payable annually, or semi-annually, the borrower has to ac- 
 cumulate and keep on hand monies with which to meet the in- 
 terest for too long a time; quarterly payments on the whole 
 will best mieet the requirements of every one. Interest is not 
 payable in advance, but for time past. Banks, as a rule, notify 
 borrowers of the amount and date when interest payments be- 
 come due. (See Form No. 30.) The borrower should not de- 
 pend on receiving the notice, as a bank will occasionally over- 
 look sending it out ; he should have a memorandum of the ex- 
 act amounts and precise dates when the several interest pay- 
 ments will fall due during the continuance of the loan and 
 meet such payments punctually on that day or the day next 
 preceding. The payments of interest, and of principal, are 
 endorsed on the note. 
 
 Sec. 107. Of Mortgages. 
 
 (i.) A mortgage is a contract by which a specific prop- 
 erty is hypothecated for the future performance of an obliga- 
 tion, without the necessity of change of possession. 
 
 (2.) Any interest in real property which is capable of 
 being transferred, may be mortgaged. 
 
 (3.) A mortgage does not entitle the mortgagee to the 
 possession of the property, unless authorized by the express 
 terms of the mortgage. 
 
 5(4.) A mortgage can be created, renewed, or extended, 
 only by a written instrument, executed with the formalities re- 
 quired in the case of a deed. 
 
 (5.) A mortgage is a lien upon everything that would 
 pass by a conveyance of the same property. In California, 
 mortgages on personal property are limited to such articles 
 as are specified in the Civil Code, growing crops, grapes and 
 fruit being among the properties enumerated. The lien on a 
 mortgage on a growing crop continues on the crop after sever- 
 ance from the land, whether the crop remains in its original 
 state or is converted into another product, so long as the same 
 remains on the land of the mortgagor. The following has 
 been held to be a good and sufficient description in a mortgage 
 on growing crops : 
 
 "All of the crops and products of whatever nature, which 
 
80 HOW TO BUY AND 
 
 are now .standing or growing, or which shall or may hereafter 
 at any time be sown, planted, cut or harvested by the said 
 party of the first part during the continuance of this mortgage, 
 on the following described lands and premises, situate, lying 
 and being in the County of Santa Cruz, State of California, 
 bounded and particularly described as follows, to wit :" 
 
 (6.) A mortgage of personal property, in California, is 
 void as against creditors of the mortgagor and subsequent pur- 
 chasers and incumbrancers of the property in good faith and 
 for value, unless such mortgage is accompanied by the affidavit 
 of all the parties thereto that it is made in good faith and with- 
 out any design to hinder, delay or defraud creditors, and is ac- 
 knowledged, certified and recorded in like manner as a deed. 
 (See Form No. 38.) A personal property mortgage must 
 be recorded in the office of the County Recorder of the county 
 where the mortgagor resides at the time of making the mort- 
 gage, and if the property is situate in another county, also in 
 the office of the County Recorder of that county, or of the 
 county to which such property is removed. 
 
 (7.) Mortgages are executed, acknowledged, delivered 
 and recorded the same as deeds. A mortgage should be re- 
 corded the same day the mortgagee receives it. If there is a 
 "homestead" (See Chapter on Homes and Homesteads) on the 
 property, and it is owned by a married person, it cannot be 
 mortgaged or conveyed unless the instrument is signed and 
 acknowledged by both husband and wife. 
 
 (8.) A mortgage may be assigned. The holder of the 
 mortgage may make an assignment in writing, and such in- 
 strument, when recorded in like manner as the mortgage, oper- 
 ates as notice to all persons subsequently deriving title to the 
 mortgage from the assignor. (See Form No. 32.) A transfer 
 of the note carries with it the security, as the mortgage is the 
 incident to the debt. 
 
 (9.) The mortgagee must pay the taxes on the mortgage 
 under the California law. For a full explanation on this point 
 see Chapter on Escrows. 
 
 (10.) The borrower of a thing for use must bear all of 
 its expenses during the loan ; and so where the mortgaged 
 premises are improved, the mortgagor is required to keep the 
 
ESTATE) AT A PROFIT 81 
 
 premises insured for the benefit of the mortgagee as the in- 
 terest of the latter in the property may appear. 
 
 (n.) A mortgage which has been recorded, when paid, 
 may be discharged of record in one of two ways, namely : By 
 an entry on the margin of the record book, signed by the mort- 
 gagee or his assignee, acknowledging satisfaction of the mort- 
 gage in the presence of the County Recorder, or by an instru- 
 ment of partial release (See Form 29), or of full satisfaction 
 (See Form No. 31), either of which must be recorded at length. 
 
 (12.) The forms of mortgage (See No. 28) in use 
 usually provide that if any installment of interest or of 
 principal remains unpaid for a certain time, or if the mortgagor 
 makes breach of any condition contained in the mortgage, the 
 holder of the mortgage may, at his option, commence suit for 
 the foreclosure of the mortgage and recovery of the property. 
 If the mortgage is not renewed or extended at maturity, and 
 is not paid, the holder, of course, may commence suit for fore-- 
 closure. The time in which suit may be commenced after de- 
 fault or maturity varies in different States. In California, such 
 suit must be commenced within four years. If not commenced 
 within the time limited, the mortgage "outlaws;" that is, the 
 statute of limitations goes into effect, and no action can then 
 be brought to foreclose the mortgage. In case of suit, the mort- 
 gagee has to bear the costs of foreclosure. If suit is deter- 
 mined in favor of the holder of the mortgage, a sale of the 
 premises is ordered by the court; the officer making the sale 
 (usually the Sheriff) must give the purchaser a certificate of 
 sale, and file a duplicate thereof in the office of the County Re- 
 corder. The certificate of sale can be assigned. Sales had un- 
 der powers given in mortgages or trust deeds are scrutinized 
 with great care by the courts, .as such sales are harsh methods, 
 and will not be sustained unless conducted in all fairness and 
 integrity. One action only can be maintained for the recovery 
 of a debt or enforcement of a right secured by mortgage on 
 real estate or personal property, .and such action must first ex- 
 haust the security, and if that is not sufficient to pay the debt, 
 then a deficiency judgment may be entered against the mort- 
 gagor by the court. Where a note was endorsed originally or 
 by way of transfer, if the security is not sufficient to extinguish 
 
82 HOW TO BUY AND 
 
 the debt, a separate suit can be maintained against the endorser 
 for the deficiency. 
 
 (13.) All property, except personal property and leases, 
 having less than two years to run, may be redeemed, in Califor- 
 nia, within twelve months after the decree of foreclosure has 
 been entered. The right to redeem is called the equity of re- 
 demption and may be exercised by any one who has an equi- 
 table or legal lien upon the property. The redemptioner must 
 pay the purchaser the amount paid by the latter, together with 
 one per cent per month thereon to date of redemption, and as- 
 sessments and taxes paid by such purchaser, and interest 
 thereon. The mortgagor has the right to remain in possession 
 of the mortgaged premises, if he is occupying same, during the 
 foreclosure proceedings and until the right of redemption has 
 been exercised or has expired. 
 
 Sec. 108. Of Trust Deeds, 
 
 (i.) A trust deed is a conveyance by one party, called the 
 trustor, to a second party, called the trustee, as security for 
 the performance by the first party of an obligation in favor 
 of a third party, called the beneficiary. Such a deed authorizes 
 the second party, upon default of the first party to meet the 
 conditions of the deed, to sell the property and apply the pro- 
 ceeds to the secured obligation. The names of the beneficiaries 
 are not always expressed in the deed, as where such a deed is 
 given to secure corporate bonds. Such a deed conveys the 
 legal title to the trustee, to enable the latter to convey the prop- 
 erty in the event it is sold upon the default of the trustor. (See 
 Form No. 34.) (When the secured boligation has been sat- 
 isfied, the property is re-conveyed by the trustee to the trus- 
 tor. (See Form No. 35.) 
 
 (2.) Declarations of Trust are made for various pur- 
 poses, such purposes being set forth at length in the declara- 
 tion. (See Subdivisions.) 
 
 FORM NO. 27 APPLICATION FOR A LOAN SAVINGS BANK. 
 
 APPLICATION FOR LOAN. 
 
 I do hereby apply to the Security Savings Bank of Los Angeles, Cal., 
 for a loan of Two Thousand Dollars ($2,000) for a term of three years, 
 at 6 per cent interest per annum, to be paid quarterly from the date of 
 signing note and mortgage. 
 
 To be secured by a first mortgage upon the following described real 
 
ESTATE AT A PROFIT 83 
 
 estate, situated in the City of Los Angeles, County of Los Angeles, State 
 of California, to-wit: Lot 376 of the Alexandre Weill Tract, as per map 
 recorded in Book 26, page 85, Miscellaneous Records of Los Angeles 
 County, having a frontage of 50 feet by 160 feet in depth, situated on the 
 west side of Central Street, between I4th and I5th Streets, House No. 1402. 
 For the purpose of securing said loan I hereby make the following 
 statements and answers : Buildings and improvements on said property 
 are one 8-room house. Cash value of the land is $3,000. Value of build- 
 ings is $2,500. Total $5,500. If leased, on what terms? $35 per month. 
 Are there any mortgages or other liens against the property? If so, de- 
 scribe them. None. In whom is title vested? In undersigned. How 
 long have you owned the property? Two years. Name of applicant and 
 wife. M. C. Cuddeback, unmarried. Who is in possession? James How- 
 ard. Under what kind of an agreement? Lease for two years from Janu- 
 ary i, 1905. Is the property a homestead? No. Give date of com- 
 pletion of latest improvement. Two years since. Has notice of com- 
 pletion of improvement been recorded? It was. 
 
 It is understood by me that the taxes referred to by the Constitution 
 and Revenue Laws of the State of California, referring to the payment by 
 mortgagees of taxes assessed against them as owners of real estate, are 
 only those general taxes assessed and collected for the support and main- 
 tenance of government, state, county and city or town. That all other 
 taxes and assessments, including those levied or assessed for the opening, 
 widening, grading, regrading and the improvement of streets, roads, high- 
 ways ; for the construction of sidewalks, sewers, and for school houses and 
 for the support of schools, and those taxes levied by irrigation districts, 
 are properly to be paid by me and not by the mortgagee, and I hereby de- 
 clare that in case of the loan being applied for, being made by me, I will 
 pay and discharge before delinquency, with my own money, and without 
 expectation of reimbursement, all special taxes and assessments as here- 
 inbefore mentioned that may be assessed against you on my property, ex- 
 cept those for the support and maintenance of state, county and city 61? 
 town government. 
 
 And I hereby agree to furnish a complete certificate of the title of my 
 property acceptable to you at my expense ; also to pay expense of acknowl- 
 edgments and recording, and to permit the Title Papers to remain with the 
 Security Savings Bank during the existence of the loan. I also agree to 
 have the property insured in any company you may select in the sum of 
 $2,500 and deliver to you the policies. 
 
 You are hereby authorized to pav all liens and taxes out of the pro- 
 ceeds of the loan. 
 
 Dated, April 2d, 1904. 
 
 M. C. CUDDEBACK, (Seal) 
 Address, 1306 Santee Street. Telephone, Home 1131. 
 
 FORM NO. 28 MORTGAGE AND MORTGAGE NOTE. 
 THIS MORTGAGE, Made the thirteenth day of April, in the year of our 
 Lord, One Thousand Nine Hundred and Four, by M. C. Cuddeback, an 
 
84 HOW TO BUY AND SEU, 
 
 unmarried man, of the City and County of Los Angeles, State of Cali- 
 fornia, Mortgagor, to the Security Savings Bank, a corporation duly 
 organized under the laws of the State of California, and having its 
 place of business at the City of Los Angeles (which fact is hereby ebc- 
 pressly admitted), Mortgagee; 
 
 WITNESSETH, That the Mortgagor hereby mortgages to the Mort- 
 gagee, all that certain real property situate in the City of Los Angeles, 
 County of Los Angeles, State of California, and particularly described as 
 follows : 
 
 Lot Three Hundred and Seventy-six (376), of the Alexandre Weill 
 Tract, in the City of Los Angeles, County of Los Angeles, State of Cali- 
 fornia, as per map recorded in Book 26, Page 85, Miscellaneous Records 
 of said County, including all buildings and improvements thereon, or that 
 may be erected thereon; together with all and singular the tenements, 
 hereditaments and appurtenances thereunto belonging or in anywise apper- 
 taining, and the reversion and reversions, remainder and remainders, rents, 
 issues and profits thereof; for the purpose of securing the promises and ob- 
 ligations of this mortgage and the payment of a promissory note in words 
 and figures as follows : 
 $2,000.00. Los Angeles, California, April 13, 1904. 
 
 Three (3) years after date, and for value received, I promise to pay 
 to the Security Savings Bank, or order, at its office in the City 
 of Los Angeles, the sum of Two Thousand ($2,000.00) Dollars, with 
 interest from date until paid at the rate of nine (g%) per cent, per annum, 
 payable quarterly. Should the interest not be so paid, it shall become a 
 part of the principal and thereafter bear like interest as the principal. 
 Should default be made in the payment of any installment of interest when 
 due, then the whole sum of principal and interest shall become immedi- 
 ately due and payable at the option of the holder of this note. Principal 
 and interest payable in gold coin of the United States. This note is se- 
 cured by a mortgage of even date herewith. 
 
 M. C. CUDDEBACK. 
 
 The Mortgagor agrees to pay, as soon as due, all taxes, assessments 
 and incumbrances whatsoever, which may be, or appear to be, liens upon 
 said property or any part thereof (except taxes levied or assessed upon 
 this mortgage or upon the money secured hereby), and to keep said build- 
 ings insured against fire, to the amount required by, and in such insurance 
 companies as may be satisfactory to, the Mortgagee and to assign 
 the policies therefor to the Mortgagee; and to promptly pay or settle (or 
 cause to be removed by suit or otherwise) all adverse claims against said 
 property. 
 
 In case said taxes, assessments or incumbrances be not so paid, 
 or said buildings so insured and said policies so assigned, or said adverse 
 claims so paid, settled or removed, then the Mortgagee, being hereby 
 made the sole judge of the legality thereof, may without notice to the mort- 
 gagor, pay such taxes, assessments or incumbrances, obtain such policies 
 of insurance in its own name as Mortgagee, and pay or settle any or al! 
 
ESTATE AT A PROFIT 85 
 
 such adverse claims or cause the same to be removed by suit or otherwise. 
 The Mortgagor agrees to keep said property in good condition and 
 repair and to permit no waste thereof, and should said property, or any 
 part thereof, require any inspection, repair, cultivation, irrigation or pro- 
 tection, other than that provided by the Mortgagor, then the Mortgagee, 
 being hereby made the sole judge of the necessity therefor, and without 
 notice to the Mortgagor, may enter, or cause entry to be made, upon said 
 property, and inspect, repair, cultivate, irrigate or protect said property as 
 it may deem necessary. All sums expended by the Mortgagee in doing 
 any of the things above authorized, shall be secured hereby and shall be 
 paid to the Mortgagee by the Mortgagor in said gold coin, on demand, 
 together with interest from the date of payment, at the same rate of inter- 
 est (compounded monthly, until repaid), as is provided to be paid in the 
 t!ote hereinbefore set out. 
 
 In the event of a loss under said policies of fire insurance, the amount 
 collected thereon, if any, shall be credited first to the interest due, if any, 
 on said indebtedness, and the remainder, if any, shall be credited on the prin- 
 cipal sum, and interest shall thereupon cease on the amount so credited on 
 s^id principal sum. 
 
 The Mortgagor nromises to pay said note according to the terms and 
 conditions thereof; and in case of default in the payment of the same, or 
 of anv installment of interest thereon when due, or in the performance of 
 any of the covenants or agreements herein contained on ^the part of the 
 Mortgagor, the whole sum of money then secured by this mortgage shall 
 become immediately due and payable at the option of the holder of said 
 note and this mortage may thereupon, or at any time during such default, 
 be foreclosed, and the filing of the complaint in foreclosure shall be con- 
 clusive of the exercise of such option by the Mortgagee without any other 
 notice thereof to said Mortgagor. 
 
 In case any action be brought to foreclose this mortgage, the Mort- 
 gagor agrees to pay all costs and expenses thereof, including a reasonable 
 sum to be fixed by the Court, as attorney's fees whether suit progress to 
 judgment or not ; also such sums as said Mortgagee may pay for searching 
 the title to the mortgaged property subsequent to the date of record of 
 this mortgage, or for surveying said property and said attorney's fees, and 
 all sums so paid or expended shall become due upon filing of the complaint, 
 shall be secured 'hereby and shall be repaid to the Mortgagee in said gold 
 
 . TT-TI 
 
 com. 
 
 In any such action to foreclose this mortgage a Receiver shall, upon 
 application of the plaintiff therein, and without notice to the Mortgagor, be 
 appointed bv the Court to take charge of said property, to receive and col- 
 lect the rents, issues and profits thereof, and apply them to the payment of 
 the taxes which m?y be due or become due during the pendency of the 
 action and until sale be finally made, and to the costs and commissions of 
 the Receiver, in a reasonable sum to be fixed by the Court, and to any defi- 
 ciency which may remain after the property shall have been sold. 
 
 It is also agreed that should this mortgage be foreclosed, then in the 
 
86 HOW TO BUY AND SELL 
 
 decree of foreclosure entered in such action, the property described there- 
 in may be ordered sold en masse or as one lot or parcel and not as sev- 
 eral parcels, at the option of the Mortgagee. 
 
 The Mortgagor also hereby mortgages the property hereinbefore 
 described, to secure every promise and agreement herein contained, direct 
 or conditional, and guarantees and affirms that said property is now free 
 from any secret equities, trusts or incumbrances made or suffered by, or 
 known to, said Mortgagor. 
 
 Every stipulation, agreement and appointment herein in favor of 
 said Mortgagee, shall apply and inure to the benefit of its successors or 
 assigns. 
 
 WITNESS the hand and seal of said Mortgagor the day and year first 
 above written. 
 
 M. C. CUDDEBACK, (Seal) 
 
 (Acknowledgment.) 
 FORM NO. 20 PARTIAL RELEASE OF MORTGAGE. 
 
 PARTIAL RELEASE OF MORTGAGE. 
 
 IN CONSIDERATION of the payment of Eight Hundred ($800.00) Dol- 
 lars, Gold Coin, part of the money secured by a certain mortgage, dated 
 April I3th, 1904, made by M. C. Cuddeback, of the Citv and County of 
 Los Angeles, State of California, to the Security Savings Bank, a 
 cornoration, duly organized under the laws of the State of California, and 
 having its place of business in the City of Los Angeles, and recorded on 
 the 21 st dav of April, 1904, in Book 1010 of Mortgages, at page 234, Los 
 Angeles County Records, the following described property is hereby re- 
 leased and discharged from the lien of said mortgage, to-wit : Lot Three 
 Hundred and Seventy-six (376), of the Alexandre Weill Tract, in the City 
 of Los Angeles, County of Los Angeles, State of California, as per map 
 recorded in Book 26, page 85, Miscellaneous Records of said County. And 
 the rest of said land in said mortgage specified remaining as security to 
 the said Mortgagee as heretofore. 
 
 IN WITNESS WHEREOF, The said SECURITY SAVINGS BANK 
 has caused these presents to be duly signed by its Vice-President and its 
 Secretary, and has caused its corporate seal to be hereunto affixed this 
 I5th dav of September, 1904. 
 (Corporate Seal) SECURITY SAVINGS BANK. 
 
 By Vice-President. 
 
 And Secretary. 
 
 (Corporate Acknowledgment.) 
 
 FORM NO. 30 INTEREST NOTICE. 
 
 SECURITY SAVINGS BANK. 
 
 Los Angeles, Cal., July 3d, 1904 
 M. C. Cuddeback, Esq., 1306 Santee Street, City. 
 
 Dear Sir : There will be due on July 13, 1904, interest to the amount 
 
REAL ESTATE AT A PROFIT 87 
 
 of $30 on your note in the sum of $2,000, dated April 13, 1904, in favor of 
 this bank. Please bring this notice with you. 
 
 Yours respectfully, 
 No. 3570 SECURITY SAVINGS BANK. 
 
 FORM NO. 31 FULL SATISFACTION OF MORTGAGE. 
 
 KNOW ALL MEN BY THESE PRESENTS : That M. T. Brooks does hereby 
 certify and declare that a certain mortgage, bearing date the 3d day of 
 March, 1904, made and executed by Amos Judd, the party of the first part 
 (therein, to M. T. Brooks, the party of the second part therein, and re- 
 corded in the office of the County Recorder of the County of Orainge, 
 State of California, in Book 44 of Mortgages, at page 123, on the 3d day 
 of March, 1904, together with the debt thereby secured, is fully paid, sat- 
 isfied and discharged. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and seal the 2d 
 day of March, one thousand nine hundred and five. 
 
 M. T. BROOKS. (Seal) 
 (Acknowledgment.) 
 
 FORM NO. 32 ASSIGNMENT OF MORTGAGE. 
 
 KNOW ALL MEN BY THESE PRESENTS: That E. J. Troxler, of the 
 County of Orange, State of California, the party of the first part, for and 
 in consideration of the sum of Ten Dollars, Gold Coin of the United States 
 of America, to him in hand paid by Oscar A. Taylor, of the County and 
 State aforesaid, the party of the second part, the receipt whereof is here- 
 by acknowledged, does by these presents, grant, bargain, sell, assign, 
 transfer and set over, unto the said party of the second part, a certain 
 Indenture of Mortgage, bearing date the I2th day of June, one thousand 
 nine 'hundred and four, made and executed by George W. Young, Mort- 
 gagor, to said E. J. Troxler, Mortgagee, and recorded on the I3th day of 
 June, 1004, in Book 46 of Mortgages, at page 21, in the office of the County 
 Recorder of the County of Orange, State of California, and securing the 
 payment of one certain promissory note (a copy of which is set forth in 
 said mortgage) in the sum of $1,000, bearin^ date the said I2th day of 
 June, 1904, and payable two years after date with interest at rate of g% 
 per annum, together with the note therein described, and the money due, 
 and to grow due thereon, with the interest. 
 
 To have and to hold the same unto the said party of the second part, 
 and to his executors, administrators and assigns, for his and their use 
 ana benefit; subject only to the proviso in the said Indenture of Mort- 
 gage mentioned. And the said party of the first part does hereby make, 
 constitute and appoint the said party of the second part his true and law- 
 ful attorney, irrevocable, in his name or otherwise but at the proper costs 
 and charges of the said party of the second part, to have, use and take all 
 lawful ways and means for the recovery of the said money and interest; 
 and in case of payment, to discharge the same as fully as the said party 
 of the first part might or could do if these presents were not made. 
 
 IN WITNESS WHEREOF, The said party of the first part has hereunto 
 
88 HOW TO BUY AND 
 
 set his hand and seal the 2Oth day of November, in the year of our Lord, 
 one thousand nine hundred and four. 
 
 E. J. TROXLER. (Seal) 
 Signed, sealed and delivered in the presence of 
 
 (Acknowledgment. ) 
 
 FORM NO 33 APPLICATION FOR A LOAN BUILDING AND 
 
 LOAN ASSOCIATION. 
 
 LOAN NO 
 
 To the Board of Directors of the State Mutual Building and Loan Asso^ 
 
 elation, of Los Angeles, California: 
 
 GENTLEMEN: I desire to obtain from your Association a loan of 
 
 Fifteen Hundred Dollars upon stock of the Association, secured by first 
 
 mortgage or deed of trust upon real estate hereinafter described, situated 
 
 in the City of Los Angeles, County of Los Angeles, State of California: 
 
 (Here give description of Property by Lot and Block, etc.) 
 
 Lot 378 of the Alexandre Weill Tract. Title now vested in me. 
 
 Address Present incumbrance and amount? $2000. Interest on 
 
 same paid to what, date? June 15, 1903. For what purpose will this 
 money be used? To retire present loan. Has a declaration of home- 
 stead been made? No. Occupation, Capitalist. Age Married, 
 
 No. Full name of wife or husband. (When application made by wife 
 give husband's name, occupation and age here.) How much per month 
 
 do you wish to pa" on this loan? $ No. Shares Is your 
 
 financial condition such that you can make the required monthly pay 
 ments? Yes. From what source does Applicant expect to receive money 
 to meet monthly payments of dues? From rentals. Is any one other 
 than Applicant in possession of any part of the premises? Yes. If so, 
 give name, and state by what right such person is in possession. James 
 Boyd ; under written lease. 
 
 FOR CITY OR TOWN PROPERTY. 
 
 On what street? Sixth Street. Between Gladys and Crocker. Size 
 of ground, 60x125. Street number of building? 723. Do you occupy 
 the premises? No. Is it rented? Yes. How much per month? $80. 
 What would it rent for per month? Distance from business center? Six 
 blocks. Describe surroundings (vis: business houses, residences, etc.) 
 Business and residences. Is the street graded and macadamized, or 
 paved? Not paved. Is the town incorporated? Yes. Is the property 
 in the corporate limits? Yes. Distance to street car? On line. Dis- 
 tance to railway depot? Five blocks. Give any further particulars as 
 
 specified above. Value of land $3000. Improvements, to go on $ 
 
 Improvements, now on, $3500. Total, $6500. Is any building in pro- 
 cess of erection? No. Is any contracted for? No. What is the con- 
 tract price? $ What amount of insurance will you carry? $3000. 
 
 House now on (or to go on) stories rooms. Number of rooms 
 
 or other improvements to be added to present house? None. Size of 
 
RAL ESTATE AT A PROFIT 
 
 89 
 
 house? 40x65. How finished inside? Pine. Any barn? No. Size of 
 
 barn For what purpose is the property used? Apartments. What 
 
 is the water supply? City water. 
 
 J I 
 
 DIAGRAM or LOCATION. 
 
 NORTH. 
 
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 Stroot 
 
 
 
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 Mark the lot on this 
 plat in reference to the 
 direction in which it 
 fronts, and the names of 
 the streets which sur- 
 round the block. 
 
 SOUTH. 
 
 ir 
 
 I hereby agree to assign to this Association one or more shares of 
 its capital stock for every One Hundred Dollars I borrow, and I will 
 furnish at my own expense a complete and acceptable Abstract, or Certifi- 
 cate of Title, to the property, and will pay all necessary expenses con- 
 nected with the loan (including the charges of counsel for examining title 
 if an abstract is furnished), and as long as I have the loan I will carry 
 fire insurance of such an amount and in such companies as is required 
 by the association, with the clause attached, "Loss if any payable to them 
 as their interest may appear," and if by reason of any defect in the title, 
 or change of circumstances, this loan is not taken by me after this appli- 
 cation is accepted, I will pay the Association the amount of the Appraisal 
 Fee, and any money expended on my account. I FURTHER DECLARE THAT 
 THE ANSWERS WRITTEN IN THIS APPLICATION ARE TRUE. 
 
 (Signed) ELIZA DONOVAN, 
 
 918 W. 23d Street, 
 
 Los Angeles, Cal. 
 Dated, June 3d, 1903. 
 
 To AGENTS OR APPLICANTS : The Appraisal Fee should be paid in 
 advance and handed with this application to your Appraisal Committee. 
 
 REPORT OF APPRAISAL COMMITTEE. 
 
 (Please answer all Questions; ansivers ivill be strictly confidential.) 
 (Appraiser will return this application direct to the Home Office, 141 
 
 South Broadway, Los Angeles, Cal.) 
 
 Having examined all the property herein described, we estimate the 
 value as follows: 
 
90 HOW TO BUY AND SELL 
 
 Ground - $ 
 
 Buildings now on property $ 
 
 Other improvements consisting of $ 
 
 Buildings to be erected or improvements to go on $ 
 
 From what source are damages to be apprehended ? 
 
 To what extent may depreciation of value be expected ? 
 
 Is property in the vicinity selling? At what price? 
 
 Is this saleable property ? 
 
 Distance from business center ? 
 
 WHAT is APPLICANT'S REPUTATION FOR PAYING His DEBTS ? 
 
 Can applicant meet the required monthly payments ? '. 
 
 Has applicant intemperate or other bad habits ? 
 
 Of what race is applicant? 
 
 Condition of improvements 
 
 Is the property in a good location ? 
 
 What would it rent for per month ? 
 
 For what amount would you recommend a loan ?. . .; 
 
 REMARKS. 
 
 [Appraisal Committee cannot be too particular in giving us the full- 
 est data not only as to the material, but also as to the moral risk of 
 a loan. We do not want to make any loans, no matter how good the se- 
 curity, where there is any probability of our having ultimately to take the 
 property. Please give us here any information, not covered by the above, 
 which may be useful to us in considering the application.] 
 HAS THE APPRAISAL FEE BEEN PAID ? 
 
 Committee. 
 Date 190 
 
 FORM NO. 34 DEED OF TRUST TO SECURE NOTE. 
 
 THIS DEED OF TRUST, Made this loth day of June, Nineteen Hundred 
 and Three, between Eliza Donovan, an unmarried woman, of Los Angeles, 
 California, the party of the first part, and the Title Insurance & Trust 
 Company, a corporation, party of the second part, and the State Mutual 
 Building and Loan Association, a corporation, partv of the third part. 
 
 WITNESSETH : That, whereas, the said first party has borrowed of 
 the said third party certain moneys in Gold Coin of the United States 
 and has agreed to repay the same with interest in the manner and at the 
 time mentioned in that certain promissory note of which the following is 
 a copy, to-wit: 
 $1300 Los ANGELES, CAL., June 10, 1903. 
 
 On or before nine years after date, without grace, for value received, 
 I promise to pay to the State Mutual Building and Loan Association, a 
 corporation, or order, at its office in the City of Los Angeles, County of 
 Los Angeles, State of California, the sum of Thirteen Hundred Dollars, 
 
REAL ESTATE AT A PROFIT 91 
 
 with interest thereon from the date hereof, at the rate of twelve per 
 cent, per annum, and in addition thereto the sum of $7.80 monthly dues; 
 all of said sum of interest and dues to be paid monthly on the first day 
 of each and every month, from the date hereof; and in default ot any of 
 such payments on or before the tenth day of the month in which the same 
 becomes due, I agree to pay the sum of $1.30 for each month of such 
 delinquency, as a fine; and should interest and dues not be paid monthly, 
 then the whole sum of principal, interest, dues and such fines shall be- 
 come immediately due and payable at the option of the holder of this 
 note. All of such payments to be made in Gold Coin of the United States. 
 This note is secured by a Deed of Trust of even date herewith. 
 
 ELIZA DONOVAN. 
 
 Now, THEREFORE, THIS INDENTURE WITNESSETH : That the said 
 party of the first part, in consideration of the aforesaid indebtedness to 
 the partv of the third part and of One Dollar to her in hand paid by the 
 narty of the second part, the receipt whereof is hereby acknowledged; 
 and for the purpose of securing the payment of said promissory note, 
 and of any sum or sums of money, with interest thereon, that may be paid 
 or advanced by, or may otherwise be due to, the party of the second or 
 third p^rt under the provisions of this Instrument, does by these presents 
 grant, bargain, sell, convey and confirm unto the party of the second part, 
 and to its successors and assigns, that piece or parcel of land situate 
 in the City of Los Angeles, County of Los Angeles, State of California, 
 described as follows: 
 
 Lot Three Hundred Seventy-eight (378) of the Alexandra Will 
 Tract, as per map recorded in Book 26, pages 85 and 86, Miscellaneous 
 Records of said County. 
 
 To HAVE AND TO HOLD the same with all appurtenances to the party 
 of the second part and to its successors and assigns, upon the Trusts 
 and confidences hereinafter expressed, to-wit : 
 
 FIRSTLY. During the continuance of these Trusts, the party of the 
 third part and the party of the second part, their successors or assigns, are 
 hereby authorized to pay without previous notice all liens or incumbranoes 
 now subsisting, or that may hereafter subsist, upon said premises, except 
 taxes or assessments on this Trust Deed or the money secured hereby, 
 which may in their judgment affect said premises or these trusts, at such 
 time as in their judgment they may deem best or in their discretion for 
 the benefit and at the expense of said party of the first part ; to contest 
 the payments of such liens or incumbrances, and to institute or deflend 
 any suit or proceeding that they may consider proper to protect the title 
 to said premises ; and insurance shall be maintained on the buildings on 
 the premises to the satisfaction of the party of the third part at the" 
 expense of the first party; and these Trusts shall be and continue as 
 security to the parties of the second or third part, or their assigns, for 1 
 the repayment, in Gold Coin of the United States, of thie money so bor- 
 rowed by the said party of the first part, and the interest thereon, and of 
 all amounts :so paid out and costs and expenses incurred as aforesaid, 
 
92 HOW TO BUY AND 
 
 whether paid by the party of the second or third part, which shall be 
 repaid on demand, and if not so paid, shall bear interest at the rate of 
 two per cent, per month thereafter until paid. 
 
 SECONDLY. In case the said party of the first part shall well and 
 truly pay, or cause to be paid, at maturity, in Gold Coin, as aforesaid, all 
 sums of money so borrowed, as aforesaid, and the interest thereon, and 
 shall upon demand repay all other moneys secured or intended to be se- 
 cured hereby, then the party of the second part, its successors and as- 
 signs, shall reconvey all the estate in the premises aforesaid granted by 
 this instrument unto said Eliza Donovan, her heirs or assigns, at her 
 request and cost. 
 
 THIRDLY. If default be made in the paymjent of any of the sums 
 secured by this Trust Deed when due, by the terms of said promissory 
 note or this instrument, then the whole of said sums shall become imme- 
 diately due and payable at the option of said third party, its successors 
 or assigns. And the said second party, when notified so to do by said 
 third party, shall proceed at once to advertise and sell said property at 
 public auction to pay the several sums hereby secured and expense of 
 sale, including Fifty Dollars, counsel fees. Notice of the time and place 
 of such sale, with a description of the property to be sold, shall be pub- 
 lished at least once each week for four successive weeks in some news- 
 paper published in the City of Los Angeles, California, at which s^id 
 city such sal'e shall be made. If the property to be sold is situated in 
 any county other than Los Angeles, then a similar notice shall also be 
 published in some newspaper in the county where said property is situated. 
 Said sale may be postponed from time to time by publication, and on the 
 day of sate so advertised or any day to which the same may be postponed, 
 said second party shall sell the property so advertised at public auction 
 to the highest bidder for cash, Gold Coin of the United States, and any 
 party hereto, their successors or assigns, may purchase at such sale. 
 And the said second party, after paynrent to it of all the sum so bid at 
 such sale, shall execute and deliver to the purchaser, his heirs or assigns, 
 a Deed of Grant, Bargain and Sale, conveying to him the above granted 
 premises, and out of tine proceeds thereof shall pay, first, the expenses 
 of making such sale including $50.00 counsel fees; next, shall nay said 
 third party the entire sum due it at the time of such sale, if said proceeds 
 be sufficient, and lastly, any surplus remaining shall be paid to said first 
 party, her heirs or assigns. 
 
 And in the event of the sale of said premises or any part thereof, 
 and the execution of a deed or deeds thereof under these Trusts, then 
 the recitals therein of default, publication, sale and receipt of the Durchase 
 money, shall be conclusive proof of such default and the due publication 
 of such notice of the sale to the highest bidder, receipt of the purchase 
 money and execution of the deed to the purchaser, and any such deed or 
 deeds with such recitals therein shall be effectual and conclusive against 
 the said party of the first part, her heirs or assigns, and all other persons ; 
 and the receipt for the purchase moniey contained in any deeds executed 
 
REAL, ESTATE AT A PROFIT 93 
 
 to the purchaser, as aforesaid, shall be a sufficient discharge to such pur- 
 chaser, from all obligation to see to the proper application of the pur- 
 chase money, according to the Trusts aforesaid, and such purchaser, on 
 the production of such deed, shall be entitled to the immediate possession 
 of said premises. 
 
 THIS DEED OF TRUST, in all its parts applies to and binds the heirs, 
 administrators, executors, successors and assigns of all and each of the 
 parties hereto. 
 
 IN WITNESS WHEREOF, the party of the first part has hereunto set 
 her hand and seal the day and year first above written. 
 
 ELIZA DONOVAN. (Seal) 
 The foregoing trust is hereby accepted. 
 
 TITLE INSURANCE & TRUST COMPANY. 
 (Seal) O. P. CLARK, Secretary. 
 
 State of California, County of Los Angeles, ss. 
 
 On this loth day of June, in the year of our Lord one thousand nine 
 hundred and three, before me, Samuel Bristow, a Notary Public in and 
 for the County of Los Angeles, State of California, residing therein, duly 
 commissioned and sworn, personally appeared Eliza Donovan, known to 
 me to be the person described in and whose name is subscribed to the 
 foregoing instrument, and she acknowledged to me that she executed the 
 same. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my 
 official seal the day and year in this certificate first above written. 
 (Seal) SAMUEL BRISTOW, 
 
 Notary Public in and for Los\ Angeles County, State of California. 
 (Endorsement.) 
 
 DEED OF TRUST; 154; compared; Eliza Donovan to Title Insurance 
 and Trust Company, in trust for State Mutual Building and Loan Asso- 
 ciation. Dated June 10, 1903. 
 
 Recorded at request of Grantee, June 10, 1903, at 43 minutes past 
 i p. m., in Book 1802, page 239, of Trust Deeds, Los Angeles County 
 Records. Calvin Hartwell, County Recorder: by R. L. Hazen, Deputy. 
 Fees $2.10. 
 
 FORM NO 35 RECONVEYANCE OF TRUST PROPERTY. 
 
 THIS INDENTURE, Made this 4th day of February, A. D. 1906, wit- 
 nesseth: That, whereas, the promissory note, for the sum of Thirteen 
 Hundred ($1300) Dollars, with interest, mentioned as secured by that 
 certain Deed of Trust made by Eliza Donovan, an unmarried woman, to 
 the Title Insurance and Trust Company, a Corporation organized and 
 existing under the laws of the State of California, and having its orincipal 
 place of business at the City of Los Angeles, County of Los Angeles, 
 State of California, as second party, which said Deed of Trust is dated 
 the loth day of June, 1903, and recorded in the office of the County Re- 
 corder of the County of Los Angeles, State of California, on the loth day 
 of June, 1903, in Book 1802, page 239 et seq. of Trust Deeds, together 
 
94 HOW TO BUY AND SEU, 
 
 with all other sums and indebtedness secured by said Deed of Trust, 
 have been fully paid and satisfied. 
 
 Now, THEREFORE, in consideration of such paymentj and also the sum 
 of One Dollar, the receipt whereof is hereby acknowledged, the said Title 
 Insurance and Trust Company aforesaid does hereby remise, release and 
 reconvey, without warranty, unto Eliza Donovan, her heirs and assigns, 
 all the estate in the premises described in said Deed of Trust to siaid 
 Title Insurance and Trust Company by said Deed of Trust granted, and 
 now held by said Title Insurance and Trust Company, reference being 
 hereby made to said Deed of Trust and the said record thereof for a par- 
 ticular description of said premises. 
 
 To HAVE AND TO HOLD the same, without warranty, unto the said 
 Eliza Donovan, her heirs and assigns forever. 
 
 IN WITNESS WHEREOF, said Title Insurance and Trust Company has 
 caused these presents to be duly signed by its President and attested by 
 its Secretary under its corporate seal, the day and year first above men- 
 tioned. 
 
 TITLE INSURANCE AND TRUST COMPANY. 
 
 (Corporate Seal) By President. 
 
 Attest Secretary. 
 
 (Acknowledgment.) 
 
 FORM NO. 36 AGREEMENT TO EXTEND MORTGAGE AND IN- 
 CREASE RATE OF INTEREST. 
 
 THIS AGREEMENT, made in duplicate, this second day of March, 1904, 
 between E. J. Blair, of the County of Los Angeles, State of California, 
 the party of the first part, and M. T. Brooks, of the County and State 
 aforesaid ; 
 
 WHEREAS, Said party of the first part holds a certain mortgage, dated 
 March 3d, 1903, and recorded in the office of the County Recorder of the 
 County of Orange, in Book 44 of Mortgages, at page 123, as security for 
 a certain promissory note in the sum of $1000, bearing date March 3d; 
 1903, and payable one year after date with interest at the rate of 9 per 
 cent, per annum, payable quarterly, a copy of which said note is set out 
 in said mortgage ; and, 
 
 WHEREAS, no partial payments have been made on the principal of 
 said note, the interest thereon has been paid in full to date, and said note 
 has by its terms become due and payable ; and 
 
 WHEREAS, Said party of the first part is willing to extend the time 
 for the payment of said note for the further term of six months, provided 
 said party of the second part shall pay interest thereon at the rate of 
 10 per cent, per annum from this date until paid, payable quarterly as in 
 said note provided: 
 
 Now THEREFORE, This Agreement Witnesseth : In consideration of 
 tihe premises, and of one dollar by each to the other in hand paid, thd 
 receipt whereof is hereby acknowledged, the parties hereto do hereby mu- 
 tually covenant and agree that the time for the payment of said note 
 shall be and is hereby extended to September 3d, 1904, and that said note 
 
REAL ESTATE AT A PROFIT 95 
 
 shall bear interest from and after this date until paid, at the rate of ten 
 (10) per cent, per annum, payable quarterly, as in said note provided; 
 and said note and mortgage are hereby ratified and confirmed and are 
 to continue in full force and effect, except as modified by this agreement. 
 IN WITNESS WHEREOF, the parties hereto have hereunto set then 
 hands and seals the day and year first above written. 
 
 E. J. BLAIR, (Seal) 
 M. T. BROOKS. (Seal) 
 ( Acknowledgment. ) 
 
 FORM NO. 37 INSTALLMENT NOTE. 
 $2000.00. Los ANGELES, CAL., February 10, 1905. 
 
 On February loth, 1906, at 12 o'clock noon of said day, for value re- 
 ceived, I promise to pay to Yon Yonson or order, at American National 
 Bank, the sum of Two Thousand Dollars, with interest at the rate of 
 Nine (9) per cent per annum from date until paid, interest payable quar- 
 terly from date. Should the interest not be paid quarterly from date, then 
 the whole sum of principal and interest shall immediately become due 
 and payable, and interest shall be compounded each quarter from date 
 thereafter at the same rate, principal and interest payable in gold coin 
 of the United States. This note is payable in installments of $50.00 each, 
 payable upon the tenth day of each calendar month subsequent to the 
 date hereof, and default in the payment of any installment when due shall 
 cause the whole note, principal and interest, to become immediately due 
 and payable. 
 
 OLE OLESON. 
 
 FORM NO 38 AFFIDAVIT TO PERSONAL PROPERTY MORT- 
 GAGE. 
 
 STATE OF 
 
 COUNTY OF 
 
 the Mortgagor. . in the foregoing Mortgage, named, and 
 
 the Mortgagee. . . 
 
 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 
 
96 HOW TO BUY AND SELL 
 
 CHAPTER VII. 
 
 TRANSFER OF TITLE IN ESCROW. TAXES AND INSURANCE. 
 
 Escrow Defined Risks Attending Transfers in the Ordinary Private Way 
 Abstract Denned What it Consists of The Work of the Searcher of Title Limited 
 and Unlimited Certificates of Title Defined Policy of Title Insurance Closing 
 Transfers of Title in Escrow by Title Companies Fully Described Liability of Title 
 Company or Abstracter Making Escrows with Banks Insurance, and Policy of 
 Insurance, Defined Policy Must Be Transferred Contemporaneously with Transfer 
 of Title Taxes Defined How Same are Collected Penalties for Making Evasive 
 Returns Application to Board of Equalization by Aggrieved Taxpayer When and in 
 What Amounts Taxes are Payable Delinquencies. 
 
 Sec. 109. An Escrow, in respect to a conveyance, is an 
 obligatory writing, delivered by the grantor or person making 
 the conveyance, to a third person, to be held by the latter until 
 the performance of a specified condition by the grantee or per- 
 son in whose favor the conveyance is made, and upon the per- 
 formance of the condition or happening of a certain contin- 
 gency, the conveyance takes effect. The person to whom the 
 conveyance is delivered is called the depositary or escrowee. 
 
 Sec. no. The purpose of this chapter is to explain the 
 handling of real estate transactions in escrow as practiced in 
 large cities by title companies. The parties to a real estate 
 transaction, instead of closing up the deal in the office of a real 
 estate broker or an attorney who may be connected with the 
 transfer, have recourse to the escrow department of the title 
 company. There are many opportunities for something to 
 occur to affect the title from the time the agreement of sale is 
 signed until the certificate of title is written to date (usually 
 requiring about ten days) and the purchase money paid over. 
 There are fourteen places where transactions affecting the 
 title to real estate are proceeding during each working day in 
 the public offices of the City and of the County of Los Angeles, 
 and the same is true in varying degrees in the public offices 
 of other cities and counties throughout the country. Judg- 
 ments and decrees are docketed by the courts; deeds, mort- 
 gages and leases are recorded ; State and County, and City 
 taxes are levied or paid ; liens for street assessments and of 
 mechanics and others are placed on record ; and these may 
 change or divest the title on the faith of which the parties are 
 dealing. Land is subject to the lien of taxes, judgments and 
 other like charges more readily than any other form of prop- 
 
REAL ESTATE AT A PROFIT 97 
 
 erty, because its ownership is more open and notorious and 
 can be easily ascertained from the public records. 
 
 Sec. in. The law requires that every instrument affect- 
 ing the title to real estate shall be recorded, and when such an 
 instrument is properly executed and recorded, it imparts no- 
 tice to all persons of its contents; and thereafter, purchasers 
 and incumbrancers of the same property are considered in law 
 to have notice of the interest which the recorded instrument 
 creates. A knowledge of these facts and a desire to guard 
 against fraud, induces all persons about to make an invest- 
 ment in real estate, to insist upon having an examination of 
 title made, and a certificate of title issued by a reputable title 
 company before the purchase is consummated and the money 
 paid over to the seller. Out of this demand has grown the 
 business of title examination. 
 
 Sec. 112. In times past, the searching of all public 
 records was made by abstracters. This is still the case in the 
 smaller counties. The result of the search takes the form of 
 an Abstract of Title. The searcher, in preparing this, begins 
 with the patent issued by the United States Government, and 
 then, in chronological order, gives an abstract of the contents 
 of every deed and other instrument of record, and these are 
 given so fully that no reasonable inquiry of an attorney or 
 other person reading the Abstract will remain unanswered 
 and yet so briefly as to exclude irrelevant details. In many 
 cases, the Abstracter is obliged to commence with the first in- 
 strument of any kind of record and set forth all subsequent 
 transfers, as a particular piece of land, if unpatented, may for 
 years have been held by claimants having conflicting posses- 
 sary titles. The wording of every certificate of acknowledg- 
 ment is given, for if any one of these is defective, that par- 
 ticular instrument would not impart notice of its contents. 
 The Legislature, from time to time, makes changes in the law 
 respecting the forms of acknowledgments, and a certificate of 
 acknowledgment at a particular date must conform to the 
 law in force at that date. A map or diagram, giving an 
 outline of the property, and its relation to contiguous proper- 
 ties, usually accompanies an Abstract. These Abstracts, 
 where they relate to large tracts of land, held originally by one 
 
98 HOW TO BUY AND 
 
 person, and afterwards acquired by various small holders, 
 under divers colors of title, and attended by much litigation as 
 to boundaries, etc., become very voluminous and of consider- 
 able pecuniary value, because of the amount of time and de- 
 gree of care required to compile them. When completed, such 
 an Abstract is turned over to an attorney for examination, and 
 when such examination is finished, the attorney issues his 
 written opinion thereon, pointing out the defects, if any, and 
 advising his client whether or not he can safely purchase the 
 premises. It can easily be imagined that such a procedure 
 must necessarily be slow, expensive and not entirely satis- 
 factory. 
 
 Sec. 113. An examination of title consists of a search in 
 the various public offices for the record of deeds, leases, mort- 
 gages, trust deeds, judgments, taxes, street assessments and 
 other information affecting the property. Such examinations 
 are made by searchers men skilled in that particular profes- 
 sion who make minutes of their examination as they proceed, 
 and these minutes are afterwards re-examined by the attorneys 
 of the title company. No certificate is issued until such exam- 
 ination and re-examination has been made, and every court 
 proceeding, deed, mortgage, release, etc., affecting the property 
 under search, have been considered and passed upon. The 
 searchers and attorneys use specially prepared blanks, and 
 these, taken together, constitute the office memoranda of the 
 title company. On the basis of these memoranda, certificates 
 of title or policies of title insurance are issued. 
 
 Sec. 114. Certificates of title may be limited or unlim- 
 ited. A Limited Certificate commences at a certain date, such 
 as the record of the decree in a suit for partition or the like, 
 as may be indicated by the parties ordering the certificate, and 
 embraces intermediate time up to the date of the certificate. 
 It does not cover the entire title. An Unlimited Certificate of 
 Title covers the entire title from the very first instrument of 
 record affecting the premises described down to the date of 
 the certificate. (See Form No. 47.) The majority of transfers 
 are done on the faith of the Unlimited Certificate of Title. A 
 Continuation Certificate of Title covers the time from the date 
 of the last certificate to the date of the continuation. 
 
REAL ESTATE AT A PROFIT 99 
 
 Sec. 115. A Policy of Title Insurance guarantees the pur- 
 chaser or holder against loss or damage which he may sustain 
 by reason of defects in the title to the land he buys, not only 
 such as may appear of record, but also many not disclosed 
 of record, which the most searching examination of the records 
 could not discover; among these are forgeries, secret mar- 
 riages, insanity, heirship, alienage, etc. Policies are applica- 
 ble to all the varying forms of real estate transactions. Ap- 
 propriate forms are issued furnishing indemnity not only to 
 owners, but to holders of deeds of trust and mortgages. (See 
 Form No. 48.) The most important element of a Policy is 
 that the party insured is enabled to avoid expense in defend- 
 ing the title, and is secured against loss if the title fails. At- 
 tacks on titles are frequently made under various specious 
 claims. If the attack proves successful, the loss is increased 
 by the amount of the expense of the suit, but even if the at- 
 tack be warded off, the cost of defense may, and often does, 
 entail serious inconvenience and sometimes embarrassment. 
 If the title is insured, all such trouble and expense can be 
 avoided, as the Title Company always stands ready to defend. 
 Liability under the policy matures when a defect, liable to 
 cause loss, is discovered and properly made known to the 
 Company. 
 
 ^Sec. 116. Closing real estate transactions in escrow by 
 title companies is of especial value to the public, as it relieves 
 both the seller, who is parting with his property, the buyer, 
 who is parting with his money, and also the real estate broker, 
 if he be concerned, of all responsibility, and places the entire 
 matter in the hands of specialists, who will consummate the 
 deal in accordance with the written instructions of the par- 
 ties, safeguarding every step. By making transfers in escrow, 
 the risks before pointed out attending such transfers, are en- 
 tirely avoided. The purchaser deposits his money with the 
 company, and in connection therewith gives his instructions, 
 as in Form No. 40, and signs same. These instructions will 
 vary according to circumstances, but in general will direct 
 the title company to obtain from the seller: 
 
 (i.) A deed to the premises, in favor of the purchaser, 
 or of some person or corporation designated by him. 
 
100 HOW TO BUY AND SBU, 
 
 (2.) If there be a mortgage on the premises, either (a) 
 the payment of same, in which case a release is to be obtained 
 and recorded; or (b) the assuming of the mortgage by the 
 purchaser, in which case the deed is to be made subject to the 
 mortgage (See Form No. 13 for the correct wording of this) 
 and the purchase price will be composed of the amount of the 
 mortgage and a balance to be paid in cash, the seller paying 
 the interest to the date of the transfer. 
 
 (3.) If a new mortgage is to be given, it will be given 
 either (a) to the seller, and be evidenced by a promissory note 
 secured by mortgage on the premises sold, or (b) be given to 
 a third party and be evidenced by a promissory note and mort- 
 gage, and the money so borrowed will come in the shape of 
 a check or draft from such third party. 
 
 (4.) If the premises are held by a lessee, under a writ- 
 ten lease, a written assignment from the seller to the buyer is 
 to be obtained and recorded, provided the original lease is of 
 record. 
 
 (5.) If there be insurance on the premises, a transfer of 
 the policy of insurance, together with the assent to such trans- 
 fer by the insurance agents, such transfer of insurance to take 
 effect practically simultaneous with the transfer of the prop- 
 erty. 
 
 (6.) A rebate agreement, as per Form No. 42. 
 
 (7.) A stipulation as to who shall pay or assume the un- 
 paid taxes, if any. 
 
 The seller also gives "his instructions as per Form No. 39 
 and ratifies the purchaser's instructions, by signing at the bot- 
 tom of Form No. 40. These forms are filled out by the clerks 
 in the escrow department in accordance with the verbal in- 
 structions of the parties, and each party is given a card having 
 on it the name of the clerk and the number of the escrow, and 
 all inquiries concerning the escrow are to be made by number. 
 The purchaser also receives a receipt for any money paid in 
 by him in connection with the escrow. 
 
 Sec. 117. Attached to certificates and title policies are 
 plats of the premises, giving dimensions, and showing width 
 of streets and alleys. 
 
 Sec. 118. As suggested in Section 68, it is advisable be- 
 
REAL ESTATE AT - A PRfctflT ', , ; \ \ i 101 
 
 fore the escrow instructions are given, to have a written agree- 
 ment, covering every phase of the transaction, and providing 
 in particular that the deposit and part payment shall be for- 
 feited to the seller in case the buyer shall fail to carry out his 
 part of the agreement within the time limited, and for the sel- 
 ler to receive into his possession such deposit, and, if in the 
 shape of a check, to have same converted into cash immedi- 
 ately. The escrow instructions, in such case, will take into 
 account, only the remainder of the money. Instances have oc- 
 curred where purchasers, after placing a deposit evidenced 
 by a check in escrow and giving escrow instructions, have 
 been afflicted with chilled extremities and either stopped pay- 
 ment on the check or withdrew their accounts at the banks, 
 thus defeating the sale. The escrow instructions do not pro- 
 vide for this contingency. 
 
 Sec. 119. The liability of a title company or of an ab- 
 stracter of records is to the party employing it or him and not 
 to any one else. The person named in the certificate, or ab- 
 stract, as he at whose request it is made, is the person in whose 
 favor the liability exists. If a certificate of title or an abstract 
 is ordered by the owner of land for the purpose of making a 
 sale to a purchaser, and a sale is effected, and the purchaser is 
 injured by reason of errors and omissions in the certificate of 
 title or abstract, the purchaser cannot recover damages there- 
 for from the title company or abstracter; he must look to the 
 seller for such damages and the seller must look to the maker 
 of the certificate or abstract. The measure of such damages is 
 the actual loss to the party injured. 
 
 Sec. 120. Conveyances and other papers are also often- 
 times placed in escrow with banks. (See Form No. 44.) The 
 bank makes an envelope for the escrow as per Form No. 46. 
 
 Sec. 121. Real estate dealers and others will find Form 
 No. 45 very convenient for caring for escrows. This is an 
 envelope, in which all papers relating to the escrow can be 
 kept and entries made on the outside for reference or for the 
 book-keeper. 
 
 Sec. 122. Insurance. 
 
 (i.) Insurance is a contract whereby one, called the in- 
 surer, undertakes to indemnify another, called the insured, 
 
102 HOW TO, BUY AND 
 
 against loss, damage or liability arising from an unknown or 
 contingent event. The sole object of insurance is to indemnify 
 the insured and the latter must have an insurable interest in 
 the thing insured. 
 
 (2.) A policy of fire insurance is a written instrument 
 whereby insurance is effected, and which sets forth the name 
 of the insured, a description of the property, the rate of prem- 
 ium, the time during which the insurance is to continue and 
 the interest of the insured in the property, if he is not the ab- 
 solute owner thereof. 
 
 (3.) A change of interest in the thing insured, unaccom- 
 panied by a corresponding change of interest in the insurance, 
 suspends fire insurance to an equivalent extent until the inter- 
 est in the thing and the interest in the insurance is vested in 
 the same person. A transfer of the thing insured does not 
 transfer the policy until the same person becomes the owner of 
 both the policy and the thing insured. 
 
 (4.) When real estate, which is insured, is transferred, 
 it is necessary that the policy be transferred by a written as- 
 signment contemporaneously with the transfer of the title, 
 and such assignment of the insurance must be assented to in 
 writing by the agents of the insurance company. 
 
 (5.) Where the seller disposes of property which is in- 
 sured and takes back a mortgage as part of the purchase price, 
 and also where a mortgage is given for money borrowed, a 
 "mortgage clause" is attached, providing that the insurance 
 shall 'be payable to the mortgagee as his interest may appear. 
 
 Sec. 123. Taxes. 
 
 (i.) Taxes are revenues collected for the purpose of ad- 
 ministering the government. The design of the law is that all 
 property, not exempt, shall be taxed in proportion to its value. 
 Taxes are assessed by officers appointed for that purpose, 
 called assessors. The County Assessor makes his assessment 
 between the first Mondays of March and July of each year, 
 and he must ascertain the names of all taxable inhabitants and 
 a list of all property in his county subject to taxation, and 
 must assess such property to the person by whom it was 
 owned or claimed at 12 o'clock noon, the first Monday of 
 March. Land, in parcels not exceeding 640 acres, and the im- 
 
REAL ESTATE AT A PROFIT 103 
 
 provements thereon, are assessed separately; these, and also 
 all personal property, are assessed at their full cash value, 
 namely, the amount at which the property would be taken in 
 payment of a just debt from a solvent debtor. The assessment 
 is made on blanks furnished by the assessor, and such blanks, 
 when filled up, must be sworn to, if required. Every person 
 refusing to make a statement or subscribe an affidavit is liable 
 to a fine of $100.00. Any property wilfully concealed, trans- 
 ferred, or misrepresented to evade taxation must, upon dis- 
 covery, be assessed at not exceeding ten times its value. Any 
 property discovered by the assessor to have escaped taxation 
 in the last preceding year, if such property remains under the 
 control of the party who then owned it, must 'be assessed at 
 double its value. Taxes are a judgment lien and have the ef- 
 fect of an execution and the lien attaches on the first Monday 
 of March. 
 
 (2.) The assessor must collect taxes on all personal prop- 
 erty unsecured by real estate at the time of making his assess- 
 ment, and such taxes are computed on the basis of the rate for 
 the preceding year. If the taxpayer thinks the assessor in 
 error, he should pay the taxes and bring the matter before the 
 Board of Equalization, as that is his only legal remedy. On 
 the first Monday of July, the assessor turns over the assess- 
 ment rolls of both real and personal property to the clerk of 
 the Board of Supervisors. After turning over his books, the 
 assessor cannot collect personal taxes. 
 
 (3.) The Board of Supervisors in each county, convenes 
 as a County Board of Equalization on the first Monday of July 
 and remains in session until the third Monday in July, and 
 during such time, the assessment rolls are open for the in- 
 spection of taxpayers. The taxpayer should then examine the 
 rolls to ascertain the valuation which has been placed upon his 
 property by the assessor, and at that time complaints can be 
 made to correct such valuations. Such complaints are made as 
 per Form No. 43, which must be verified upon oath, and no 
 reduction will be made unless such application is filed. The 
 person making the application must attend and answer under 
 oath any inquiries pertinent to the application. 
 
 (4.) The Board of Supervisors on the third Monday in 
 September must fix the rate of taxes and levy state and county 
 
104 HOW TO BUY AND SELL 
 
 taxes. The taxes upon all personal property secured by real 
 property, and one-half of the taxes on real property, are due 
 and payable on the second Monday of October, and are de- 
 linquent on the last Monday in November next thereafter at 
 six P. M. ; unless paid prior thereto, fifteen per cent will be 
 added to the amount thereof, and if the said first one-half is 
 not paid before the last Monday in April, an additional five 
 per cent is added thereto ; the remaining one-half of the taxes 
 on real property are payable on January first next thereafter, 
 and are delinquent on the last Monday in April next there- 
 after, and unless paid prior thereto, five per cent is added. All 
 taxes may be paid at the time the first installment is payable. 
 All such taxes must be paid at the office of the tax collector. 
 City taxes are levied and collected in practically the same man- 
 ner. 
 
 (5.) After each delinquent date, .a list of delinquent taxes 
 is published in a newspaper, and if not paid, the property will 
 be sold to the State. The property so sold may be redeemed 
 by the owner or any party in interest within five years from 
 the date of the sale. Application to redeem is made to the 
 County Auditor and the redemption money is paid to the 
 County Treasurer. If not redeemed within the time limited, 
 the tax collector must make a deed to the State. 
 
 (6.) Property incumbered by mortgage or deed of trust, 
 and situate in California, has, for the purposes of taxation, two 
 separate and distinct taxable interests. The taxable interest 
 of the owner of the fee is the difference between the value 
 of the land, if unincumbered, and the value of the mortgage ; 
 the taxable interest of the mortgagee is the value of the mort- 
 gage security. The holder of the mortgage at the time of the 
 assessment, must pay the taxes on the mortgage interest ; and 
 the owner of the fee, in making out his assessment list, should 
 show the value of the land, less a deduction for the value of the 
 mortgage, the remainder being the amount on which he is to 
 pay taxes. Either party may pay the taxes on both interests. 
 The State constitution provides that every contract whereby 
 a debtor is obligated to pay any tax or assessment on money 
 loaned, or on any mortgage, deed or trust or other lien, is void, 
 and that the agreement to pay interest is invalidated. Because 
 of this law, it is customary to make the rate of interest in the 
 
REAL ESTATE AT A PROFIT 105 
 
 mortgage note "higher than the rate actually to be paid, and to 
 enter into a collateral agreement, allowing the mortgagor a 
 certain percentage of rebate in interest, provided he pays the 
 taxes on the mortgage. The agreement is so worded as not 
 to obligate the mortgagor to pay the taxes on the mortgage, 
 and to offer him an option which he may exercise to his ad- 
 vantage. (See Form No. 42.) 
 
 (7.) The Fiscal Year of the United States, and of the State 
 of California, begins July ist, and ends June 3Oth of the fol- 
 lowing calendar year. Property is assessed, therefore, in the 
 latter part of the fiscal year, to-wit, between the first Monday 
 of March and the first Monday of July next following. The 
 assessment, so far as it relates to real property, means enter- 
 ing a description of it on the tax list, together with the name 
 of the owner, and the valuation. The law requires the assess- 
 ment of all taxable property to be completed practically be- 
 fore the fiscal year begins, and before the rate of taxation is 
 determined. The Board of Supervisors levies the rate of tax- 
 ation on the third Monday in September. The taxes levied in 
 September, in the year 1905, will be referred to as "Taxes of 
 1905-1906," and will be payable in November, 1905, and in 
 April, 1906. 
 
 FORM NO. 39 ESCROW INSTRUCTIONS OF SELLER. 
 Order No. 157,311. 
 
 Los Angeles, Cal., April 10, 1905. 
 
 Title Insurance and Trust Company: 
 
 GENTLEMEN : I herewith hand you a grant, bargain and sale deed ex- 
 ecuted by Walter Scott to Jules Verne, and bearing this date, of Lot 15 in 
 Block D, of the Wolfskill Tract, as per map recorded in Book 12, page 
 100, Miscellaneous Records of Los Angeles County, which you are author- 
 ized to deliver to Jules Verne or his representatives upon payment to you 
 within fifteen days from date hereof for my account of the sum of $5000. 
 from which you may deduct your charges for your unlimited Certificate of 
 Title or a continuation of your Unlimited Certificate which I will hand you 
 herewith and from which you may also pay all incumbrances on said prop- 
 erty. 
 
 (Signature) WALTER SCOTT, 
 Address : 927 Burlington Avenue. 
 Home Phone 22567. 
 
106 HOW TO BUY AND 
 
 FORM NO. 40 ESCROW INSTRUCTIONS OF BUYER. 
 
 Escrow No. 30777. 
 
 Los Angeles, Cal., April n, 1905. 
 Title Insurance and Trust Co.: 
 
 Herewith please find check for $5000 which you are authorized to 
 use in connection with your order No. 157,311 when you can issue an Un- 
 limited Certificate of Title in your usual form, on Lot 15 in Block D, 
 of the Wolfskill Tract, as per map recorded in Book 12, page 100, of Mis- 
 cellaneous Records of Los Angeles County, which will show that the title 
 to said property is vested in Jules Verne, free from all incumbrances, ex- 
 cept taxes of the fiscal year and a mortgage, executed by 
 
 in favor of for $ .due years 
 
 after with interest at % per payable 
 
 at 
 
 I understand that the certificate which will be issued will except in- 
 struments, trusts, defects, liens, easements and incumbrances and the 
 rights or claims of parties in possession of the property not shown by any 
 public record, and also, the following: 
 
 1. Mining claims, existing roads, water locations and reversions con- 
 tained in United States Patents. 
 
 2. Records of Irrigation, Drainage, Reclamation, Levee, Protection 
 and Sanitary Districts if the property described therein lies within the 
 boundaries of any such districts. 
 
 3. Municipal taxes and the assessments and the effect and operation 
 of the municipal laws, ordinances and regulations, proceedings for street, 
 sewer, shade tree and sidewalk improvements, and for opening, widening 
 and other changes in streets or alleys, if the property described therein lies 
 within the boundaries of any incorporated City except the City of Los 
 Angeles. 
 
 4. Proceedings for street, sewer, shade tree, and sidewalk improve- 
 ment, and for the opening, widening and other changes in streets or alleys 
 in the City of Los Angeles, unless the amount of the assessment therefor 
 has become fixed and shown as a lien by the recording of the warrant at the 
 date thereof in the public office designated by law. 
 
 5. The validity or legality of tax sales, street assessments, leases, 
 easements, declarations of homesteads and money judgments. 
 
 I also understand that you will file necessary deeds and mortgages, 
 then pay off such incumbrances as may exist at the time of filing such in- 
 struments, to vest the title as above and shall not be held responsible for 
 any liens which may attach after such filing. 
 
 Obtain the note secured by said mortgage. 
 
 Before completing the transaction, have transferred to me $ , 
 
 fire insurance which will expire 
 
 If you are unable to comply with these instructions within fifteen 
 days from this date, said amount to be returned to me on demand. 
 
 Instruct the Recorder to mail the Instruments connected with the 
 transactions, as follows: to grantee, 314 Byrne Building, and when the 
 
REAL ESTATE AT A PROFIT 107 
 
 transaction is completed you may send all documents connected therewith 
 to grantee at above address. 
 
 ADDITIONAL INSTRUCTIONS : I agree to pay following charges : For re- 
 cording deed to me $1.20; for certificate vesting title in me $5.00 
 
 (Signature) JULES VERNE, 
 
 Address : 314 Byrne Building. 
 Phono Main 233. 
 
 Approved. Use the money and record instruments to place the title 
 in the condition required by the foregoing instructions. 
 
 I agree to pay following charges : For continuation of certificate, $7.50. 
 
 WALTER SCOTT 
 927 Burlington Avenue. 
 
 FORM NO. 41 TAX RELEASE OF MORTGAGOR. 
 
 Los Angeles, August n, 1905. 
 
 In consideration of the release of the mortgage recorded in Book 1470, 
 page 233 of Mortgages, Los Angeles County Records, I hereby agree to 
 release and save harmless Jules Verne, the said mortgagee, by reason of 
 any taxes which may be levied against him upon said mortgage or the in- 
 terest created thereby for the fiscal year 1905-1906. 
 
 WALTER SCOTT. 
 
 FORM NO. 42 INTEREST REBATE AGREEMENT. 
 
 Los Angeles, California, April 10, 1905. 
 
 FOR A VALUABLE CONSIDERATION, I hereby agree to deduct three per 
 cent per annum from the interest on the mortgage note for the principal 
 sum of $3000 in my favor, signed by Jules Verne, dated April loth, 1905, 
 Provided said debtor pays annually all taxes and assessments levied against 
 the property covered by the mortgage securing said note and upon said 
 mortgage and the debt secured thereby, during the continuance of said 
 note unpaid, r-.nd presents to the undersigned, proper official receipts show- 
 ing such payment; said payment to be made before any such taxes or as- 
 sessments respectively become delinquent. 
 
 This is in no wise to be considered as an agreement binding said 
 debtor to pay said taxes or assessments, but is only a right or privilege 
 which said debtor can exercise or not at his option. 
 
 WALTER SCOTT. 
 
 FORM NO. 43 APPLICATION TO COUNTY BOARD OF 
 EQUALIZATION. 
 
 To THE HONORABLE BOARD OF EQUALIZATION IN AND FOR Los ANGELES 
 COUNTY, CALIFORNIA, FOR THE YEAR 1904. 
 
 The application of respectfully represents that he 
 
 is the owner and party affected by the excessive assessed valuation of the 
 following described property in the County of Los Angeles, which said 
 property is assessed on the assessment roll of said County for the year 
 
 1904, in Vol , at page of the Assessment Roll, as follows, 
 
 to-wit ; 
 
108 HOW TO BUY AND 
 
 And your applicant asks that the said assessment thereof be reduced 
 to $ 
 
 That the grounds upon which such reduction is asked and should be 
 made are as follows, to-wit : 
 
 That the actual cash value of said property so assessed as aforesaid 
 does not exceed $ 
 
 Wherefore, your petitioner prays that reasonable notice of the hear- 
 ing of this application be given, and that the reduction above asked for be 
 made. 
 
 Address of Petitioner 
 
 State of California, County of Los Angeles, ss. 
 
 being duly sworn, says : That he is the ap- 
 plicant in the foregoing application, that he has read the same and knows 
 the contents thereof, and that the same is true of his own knowledge, except 
 as to the matters therein stated on information and belief, and as to those 
 matters he believes it to be true. 
 
 Subscribed and sworn to before me, this 
 
 day of July, 1904. 
 
 C. G. KEYES, County Clerk. 
 
 By Deputy County Clerk. 
 
 FORM NO 44-ESCROW AGREEMENT AND INSTRUCTIONS TO 
 
 BANK. 
 
 KNOW ALL MEN BY THESE PRESENTS, that Hiram White, of the 
 County of Ventura, State of California, the party of the first part, here- 
 inafter designated as the vendor, and William Willard, of the County and 
 State aforesaid, the party of the second part, hereinafter designated as 
 the vendee, have entered into the following agreement, that is to say: the 
 said vendor has sold, and the said vendee has purchased, the following 
 described land, situate in the County of Ventura, State of California, 
 to-wit: the Southwest Quarter (S. W. 54) of Section Twelve (12), in 
 Township Seven (7) North, Range Thirty-three (33) West of S. B M., 
 containing one hundred and sixty (160) acres, more or less, on the fol- 
 lowing terms and conditions, viz: 
 
 The purchase price is Seven Thousand Dollars ($7000), to be paid 
 in United States Gold Coin, of which the sum of Two Thousand Dollars 
 ($2000) is paid this date by the vendee to the vendor, the receipt whereof 
 is hereby acknowledged. 
 
 A deed executed by the vendor conveying said land to the vendee, 
 as aforesaid, is to be executed and placed in escrow with the Bank of! 
 Ventura, in the town of Ventura, to be held by said Bank according to 
 the terms of this agreement. 
 
 If the payment of the remainder, to-wit : the sum of Five Thousand 
 Dollars ($5000), together with interest thereon from this date until paid, 
 is made on or before November i, 1905, then said Bank is authorized and 
 instructed to deliver said deed to the vendee and said sale shall be con- 
 summated. If said payment is not made within the time limited, as 
 
REAL ESTATE AT A PROFIT 109 
 
 aforesaid, then said deed shall be returned to said vendor and all pay- 
 ments theretofore made shall be forfeited to the vendor as liquidated 
 damages, and the vendee shall acquire no rights to said land by reason 
 of such payments. 
 
 The vendor shall be permitted to retain possession of said land and 
 to cultivate and graze the same until November i, 1905, and to receive 
 and retain the benefits thereof. 
 
 This agreement is made in triplicate, one copy to be kept by the 
 vendor, one copy by the vendee, and one copy to be delivered to and 
 retained by the said Bank of Ventura as its authority and instructions 
 in the premises. 
 
 Time is of the essence of this agreement and a non-compliance with 
 the terms hereof will work a forfeiture. 
 
 IN WITNESS WHEREOF, the parties hereto have hereunto set their 
 hands and seals this 29th day of July, 1905. 
 
 HIRAM WHITE. (Seal.) 
 WILLIAM WILLARD. (Seal.) 
 
 FORM NO. 46 BANK ESCROW ENVELOPE. 
 ESCROW. 
 
 VENTURA, CAL V July 29, 1905. 
 HIRAM WHITE 
 
 and 
 
 WILLIAM WILLARD. 
 
 Deliver the enclosures on payment of $5000 if paid by or before 
 November I, 1905. Should parties fail to pay as agreed, return all papers to 
 Hiram White. 
 
 See instructions within. 
 
110 
 
 HOW TO BUY AND 
 
 FORM NO. 45 ENVELOPE FOR KEEPING ESCROW PAPERS 
 AND ACCOUNT. 
 
 Sale No, 
 Owner, 
 
 Purchaser, 
 
 Escrow No. . . . 
 Telephone 
 
 Lot 
 
 Price 
 
 Salesman, 
 
 Telephone, 
 Block.. 
 
 ACCOUNT". 
 
 
 
 
 c 
 
 R 
 
 
 
 
 
 C 
 
 =1. 
 
 
 Deposit. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Balance. 
 
 ..,, 
 
 ...... 
 
 
 
 
 
 
 
 
 
 
 
 
 
 CHARGES 
 
 
 
 
 ..... 
 
 
 
 
 
 
 
 
 
 
 Commission. 4 
 
 
 
 
 
 
 
 ..... 
 
 
 
 - 
 
 
 
 
 
 Notary ..... 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Racortiog .... 
 
 
 
 
 
 
 ...... 
 
 
 
 
 
 
 
 
 
 
 
 
 City Taxes .... 
 County Taxes .... 
 
 
 
 ... 
 
 
 
 
 
 
 
 
 ..... 
 
 
 
 
 
 
 Certificate of Title 
 
 
 
 
 
 
 
 
 
 
 
 
 Ordered. No 
 
 
 
 
 
 
 
 
 
 
 
 
 Balance by ~ 
 
 - 
 
 
 
 
 
 
 
 
 
 
 
 ... 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Date.. 
 
REAL ESTATE AT A PROFIT 111 
 
 FORM NO. 47 UNLIMITED CERTIFICATE OF TITLE. 
 
 Incorporated December 20th, 1893. Cable Address, "Title Trust." 
 
 TITLE INSURANCE AND TRUST COMPANY 
 
 Capital Stock (Paid Up) $500,000. 
 Corner Franklin and New High Streets. 
 
 Los ANGELES, CAL 
 
 UNLIMITED CERTIFICATE, 
 
 Made at the request of 
 
 After a careful examination of the Official Records of the 
 
 County of Los Angeles, State of California, 
 
 except those hereinafter mentioned, and of the Records of the Federal 
 Offices located at Los Angeles, in relation to the title to that certain tract 
 of land hereinafter described, the 
 
 TITLE INSURANCE AND TRUST COMPANY, 
 
 a Corporation, organized and existing under the laws of the State of 
 
 California, and having its principal place of business at the City 
 
 of Los Angeles, in the County of Los Angeles, 
 
 State of California, I 
 
 hereby certifies that said title, as appears from said records, is vested in 
 
 (Here follows official description of premises, with statement as to 
 liens, incumbrances, taxes and restrictions.) 
 
 This Certificate does not include an examination of, or a report on : 
 
 1. Rights reserved in United States Patents, or in the Certificate 
 of Indemnity Land selections, existing roads, water locations, mining 
 claims, or matters relating thereto. 
 
 2. Records of or relating to Irrigation, Drainage, Reclamation, Levee, 
 Protection and Sanitary Districts if the property described herein lies 
 within the boundaries of any such districts. 
 
 3. Municipal taxes and assessments and the effect and operations 
 of the municipal laws, ordinances and regulations, proceedings for street, 
 sewer, shade tree and sidewalk improvements, and for opening, widening, 
 and other changes in streets or alleys, if the property described herein 
 lies within the boundaries of any incorporated city except the City of Los 
 Angeles. 
 
 4. Proceedings for street, sewer, shade tree and sidewalk improve- 
 ments, and for opening, widening and other changes in streets or alleys 
 in the City of Los Angeles, unless the amount of assessment therefor has 
 become fixed and shown as a lien by the recording of the warrant at the 
 date hereof in the public office designated by law. 
 
 5. Instruments, trusts, defects, liens, easements and incumbrances 
 ;not shown by any public record of the City of Los Angeles, or of the 
 County of Los Angeles, State of California, or by the records of the 
 Federal Offices located at Los Angeles. 
 
 6. The validity or legality of tax sales, street assessments, attach- 
 ments, leases, easements, declarations of homestead and money judgments 
 if any are mentioned as incumbrances in tais certificate. 
 
112 HOW TO BUY AND 
 
 IN TESTIMONY WHEREOF, the Title Insurance and Trust Company 
 has caused these presents to be duly signed by its President, attested by 
 its Secretary, under its corporate seal, and counter- 
 signed by its Manager, this day of 190. . . at M. 
 
 TITLE INSURANCE AND TRUST COMPANY. 
 
 By President. 
 
 Countersigned Manager. 
 
 Attest Secretary. 
 
 (Here follows plat of premises.) 
 
 FORM NO. 4^-OWNER'S POLICY OF TITLE INSURANCE. 
 
 Los ANGELES, CAL 
 
 Amount, $2000 Policy No. 3610 Order No. 120636 
 
 OWNER'S GUARANTEE POLICY OF TITLE INSURANCE 
 In consideration of the sum of One Dollar and other valuable con- 
 siderations, paid for this POLICY OF INSURANCE, the . 
 
 TITLE INSURANCE AND TRUST COMPANY 
 
 a Corporation, organized and existing under the laws of the State of 
 
 California, and having its principal place of business at 
 
 the City of Los Angeles, in the County of Los 
 
 Angeles, State of California, 
 
 Does Hereby Insure 
 
 John Brown, and his heirs or devisees, for the term of thirty-five years 
 from the date hereof, against any loss or damage not exceeding in all the 
 sum of Two Thousand ($2000) Dollars, which the said Insured shall, 
 during said term of thirty-five years, sustain by reason of any incorrect 
 statement or guaranty in this Policy concerning the title to the tract of 
 land hereinafter described, or by reason of anv defect in, or lien or in- 
 cumbrance on the title of Insured to said land, at the date hereof, except- 
 ing only the defects, liens, incumbrances and other matters hereinafter 
 mentioned in the written and printed exceptions of this Policy ; and, as 
 a part of this Policy, and subject to all its terms, exceptions, conditions 
 and stipulations, the said Title Insurance and Trust Company guarantees 
 that the title to said land is vested in the said John Brown. 
 
 (This Policy consists of 3 pages, which are numbered at the end of 
 each page.) 
 
 DESCRIPTION OF THE TRACT OF LAND COVERED BY THIS POLICY OF INSURANCE: 
 
 (Description.) 
 
 EXCEPTIONS. 
 
 This Company does not insure against any of the following : 
 
 1. Instruments, Trusts, Liens, Easements, Incumbrances and Rights 
 or Claims of parties in possession of all or any portion of said property 
 not shown by the public records of the City of Los Angeles, or of the 
 County of Los Angeles, State of California, or by the records of the 
 Federal Offices located at Los Angeles. 
 
 2. Proceedings for street, sewer, shade tree and sidewalk improve- 
 ments, and for opening, widening and other changes in streets or alleys 
 
REAL ESTATE AT A PROFIT 113 
 
 unless the amount of the assessment therefor has become fixed and shown 
 as a lien by the recording of the Warrant at the date hereof in the public 
 office designated by law. 
 
 This Policy is issued and the liability of this Company is based upon 
 the following conditions and stipulations : 
 
 1. In case any action or proceeding shall be begun against the In- 
 sured founded upon a defect, lien or incumbrance prior in date to this 
 Policy, and thereby insured against, the Insured shall at once notify this 
 Comoany thereof in writing, and shall secure to this Company the right 
 to defend the same so far as necessary to protect the Insured, and the 
 Insured shall render all reasonable assistance in such defense; and this 
 Company will, at its own cost and charge, defend the Insured in such 
 action or proceeding, reserving, however, the option of settling the claim, 
 or of paying this Policy in full, or of defending such action or proceed- 
 ing; and, whether such defense by this Company shall be successful or 
 unsuccessful, this Company will pay, in addition to the loss, all costs 
 imposed on the Insured in litigation carried on by this Company for 
 the Insured under this Policy; but this Company will in no case be liable 
 for any costs or expenses incurred by the Insured in such litigation with- 
 out the consent of this Company. If the notice above designated shall 
 not be given to this Company and the said right to defend be not secured 
 to this Company within five days after the service on the Insured of the 
 summons or process in such action or proceeding, then this Policy shall 
 be void as to such defect, lien or incumbrance. 
 
 2. The Insured shall, in writing, promptly notify this Company of 
 any defect, lien or incumbrance prior in date to this Policy, and thereby in- 
 sured against, which shall come to the knowledge of the Insured, in respect 
 of which loss or damage is apprehended, and shall, in writing, prior to 
 any payment, settlement or compromise thereof by the Insured, invest 
 this Company with the power and authority, at its option, to pay, settle 
 or compromise such defect, lien or incumbrance for or in the name of the 
 Insured, or to resist or remedy the same by legal proceedings for or in 
 the name of the Insured, all at its own cost and charge, or to pay this 
 Policy in full. In the event that the Insured shall fail to comply with this 
 condition, then this Policv shall be void as to all loss or damage by reason 
 of such defect, lien or incumbrance. 
 
 3. Whenever this Company shall have settled a claim or loss under 
 this Policy, it shall be subrogated to and be entitled to all the rights, 
 securities and remedies of the Insured for the recovery of the same, in- 
 cluding also all the rights, securities and remedies which the Insured has 
 or would have had against any other person or property in respect to such 
 claim or loss had this Policy not been made, and also the right to use 
 the name of the Insured for the purpose of enforcing or collecting the 
 same; and, at the option of this Company, the Insured shall transfer or 
 cause to be transferred to this Company all such rights, including per- 
 mission and authority to use the name of the Insured for the recovery 
 or defense thereof. If the payment of the loss under this Policy does 
 
114 HOW TO BUY AND 
 
 not cover the whole loss of the Insured, this Company shall be subro- 
 gated to such rights, securities and remedies in the proportion which the 
 said payment of loss bears to the amount of such loss of the Insured not 
 covered by said payment, and the Insured warrants that such rights of 
 subrogation shall vest in this Company unaffected by any right of the 
 Insured. 
 
 4. The liability of this Company shall in no case exceed in all the 
 actual loss of the Insured. 
 
 5. All payments made by this Company under this Policy shall 
 reduce the amount of the insurance pro tanto, and payment or tender of 
 payment in any case of the full amount of this Policy shall terminate 
 all liability of this Company. 
 
 6. When the liability of this Company has been definitely fixed in 
 accordance with this Policy, the loss or damage shall be payable within 
 thirty days thereafter. 
 
 7. It is particularly understood and agreed that this Company is not, 
 and will not be, liable under this Policy on account of doubts, rumors or 
 assertions of defects, liens or inctimbrances, but only for loss or damage 
 under actual defects, liens or incumbrances insured by this Policy. 
 
 8. This Company does not by this Policy insure anyone other than 
 the Insured, against any loss or damage, except that this Policy may, 
 with the consent of this Company endorsed hereon, be assigned to a 
 mortgagee of the Insured who shall thereafter be entitled to all the 
 benefits, rights and remedies of the Insured under this Policy, and such 
 mortgagee shall not be prejudiced nor lose any rights under this policy 
 by reason of any act or negligence of the Insured, to which act or negli- 
 gence such mortgagee is not a party. 
 
 9. Whenever the Insured shall transfer the title to the property 
 described in this Policy, it may be surrendered and cancelled, and a new 
 Policy may, if the risk is accepted, be issued upon payment of the regular 
 rates for continuation. 
 
 10. The term "Insured" wherever it is used in this Policy includes 
 all described on its first page as those whom it insures, and the term "this 
 Company" wherever used in this Policy means the Title Insurance and 
 Trust Company. 
 
 11. Nothing contained in this Policy shall be construed as an insur- 
 ance to any one against defects, liens or incumbrances created subsequent 
 to the date hereof, or created or suffered by the Insured. 
 
 IN TESTIMONY WHEREOF, said Title Insurance and Trust Company 
 has caused these presents to be duly signed by its President and attested 
 by its Secretary, under its Corporate Seal, this Twenty-third day of April, 
 1905, at 8 A. M. 
 
 TITLE INSURANCE AND TRUST COMPANY. 
 
 By President. 
 
 Countersigned : 
 
 Manager. 
 
 Attest Secretary. 
 
 (Plat of Premises.) 
 
REAL ESTATE AT A PROFIT 115 
 
 CHAPTER VIII. 
 
 HOMES AND HOMESTEADS. 
 
 What the True Home Should Be Buying Versus Building Selecting the Lot 
 Plan of the House The Rough Sketch Preliminary Drawing Estimating the Cost 
 Plans and Specifications Obtaining Bids Superintending the Work Requirements 
 of the Law in Regard to Preparing, Executing and Filing the Contract Filing 
 Notice of Completion Liens of Mechanics and Material Men Notice Where Owner 
 Leases Land to be Improved Homestead Exemptions How and by Whom to be 
 Exercised Conveyance or Incumbrance, and Abandonment, of the Homestead 
 Homestead as Applied to Public Lands. 
 
 Sec. 124. Building the Home. 
 
 (i.) A home should be more than a house more than a 
 place in which to eat and sleep far more ! The home should 
 be a spot so cozy and attractive in its appointments and sur- 
 roundings that the human heart will cling to it as to a bit of 
 earthly heaven ; a place the children will learn to love and to 
 which their thoughts will tenderly turn in after years ; a place 
 where the husband and wife may find daily inspiration and 
 enjoyment. Wealth is not essential to ideal home conditions, 
 as some of the sweetest homes on earth are owned by people 
 of limited means. 
 
 (2.) If the amateur investor is undecided whether to ac- 
 quire a home by buying a house already built, or to purchase 
 a lot and erect a house, he should make a comparison, as nearly 
 as he can, with a view to arriving at a determination of the 
 matter. Should he decide to build, the following remarks are 
 intended to afford him some suggestions in regard thereto. 
 
 (3.) The house will cost practically the same wherever 
 it is located and it will depreciate in value as the years pass. 
 The lot will determine the future value of the premises as a 
 whole. The lot should be selected in the best surroundings 
 consistent with the means of the purchaser. (Read also Sec- 
 tions 31 and 47 in this connection.) A vacant lot with houses 
 on each side, is a good one to buy, as one knows then exactly 
 what the adjoining improvements will be. One can often buy 
 a lot close to the center of town as cheaply or cheaper than he 
 can buy in a new subdivision, and have sewers and all street 
 improvements paid for, whereas, in the subdivision there will 
 be no sewer and the odors from cesspools are eventually bound 
 to be offensive. Close-in property will rent more readily and 
 increase in value more rapidly than outside property. When 
 
116 HOW TO BUY AND 
 
 the prospective home builder has secured the title in fee to a 
 lot, he has a basis of security on which to borrow money from 
 a building and loan association, bank or private party to erect 
 a house. 
 
 (4.) As to the plan of the house. Any building contrac- 
 tor will be glad to furnish the intending home builder with 
 blue prints of houses. From these, he can select one suited to 
 his taste and means. If he wishes to work out some ideas of 
 his own, he should procure a large sheet of wrapping paper, a 
 ruler divided into quarter inches, and draw to scale a rough 
 sketch of the outline of the house, allowing one-fourth of an 
 inch on the paper for each one foot of the house. Any outline 
 or plan not drawn to scale is of little value. If the house is 
 to be two stories, he should draw a floor plan of each story. 
 The upper floor, of course, must conform in outline to the 
 lower. The plumbing of the upper floor should be directly 
 over that of the lower floor, and all be kept well to the rear of 
 the house, to save expense. The house should be made two 
 full stories, as there is much dissatisfaction, and no particular 
 saving is made, in erecting a house of one and one-half stories. 
 Too many rooms should not be provided for, and the greatest 
 amount of study should be expended in the arrangement of 
 the sitting room and kitchen the rooms that will be occupied 
 most by the family. 
 
 (5.) The rough sketch should then be taken to an archi- 
 tect or building contractor and explained to him, and he should 
 be requested to prepare a preliminary drawing from the sketch. 
 Ordinarily, no charge is made for the preliminary drawing, 
 but the architect or contractor will expect, of course, to pre- 
 pare the plans and specifications if the owner decides to build. 
 In the drawing will be incorporated such advantageous sug- 
 gestions as may be talked over and decided upon. 
 
 (6.) The architect or contractor can give the owner an 
 estimate of the probable cost of the house when completed, 
 but such estimate will generally be under, rather than over, the 
 actual cost. The following rule will enable the owner to 
 ascertain the cost for himself within $300 or $400, more or less, 
 viz.: Multiply together the length, breadth and height, and 
 this product by seven ; point off two places and the result will 
 
REAI, ESTATE AT A PROFIT H7 
 
 be the cost in dollars and cents. Thus, a building 28x56, 24 
 feet in height, should cost approximately $2634.24. This rule 
 applies to ordinary, plain construction only. The estimate of 
 the height of a house with a shingled roof should extend to 
 only one-half the height of such roof. 
 
 (7.) There is much variety in plans and specifications, 
 and for this reason no model set is given. What should be 
 provided for will be suggested by the following division head- 
 ings, viz. : Dimensions, height, foundation, cellar, chimneys, 
 timbers, carpenter work, under-pinning, bridging, exterior 
 covering, shingling, roofing, ventilators, mouldings, porches 
 or verandahs, scuttles, sky-lights, interior finish, stairs, base 
 boards, picture moulding, wainscoting, floors, closets, kitchen 
 sink, doors, screen doors, screens, windows, glass, hardware, 
 lathing, plastering, plumbing, waste pipe, ventilation, bath tub, 
 water-closets, wash basins, drains, instantaneous heater, slop 
 hoppers, wash trays, electric work, electric bells, electric lights, 
 gas piping, painting, sidewalk and fence. The electric and gas 
 fixtures and the shades are usually supplied by the owner after 
 the house is completed. 
 
 (8.) When ready to build, the owner should have plans 
 and specifications prepared by an architect or by a contractor 
 who has access to an architect's office. A writer on the subject 
 says : "The house was never erected that was satisfactory 
 structurally, artistically or from a business point of view on 
 which properly prepared plans and specifications were not em- 
 ployed. The size of the house has nothing to do with the 
 necessity for plans. A small house involves about the same 
 number of structural points and details, and all of the business 
 hazards and complications, of a large one. An architect's 
 knowledge and experience should save the owner more than 
 the cost of his services in the actual construction of a house, to 
 say nothing of the relief from business care." Building con- 
 tractors are of the opinion, however, that the specifications 
 prepared by an architect often times call for more material 
 than is actually necessary. 
 
 (9.) Four copies of the plans and specifications should 
 be prepared ; blue prints of the plans are made from the origi- 
 nal tracing paper drawing, and carbon copies of the specifica- 
 tions are made on the typewriter at one writing. The plans 
 
118 HOW TO BUY AND 
 
 and specifications should then be placed in the hands of build- 
 ing contractors of good reputation, for competitive bids, and 
 say five days should be allowed in which to file bids, all to be 
 filed by a certain hour of a certain day, the owner reserving the 
 right to reject any and all bids, it being understood that the 
 successful bidder shall sign the required contract and give 
 satisfactory bond. The contract for the entire work should be 
 let to one responsible contractor, as this places the entire re- 
 sponsibility of executing the work upon one person, and is the 
 only way in which one may know in advance just what the 
 work will cost when completed. Knowing the cost in ad- 
 vance presupposes that the owner has given thorough study 
 to the minutest detail, and has had everything requisite to n 
 complete house embodied in the plans and specifications. All 
 special mill work and interior finish will add to the cost; if 
 "stock" mouldings and "stock" sizes of doors, sash, etc., are 
 used the cost can be kept down. 
 
 (10.) After the contract has been let, the job should be 
 properly superintended. It is scarcely possible for the owner 
 to realize the value of the plans through his own efforts, as this 
 presupposes that he knows the various qualities and kinds of 
 materials, and the several methods of construction as well as, 
 or better than, the contractor. The architect or contractor 
 who prepared the plans and specifications ought to make the 
 best superintendent, as he is well acquainted with what is 
 required; but where the superintendent does not inspect the 
 work oftener than once in every two or three days or once a 
 week, the workmen can cover up a good deal of inferior work 
 in the meantime. Where the job is of sufficient size to war- 
 rant doing so, the superintendent should be on the ground all 
 the time. In any case, the owner should give as much atten- 
 tion as possible to the work; he will thereby gain a knowledge 
 of the construction of a building and the satisfaction of seeing 
 what has actually gone into such construction in the case of 
 his own building. The standards of excellence of con- 
 tractors vary as does their characters. Some men are natur- 
 ally thorough and honest in executing work; others are slip- 
 shod and indifferent; as their natural tendencies are, so their 
 work will be. 
 
 (n.) The successful bidder should sign the contract. 
 
REAL ESTATE AT A PROFIT 119 
 
 Under the California law where the cost of the construction, 
 alteration or repair of any structure exceeds one thousand dol- 
 lars, the contract or some memorandum thereof must be in 
 writing, and be subscribed by the parties thereto, and contain 
 the names of the parties, a description of the property, a state- 
 ment of the general character of the work to be done, the total 
 amount to be paid, the amounts of the partial payments, to- 
 gether with the times when such payments shall be due and 
 payable ; but at least 25 per cent of the whole contract price 
 must be made payable at least thirty-five days after the final 
 completion of the contract. No part of the price must be made 
 payable or be paid in advance of the commencement of the 
 work. See Form No. 49, as to when installments on the con- 
 tract price are ordinarily made payable as the work reaches 
 certain stages of completion. The owner and contractor 
 should each sign his name on each page of the plans and speci- 
 fications by way of identification. As reference must be made 
 in a building contract to the plans and specifications, such a 
 contract, for the purpose of filing, as hereinafter mentioned, 
 consists of the contract and the plans and specifications, and 
 the contract so constituted, before any material is hauled on 
 the ground or the work commenced, should be filed in the 
 office of the County Recorder of the County where the prop- 
 erty is situated. The filing should follow, but not precede, the 
 filing of a mortgage on same premises to raise money with 
 which to build. One dollar is the fee for filing. If the pro- 
 visions of the law are not complied with, the contract is wholly 
 void and no recovery can be had thereon by either party. 
 
 (12.) Formerly, the law required that a bond, equal in 
 amount to at least 25 per cent of the contract price, must also 
 be filed as a part of the contract, but the Supreme Court has 
 recently declared the bond to be unnecessary. As such bonds 
 continue to be filed, however, the form thereof is shown in 
 No. 50. 
 
 (13.) The object of filing the contract (including the 
 plans and specifications) is to shield the owner from liability 
 to laborers, material men, and sub-contractors beyond the 
 amount of the contract price, and to afford all persons who 
 desire to know information as to whether or not the price, 
 
120 HOW TO BUY AND 
 
 times of payment and terms of the contract will be adequate 
 security for the labor or materials about to be furnished. 
 
 (14.) Payments should be distributed over the work as 
 indicated in Form No. 49, and if the architect is supervising the 
 work, should be made on his certificate as in said form indi- 
 cated. If the owner is superintending the job, he should take 
 the names of all laborers working thereon, and of all parties 
 furnishing materials therefor, and as each installment becomes 
 due the contractor, the owner should ascertain if all such par- 
 ties have been paid the proportionate part due them up to that 
 time. In some cases, the contractor is required to turn in re- 
 ceipts for certain payments before payments are made to him 
 by the owner. The owner should be very careful not to make 
 any payments to the contractor until the times when they are 
 due under the contract. The owner should obtain from the 
 contractor all inspection certificates for plumbing, wiring, etc. 
 
 (15.) Within ten days after the building is completed, the 
 owner must file a notice of completion. (See Form No. 51.) 
 The owner should retain in his possession for thirty-five days 
 after filing the notice of completion, twenty-five per cent of the 
 contract price with which to meet any bills or claims not paid 
 by the contractor. 
 
 (16.) If a contractor ceases labor on an unfinished build- 
 ing, the owner must, within forty days thereafter, file a notice. 
 (See Form No. 52.) The two last named notices are to be filed 
 in the office of the County Recorder. 
 
 (17.) Mechanics, material men, contractors, sub-contrac- 
 tors, architects and others have preferred liens, to the extent 
 of the whole contract price, upon real property for labor and 
 materials furnished therefor. Where there are several liens, 
 they take precedence in the following order: ist, laborers; 
 2nd, material men ; 3rd, sub-contractors ; 4th, contractor*. 
 Such liens take precedence over homesteads. 
 
 (18.) Every person, save the original contractor, claim- 
 ing the benefit of the lien law must, within thirty days after the 
 completion of the building, file for record with the County Re- 
 corder a statement of his claim, such claim to be verified upon 
 oath. (See Form No. 54 for material men, and Form No. 55 
 for laborers.) The original contractor may file his lien within 
 
REAL ESTATE AT A PROFIT 121 
 
 sixty days after completion. The lien attaches for a period of 
 ninety days, and within that time proceedings must be begun 
 in the proper court to enforce the lien. 
 
 (19.) Where an owner leases land, or sells same under a 
 contract of sale, the owner retaining the title in his own name, 
 with the understanding that buildings will be placed thereon by 
 the lessee or purchaser, such owner should post on the land, 
 in a conspicuous place, not later than three days after such 
 buildings or improvements are begun, a notice (See Form No. 
 56) to the effect that he will not be responsible for such build- 
 ings or improvements. 
 
 (20.) Where the contract price is less than $1000, the 
 filing of contract is not required. 
 
 (21.) There are many vexations and annoyances con- 
 nected with building. Nevertheless, the .average man, rather 
 than to purchase a house already built, prefers to buy a lot and 
 erect his own house. Nearly every one has some pet plan 
 which he wishes to see constructed and which he firmly believes 
 will be a little better than anything else ever built in the house 
 line. There is an old saying to the effect that "Fools build 
 houses ; wise men live in them/' 
 
 Sec. 125. Of Homesteads. 
 
 (i.) A certain amount of both real and personal property 
 is, by the laws of the several states, exempt from liability for 
 the debts of the owner, and cannot be attached and sold, pro- 
 vided certain steps which the law says shall be complied with, 
 are taken. The real property so exempt is called a homestead. 
 A homestead represents the dwelling house at which the family 
 resides, and outbuildings of every kind necessary or convenient 
 for family use ; it may include a farm or garden, or one or 
 more city lots or blocks. The only tests are use and value. 
 
 (2.) The right of homestead may be exercised by the 
 husband and wife jointly, by the husband alone, or by the wife 
 alone, or by the "head of a family." Any person, whether mar- 
 ried or not, may be the head of a family, provided he or she 
 has residing on the premises with him or her certain minor 
 relatives, or certain other relatives as specified in the law, who 
 have attained the age of majority and are unable to support 
 themselves. 
 
122 HOW TO BUY AND 
 
 (3.) In order to select a homestead, the claimant must 
 execute, acknowledge and file for record a declaration of home- 
 stead. (See Forms No. 57 and 58.) If the claimant is mar- 
 ried, the selection may be from the community property, or 
 from the separate property of the husband, or from the separ- 
 ate property of the wife, and in the latter case her consent 
 must be shown by her joining in, or making, the declaration. 
 In order to impress the character of homestead upon the prem- 
 ises, the claimant must be actually residing there at the time 
 the declaration is filed, and, in California, the value of the 
 homestead must not exceed $5000 if selected by the head of a 
 family, and not over $1000 if selected by any other person. 
 
 (4.) Both the husband and wife must join in a deed or 
 mortgage in order to convey or incumber land on which a 
 declaration of homestead has been filed. The homestead can 
 be abandoned (See Form No. 59), but if the claimant is mar- 
 ried, the husband and wife must join in the instrument of 
 abandonment. If the husband or wife becomes hopelessly in- 
 sane, after filing declaration of homestead, the law provides 
 that upon appliaction to, and order of, the probate court, the 
 husband or wife, not insane, may convey or incumber the 
 homestead. 
 
 (5.) The word "homestead" also has reference to the 
 right of citizens of the United States to enter upon and appro- 
 priate, or pre-empt, as it is called, 160 acres or less of public 
 lands, the title to which is acquired after the expiration of five 
 years, during which the claimant must have resided upon or 
 cultivated said lands and complied with certain other condi- 
 tions and paid therefor at certain prices. 
 
 FORM NO. 49 BUILDER'S CONTRACT. 
 
 ARTICLES OF AGREEMENT, 
 
 Made this eleventh day of February, one thousand nine hundred and five, 
 between W. W. Jones, of the City of Los Angeles, County of Los Angeles, 
 State of California, the party of the first part, and C. N. Stratton, of the 
 said City and County, State aforesaid, the party of the second part, 
 
 WITNESSETH i The party of the first part will be hereinafter desig- 
 nated as the Owner, and the party of the second part as the Contractor, 
 singular number only being used ; and the word Architect used herein 
 in the singular shall include the plural, and the masculine the feminine. 
 
 FIRST. The Contractor agrees, within the space of Sixty (60) work- 
 ing days from and after February n, 1905, to furnish the necessary labor 
 
ESTATE AT A PROFIT 123 
 
 and materials, including tools, implements and appliances required, and 
 perform and complete in a workmanlike manner all that certain two-story, 
 seven-room residence, and other works shown and described in and by, 
 and in conformity with, the plans, drawings and specifications for the same 
 made by Geo. E. Willis, the authorized Architect employed by the Owner, 
 and which are signed by the parties hereto. 
 
 SECOND. Said Architect shall provide and furnish to the Contractor 
 all details and working drawings necessary to properly delineate said plans 
 and specifications ; and the work is to be done and the materials furnished 
 in accordance therewith under the direction and supervision and subject 
 to the approval of said Architect, or a superintendent selected and agreed 
 upon by the parties hereto, within a fair and equitable construction of the 
 true intent and meaning of said plans and specifications. , 
 
 THIRD. The time during which the Contractor is delayed in said 
 work by the acts or neglects of the Owner or his employees, or those under 
 him by contract or otherwise, or by the acts of God which the Contractor 
 could not have reasonably foreseen and provided for, or by stormy and 
 inclement weather which delays the work, or by any strikes, boycotts, or 
 like obstructive action by employee or labor organizations, or by any lock- 
 outs or other defensive action by employers, whether general or individual, 
 or by organizations of employers, shall be added to the aforesaid time for 
 completion. , 
 
 FOURTH. Said building, or residence aforesaid, is to be erected upon 
 a lot of land situated in the City of Los Angeles, County of Los Angeles, 
 State of California,, and described as follows : Lot 10 in Block D of the 
 Harvard Heights Tract, on Cambridge street, between Harvard avenue 
 and Hobart boulevard. 
 
 FIFTH. The owner agrees, in consideration of the performance of 
 this agreement by the Contractor, to pay, or cause to be paid, to the Con- 
 tractor, his legal representatives or assigns, the sum of Twenty-two Hun- 
 dred and Twenty Dollars ($2220), in United States gold coin, at times 
 and in the manner following, to-wit : $200 when brick foundation is fin- 
 ished, frame up arid rafters on ; $400 when plumbing is roughed in, build- 
 ing is enclosed, roof is on and interior is ready for plastering; $600 when 
 inside finish is on, plumbing completed and building ready for painting; 
 $465 when completed and accepted ; $555 in 36 days after notice of comple- 
 tion has been filed. 
 
 PROVIDED, that when each payment or installment shall become due, 
 and at the final completion of the work, certificates in writing shall be 
 obtained from said Architect, stating that the payment or installment is 
 'due or work completed, as the case may be, and the amount then due; 
 and the said Architect shall at said times deliver said certificates under 
 his hand to the Contractor, or, in lieu of such certificate, shall deliver to 
 the Contractor, in writing, under his hand, a just and true reason for 
 not issuing the certificates, including a statement of the defects, if any, 
 to be remedied, to entitle the Contractor to the certificate or certificates. 
 And, in the event of the failure of the Architect to furnish and deliver 
 
124 HOW TO BUY AND 
 
 said certificates, or any of them, or in lieu thereof the writing aforesaid, 
 within three days after the times aforesaid, and after demand therefor 
 made in writing by the Contractor, the amount which may be claimed 
 to be due by the Contractor, and stated in the said demand made by him 
 for the certificate, shall, at the expiration of said three days, become due 
 and payable, and the Owner shall be liable and bound to pay the same on 
 demand. 
 
 In case the Architect delivers the writing aforesaid in lieu of the 
 certificate, then a compliance by the Contractor with the requirements of 
 said writing shall entitle the Contractor to the certificate. 
 
 SIXTH. For any delay on the part of the Owner in making any 
 ot the payments or installments provided for in this contract after they 
 shall become due and payable, he shall be liable to the Contractor for any 
 and all damages which the latter may suffer; and such delay shall, hi 
 addition, operate as an additional extension of the time for completion 
 aforesaid for the length of time of such delay. Arid such delay, if for 
 more than five days after the date when said payments or installments 
 shall have respectively become due and payable, as in this agreement pro- 
 vided, shall, at the option of the Contractor, be held to be prevention by 
 the Owner of performance of this contract by the Contractor. 
 
 SEVENTH. The specifications and drawings are intended to co-oper- 
 ate, so that any work exhibited in the drawings and not mentioned in the 
 specifications, or vice versa, are to be executed the same as if both men- 
 tioned in the specifications and set forth in the drawings, to the true intent 
 and meaning of the said drawings and specifications when taken together. 
 But no part of said specifications that is in conflict with any portion of this 
 agreement, or that is not actually descriptive of the work to be done there- 
 under, or of the manner in which the said work is to be executed, shall 
 be considered as any part of this agreement, but shall be utterly null and 
 void. 
 
 EIGHTH. Should the Owner or the Architect, at any time during 
 the progress of the work, request any alterations or deviations in, additions 
 to, or omissions from, this contract or the plans or specifications, either 
 of them shall be at liberty to do so, and the same shall in no way affect 
 or make void this contract; but the amount thereof shall be added to, or 
 deducted from, the amount of the contract price aforesaid, as the case may 
 be, by a fair and reasonable valuation. And this contract shall be held to 
 be completed when the work is finished in accordance with the original 
 plans, as amended by such changes, whatever may be the nature or extent 
 thereof. 
 
 NINTH. The rule of practice to be observed in the fulfillment of the 
 last foregoing paragraph (eight) shall be that, upon the demand of either 
 the Contractor, Owner or Architect, the character and valuation of any 
 or all changes, omissions, or extra work, shall be agreed upon and fixed 
 in writing, signed by the Owner or Architect and the Contractor, prior to 
 execution. 
 
 TENTH. Should any dispute arise between the Owner and Contractor, 
 
ESTATE AT A PROFIT 125 
 
 or between the Contractor and Architect, respecting the true construction 
 of the drawings or specifications,, the same shall, in the first instance, be 
 decided by the Architect; but should either of the parties hereto be dissat- 
 isfied with the justice of such decision, or should any dispute arise between 
 the parties hereto respecting the valuation of extra work, work done, or 
 work omitted, the disputed matter shall be referred to, and decided by, 
 two competent persons who are experts in the business of building, one to 
 be selected by the Owner or Architect, and the other by the Contractor; 
 and, in case they cannot agree, these two shall select an umpire, and the 
 decision of any two of them shall be binding on all parties. 
 
 ELEVENTH. Should the Contractor fail to complete this contract, 
 and the works provided for therein, within the time fixed for such com- 
 pletion, due allowance being made for the contingencies provided for 
 herein, he shall become liable to the Owner for all loss and djamages 
 which the latter may suffer on account thereof, but not to exceed the sum 
 of $35 per day for each day said works shall remain uncompleted beyond 
 such time for completon. 
 
 TWELFTH. In case said work herein provided for should, before 
 completion, be wholly destroyed by fire, 'defective soil, earthquake or other 
 act of God which the Contractor could not have reasonably foreseen and 
 provided for, then the loss occasioned thereby shall be sustained by the 
 Owner to the extent that he has paid installments thereon, or that may 
 be due under the fifth clause of this contract; and the loss occasioned 
 thereby and to be sustained by the Contractor, shall be for the uncom- 
 pleted portion of said work upon which he may be engaged at the time of 
 the loss, and for which no payment is yet due under said fifth clause of 
 this contract. 
 
 In the event of a partial destruction of said work by any of the 
 causes above named, then the loss to be sustained by the Owner shall be 
 in the proportion that the amounts of installments paid or due bears to 
 the total amount of work done and materials furnished, estimated accord- 
 ing to said contract price, and the balance of said loss to be sustained 
 by the Contractor. 
 
 THIRTEENTH. The payment of the progress-payments by the Owner 
 shall not be construed as an absolute acceptance of the work done up to 
 the time of such payments; but the entire work is to be subject to the 
 inspection and approval of the Architect or Superintendent at the time 
 when it shall be claimed by the Contractor that the contract and works 
 are completed; but the Architect or Superintendent shall exercise all 
 reasonable diligence in the discovery, and report to the Contractor as the 
 work progresses, of materials and labors which are not satisfactory to 
 the Architect or Superintendent, so as to avoid unnecessary trouble and 
 cost to the Contractor in making good defective parts. 
 
 FOURTEENTH. Should the Contractor, at any time during the progress 
 of the work, refuse or neglect, without the fault of the Owner, Architect 
 or Superintendent, to supply a sufficiency of materials or workmen to com- 
 plete the contract within the time limited herein, due allowance being 
 
126 HOW TO BUY AND 
 
 made for the contingencies provided for herein, for a period of more than 
 three days after having been notified by the owner in writing to furnish 
 the same, the Owner shall have power to furnish and provide said ma- 
 terial or workmen to finish the said work; and the reasonable expenses 
 thereof shall be deducted from the amount of the contract price. 
 
 IN WITNESS WHEREOF, the said parties to these presents have here- 
 unto set their hands and seals, the day and year first above written. 
 
 W. W. JONES. (Seal) 
 
 C. N. STRATTON. (Seal) 
 
 FORM NO. 50 BUILDERS' BOND. 
 
 BUILDERS' BOND TO OWNER. 
 
 WHEREAS, C. N. Stratton, of the County of Los Angeles, State of 
 California, described therein as party of the second part, or contractor, 
 and W. W. Jones, of the County and State aforesaid, described therein 
 as party of the first part, or owner, have made and executed a certain 
 contract in writing, dated the nth day of February, 1905, whereby the 
 said party of the second part, or contractor, has agreed to perform and 
 complete in a workmanlike manner for said party of the first part, or 
 owner, all the materials and labor, including tools and appliances of every 
 kind, and all other specified work of a 2-story, 7-room residence build- 
 ing to be erected upon the premises situated in the City of Los Angeles, 
 County of Los Angeles, State of California, and described as follows, 
 to-wit: Lot 10 in Block D of the Harvard Heights Tract, on Cambridge 
 street, between Harvard and Hobart streets; and the party of the first part, 
 or owner, has agreed to pay therefor the sum of Twenty-two Hundred 
 and Twenty Dollars, said contract being executed and delivered herewith : 
 Now, THEREFORE, KNOW ALL MEN BY THESE PRESENTS : That in 
 consideration of the above premises, we, C. N. Stratton, as principal, and 
 P. W. McMillan and R. M. Brown, as sureties, are held and firmly 
 bound unto said W. W. Jones in the sum of Five Hundred and Fifty-five 
 dollars, for which payment well and truly to be made, we bind ourselves, 
 jointly and severally, and our respective heirs, executors, administrators 
 and assigns firmly by these presents. 
 
 Sealed with our seals, and dated the eleventh day of February, 1905. 
 The condition of this obligation is such that if said contractor shall 
 keep and strictly perform all the covenants and agreements of the contract 
 by him to be kept and performed, and shall, on or before thirty-five days 
 after the acceptance of said building, or completion of said contract or 
 improvement, cancel and release the said building and premises from all 
 damage claims or liens that may have accrued against the same in and 
 from the performance of said contract, and shall save said owner free 
 and harmless from all damage therefrom, all as in said contract provided, 
 then the above obligation to be void ; otherwise to remain in full force 
 and virtue. 
 
 C. N. STRATTON. (Seal) 
 P. W. MCMILLAN. (Seal) 
 R. M. BROWN. (Seal) 
 
ESTATE AT A PROFIT 127 
 
 State of California, County of Los Angeles, ss. 
 
 P. W. McMillan and R. M. Brownj the sureties whose names are 
 subscribed to the above undertaking, being severally duly sworn, each 
 for himself, says, that he is a resident and freeholder in said County and 
 State, and is worth the sum in the said undertaking specified as the penalty 
 thereof, over and above all his just debts and liabilities, exclusive of 
 property exempt from execution. 
 
 P. W. MCMILLAN, 
 R. M. BROWN. 
 
 Subscribed and sworn to before me this eleventh day of February, 
 1905. 
 (Seal) SAMUEL BRISTOW, 
 
 Notary Public in and for Los Angeles County, California. 
 
 FORM NO. 51 NOTICE OF COMPLETION. 
 
 State of California, County of Los Angeles, ss. 
 
 W. W. Jones, being first duly sworn, deposes and says: That he is 
 now, and was upon the nth day of February, 1905, the owner in fee 
 simple of that certain real property situated in the County of Los An- 
 geles, State of California, and particularly described as follows, to-wit: 
 
 (Description.) 
 
 That as such owner of said land, affiant, upon the nth day of 
 February, 1905, duly entered into a contract, which was filed in the office 
 of the County Recorder, with C. N. Stratton, as contractor, for the erec- 
 tion and construction, upon the land above described, of a certain building, 
 to-wit: a two-story, 7-room residence. 
 
 The said building has been duly constructed and finished, and the 
 same was actually completed and- accepted on the nth day of April, 1905, 
 and ten (10) days have not yet elapsed since the actual completion thereof. 
 
 This affidavit is intended as and is notice to all mechanics, material 
 men, sub-contractors and others, who have performed work upon or fur- 
 nished materials to, or who have claims or liens of any description or 
 kind against said building or premises, that the said building was actually 
 completed on the day hereinbefore set forth. This notice is given and re- 
 corded in pursuance of the provisions of Section 1187 of the Code of 
 Civil Procedure of the State of California, as amended March 27, 1897. 
 
 W. W. JONES. 
 
 Subscribed and sworn to before me, this nth day of April, 1905. 
 
 SAMUEL BRISTOW, 
 Notary Public in and for the County of Los Angeles, State of California. 
 
 FORM NO. 52 NOTICE OF ABANDONMENT. 
 
 State of California, County of Los Angeles, ss. 
 
 Hiram White, being first duly sworn, deposes and says, that he is 
 now and was on the second day of June, 1905, the owner of that certain 
 real property situated in the City and County of Los Angeles, State of 
 California, and particularly described as follows, to-wit: Lot Eight (8), 
 
128 HOW TO BUY AND SSU, 
 
 in Block Four (4), of the Washington Tract; that as such owner of 
 said land, affiant, on the second day of June, 1905, duly entered into a 
 contract with Q. A. Sawyei for the erection and construction on said 
 land of a certain two-story, frame flat building at Nos. 1217 and 1219 
 West Tenth street, in said city; that said contract was filed in the office 
 of the County Recorder ; that said building has not been fully constructed 
 or completed and finished by said contractor, Q. A. Sawyer, and that the 
 same has been abandoned and left unfinished by him, and that the seventh 
 day of September, 1905, was the day on which said abandonment and 
 cessation of labor actually occurredj and that forty days have not elapsed 
 since the actual cessation of labor thereon, under said contract, occurred 
 and said contract was abandoned. 
 
 This affidavit is inten'ded to be and is notice to all mechanics, ma- 
 terial men, sub-contractors and others who have performed work upon 
 or furnished material for or who have claims or liens of any description 
 or kind against said building or premises; that said building was actually 
 abandoned by said contractor, and the cessation of labor thereon under 
 said contract actually occurred, on the date hereinabove set forth. This 
 notice is given and recorded in pursuance of provisions of Section 1187 
 of the Code of Civil Procedure of the State of California, as amended 
 March 27, 1897. 
 
 HIRAM WHITE. 
 
 Subscribed and sworn to before me this loth day of October, 1905. 
 
 SAMUEL BRISTOW, 
 Notary Public in and for the County of Los Angeles, State of California. 
 
 FORM NO. 53 NOTICE TO OWNER TO WITHHOLD MONIES 
 
 FROM CONTRACTOR. 
 
 MECHANICS' LIEN. NOTICE TO OWNER. 
 C. C. P., SEC. 1184. 
 
 John Joiner vs. Solomon Shylock. 
 State of California, County of Los Angeles, ss. 
 
 To Solomon Shylock, the reputed owner of the two-story, seven- 
 room house now being erected on Cambridge street, Lot Ten, Block D, 
 of Harvard Heights Tract, at Los Angeles, in the County of Los Angeles, 
 State of California : 
 
 You will please take notice that I have performed ten days carpenter 
 labor upon above mentioned building, at the rate of $3.50 per day, amount- 
 ing to $35; that James Stout is the name of the contractor of said build- 
 ing, and that he entered into a verbal agreement with me whereby said 
 labor was performed; that said contractor has not paid me for said labor 
 or any part thereof, and you are hereby notified to withhold from him suffi- 
 cient money to pay my said claim for labor. 
 
 Dated April loth, 1905. 
 
 (Signed) JOHN JOINER. 
 
REAL, ESTATE AT A PROFIT 129 
 
 FORM NO. 54 MATERIAL MAN'S LIEN. 
 NOTICE OF LIEN 
 
 MATERIAL MAN. 
 
 Percy Woodman, doing business under the firm name and style of 
 Woodman Lumber Co., vs. Century Building Company, a Corporation. 
 State of California, County of Los Angeles, ss. 
 
 NOTICE is hereby given, that Percy Woodman, doing business under 
 the firm name and style of Woodman Lumber Co., claims a lien on the 
 premises hereinafter described for materials to be used and which were 
 actually used in the construction of that certain building or structure, 
 now upon that certain lot and parcel of land situate in the County oi 
 Los Angeles, State of California, and sought to be charged with this 
 lien, and described as follows, to-wit: That certain frame dwelling house 
 and structure known and designated as No. 2707 Cambridge street, on 
 that certain lot known as Lot 10, in Block D, of the Harvard Heights 
 Tract, as per map recorded in the office of the County Recorder of Los 
 Angeles County, in Book 6 of Miscellaneous Records, at page 293; 
 
 That said Century Building Company, a Corporation, is and was at all 
 times herein mentioned, the owner and reputed owner of said premises, and 
 caused said building or structure to be constructed as herein mentioned; 
 
 That said Century Building Company is the name of the person or 
 corporation by whom claimant was employed, and for whom and at whose 
 instance and request the material herein mentioned was furnished to &nd 
 for the construction of said building upon the land hereinabove described; 
 
 That all of said land is required for the convenient use and occupa- 
 tion of said building and structure ; 
 
 That the following is a statement of the claim and demand of said 
 claimant, and of the terms and time given and the conditions of his said 
 contract; that said material was furnished between the 7th day of April, 
 1905, and the 29th day of April, 1905; that the terms were, cash on 
 delivery, amounting in all to Five hundred and twenty-five dollars ($525), 
 and the items thereof, dates of delivery and amounts thereof, are shown 
 by the statement hereto annexed, following, and made a part hereof, 
 marked "Exhibit A" : 
 
 "EXHIBIT A. Los ANGELES, CAL V July ist, 1905. 
 
 "Century Building Co. 
 
 "To Woodman Lumber Co., Dr. 
 
 "Deliver to Lot 10, Bock D, Harvard Heights Tract 
 "Date Pieces Dimensions Kinds Total Price Amounts 
 4-8 81 2x418 O. P. 972 $19 $18.46" 
 
 Etc. Etc. 
 
 That said building or structure has been completed and that thirty 
 days have not elapsed since the same was completed, and since the notice 
 of completion thereof was duly filed by said owner; 
 
 That the amount of the contract price for said material furnished 
 as aforesaid, is Five hundred and twenty-five dollars, in United States 
 gold coin; 
 
130 HOW TO BUY AND 
 
 That no part of said sum due claimant as aforesaid has been paid 
 and that the sum of Five hundred and twenty-five dollars in gold coin 
 of the United States is still due and owing thereon to said claimant, after 
 deducting all just credits and offsets. 
 
 Wherefore, said claimant, Woodman Lumber Co., claims the benefit 
 of the law relative to liens of mechanics and others upon real property, 
 to-wit: Chapter II., Title IV., Part III., of the Code of Civil Procedure. 
 
 PERCY WOODMAN, Claimant. 
 State of California, County of Los Angeles, ss. 
 
 Percy Woodman, being duly sworn, says : I am the lien claimant 
 above named ; I have heard the foregoing claim read, and know the 
 contents thereof, and the same are true. 
 
 Subscribed and sworn to before me this ist day of July, A. D. 1905. 
 
 SAMUEL BRISTOW, 
 Notary Public in and for the County of Los Angeles, State of California. 
 
 FORM NO. 55 MECHANIC'S LIEN. 
 NOTICE OF LIEN 
 
 LABORER 
 
 John Joiner vs. Solomon Shylock. 
 State of Cnlifornia, County of Los Angeles, ss. 
 
 NOTICE is hereby given, that John Joiner, at the time hereinafter men- 
 tioned, performed labor upon and in the construction of that certain build- 
 ing or structure, and now upon that certain parcel of land situated in the 
 City of Los Angeles, County of Los Angeles, State of California, and 
 sought to be charged with this lien, and described as follows, to-wit : Lot 
 44 in Block C of the Golden Gate Tract, as per map recorded in Book 6, 
 page 527, Miscellaneous Records, in the office of the County Recorder of 
 the County of Los Angeles. 
 
 That Solomon Shylock is the name of the owner, and reputed owner, 
 of said premises, and caused said building or structure to be erected, and 
 the name and nature of his title is as follows: he owns the same in fee 
 simple. 
 
 That Edward Eggleston is the name of the contractor who, on the 
 21 st day of June, A. D. 1905, as such contractor, entered into a contract 
 with said claimant, John Joiner, under and by which said John Joiner 
 performed labor on said structure or dwelling house, and the following 
 is a statement of the terms, time given, and condition of said contract, 
 to-wit: Such labor consisted of and was carpenter work, performed 
 between the 2ist day of June and the 2d day of July, 1905, to-wit: eleven 
 days labor as carpenter, for which said Edward Eggleston agreed to 
 pay claimant at the rate of $3.50 per day, making due claimant the sum 
 of $38.50; no special terms were made and no special time given. 
 
 That said contract has been fully performed on the part of said 
 Edward Eggleston, and the same was completed, and the work on said 
 building, or structure, finished, on the loth day of July, A. D. 1905, and 
 thirty days have not elapsed since the same was completed, and sjaiid 
 building, or structure, finished. 
 
ESTATE AT A PROFIT 131 
 
 That the amount of the contract price for said labor so furnished as 
 aforesaid is Thirty-eight and 50-100 Dollars, in United States gold coin. 
 
 That no part of said sum of Thirty-eight and 50-100 Dollars, United 
 States gold coin, has been paid on account of said contract price, and that 
 the sum of Thirty-eight and 50-100 Dollars, in gold coin of the United 
 States, is still due and owing and unpaid thereon to said claimant, after 
 deducting all just credits and offsets. 
 
 Wherefore, said claimant, John Joiner, claims the benefit of the law 
 'relative to liens of mechanics and others upon real property, to-w.it: 
 Chapter II., Title IV., Part III., of the Code of Civil Procedure. 
 
 JOHN JOINER, Claimant. 
 BALL & BAIL, Counsel for Claimant. 
 
 (Verification as in Form No. 54.) 
 
 FORM NO. 56 NOTICE BY OWNER THAT HE WILL NOT BE 
 RESPONSIBLE FOR IMPROVEMENTS. 
 
 NOTICE BY OWNER. 
 
 NOTICE is HEREBY GIVEN to all whom it may concern, that the under- 
 signed is the owner of the land on which this notice is posted, to-wit : Lot 
 
 , in Block . .. ., in the City of Los Angeles, County of Los Angeles, 
 
 State of California, and that, as such owner, he will not be responsible 
 for the cost of the construction, alteration or repair of any building or im- 
 provement made thereon, and will oppose any attempt to place a lien on 
 said land by reason thereof. 
 
 Dated the day of 190.... 
 
 Owner. 
 
 FORM NO. 57 DECLARATION OF HOMESTEAD BY HUSBAND. 
 
 KNOW ALL MEN BY THESE PRESENTS: That I do hereby certify and 
 declare that I am married and that I do now, at the time of making this 
 declaration, actually reside with my family on the land and premises here- 
 inafter described. That my family consists of a wife and 
 
 children. That the land and premises on which I reside are bounded and 
 
 described as follows, to-wit : Lying and being in the 
 
 County of State of , and 
 
 particularly described as follows : 
 
 (Description.) 
 
 That it is my intention to use and claim the said lot of land and 
 premises above described, together with the dwelling-house thereon, and 
 its appurtenances, as a Homestead, and I do hereby select, declare and 
 claim the same as a Homestead; 
 
 That my wife has not made any declaration of homestead on said 
 lands and I therefore make this declaration for the joint benefit of myself 
 and wife. 
 
 That the actual cash value of said property I estimate to be $ 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and seal, this 
 day of , one thousand nine hundred 
 
 (Seal) 
 
 Signed, Sealed and Delivered in the Presence of 
 
 ( Acknowledgment. ) 
 
132 HOW TO BUY AND 
 
 FORM NO. 58 DECLARATION OF HOMESTEAD BY WIFE. 
 
 KNOW ALL MEN BY THESE PRESENTS : That I 
 
 do hereby certify and declare that I am married and am the wife of 
 
 ; that my husband 
 
 has not made any declaration of homestead, and I therefore make this 
 declaration for the joint benefit of myself and husband; that I do now, at 
 
 the time of making this declaration, actually reside with my 
 
 on the land and premises described as follows, to-wit: Lying and being 
 
 in the County of State of 
 
 and bounded and described as follows : 
 
 (Description.) 
 
 That it is my intention to use and claim the said lot of land anid 
 premises above described, together with the dwelling-house thereon, and 
 its appurtenances, as a Homestead, and I do hereby select, declare and 
 claim the same as a Homestead. 
 
 That the actual cash value of said property I estimate to be $ 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and seal, this 
 
 day of , one thousand nine hundred 
 
 (Seal) 
 
 Signed, Sealed and Delivered in the Presence of 
 
 (Acknowledgment ) 
 
 FORM NO. 50 ABANDONMENT OF HOMESTEAD. 
 
 KNOW ALL MEN BY THESE PRESENTS : That we 
 
 and , husband and wife 
 
 do hereby abandon, release and discharge from any and all claim by 
 
 us, as a Homestead, the lot of land and premises, situate, lying and being 
 
 in the County of of , 
 
 bounded and described as follows, to-wit: 
 
 (Description.) 
 TOGETHER with the tenements and apurtenances thereunto belonging, 
 
 IN WITNESS WHEREOF, ha hereunto set 
 
 hand. ..and seal... this day of one thousand 
 
 nine hundred and 
 
 (Seal) 
 
 (Seal) 
 
 Signed, Sealed and Delivered in the Presence of 
 
 (Acknowledgment.) 
 
RAL ESTATE AT A PROFIT 133 
 
 CHAPTER IX. 
 
 MISCELLANEOUS MATTERS AFFECTING REAL ESTATE 
 
 Easements Rights of Way and Party Walls Leases Rights of Landlord and 
 Tenant Notices Where Time Is, or Is Not, Agreed Upon Leases of Dwellings, 
 Farm Lands, Oil Lands and Contract for Drilling Oil Well Appropriating Water 
 Powers of Attorney Transferring Title by the Torrens System Locating Mining 
 Claims Petitions to Public Bodies for Roads and Rights of Way Executing and 
 Revoking Wills. 
 
 Sec. 126. Easements. 
 
 (i.) An easement is a right in the owner of one parcel 
 of land to use the land of another for some special purpose; 
 as where A, who owns land which does not reach to the pub- 
 lic road, secures from B a right of way for a road across the 
 land of B to the public road. 
 
 (2.) The land to which an easement is attached, in the 
 above case, A's, is called the dominant tenement, and the land 
 upon which the burden or servitude is laid, in this case B's, 
 is called the servient tenement. 
 
 (3.) The principal easements are rights of way for roads, 
 pipe lines (See Form No. 84), or telephone lines, the right 
 to transact business upon land, the right to use a wall as a 
 party wall (See Form No. 83), and the right to have the 
 whole of a division fence maintained by a co-terminous owner. 
 Co-terminous owners are mutually bound equally to maintain 
 the division fences, boundaries and monuments between them, 
 and any departure from the rule is properly the subject of an 
 agreement. 
 
 (4.) Easements are created by written instruments 
 which are executed, acknowledged and recorded the same as 
 deeds, and appear as exceptions in abstracts and certificates 
 of title. 
 
 (5.) A party wall is a wall built on the dividing line of 
 the lands of two adjoining owners. Where a .party wall rests 
 partly upon the soil of each owner, and was constructed as a 
 party wall, each owner is possessed in severalty of his own soil 
 up to the dividing line, and of that portion of the wall which 
 rests upon it, but the soil of each, with the wall belonging to 
 him, is burdened with an easement or servitude in favor of 
 the other, to the end that it may afford a support to the wall 
 and building of such other. (See Form No. 83.) 
 
134 HOW TO BUY AND 
 
 Sec. 127. Of Leases. 
 
 (i.) A lease is a conveyance of lands or tenements for 
 a certain length of time by the owner, who, in such case, is 
 called the landlord or lessor, to another person, called the les- 
 see or tenant, for a certain consideration, called rent. 
 
 (2.) The laws of the several States fix the length of time 
 for which a lease may be made in certain cases. In Califor- 
 nia, for example, a lease of lands for agricultural purposes, in 
 which is reserved to the owner any rent or service of any kind, 
 cannot be made for more than ten years, and a lease of a city 
 or town lot cannot be made for more than fifty years. 
 
 (3.) A lease for a longer period than one year must be in 
 writing; in fact, all leases ought to be in writing. As many 
 copies of a lease should be made as there are parties to it, and 
 one copy should be retained by each party. If personal prop- 
 erty is also let in connection with real estate, an inventory of 
 such personal property should be made, and be attached to 
 the lease, and be referred to in the body of the lease. A lease 
 of lands for a term of years should be acknowledged, and the 
 acquisition or disposition by a mining corporation of mining 
 ground should have attached the ratification of more than two- 
 thirds of the stockholders of such corporation, as indicated 
 in Form No. 19. 
 
 (4.) The lessor of a building intended to be occupied by 
 human beings must put it into a condition fit for such occu- 
 pancy, in the absence of any agreement to the contrary, and re- 
 pair all subsequent dilapidations which render it untenantable. 
 But the lessee must repair all deteriorations or injuries caused 
 to the building occasioned by his own ordinary negligence. 
 
 (5.) Where the premises are held by the day, week, 
 month, quarter, or year, rent is payable at the end of the re- 
 spective periods as it successively becomes due, when there is 
 no usage or contract to the contrary. In the majority of cases, 
 however, there is a contract between the landlord and the ten- 
 ant to the effect that the rent shall be payable in advance for 
 a stated period, as such advance payment assures the landlord 
 that his tenant will remain for another .such period, and if the 
 tenant sees fit to remove before the period expires, the land- 
 lord has an opportunity to secure another tenant without loss 
 of rent. 
 
ESTATE AT A PROFIT 135 
 
 (6.) The hiring of a thing terminates, at the end of the 
 term agreed upon, or by the mutual consent of the parties, or 
 by the lessee acquiring a title to the premises superior to that 
 of his landlord, or and by the destruction of the tenement. 
 
 (7.) If a lessee of real property remains in possession af- 
 ter the expiration of the term agreed upon, and the landlord 
 accepts rent from him, the parties are presumed to have re- 
 newed the lease for the same terms and for the same time, not 
 exceeding one month, when the rent is payable monthly, but 
 not longer, in any case, than one year. 
 
 (8.) Where no time is agreed upon, the landlord, if he 
 wishes to terminate the lease, must give the tenant notice in 
 writing, specifying the time within which the tenant must re- 
 move and giving him one month in which to do so. (See Form 
 No. 67). After the time mentioned in the notice has ex- 
 pired, if the tenant has not removed, the landlord may insti- 
 tute legal proceedings against him. 
 
 (9.) Where the time is agreed upon, three days' notice 
 only is required to be given by the landlord to the tenant. 
 (See Form No. 68). The notice may be given at any time 
 within one year after the rent falls due, and should be served 
 on any sub-tenant as well as on the tenant of the premises. 
 Like notice may be served when any condition of the lease 
 is broken, and in some cases provision is made in the lease how 
 such notice shall be served, and that forfeiture will follow if 
 the tenant fails to perform the covenant complained of. (See 
 Form No. 64.) 
 
 (10.) In all leases of lands or tenements, or of any inter- 
 est therein, from month to month, the landlord, by serving 
 written notice upon the tenant at least fifteen days before the 
 expiration of the month, may change the terms of the lease to 
 take effect at the expiration of the month, and if the tenant 
 continues to hold the premises, the rent and terms specified in 
 the notice becomes part of the lease. California Civil Code, Sec. 
 827. (See Form No. 69.) 
 
 (n.) Two forms of farm leases are shown; also two 
 forms of oil leases, and, in connection with the latter, a con- 
 tract for the drilling of an oil well. (Nos. 61-65). 
 
 Sec. 128. Appropriating Water. 
 
136 HOW TO BUY AND SELL 
 
 (i.) The doctrine of appropriation of water from streams 
 ; s peculiar to trie Western States, and owes its origin to the 
 necessities of the arid region. The doctrine is that the unap- 
 propriated waters of natural streams shall be subject to ap- 
 propriation for irrigation and other useful purposes. To con- 
 stitute a valid appropriation of water, there must be an actual 
 diversion of the water with the intent to apply it to some 
 beneficial use, followed by an actual application of it to that 
 use within a reasonable time. As between appropriators, the 
 one first in time is first in right. 
 
 (2.) A person desiring to appropriate water must post a 
 notice, substantially as per Form No. 70, at the point of in- 
 tended diversion, and a copy of such notice must, within ten 
 days after it is posted, be recorded in trie office of the County 
 Recorder of the county in which it is posted. 
 
 Within sixty days after the notice is posted, the claimant 
 must commence the excavation or construction of the works 
 in which he intends to divert the water and prosecute the work 
 diligently to completion, by which is meant conducting the 
 Avater to the place of intended use. By a compliance with the 
 requirements of the law, the right to the water relates back to 
 the time the notice was posted. 
 
 Sec. 129. Powers of Attorney. 
 
 (i.) A power of attorney is a written authorization exe- 
 cuted by one person, called the principal, directing another 
 person, called the attorney in fact, to perform some act or acts 
 for the principal. A power of attorney is deemed to be in ef- 
 fect until revoked or until the death of the principal. 
 
 (2.) The power of attorney to execute a deed, mortgage 
 or other instrument affecting real property, must be in writ- 
 ing and be subscribed, acknowledged or approved, and certi- 
 fied and recorded, in like manner as grants of property. 
 
 (3.) In California, a married woman may make, execute 
 and revoke powers of attorney for the sale, conveyance or in- 
 cumbrance of her real or personal estate with the same affect 
 as if she were unmarried. 
 
 (4.) A power of attorney may be revoked at the pleasure 
 of the principal, unless the attorney in fact, or some third per- 
 son, has an interest in the subject matter of the power. 
 
 (5.) A power- of attorney which has been recorded and 
 
REAIy ESTATE AT A PROFIT 137 
 
 which affects real estate is not revoked by any act of the party 
 by whom it was executed, unless the instrument containing 
 such revocation is acknowledged and certified and recorded in 
 the same office in which the instrument containing the power 
 was recorded. 
 
 (6.) An attorney in fact, in executing an instrument 
 transferring any estate in real property, must subscribe the 
 name of his principal to it and his own name as attorney in 
 fact. The name of trie principal is recited in the body of the 
 instrument and the signature is made thus : "John Jones, by 
 his attorney in fact, Peter Brown." 
 
 Sec. 130. Torrens Land Titles. 
 
 In 1897 the California Legislature passed an act to pro- 
 vide for the certification of land titles in accordance with the 
 Torrens system, but the system has not become popular, for 
 the reason, perhaps, that the first step is the filing of a veri- 
 fied petition in trie Superior Court to have a decree entered 
 bringing the land described in the petition under the operation 
 of the act. 
 
 (i.) The act is intended, its advocates claim, to make 
 the State the guarantor of all titles registered under the law; 
 to put beyond possibility of question or contest title to real 
 estate in one in whom title is found to reside ; to render labor- 
 ious search of title unnecessary, and to economize the cost of 
 search ; to present at any moment a perfect and guaranteed in- 
 dex of all matters and things relating to or affecting title ; to 
 enable the owner of property to so leave "his estate, so far as 
 realty is concerned, that it will be practically beyond assault 
 and contest; to simplify trie method of transfer and incum- 
 brance, and greatly reduce the cost of the same ; to economize 
 in time of transfer, and largely to be preventive of litigation. 
 Finally, it aims to enable an owner of property to clear his 
 title of clouds, and make a judicial record of its actual condi- 
 tion that shall be final and conclusive. 
 
 (2.) Land is brought under the operation of the act vol- 
 untarily only by petition of the owner and by order of court. 
 The petition sets out all the facts relative to the claim of the 
 owner to the real estate, and is accompanied by a plat of the 
 land, and an abstract of the title made by a searcher who has 
 
138 HOW TO BUY AND 
 
 given official bonds against damages and costs for an)' error. 
 
 (3.) The Superior Court sets a time for hearing the ap- 
 plication to register and gives notice to all interested (See 
 Form No. 76), and to owners of adjoining lands. Any one 
 interested may appear at the hearing, when evidence may be 
 taken. If it is found that the applicant is the owner, and that 
 all defects in the title have been cured, a decree to that effect 
 is entered, whereupon the County Registrar makes the original 
 certificate of title and proceeds to bring the land under the 
 operation of the act and supplies the owner with a duplicate 
 certificate. (See Form No. 77.) 
 
 (4.) The original certificates of title are to be recorded 
 with all memorials and notations of the certificate, or relating 
 to it. Every title certificate is to bear a number correspond- 
 ing to the folio of registration on the registration books. Every 
 transfer of title is deemed registered, when the new certificate 
 to the transferee has been marked, as in case of the first certi- 
 ficate, and all dealings regarding the land are deemed regis- 
 tered when the memorial or notation is entered on the register. 
 Any one aggrieved by any act or refusal of the Registrar, may 
 bring an action to have the matter determined. 
 
 (5.) If part of the land is sold, a new duplicate certificate 
 issues for the unsold portion. The Registrar is to keep all 
 papers filed regarding title and is to furnish copies to any one 
 on demand and payment of a fee therefor, but shall endorse on 
 the copy in red ink, "No rights conveyed hereby." 
 
 (6.) An indorsement on a certificate substantially as fol- 
 lows: "I grant to the real property within described," 
 
 when duly acknowledged, will be sufficient to transfer title. 
 A deed or instrument purporting to deal with registered land 
 except a will or lease for a year has only the effect of a con- 
 tract, and is authority to the Registrar to make note of the 
 transfer, on compliance with the terms of the act. If such an 
 instrument is filed with the Registrar, he notes the fact on the 
 original certificate thus: "transferred," "mortgaged" or other- 
 wise. 
 
 Sec. 131. Locating Mining Lands. 
 
 (i.) The public lands of the United States, open to entry 
 by citizens of the United States, over twenty-one years of age, 
 
REAL ESTATE AT A PROFIT 139 
 
 are classified as agricultural, desert, timber, stone, coal, min- 
 eral and saline lands. For full details as to the methods of 
 procedure by which title is acquired to these several kinds of 
 land see the American Mining Code and American Settler's 
 Guide. 
 
 (2.) There are two kinds of mining claims, quartz or 
 lode claims, and placer claims. A lode claim may be located 
 for fifteen hundred feet along a mineral vein, and in width for 
 three hundred feet on each side of the vein, making a claim 
 of not exceeding 1500 feet in length by 600 feet in width. On a 
 quartz claim a discovery of mineral must be made before lo- 
 cation. 
 
 (3.) A placer claim may be located at the rate of twenty 
 acres for each locator and an association of not exceeding eight 
 locators may locate up to one hundred and sixty acres. A 
 placer claim may be located before mineral is actually discov- 
 ered, but a patent cannot be obtained until mineral has been 
 discovered. Petroleum, brea, natural gas and asphaltum are 
 entered as placer claims. 
 
 (4.) To make a valid location, the claim must be dis- 
 tinctly marked on the ground by reference to some natural ob- 
 ject or permanent monument so that the boundaries of the 
 claim can be readily traced. Such natural objects or perma- 
 nent monuments may consist of stone monuments, mountain 
 peaks, blazed trees, confluents of streams, or the boundaries 
 or monuments of adjoining claims. Marking the claim on the 
 ground determines the rights of the claimant as between him- 
 self and adjoining government land and notifies third parties 
 of his rights. 
 
 (5.) When the claimant has located his claim, he must 
 prepare a notice, in which the claim will be described accord- 
 ing to the location boundaries, for the purpose of identifying 
 the claim. The notice must also set forth the names of the 
 locators, the date of the location and usually the name of the 
 claim. (See Form No. 78 for Lode Claim and No. 79 for 
 Placer Claim.) 
 
 (6.) The miners in a certain locality may form a mining 
 district, and make regulations not in conflict with the laws of 
 the United States and of the State in which the district is sit- 
 
140 HOW TO BUY AND 
 
 uate, governing the location, manner of recording the location 
 notice, amount of work necessary to be done, and rate per 
 day at which such work shall be computed, etc. Such districts 
 usually appoint a mining recorder and require that all location 
 notices and proofs of annual work shall be recorded in books 
 kept in his office in the district. 
 
 (7.) The claimant posts one copy of his notice on the 
 claim, and files a duplicate with the mining recorder of the dis- 
 trict. It is the practice, in some sections to have such notice 
 also recorded in the permanent records in the office of the 
 County Recorder of trie county in which the land is situate; 
 and in California, the State law requires that the affidavit of 
 annual assessment work shall be recorded in the County Re- 
 corder's office. 
 
 (8.) At least one hundred dollars worth of work or im- 
 provements must be done on each claim each year, counting 
 from the first day of January next succeeding trie date of lo- 
 cation, until patent is obtained, whether the claim is a lode 
 claim or consists of twenty or more acres of placer mining 
 ground. Such work is usually done in the latter part of the 
 year, and an affidavit of assessment work is then filed in the 
 office of the County Recorder. A failure to do the requisite 
 work and file the affidavit within the required time, leaves the 
 claim open to re-location. Labor done for the direct benefit of 
 the claim, though not done on the claim itself, may be applied 
 as annual assessment work. (See Form No. 80.) 
 
 (9.) At least five hundred dollars in labor and improve- 
 ments must be expended on the claim, and a discovery of min- 
 eral made thereon, before application for patent can be made 
 through the nearest land office. 
 
 Sec. 132. Of Petitions. 
 
 In some cases, easements for roads and rights of way, etc.. 
 are to be obtained from public bodies, by means of petitions, 
 and suggestions for these are set forth in Forms Nos. 81 and 
 82. 
 
 Sec. 133. Of Wills. 
 
 (i.) A Will is a disposition of real and personal prop- 
 erty by a person, called the testator, to take effect after his 
 death. Every person of sound mind, and over eighteen years 
 
REAL ESTATE AT A PROFIT 141 
 
 of age, may by his last will, dispose of all his real and per- 
 sonal estate, subject to the payment of his debts. 
 
 (2.) Every one who has property, should make a will if 
 for no other reason than to appoint an executor, and, if de- 
 sired, to exempt the executor from giving bonds. 
 
 (3.) A married woman, under the California law, may 
 make, alter and revoke her will in like manner as if she were 
 single. 
 
 (4.) An intestate is one who, having power to make a 
 will, does not make it, or who makes a defective will. His 
 estate descends to his heirs and is managed by an adminis- 
 trator. 
 
 (5.) An olographic will is one that is entirely written, 
 dated and signed by the hand of the testator himself. It need 
 not be witnessed. (See Form No. 85.) 
 
 (6.) Any other written will must be executed and at- 
 tested with certain formalities, namely : 
 
 (a) It must be subscribed at the end by the testator him- 
 self, or some person in his presence and by his direction 
 must sign his name for him ; 
 
 (b) The signing must be made in the presence of two at- 
 testing witnesses, or the testator must acknowledge to such 
 witnesses that the signature is his or was made by his author- 
 ity; 
 
 (c) The testator must, at the time of signing or when he 
 acknowledges that the signature is his, declare to the wit- 
 nesses that the instrument is his will, and each of the witnesses 
 must, thereupon, sign his name as a witness, at the end of the 
 will, after a witness-clause, as shown in Form No. 86. 
 
 (7.) The statutes of the several States place limita- 
 tions on the will-making power, as, for example, in Cali- 
 fornia, the husband has power to dispose of only one-half of 
 the community property; a married woman can only will her 
 separate property; only one-third of an estate can be devised 
 to charity ; certain kinds of corporations cannot take prop- 
 erty under a will ; trusts of a certain character can only be 
 declared, etc., etc. If the property interests involved are of 
 any magnitude, it is advisable for the testator to procure the 
 services of a competent attorney in making his will. 
 
142 HOW TO BUY AND 
 
 (8.) Wills are revoked by certain acts, as where a 
 woman marries after making her will; or where a man mar- 
 ries after making his will and does not provide for his wife 
 by marriage contract or by will ; also by the testator burning, 
 tearing, cancelling, obliterating or destroying his will with 
 the intention of revoking it. If so cancelled or destroyed by 
 any person other than the testator, the fact of such cancella- 
 tion or destruction, and that the testator directed the same to 
 be done, must be proved by two witnesses. Wills may be 
 revoked in writing, but such writing must be executed with 
 the same formality as the will. 
 
 (9.) A codicil is an addition to, or modification of a will. 
 
 FORM NO. 60 LEASE OF HOUSE OR OTHER DWELLING. 
 
 THIS LEASE AND AGREEMENT, made and entered into, in duplicate, 
 this i6th day of August, A. D. 1905, by and between Allen H. Avery, 
 the party of the first part, and Thomas B. Longstreet, the party of the 
 second part, each of said parties being a resident of the City of Los An- 
 geles, County of Los Angeles, State of California, WITNESSETH : That 
 for and in consideration of the payments of the rents, and the performance of 
 the covenants contained herein on the part of the said party of the sec- 
 ond part, and in the manner hereinafter stated, said party of the first part 
 does hereby lease, demise and let unto the said party of the second part, 
 that certain premises and building, and its appurtenances situated at No. 
 1076 Santee Street, in the City of Los Angeles, County of Los Angeles, 
 State of California, and being Lot No. 235, in Block "L" of the Avery 
 Tract, to be used a^ a rooming house, for the term of two years, com- 
 mencing on the First day of September, 1905, and ending on the Thirty- 
 first day of August, 1905, at the monthlv rent or sum of Fifty (50) Dollars, 
 payable monthly in advance on the I5th day of each and every month of 
 said term. 
 
 The party of the second part agrees that he has thoroughly examined 
 said leased premises, and knows the condition thereof in every particular, 
 and accepts the same in their present condition, waiving any claim or 
 right on account of such condition, and the party of the first part shall 
 not be liable to the party of the second part, or to his successors or as- 
 signs, or to any other person, for any injury or damages that may result 
 to persons or property by reason of any defect in the construction or con- 
 dition of said premises, whether such defect be known or unknown to 
 either of the parties hereto, nor for any loss or damages that may be oc- 
 casioned by storms, rains or leakage in the roofs or other portions of 
 said premises, or by over-flowing of bath tubs, explosions of gas heaters, 
 or gas, or gasoline stoves, or by other injury to said premises, or to per- 
 
REAL ESTATE AT A PROFIT 143 
 
 sons or property therein, or by reason of any negligence of any other ten- 
 ant, or of any employee, of the party of the first part. 
 
 The carty of the second part, shall not do, or permit to be done, in 
 or upon the said demised premises, anything which will in any way conflict 
 with the conditions in any insurance policy, upon the building or any part 
 thereof ; or in any way increase the rate of fire insurance upon said building, 
 or conflict in any way with the laws or ordinances, of the City of Los An- 
 geles, or of the various departments thereof, and shall not allow said prem- 
 ises to be used for any improper, immoral or unlawful or objectionable pur- 
 pose, or for the keeping, storing, selling, or otherwise disposing of in- 
 toxicating liquors. 
 
 The party of the first part, and his agents, and representatives, shall 
 have the right to enter the demised ^remises, to examine the same, and 
 to make such repairs and alterations as he may deem necessary for the 
 safety, care or preservation thereof, and, upon the expiration of this lease, 
 to show said demised premises to c,ny person wishing to lease the same, 
 and shall have the right to place in the windows, or otherwise in said 
 premises, a notice to rent, for one month prior to any termination iof 
 this lease. 
 
 AND IT is AGREED, that if any rent shall be due and unpaid, or if 
 default shall be made in any of the covenants herein contained, then it 
 shall be lawful for the said party of the first part, to re-enter said prem- 
 ises, and remove all persons therefrom. And at his option to terminate 
 this lease, but such re-entry shall not be deemed a termination of the lia- 
 bility of the party of the second part, unless notice of his election to ter- 
 minate the lease be given by the party of the first part. 
 
 And the said party of the second part, does hereby promise and 
 agree to pay to the said party of the first part the said monthly rent herein 
 reserved, in the manner herein specified. And not to let or underlet the 
 whole, or any part of said premises, or make or suffer any alteration to be 
 made therein, without the written consent of the said party of the first part ; 
 and not to assign this lease without the written consent of the said party 
 of the first part. And it is further agreed that the said party of the first 
 part shall not be called upon to make any improvements or repairs what- 
 soever, upon the said demised premises, or any part thereof, but the said 
 party of the second part agrees to keep the same in good order arid con- 
 dition at his own expense. And at the expiration of said term or any 
 sooner determination of this lease, the said party of the second part, will 
 quit and surrender the premises hereby demised in as good order and 
 condition as reasonable use and wear thereof will permit, damages by 
 the elements excepted. And if the party of the second part shall hold 
 over the said term, with the consent, express or implied, of the party of 
 the first part, such holding over shall be construed to be a tenancy from 
 month to month, and said second party will pay the rent as above stated, 
 for such further time as he may hold the same. The party of the second part 
 agrees to pay all rents for water, electric light and gas, which may be 
 
144 HOW TO BUY AND SEW, 
 
 consumed in, or properly be charged against, said premises during the 
 term of this lease. 
 
 It is expressly understood and agreed by the parties hereto, that if 
 the rent herein reserved, or any part thereof, shall be unpaid on any day 
 of payment whereon the same ought to have been paid, and remains un- 
 paid for ten (10) days thereafter, or if default shall have been made in 
 any of the covenants, or agreements herein contained, on the part of the 
 said party of the second part, to be kept and performed, then it shall and 
 may be lawful for said party of the first part, his agents, attorneys 
 or assigns, to declare the term of said lease ended, and into said demised 
 premises, and every part thereof, to re-enter, either with or without pro- 
 cess of law, and to expel, remove or put out, any person or persons oc- 
 cupying the same, together with the goods and chattels found therein, using 
 such force as may be found necessary in so doing, and the said premises 
 to repossess and enjoy as in his first and former estate. 
 
 The covenants and conditions herein contained shall inure to the 
 benefit of, and be binding upon, the heirs, successors and assigns of the 
 respective parties hereto; provided, that this lease shall not be capable of 
 assignment except by the written consent of said party of the first part, as 
 aforesaid. 
 
 IN WITNESS WHEREOF, the said parties of these presents have here- 
 unto set their hands and seals, the day and year first above written. 
 
 ALLEN H. AVERY. (Seal) 
 
 THOMAS B. LONGSTREET. (Seal) 
 
 In consideration of the foregoing lease or agreement, and One Dol- 
 lar to me paid, the receipt whereof is hereby acknowle'dged, I do hereby 
 covenant, promise and agree to and with the said Allen H. Avery that 
 the said Thomas B. Longstreet shall well and truly pay all rents and 
 perform and execute all the covenants therein contained on his part and 
 that on his failure so to do in any particular, I will forthwith pay unto said 
 Allen H. Avery all rents or damages that may happen or accrue by reason 
 of such failure not exceeding the sum of Two hundred (200) Dollars. 
 Dated and signed on this i6th day of August, 1905. 
 
 C. G. REMICK. (Seal) 
 
 Signed, Sealed and Delivered in the Presence of 
 W. F. THAYER, 
 SOLON ABBOTT. 
 
 FORM NO. 61 FARM LEASE "MESA LANDS" (CALIFORNIA). 
 
 THIS AGREEMENT, made the 2oth day of August, in the year of our 
 Lord one thousand nine hundred and four, by and between S. J. Wise, 
 of the City and County of San Francisco, State of California, party of the 
 ifirst part, and D. C. Vancliff, of the County of Santa Barbara, State 
 aforesaid, party of the second part, Witnesseth: That the said party of 
 the first part, for and in consideration of the covenants and agreements 
 hereinafter mentioned, and contained, on the part of the said party of the 
 second part, his executors, administrators and assigns, to be kept and per- 
 
REAL ESTATE AT A PROFIT 145 
 
 formed, does by these presents, demise and farm-let unto the said party 
 of the second part, his executors, administrators and assigns, and said 
 party of the second part does hire and take from said party of the first 
 part, all that certain lot, piece or parcel of land situate, lying and being in 
 the County of Santa Barbara, State of California, bounded and described 
 as follows, to-wit : 
 
 (Description.) 
 
 Containing about two hundred (200) acres, to farm on shares 
 from the date hereof, mt.l the crops that are on said lands in the year 
 1906 are harvested, but not later than November I, 1906, upon the terms, 
 covenants and conditions hereinafter mentioned. 
 
 IN CONSIDERATION WHEREOF, The said party of the second part 
 hereby covenants and agrees to and with said party of the first part, 
 that he will occupy, till, and in all respects cultivate the said premises, 
 and the whole thereof, during the time aforesaid, in due season, and in 
 a good and husbandlike manner, and according to the usual course of 
 husbandry; that he will not commit, or suffer any waste or damage 
 upon said premises, or any part thereof; that he will at his own cost and 
 expense, keep the fences and buildings on the said premises in good re- 
 pair, reasonable wear thereof and damage by the elements excepted; that 
 he will find and furnish all seed necessary to be sown on said premises, 
 and will do or cause to be done all necessary work and labor in and about 
 the cultivation of the said premises, and in harvesting, threshing, sacking 
 and taking proper care of all crops raised thereon, as soon as ripe ; that 
 he will immediately, after each harvesting or threshing, as the case may 
 be, deliver to the said party of the first part, in a warehouse at Orcutt, 
 California, an equal one-half of all crops or other products of the said 
 premises, the same to be securely and properly baled or sacked in new, 
 standard sized sacks of the first quality; and further agrees that if the 
 grain grown on the said premises be cut with a "harvester," he will imme- 
 diately gather the bags of grain as harvested, and pile them in piles of 
 not less than one hundred each. 
 
 It is agreed that the system of summer-fallowing shall be observed 
 in the farming of said lands, and that twenty acres thereof shall be sum- 
 mer-fallowed by said party of the second part in each year during the 
 term of this lease, or any renewal or continuation thereof. 
 
 The said party of the first part reserves the right to sell the whole 
 or any part of said premises, at any time; but, in case the purchaser shall 
 not take the same subject to this lease, the said lease (as to the lands so 
 sold) shall forthwith terminate; whereupon the said party of the second 
 part at the option of lessor shall be permitted to harvest and remove the 
 crop then growing, or shall be entitled to fair compensation from said 
 party of the first part for all labor employed and expense incurred in pre- 
 paring for another crop, the land so sold. Said party of the second part 
 shall also be entitled to fair compensation for 'any summer-fallowing he 
 may do and leave upon said lands, whether at the expiration of the ex- 
 pressed term of this lease or upon any sooner determination thereof. The 
 
146 HOW TO BUY AND 
 
 compensation, or any thereof, in this clause referred to, is to be such as 
 shall be agreed upon by the said parties, or in case they do not agree, is 
 to be such as shall be fixed by three arbitrators one to be chosen by each 
 of the parties hereto, and the third by the two arbitrators so first chosen. 
 
 AND IT is FURTHER MUTUALLY AGREED, between the parties hereto, 
 that in case the party of the second part shall fail to harvest the crops 
 or other products that may grow on the above described lands, as soon 
 as ripe, the said party of the first part may enter upon said premises, with- 
 out notice to the said party of the second part, and take possession of all 
 crops or other products that may be thereon, and harvest the same at the 
 expense and cost of the party of the second part, and may sell by public 
 or private sale, and with or without notice or previous demand of pay- 
 ment, so much of the share thereof belonging to said party of the second 
 part as shall appear to be necessary therefor, and apply the proceeds of 
 sale in payment and reimbursement of all costs and expenses incurred in 
 such harvesting, and in providing sacks and sacking, baling, hauling, and 
 storing the said crops or other products, or any part thereor. 
 
 AND IT is FURTHER AGREED, that said party of the first part shall, at 
 all times, be the absolute owner as of original right of the proportion of 
 said crops and other products which he shall be entitled to receive and re- 
 tain under this agreement, and the remainder shall belong to and be the 
 property of the party of the second part. 
 
 The party of the first part may, at any time, at his option, after said 
 harvesting and threshing, enter upon the said premises, and, without pro- 
 cess of law, select and remove the proportion of crops and other products 
 to which he is so entitled under this agreement. 
 
 Said party of the second part agrees that he will not feed stock from 
 the growing crop on the said lands ; and also agrees that none of the said 
 lands shall be volunteered without the written consent of the party of the 
 first part; and in case volunteer be allowed, said party of the first part 
 shall receive, have and own one-half of said crop, properly sacked, or baled, 
 as the case may be, and delivered as aforesaid; and also agrees that no 
 dry plowing shall be done without the written consent of the party of the 
 first part. 
 
 It is agreed that no hay shall be cut upon said premises (except 
 around the margin of the crop, where necessary to avoid waste in harvest- 
 ing,) without the written consent of the said party of the first part; and 
 that of all hay which shall be cut upon said premises, the party of the first 
 part shall own and receive the one-half part baled and delivered by said 
 party of the second part as aforesaid. 
 
 IT is FURTHER UNDERSTOOD AND AGREED between the said parties, that 
 the party of the first part reserves the privilege to give right of way 
 through the aforesaid lands, or any of them, for railroads, ditches, etc., at 
 any time during the term of this lease. 
 
 IT is ALSO AGREED that if said party of the second part shall fail or 
 neglect to fulfill or perform any of the covenants or agreements herein con- 
 tained, or shall violate any thereof, it shall be lawful for the said party of 
 
REAL ESTATE AT A PROFIT 147 
 
 the first part to re-enter the said premises and remove all persons there- 
 from, and forthwith terminate this lease. 
 
 AND ALSO that in case any suit or action be commenced by said party 
 of the first part for recovery of possession of said premises or any part 
 thereof, or for the enforcement or protection of his rights to his proportion 
 of the said crops or other products, or any part thereof, or on account of 
 the non-fulfillment of the conditions or agreements or any of them con- 
 tained in this lease, the party of the first part shall be entitled, if he re- 
 cover judgment, to have included therein and to recover the sum of $100.00 
 for attorney's fees, together with all costs of such suit or action. 
 
 IT is FURTHER AGREED, that the party of the first part shall have and 
 own all stubble on the aforesaid lands, and have the right to take possession 
 thereof as soon as the crop is harvested. 
 
 The party of the second part shall make a reasonable effort to extern^ 
 inate the squirrels on the above described lands, during the existence of this 
 agreement, at his own expense. 
 
 This contract shall not be assignable or transferable, in whole or in 
 part, without the written consent of the said party of the first part. 
 
 Said party of the second part agrees that, at the expiration of said 
 term, he will surrender and yield up peaceable possession of said premises 
 to said D'arty of the first part. 
 
 IN WITNESS WHEREOF, the said parties have hereunto set their hands 
 and .eals the day and year first above written. 
 
 [In duplicate.] 
 
 S. J. WISE. (Seal) 
 
 D. C. VANCLIFF, (Seal) 
 
 Signed, sealed and delivered in the presence of : 
 
 MILTON YOUNG, Witness. 
 
 L. A. DANIELS, Witness. 
 
 FORM NO. 62 FARM LEASE (COLORADO). 
 
 THIS ARTICLE OF AGREEMENT, Made and entered into by and between 
 
 party of the first part, lessor, and 
 
 party of the second part, lessee, witnesseth, that the said party of the first 
 part has this day leased unto said party of the second part the following 
 
 described premises situated in the County of .and state of 
 
 to- wit : together with all buildings and improve- 
 ments on the same (except as hereinafter mentioned) for the term of 
 
 .year. . .commencing on the day of 
 
 190. ., and ending the day of 190. ., at the 
 
 rent of subject to conditions in fourteenth clause hereof. 
 
 the said rent to be paid or delivered, as the case may be, as fol- 
 lows : And the said party of >the first part makes the 
 
 following reservation, to-wit : The said party of 
 
 the second part, lessee, agrees as follows : 
 
 ist. To thoroughly plow, cultivate and farm in farm-like manner, all 
 lands upon said premises not in tame or wild grass, or in timber. 
 
148 HOW TO BUY AND SELL, 
 
 2nd. That will use said premises as a and for 
 
 no other purpose whatsoever, that especially will not let said premises or 
 permit the same to be used for any unlawful business or purpose what- 
 soever. 
 
 3rd. That will not sell, assign, underlet, or relinquish said 
 
 premises without the written consent of the said party of the first part 
 
 (lessor), under the penalty of a forfeiture of all rights under or 
 
 by virtue of this Lease, at the election of said party of the first part. 
 
 4th. That will guard said property, buildingSj gates, fences, 
 
 vines, shrubbery, and orchard from all damages, that will keep the 
 
 buildings, glass, gates and fences in as good repair as the same now are, or 
 may be at any time placed in by the said party of the first part (lessor) ; 
 that will do no act whereby an insurance on buildings may be in- 
 validated; that will not remove nor allow any other person to re- 
 move from said premises any of the fences, buildings, trees, shruboery, or 
 any of the improvements of any kind. 
 
 5th. That will haul out all manure on said premises, in the 
 
 summer and fall, and place it where the party of the first part desh-s. No 
 furrows to be run so as to cause ditches to vash said premises, unless first 
 having written consent of said party of the first part. That he will clean 
 out and maintain in good repair, during the operation of this Lease, all 
 ditches belonging or appertaining to the above described land. 
 
 6th. That will well and seasonably put in and tend said 
 
 crops ; that will have all small grain threshed by 
 
 and corn husked and cribbed by of each year; and if not threshed 
 
 or cribbed as stated, first party may proceed to do so after ten (10) days' 
 notice to second party, and take enough of second party's grain to pay ex- 
 pense of such gathering or harvesting or threshing; that the tame or wild 
 grass is to be well harvested and taken care of ; that no young or growing 
 timber is to be cut or used which is now growing on said premises; that 
 no rails, boards or posts be used or appropriated as fuel or other purposes. 
 
 7th. That accepts the fences upon said leased premises as 
 
 they now are 
 
 8thi That at the expiration of this Lease, or upon a breach by the 
 said party of the,second part of any of the covenants herein contained 
 
 will, without further notice of any kind, quit and surrender 
 
 the possession and occupancy of said premises in as good condition as 
 careful use and natural wear and decay thereof will permit. 
 
 9th. That all goods and chattels, or any other property used or kept 
 on said premises, shall be held for the rent or damages under this Lease, 
 whether exempt from execution or not, meaning or intending hereby to 
 give the party of the first part a valid and first lien upon any and all goods 
 and chattels, crops and other property belonging to said party of the sec- 
 ond part. 
 
 loth. It is further agreed that second party is to work out the road 
 tax for 190. ., and send receipt for same to first party. 
 
 i ith. It is further agreed 
 
ESTATE AT A PROFIT 149 
 
 I2th. That all payments from party of the second part shall become 
 due and paj^able upon his forfeiture of said Lease, or his abandoning said 
 premises, and if it becomes necessary for the first party to bring an action 
 at law to recover possession, damage or rent, party of the second part 
 agrees to pay a reasonable attorney's fee therefor, and all costs attending 
 the same. 
 
 i3th. It is further agreed that in case the land described herein is sold 
 or rented to another tenant for 190. ., said tenant or buyer shall have the 
 right to go on said land, make repairs, fall plow, or sow wheat in the fall 
 of 190. . 
 
 I4th. It is further understood and agreed that in case first party sells 
 
 the propertv described herein before the day 190. ., 
 
 it or its assigns may declare this Lease void and of no effect, by giving sec- 
 ond party notice of said sale before the day of 
 
 190.., and payinp- second party dollar., per acre for all plow- 
 ing done on said land in the fall of 
 
 IN WITNESS WHEREOF, The said parties have hereunto subscribed 
 
 their names, and signed a duplicate, this day of 190. . 
 
 (Seal) 
 
 (Seal) 
 
 (Seal) 
 
 IN PRESENCE OF 
 
 FORM NO. 63 OIL LEASE (COLORADO). 
 
 THIS AGREEMENT, made and entered into this 9th day of April, A. D. 
 1005, b'r and between Richard Reese of Kit Carson County, and State of 
 Colorado, party of the first part, and James Morton of the County of Fre- 
 mont, and State of Colorado, party of the second part, 
 
 Witnesseth : That the said party of the first part, for and in consid- 
 eration of the royalties hereinafter agreed to be paid and of the covenants 
 and agreements hereinafter expressed to be kept and performed by the 
 said party of the second part, has leased, let and demised and by these 
 presents does lease, let and demise unto the said party of the second part, 
 the following described premises, to-wit : S. E. J4 f N. E. J4 of Section 
 23, Township 16 South, Range 10 East of principal meridian, in Fremont 
 County, State of Colorado, containing 160 acres, more or less : 
 
 To have and to hold, unto the said party of the second part for the 
 term of fifty years from the date hereof; the said party of the first part 
 hereby giving and granting to the party of the second part the following 
 rights, powers and privileges, to-wit : to prospect, bore, drill, mine and de- 
 velop the said premises for oil and gas; to erect, construct and maintain 
 machinery, tanks, pipe lines, refineries, tramways, cable lines, railways, 
 railway sidings, dwelling: houses and any and all structures which may be 
 necessary or proper to be erected, constructed or maintained for the pur- 
 pose of prospecting, boring, drilling and developing the said premises as 
 
150 HOW TO BUY AND 
 
 aforesaid, and of storing, using and disposing of oil and gas found or dis- 
 covered upon the said premises or upon premises in the vicinity thereof. 
 
 The said party of the second part covenants and agrees as follows, to- 
 wit : 
 
 First. To pay and deliver as royalty to the said party of the first 
 part, ten per cent of the net proceeds derived from all oil or gas obtained by 
 virtue of this agreement, the product so obtained and disposed of for each 
 month to be paid for on the first day of the second month following. 
 
 Second. To commence in the County of Fremont, State of Colorado, 
 within one year of the date hereof, to drill a well for oil and to continue 
 the work thereon with due diligence until the said well shall have reached 
 the depth of 1,000 feet, or oil or gas has been discovered, and in the event 
 of a discovery of oil or gas in paying quantities in said well, to commence, 
 within five years from the date hereof, to drill a well for oil on the above 
 described premises, it being agreed and understood that a failure to com- 
 mence to drill either of the above mentioned wells shall in no manner ren- 
 der the said second party liable for any damages to the first party, his heirs 
 or assigns. 
 
 It is also agreed that the said party of the first part shall fully use 
 and enjoy said premises for horticultural, farming and grazing purposes 
 until said second party is ready to commence operations thereon, and after 
 operations have been commenced on said premises by said second party, 
 said first party shall fully use and enjoy said premises for said purposes, 
 except such parts as may be necessary for the operations of said second 
 party, and for the construction of derricks, pipe lines, tramways, railroad 
 tracks and other things necessary for the purposes herein mentioned. 
 
 It is further agreed that there shall be no wells drilled within one 
 hundred feet of the buildings now on the premises, without the consent of 
 the first party. 
 
 It is further agreed that if one or more dry wells are drilled on said 
 land, which fail to produce oil or gas in paying quantities, then the party 
 of the second part shall have the right to abandon this lease and said prop- 
 erty shall revert to said party of the first part, without liability for further 
 development. 
 
 It is hereby further covenanted and agreed that any and all fixtures, build- 
 ings, machinery and improvements of every description erected upon the 
 said land and premises under and by virtue of this lease may be removed 
 within ninety days from and after the termination of this agreement ; that 
 the said party of the second part shall have the right to take and use water 
 from any ditch or ditches, stream or streams, spring or springs in and 
 upon the said land and premises, so far as may be necessary for the opera- 
 tion of whatever machinery may be necessary or proper to be used on 
 account of this agreement; that the said land and premises, and any part 
 thereof, may be sublet, and any or all rights existing under and by virtue 
 of this agreement may be assigned or transferred; that the title to any 
 and all oil or gas found or discovered in or upon the said land and prem- 
 ises shall be in the said party of the second part, subject, however, to the 
 
ESTATE AT A PROFIT 151 
 
 payment of the royalty herein reserved to be paid ; that if the said party 
 of the second part shall fail in any respect to keep and fulfill any and all 
 agreements herein expressed or implied, then, and in that case it shall be 
 lawful for the said party of the first part, his agent or attorney, to de- 
 clare this lease void and of no effect thereafter, and without process of 
 law, to enter upon and take possession of said premises ; and that in such 
 case, or at the expiration of this lease by limitation, the said party of th' 
 second part shall surrender, yield and deliver to said party of the first 
 part quiet and peaceable possession of said premises in good condition. 
 
 In consideration of 1he premises, it is also further agreed by and be- 
 tween the parties hereto that the said party of the second part shall have 
 the right and option to purchase all of the land and premises described 
 herein upon the payment of Five Thousand (5,000) dollars as follows, 
 to-wit: $2,000, on or before the Qth day of April, 1906, $2,000, on or be- 
 fore the Qth day of September, 1906, $1,000 on or before the 9th day of 
 April, 1907, a good and sufficient deed, conveying all the right, title and 
 interest of the said party of the first part, to be delivered to the said party 
 of the second part, upon the payment of the said consideration. 
 
 Each and every grant, promise and covenant herein made by either 
 party hereto is and shall be a grant, promise and covenant of the heirs, ad- 
 ministrators, executors, successors and assigns of such party, and any 
 right, privilege or property herein granted to either of the parties hereto 
 shall be a right, privilege and property of the heirs, executors, adminis- 
 trators, successors and assigns of such party. 
 
 IN WITNESS WHEREOF, The said parties hereto have hereunto set 
 their hands and seals the day and year first above written. (Executed in 
 Duplicate.) 
 
 RICHARD REESE. (Seal) 
 JAMES MORTON. (Seal) 
 ( Acknowledgments. ) 
 
 FORM NO. 64- -OIL LEASE (CALIFORNIA). 
 
 THIS LEASE AND AGREEMENT, made and entered into, in duplicate, 
 this loth day of May, in the year A. D. 1905, by and between Alfred Ben- 
 ton and Jane Benton, his wife, of the County of Santa Barbara, State of Cali- 
 fornia, the parties of the first part, and Blue Bird Oil Company, a corporation, 
 organized and existing under the laws of the State of California, and hav- 
 ing its principal place of business at Los Angeles, Los Angeles County, 
 California, the party of the second nart : 
 
 WITNESSETH, That for and in consideration of the rents and royal- 
 ties to be paid by party of the second part to parties of the first part 
 hereinafter specified, and of the covenants, agreements and stipulations by 
 said party of the second part hereinafter undertaken to be done and per- 
 formed, the said parties of the first part do hereby grant, lease, demise 
 and let unto the party of the second part, its successors and assigns, for 
 the term and time and for the purposes, and under and in accordance with 
 the stipulations, agreements and conditions herein set forth, the following 
 
152 HOW TO BUY AND 
 
 described lands, situate in the County of Santa Barbara, State of Califor- 
 nia, bounded and described as follows, to-wit : 
 
 (Description.) 
 
 Together with the exclusive right to operate, mine, tunnel and drill 
 for, and to otherwise develop, collect and obtain crude petroleum oil, as- 
 phaltum, maltha, tar, gas, and any and all other hydro-carbon substances 
 in, upon and under said lands; together with the right to take, remove, 
 hold, own, market and otherwise to use, enjoy and dispose of all of said 
 petroleum oil and any and all of said other substances which may be pro- 
 duced and saved by party of the second part, out of, from and away from 
 said lands, subject to the payment of the rents and royalties herein pro- 
 vided. ; 
 
 TOGETHER with the right and privilege at any and all times, during 
 the continuance of this contract, to enter and travel in, upon and over 
 any and all portions of said demised premises, and thereon to build, erect, 
 hold, operate, maintain and enjoy any and all necessary or convenient 
 roads, derricks, rigs, boilers, engines, machinery, pumping stations and 
 plants, jacks, boarding houses, bunk houses, stables, pipe-lines, tanks, 
 telephone lines, and any and all other means, appliances, machinery and 
 structures, proper or convenient for use in connection with the develop- 
 ment, collection, storage and transportation of any and all of said hydro- 
 carbon substances. 
 
 TOGETHER also with the right, at any and all times, during the con- 
 tinuance of this contract, to take, develop and use any and all water on 
 said demised premises that may be necessary or convenient for operating 
 machinery and for domestic and stock purposes and uses in connection 
 with the operations of party of the second part under this contract, and 
 fcr use in sinking and drilling wells and driving tunnels and making ex- 
 cavations on and in said lands, and otherwise in connection with operat- 
 ing for and developing, removing and marketing said oil and said other 
 substances on, in and from said demised premises. 
 
 To HAVE AND TO HOLD the premises hereinabove described, and all 
 and singular said rights, privileges, interests and easements herein granted, 
 unto the said party of the second part, its successors and assigns, for and 
 during the time and periods and subject to all the terms, conditions, stip- 
 ulations and agreements herein specially set forth. 
 
 And it is expressly understood and agreed that, subject to the rights, 
 privileges and easements herein granted exclusively to said party of the 
 second nart, the said parties of the first part are to retain the use and 
 possession of the lands and premises hereby demised, during said term, 
 for all purposes that they may desire which are not inconsistent with the 
 exclusive rights, privileges and easements hereby granted to the said party 
 f>f the second part. 
 
 ist. The party of the second part agrees that it will within sixty 
 days from the date hereof commence operations on said lands, and that it 
 shall and will sink or drill wells on said premises at the rate of four (4) 
 wells per year for the period of ten (10) years from and after the date 
 
REAIv ESTATE AT A PROFIT 153 
 
 hereof; provided, that the party of the second part shall be able to sink as 
 many as four wells per vear on said lands by the diligent and continuous 
 operation of two strings of drilling tools thereon ; it being understood 
 that if four wells cannot be sunk on said lands in any year by the dili- 
 gent and continuous operation of two strings of drilling tools, the obliga- 
 tion of the party of the second part in this behalf shall nevertheless be 
 considered to have been, and shall be, fully performed for such year if 
 two strings of drilling tools shall have been diligently and continuously 
 operated on said premises during such year. 
 
 2nd. It is further understood and agreed, however, that the fore- 
 going agreement fixes only the minimum number of wells to be sunk or the 
 minimum number of strings of tools to be operated, and that party of the 
 second part may sink in any year in said term of ten years, and in the 
 aggregate during said term, as many wells hereunder as it sees fit, there 
 beinp- no maximum limit fixed to the number of wells to be sunk here- 
 under during said term of ten years ; and that in case party of the second 
 part in any of said years shall sink a well or wells on said lands in ex- 
 cess of said number of four wells required to be sunk in each year, then 
 the well or wells so sunk in excess of said required yearly number, shall 
 be applied on the wells required to be sunk hereunder thereafter, in such 
 manner and for such year or years as the said party of the second part 
 shall elect. 
 
 3rd. It is further understood and agreed that if the party of the sec- 
 ond Dart shall fail for any one year to sink the said required number of 
 wells for that year, or to operate continuously and diligently during the 
 same with two strings of tools as herein expressed and stated, the party of 
 the second part shall forfeit all rights under this grant to drill or sink 
 upon said lands other wells than those already completed as herein de- 
 fined, or on which work is being done in good faith at the time of such 
 forfeiture, and shall also forfeit the right to begin any new tunnels, exca- 
 vations or other works thereon. It being particularly understood and 
 agreed, however, that said party of the second part shall not be bound to 
 carry on said work of drilling wells on Sundays, or on legal holidays, or 
 at night when by reason of excessive gas, or otherwise, it is unsafe to 
 drill at night, or when prevented by the weather, strikes, unavoidable short- 
 age of water, accidents or other unavoidable causes, and that the failure of 
 party of the second part, at any time, to diligently and continuously operate 
 two strings of tools shall be deemed to be excused, and shall be excused, if 
 such failure occurs by reason of any of the causes or reasons above named, 
 and by such failure to operate party of the second part shall neither for- 
 feit nor lose any of its rights hereunder. 
 
 4th. It is further understood and agreed that the right and priv- 
 ilege hereby granted to drill or construct new wells, tunnels, or excava- 
 tions for the development of said hydro-carbon substances upon said lands 
 shall in any event cease and determine at and from the expiration of said 
 term of ten (10) years from the date of this instrument. It being under- 
 stood and agreed, however, that the party of the second part shall have the 
 right to complete such wells or other works as may have been commenced 
 
154 HOW TO BUY AND 
 
 at the time of the expiration of said term, and work whereon is in active 
 progress. 
 
 5th. Whenever the party of the second part shall have found oil in 
 any well in quantities sufficient to pay to pump, such well shall be deemed 
 to be and shall be, and shall be counted as a completed well, for all and 
 singular the purposes of this agreement; and whenever party of the sec- 
 ond part shall have sunk any well to a depth of five hundred feet, although 
 oil be not discovered in paying quantities, the same shall be deemed to be 
 and shall be, and shall be counted as a completed well for all and singular 
 the purposes of this agreement. 
 
 6th. That party of the first part shall receive and have, and party 
 of the second part shall pay and deliver to party of the first part, as and for 
 rent and royaltv, a one-eighth (1-8) part of the net production of all oil, 
 or other hydro-carbon substances, taken or obtained by said party of the 
 second part in commercial quantities from any tunnels, wells, or excava- 
 tions sunk or made on said lands hereunder, and said rent and royalty 
 shall be so paid by said party of the second part to said party of the first 
 part as long as said party of the second part shall operate or pump any 
 wells upon said premises or take any of said substances therefrom. By 
 the term "net production" is meant the entire amount of oil, or othef 
 hydro-carbon substances, produced and saved from any tunnel excavations 
 or wells on said premises, after deduction shall have been made for and of 
 any and all fuel used bv said party of the second part in connection with 
 its operations on said premises. Said rents and royalties shall be delivered 
 to fiarty of the first part in kind, and, if they be licjuids, at and from the 
 storage tanks of party of the second part, on said premises ; deliveries of 
 all rents and royalties produced during each calendar month shall be made 
 not later than the I5th day of the month next succeeding. The parties 
 hereto shall, on the I5th day of each month, make an accounting and set- 
 tlement of and for the royalty oil or other hydro-carbon substances pro" 
 duced and saved under this contract from said premises during the pre- 
 ceding calendar month. In the event that party of the first part shall fail 
 or neglect to provide suitable means of transportation and storage for the 
 receipt and transportation of its royalties, at the times and places when 
 and where the same are to be delivered, as aforesaid, then the party of 
 the second part may store, transport and market the same; and in such 
 case party of the second part shall be entitled to a credit for, and shall re- 
 ceive, the usual and reasonable rates for 3uch storage and transportation, 
 and for its service in marketing such royalties, and shall account for and 
 pay to party of the first part the excess after deduction of such charges. 
 
 7th. Party of the second part shall keep a full, correct and accurate 
 account of all oil, or said other substances produced and saved by it on 
 and from said premises under this agreement, which said account may at 
 all times, during office hours, be inspected by the parties of the first 
 part, or their agents, who shall also have free access to said premises 
 at all reasonable times, and to the wells sunk thereon, and to the storage 
 tanks, for the purpose of measuring and gauging the oil and other sub- 
 stances produced and saved from said premises. 
 
REAL ESTATE AT A PROFIT 155 
 
 8th. That party of the second part shall and will diligently and in a 
 business-like manner pump or otherwise operate and care for the wells 
 and other works sunk or made on the said lands at all times, so long as it 
 shall remain in possession and control of the same ; it being understood 
 and agreed, however, that said party of the second part shall not be, and it 
 is not, bound to operate its v/orks at night, on Sundays, or on legal holi- 
 days, nor when prevented by the weather, strikes, unavoidable shortage of 
 water, accidents or other unavoidable causes, nor during such times as for 
 any reason it is unable to secure tank cars for the transportation of said 
 oil. 
 
 9th. It is also particularly understood and agreed that if, at any 
 time, the price which can be obtained at the wells for oil produced on and 
 from said premises shall drop to, or be forty cents, or less, per barrel of 
 42 gallons, then during such period or periods in which the market price 
 of said oil shall be forty cents, or less, per barrel at the wells, party of the 
 second n a rt shall not be obligated to pump, drill or otherwise work or oper- 
 ate on said premises for oil, and it shall neither forfeit nor lose any of its 
 rights hereunder for failure to operate durine said period or periods of low 
 price of oil. 
 
 loth. At the expiration of the time hereinabove designated, within 
 which party of the second part is given the right to sink new wells, drive 
 new tunnels or make new excavations hereunder, to-wit, ten years from 
 and after May 10, 1905, or after the sooner termination of such rights, 
 party of the second part shall cease all further prosecution of such work 
 on said premises, excepting on and in any wells which have been completed, 
 as hereinbefore defined, or on or in any wells or other works which at the 
 time are in process of completion. It being particularly understood and 
 agreed that partv of the second part shall have the right to complete any 
 well or wells, tunnels or excavations which may have been started before 
 such expiration of the time within which it has the right to do such work 
 hereunder and on which work is in active progress, which wells, tunnels 
 and excavations shall be deemed to be, shall be, and shall be treated in 
 all respects as though sunk, drilled or prosecuted to completion prior to 
 the expiration of such time within which the party of the second part has 
 tne rierht to drill or sink additional wells or commence said other works 
 hereunder. It is further understood and agreed that the oarty of the sec- 
 ond part shall, at all times, either before or after the termination of its 
 right to commence additional wells, tunnels and excavations hereunder, 
 have the right to repair, clean, deepen, extend, or otherwise operate on 
 and in any and all wells, tunnels or excavations which may have been com- 
 pleted, as defined hereunder, or which are in process of completion at the 
 termination of such right. 
 
 nth. The party of the second part hereby covenants and agrees 
 that in case of abandonment of any well, it shall and will use its best en- 
 deavors to shut off from the oil-bearing rock any and all water it may have 
 encountered in drilling. 
 
 I2th. It is further particularly understood and agreed that after the 
 
156 HOW TO BUY AND 
 
 termination of the right of the party of the second part to sink addi- 
 tional wells or commence other new work on said premises hereunder, 
 whether said right shall terminate prior to or upon the expiration of said 
 term of ten years, said party of the second part shall have the right to 
 retain, deepen, extend, clean out, repair, pump and otherwise work and 
 operate all and singular the wells, tunnels and excavations completed, as 
 herein defined, or commenced to be sunk or made by said party of the 
 second part prior to the expiration of its right to commence new work 
 hereunder and on which work is in progress, and to secure, remove, have, 
 enjoy and market all and singular the oil and said other substances there- 
 from, so long as said works, or any thereof, shall produce oil, or any of 
 said other substances, in quantities sufficient to pay to pump, or secure and 
 save: and party of the first part hereby grants, confirms and extends to 
 party of the second part, for such purposes, all and singular the rights, 
 privileges, easements and interests heretofore described and granted to 
 construct, erect, keep, maintain, and operate all water and sources of water 
 supply, all roads, pipe lines, telephone lines, appliances, machinery, build- 
 ings and structures of whatever nature necessary or convenient for use in 
 connection with the pumping or otherwise operating said wells and other 
 works, and the developing, securing, removing and marketing such oil or 
 other products, so long as said wells, tunnels, or excavations, or any 
 thereof, shall produce oil, or any of said other substances, in quantities suf- 
 ficient to pay to pump, or otherwise secure and save. And while the said 
 party of the second part shall so operate any of such well or wells, the 
 said parties of the first part shall not put down any well or otherwise oper- 
 ate for oil, or permit any other person, firm or corporation to so drill or 
 operate, on said demised premises, within 600 feet of any of the wells 
 drilled by said partv of the second nart. Such forfeiture or suspension 
 of said rights shall be the only remedy reserved to said parties of the first 
 part for breach of this agreement to drill said wells by said party of the 
 second part. 
 
 I3th. At the termination of the rights of the party of the second 
 part hereunder, either in whole or in part, or on the final abandonment of 
 said wells, or any thereof, drilled, or sunk hereunder, party of the second 
 part shall have the right to remove from said premises any and all tubings, 
 casings, rii?s, pipes, machinerv, telephone lines, and any and all other ap- 
 pliances and structures of whatever nature owned by it, or placed by it 
 upon said premises. 
 
 I4th. The following covenants herein contained by and on behalf of 
 party of the second part are of the essence of this contract, to-wit : 
 
 First: To pay and deliver the rent and royalty in and by this con- 
 tract stipulated and required to be paid parties of the first part by party 
 of the second part, of and from the crude petroleum oil and other hydro- 
 carbon substances produced or secured and saved from said demised prem- 
 ises. 
 
 Second : To pump or otherwise operate wells and other works of 
 party of the second part on and in said demised premises diligently and in 
 
REAL, ESTATE AT A PROFIT 157 
 
 a business-like manner, in accordance with the provision of this contract 
 in that behalf. 
 
 And it is agreed that upon the material failure of party of the second 
 part to keep and nerform all or any one of said essential covenants, and 
 upon the continuance of such material failure or default for a period of 
 thirty (30) days after service of written notice given by parties of the 
 first part to the party of the second part, particularly designating the mat- 
 ter or thing constituting such material failure or default, this lease and con- 
 tract and all the rights, privileges, interests, easements, servitudes and 
 hereditaments by it created and granted (excepting the rights and priv- 
 ileges hereinbefore contained for removal of property on the termination 
 of this contract) shall forthwith cease and determine, and thereupon the 
 parties of the first part may forthwith re-enter upon each and every 
 portion of said demised premises affected hereby in possession of the 
 party of the second part, and the same and every portion thereof have, 
 hold and enjoy as if this instrument had never been executed. 
 
 1 5th. All of the provisions, covenants, agreements and stipulations 
 herein contained, by which either one of the parties hereto is bound, shall 
 in like manner be binding upon the successors and assigns of the party 
 so bound ; and those which are for the benefit of either of the parties shall 
 in like manner inure to the benefit of the successors and assigns of the 
 party so benefited. 
 
 IN WITNESS WHEREOF, said parties of the first part have hereunto 
 set their hands and seals, and said party of the second part has hereunto 
 caused its corporate name and its corporate seal to be affixed by its Presi- 
 dent and its Secretary, thereunto duly authorized by a resolution of its 
 Board of Directors, the day and year first hereinabove written. 
 
 ALFRED BENTON. (Seal) 
 
 JANE BENTON, (Seal) 
 
 (Corporate Seal) BLUE BIRD OIL COMPANY. 
 
 By PETER PRIOR, President. 
 By PRESTER JOHN, Secretary. 
 
 (To this lease should be attached ratification by stockholders of addi- 
 tional mining ground by lease, similar to like ratification shown in Form 
 No. 19.) 
 
 FORM NO. 65 CONTRACT FOR DRILLING OIL WELLS. 
 
 THIS AGREEMENT, Made this 20th day of June, 1905, by and between 
 M. L. Pembroke, of the City of Los Angeles, County of Los Angeles, 
 State of California, party of the first part, and Blue Bird Oil Company, a 
 corporation, having its principal place of business at Los Angeles, Califor- 
 nia, party of the second part, 
 
 WITNESSETH i That the said party of the first part has covenanted 
 and agreed with the said party of the second part, its successors and as- 
 signs, and does hereby, as an independent contractor, covenant and agree 
 to drill for said party of the second part two (2) wells, to be numbered i 
 and 2, for the ^urpose of obtaining petroleum oil, said two wells to be lo- 
 
158 HOW TO BUY AND SEU, 
 
 cated from time to time, and in ample time, by said party of the second 
 part, at sites to be selected by it on that certain parcel of land situate in 
 the County of Kern, State of California, described as the Southwest Quar- 
 ter (S. W. *A) of Northwest Quarter (N. W. 1 A), Section Thirty-two 
 (32), T. 28 S., R. 28 E., M. D. B. & M. 
 
 The materials, machinery and appliances necessary for the drilling 
 and completing of each of said two wells shall be furnished, and the work 
 of drilling the same shall be done, in the manner hereinafter specified, to- 
 wit: 
 
 Roads and Rig Grades: The said party of the second part shall 
 make all necessary grades at the well sites to be selected as aforesaid, by 
 it, and shall also make all roads leading thereto which are necessary to 
 be made. 
 
 Rigs, Machinery and Tools: The said party of the second part shall 
 furnish, at its own cost and expense, a complete drilling rig of good qual- 
 ity for each well, erected on the locations selected as above, and also the 
 necessary wooden conductor, boiler, engine, belt, bull rope, and steam and 
 gas connections, and all casing as hereinafter provided, which rig, as also 
 all appliances of every kind furnished by the said party of the second part, 
 shall be examined by the said party of the first part and when accepted 
 by said party of the first part, said rig or appliances shall, for the purposes 
 of this agreement, be deemed to be of good quality, and any use of the 
 same by said party of the first part shall constitute an acceptance thereof 
 by him. The said party of the first part shall, at his own cost and ex- 
 pense, keep each drilling rig in good repair while the well is being drilled, 
 and shall put in place and connect up at the well, the boiler, engine, etc., 
 furnished by said party of the second part. The rigs, machinery and ap- 
 pliances furnished by said party of the second part for the drilling of any 
 well hereunder shall, upon the completion of such well, be returned to said 
 party of the second part in as good condition as when received by the 
 party of the first part, ordinary wear and tear and damage by the ele- 
 ments excepted. 
 
 Water and Fuel: The said party of the second part shall furnish, at 
 its own cost and expense, all water that may be required for drilling each 
 well hereunder, and also will furnish all crude oil which may be required 
 for fuel ; provided, however, that where the supply of water furnished here- 
 under shall fail or be cut off for any reason, then no claim for damage 
 shall lie against the party of the second part, it being understood that said 
 party of the second part shall at all times use due diligence and in good 
 faith endeavor to provide a sufficient supply of water. 
 
 Drilling and Drilling Crews: Said party of the first part shall com- 
 mence forthwith to perform the work to be done hereunder, and shall 
 prosecute such work on each of said wells continuously and in good faith 
 to success or abandonment, Sundays excepted; and he further agrees to 
 have a full drilling crew of four men at work in the actual work of drill- 
 in? within thirty (30) days from the date hereof. The said party of the 
 first part shall always keep at least two full drilling crews of four men each 
 
ESTATE AT A PROFIT 159 
 
 at work continuously until the said two wells are drilled to completion or 
 abandonment. 
 
 Depth of Well; Price for Drilling: Each of said wells, unless sooner 
 abandoned by direction of the party of the second part, shall be drilled to 
 a depth of eleven hundred (noo) feet, and the consideration for said 
 drilling and for the materials furnished, and for the labor provided incident 
 thereto, shall be one dollar and fifty cents per linear foot for each well 
 drilled, and no more. 
 
 It is further understood and agreed by the parties hereto that the 
 said party of the first part will, at the option of said party of the second 
 part, continue the drilling of either of these wells after the said well nas 
 reached a depth of noo feet, so long as he can make expenses, which, for 
 the purposes of this contract, are to be considered as being thirty (30) 
 dollars per diem for each string of tools. 
 
 Kinds and Sizes of Casing to Be Used: The sizes of casing to be 
 furnished by the party of the second part and used by the part of the first 
 part in the said wells, are as follows : 
 
 nfys inch casing, weighing 30 Ibs. per linear foot, 
 
 8^4 inch casing, weighing 24 Ibs. per linear foot, 
 
 6^ inch casing, weighing 17 Ibs. per linear foot. 
 
 The said party of the first part agrees to drill the hole of each well 
 hereunder of such size as will admit of the using, commencing with the 
 largest size, of the greatest number of linear feet of the respective sizes of 
 casing; it being understood that the chief purpose and use of the iif6 inch 
 casing is to shut off the surface water, and that when that is accomplished, 
 the use of said ii^H? inch casing shall be abandoned. 
 
 Shutting Off Water: If water shall be encountered at any point in 
 either of said wells while the same is being: drilled, the party of the first 
 part agrees to case off all such water before continuing to drill in said 
 well, and whenever water has been cased off in either of said wells, as 
 aforesaid, said party of the first part agrees to notify said party of the 
 second part, or its agent, thereof, and to discontinue drilling in said well at 
 least 12 hours so that said party of the second part, if it so elect, may 
 "thief" the well for water ; and if the water be found coming into the well 
 upon such test, or if the casing, for any cause, is not tight and properly 
 put into the well and the water is not properly shut off, the said party of 
 the first part agrees to adjust the same to the satisfaction of the party of 
 the second part before continuing to drill in said well. 
 
 Drilling in Oil Sand: When each of said wells shall have reached 
 the oil-bearing sand, or other rock or material bearing oil, the party of the 
 second part shall prescribe the methods to be followed in drilling through 
 the tand or other oil-bearing rock, and of inserting the casing and of per- 
 forating the same. 
 
 Saving Oil: The said party of the first part also agrees to save all, 
 or as much as possible, of any oil that may be pumped by means of the 
 sand pump from each of said wells 2 and take such means, in accordance 
 with the best usage, for obtaining and saving from each of said wells any 
 
160 HOW TO BUY AND SEU, 
 
 and all oil that may be encountered in drilling. All of said oil shall be 
 the exclusive property of the party of the second part. 
 
 Completion of Wells: It is understood and agreed by and between the 
 parties hereto that said party of the second part shall determine when a 
 well which has been drilled to less depth than noo feet, is completed, and 
 that upon any completion of any wells or wells hereby contracted for, 
 said party of the first part, at his own cost and expense, shall pull all casing 
 in said well that can be pulled, and which said party of the second part shall 
 require to be pulled, and shall thoroughly bail and sand pump each of said 
 wells until all drillings and sediment are removed therefrom, and until 
 said well shall be cleaned to the satisfaction of the said party of the sec- 
 ond part, and shall thoroughly perforate the casing, wherever it passes 
 through the oil-bearing iormation, in such manner as to allow the oil to 
 flow freely through the casing into the well ; it being understood and agreed 
 that the party of the second part shall furnish the perforator, together with 
 one man to supervise and direct the operation of the same, but the party 
 of the first part shall furnish all other labor in and about perforating the 
 casing. 
 
 Dry Holes: Said party of the first part, in the event of a well being 
 in a dry hole, shall draw all of the casing under the direction and to the 
 satisfaction of the superintendent of the party of the second part. If the 
 casing cannot be drawn or pulled, the party of the first part shall cut the 
 casing as may be directed by said party of the second part, and draw or 
 pull so much of the casing as may be obtained by such cutting. 
 
 Time for Drilling: It is further understood and agreed that time is 
 of the essence of this contract, and that in case said party of the first part 
 shall fail or neglect, for a space of ten days, to continue the work of drill- 
 ing on cither of said wells, unavoidable delays excepted, then, in such 
 event, such failure or neglect shall of itself work a forfeiture of the right 
 of the party of the first part to receive payment for the number of feet 
 already drilled by him in said well, and the said party of the second part, 
 without any notice to, or demand upon, the party of the first part, may de- 
 clare this agreement terminated, and said party of the second part shall 
 have the right, at any time after such forfeiture, to take possession of 
 such well, and at its pleasure to abandon the same without liability to the 
 party of the first part for any portion of the contract price for such well. 
 The party of the second part shall also have the right at any time after such 
 forfeiture, if it so elect, to take possession of all appliances belonging to 
 said party of the first part, and if it so elect, to drill said well to com- 
 pletion. In case it shall succeed in completing such well, the cost for such 
 comoletion, without any allowance to the party of the first part for the 
 use of the appliances belonging to him, shall be deducted from the con- 
 tract price of said well, and the balance, if any, shall be paid over to said 
 oarty of the first part upon demand; but if said party of the second part 
 shall not succeed in completing said well, it shall not be liable to the party 
 of the first oart in any sum whatever, and after such completion shall re- 
 turn said appliances belonging to the party of the first part to him in as 
 
REAI, ESTATE AT A PROFIT 161 
 
 good order as when received, the natural wear and tear, accidental loss 
 and breakage, only excepted. 
 
 Discontinuing Work: The said party of the second part shall have 
 the right and option to have the drilling of any well discontinued at any 
 time during the progress of the work thereon by giving notice thereof to 
 said party of the first part, and thereupon the drilling of such well shall 
 be deemed to be completed, and said party of the first part shall forthwith 
 stop drilling operations therein, and, at the option of said party of the 
 second part, and as may be directed by it, shall, if the well be an oil-pro- 
 ducing well, put same in proper condition, according to best usage, to save 
 the oil therein; but if such well be not an oil-producing well, then said 
 party of the first part shall draw the casing therefrom and plug said well 
 in the manner herein provided, and as may be directed by said party of the 
 second part. 
 
 Water Wells: In the event that either of said wells which shall be 
 drilled to such depth as said party of the second part may determine, shall 
 not produce oil in paying quantities, or shall contain water, and said party 
 of the second part shall desire to have the casing all pulled therefrom and 
 the hole plugged, then, in such event, the said party of the first part agrees 
 to draw all casing from said hole, and to properly fill up the hole and to 
 plug off the water therein, under the supervision of the party of the second 
 part, so that the same shall not affect or enter into the oil-bearing forma- 
 tion. 
 
 Delivery of Wells: No part of the contract price herein agreed to 
 be paid shall be paid until each of the said wells is completed to the depth 
 of eleven hundred (noo) feet, or to such depth less than eleven hundred 
 feet as said party of the second part may determine, and until the said well 
 shall have been delivered to the party of the second part in thoroughly 
 good order, as hereinabove provided, free and clear of all obstructions in 
 the well, and of all encumbrances, liens and debts of every kind, and until 
 evidence to that effect shall be furnished to the satisfaction of the party of 
 the second part. The contract price for each well completed as aforesaid 
 shall be paid on the fifteenth day of the month next following the month in 
 which such well shall have been delivered. 
 
 Drilling Reports: The said party of the first part shall keep a full 
 and accurate report as the work of drilling each well progresses, showing 
 the formation encountered and passed through, the amount of casing of 
 each size used and its condition, the points at which water and oil are 
 found, and of all other matters necessary to a full and complete history 
 of each well, and upon the completion thereof shall furnish full and ac- 
 curate report in writing of the same to the party of the second part. 
 
 Materials to be Furnished by Driller: The party of the first part 
 agrees to furnish at his sole cost and expense, all labor, tools, supplies 
 and appliances of every name and nature not specifically mentioned in 
 this contract to be furnished by the party of the second part, including 
 all drilling and fishing tools, cables, sand-lines and all other articles 
 needed, used or charged to said work of carrying out this contract. 
 
162 HOW TO BUY AND 
 
 Mechanics Liens: Said party of the first part furthermore agrees 
 that no mechanics lien or liens shall be incurred, created, or filed, orf 
 recorded against said premises, or any part thereof; that no liens or any 
 incumbrance whatever shall be created, suffered or permitted on fekid 
 premises, and that said party of the first part shall save and keep harmless 
 said party of the second part, from all liens and incumbrances, and 
 actions and proceedings to enforce such liens and incumbrances, or any 
 of them, and from all damages, expenses, costs, and attorney fees, which 
 sjaid party of the second part may incur by reason of or on account of 
 such actions or proceedings, or any of them. 
 
 Contract Not to be Assigned: It is furthermore expressly agreed 
 that said party of the first part shall not assign this agreement, or any 
 of the rights herein mentioned, or sub-contract said work, without first 
 obtaining the written consent thereto of said party of the second part, 
 but shall keep said work under his personal supervision and control. 
 
 Heirs and Assigns Bound: Everything herein contained which in 
 any way affects or binds either of the parties hereto shall in like man- 
 ner affect and bind their, and each of their, respective heirs, executors, 
 administrators, successors and assigns; provided, however, that this con- 
 tract shall not be capable of assignment by said party of the first part 
 except in the manner and to the extent herein specified. 
 
 IN WITNESS WHEREOF, the said party of the first part has hereunto 
 set his hand and seal, and the party of the second part has hereunto 
 caused its corporate name to be subscribed and its corporate seal to be 
 affixed by its President and its Secretary, the day and year first above 
 
 written. 
 
 M. L. PEMBROKE. (Seal) 
 
 (Corporate Seal) BLUE BIRD OIL COMPANY. 
 
 By PETER PRIOR, its President. 
 By PRESTER JOHN, its Secretary. 
 
 FORM NO. 66 ASSIGNMENT OF LEASE. 
 
 KNOW ALL MEN BY THESE PRESENTS: That I, Benjamin Butler, of 
 the County of Ventura, State of California, in consideration of Ten Dol- 
 lars, gold coin of the United States of America,, to me in handi paid by 
 James Harbin, of the County and State aforesaid, the receipt whereof is 
 hereby acknowledged, do, by these presents, sell, assign, transfer and set 
 over unto said James Harbin that certain indenture of lease, bearing date 
 the 23d day of August, A. D. 1905, made between O. C. Clark, therein 
 described as party of the first part, to me, the said Benjamin Butler, 
 therein described as party of the second part, thereby leasing for the term 
 of ten years those certain premises situate in the County of Ventura, 
 State of California, bounded and particularly described as follows, to-wit: 
 
 (Description.) 
 
 Said lease being of record in the office of the County Recorder of 
 the County of Ventura, in Book 33 of Leases, at page 269, to which said 
 lease, and the said record thereof, reference is hereby made as a part 
 hereof : 
 
REAL ESTATE AT A PROFIT 163 
 
 To Have and to Hold the same, and the premises therein described, 
 unto the said James Harbin, his heirs and assigns, for and during all the 
 rest, residue and remainder of the term of years yet to come in said 
 indenture of lease mentioned; subject, nevertheless, to the reservations 
 of rent and other covenants, conditions and provisos therein also men- 
 tioned ; And I do hereby covenant and agree to and with said James Har- 
 bin, that the said assigned premises now are free and clear of and from 
 all former and other gifts, grants, bargains, sales, leases, judgments, execu- 
 tions, back rents, taxes, assessments, and incumbrances, by me suffered, 
 made or created. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and seal this 
 2Oth day of November, A. D. 1905. 
 
 BENJAMIN BUTLER. (Seal) 
 (Acknowledgment.) 
 
 FORM NO. 67 NOTICE TO CHANGE TERMS OF LEASE. 
 To Owen Cruthers, Esq.: 
 
 You are hereby notified that at the expiration of the present month 
 of your tenancy, which will be on the fifteenth day of May, A. D. 1905, 
 the terms of your lease of the premises you occupy, under tenancy from 
 month to month, situate in the City of Los Angeles, County of Los An- 
 geles, State of California, and described as follows, to-wit : All that cer- 
 tain store designated and known by the No. 536 Wilmington Street, will 
 be changed as follows, to-wit : 
 
 The monthly rent thereof will be two hundred] dollars in U. S. 
 gold coin per month, payable monthly in advance, on the sixteenth day 
 of each and every month you continue to hold possession thereof, after the 
 expiration of the current month, instead of the sum of fifty dollars here- 
 tofore paid by you. 
 
 Dated at Los Angeles, Cal., April isth, 1905. 
 
 JAMES BROWN, Landlord 
 
 FORM NO. 6& NOTICE TO PAY RENT OR QUIT. 
 To Samuel Jessup, Tenant in Possession: 
 
 Within Three Days after the service on you of this notice, you are 
 hereby required to Pay the rent of the premises hereinafter described, am} 
 which you now hold possession of, amounting to the sum of $60.00, being 
 the rent from the ist day of May, 1905, to the 1st day of July, 1905; or 
 you are hereby required to Deliver Up possession of the herein described 
 premises within said three days after service on you of this notice, to 
 John Doe, who is hereby authorized to receive possession thereof, or any 
 Rent due and unpaid;, from you, or I shall institute legal proceedings 
 against you to recover possession of said premises, with Treble Rents. 
 
 Said premises are situated in the County of Ventura, State 
 
 of California, and described as follows: 
 
 (Description.) 
 
 designated and known by the No. 1224 Yale Street, 
 
 Yours, etc., 
 
 FRED'K FOSTER. 
 Dated, Los Angeles, Cal., loth day of July, 1905. 
 
164 HOW TO BUY AND 
 
 FORM NO. 69 NOTICE TERMINATING TENANCY. 
 
 To Thomas Shyrocks, Tenant in Possession: 
 
 You are hereby notified that on the first day of September, A. D. 
 1905, your lease or tenancy for the premises you hold possession of, sit- 
 uate in the City and County of Los Angeles,, State of California, and de- 
 scribed as follows, to-wit : 
 
 (Description.) 
 
 will terminate and end, and you are requested and required to deliver 
 possession thereof to Mr. Wm. Payup on said first day of September, 1905. 
 
 Yours, etc., 
 
 CHARLES CREWEL. 
 Dated, Los Angeles, Cal., this 3ist day of July, 1905. 
 
 FORM NO. 70 NOTICE OF LOCATION OF WATER RIGHT. 
 
 NOTICE is HEREBY GIVEN, that the undersigned, B. F. Sturgiss, of 
 Hollister, San Benito County, California, has duly located and does hereby 
 claim Sixteen (16) inches, measured under a four-inch pressure, of that 
 certain stream or streams of water rising upon, and flowing down a ravine in, 
 the S. E. Y$ of the N. E. J4 of Section Twenty-three (23) in Township Six- 
 teen (16) South of Range Ten (10) East, M. D. B. & M., in San Benito 
 County, State of California, at the place where this notice is conspicu- 
 ously posted on a board nailed to a stake driven in the ground, said 
 place being the point of intended diversion, to-wit: At a point in said 
 stream or streams distant about 360 feet from point of rocks surrounded 
 by chaparral, said line running a little south of east, including all springs 
 within a strip of land one 'hundred (100) feet wide on each side of said 
 southeasterly line; 
 
 That the purposes for which the undersigned claims said water are 
 for domestic use, and for the drilling of wells, and for generating power 
 and steam to be used in carrying on petroleum mining operations, and 
 for other mechanical purposes ; 
 
 That the undersigned intends to divert said water at the point afore- 
 said, and to use said water for the purposes aforesaid, on Section 34, T. 
 16 S. of R. 10 E., M. D. B. & M., and upon other lands to which the 
 undersigned may desire to convey said water; 
 
 That the means by which the undersigned intends to divert said 
 water and to convey the same to the place of intended use, are : A dam 
 or reservoir or tank at the point of diversion, and two-inch pipes to con- 
 vey said water thence to place of intended use. 
 
 Dated on the ground, this I4th day of February, A. D. 1905. 
 
 B. F. STURGISS. 
 Witnesses : 
 
 JOHN A. KING, 
 A. M. WELLMAN. 
 State of California, County of San Benito, ss. 
 
 John A. King and A. M. Wellman, being first duly sworn, depose 
 and say: That on the I4th day of February, 1905, they were present 
 
REAL ESTATE AT A PROFIT 165 
 
 when the notice by B. F. Sturgiss of his claim to water rising 
 upon, and flowing down a ravine in, S. E. l /4 of N. E. y lof Section/ 
 23, Township 16 South of Range 10 East, M. D. B. & M., in San Benito 
 County, California, of which notice the annexed is a full, true and accu- 
 rate copy, was posted by said B. F. Sturgiss in a conspicuous place at 
 the point of intended diversion described in said notice, to-wit: At a 
 ipoint in said stream distant about 360 feet from point of rocks Sur-4 
 rounded by chaparral, said line running a little south of east, and such 
 location including all springs 100 feet on each side of said southeasterly 
 line; and that said B. F. Sturgiss has constructed the works and the 
 pipe-line in and by which he intends to divert said water and has con- 
 ducted said water to the place of intended use. 
 
 JOHN A. KING, 
 B. F. STURGISS. 
 
 Subscribed and sworn to before me, this i6th day of February, A. D. 
 1905. 
 
 (Notarial Seal) FRANK P. McCoNNEix, 
 
 Notary Public in and for the County of San Benito, State of California. 
 
 FORM NO. 7I-GENERAL POWER OF ATTORNEY. 
 
 KNOW ALL MEN BY THESE PRESENTS That I, Barney Barnato, of the 
 City and County of San Francisco, State of California, have made, con- 
 stituted and appointed, and by these presents do make, constitute and ap- 
 point Abner Anderson, of said City, County and State, my true and law- 
 ful attorney, for me and in my name, place and stead, and for my use and 
 benefit, to bring, institute and maintain any action at law or in equity which 
 he or my attorneys at law may deem advisable or for my interest to be 
 brought, instituted or maintained ; to ask, demand, sue for, recover, collect 
 and receive all sums of money, debts, dues, accounts, legacies, bequests, in- 
 terests, dividends, annuities and demands whatsoever as are now or shall 
 hereafter become due, owing, payable or belonging to me; and to have, 
 use and take all lawful ways and means in my name or otherwise for the 
 recovery thereof, by attachments, arrests, distress, or otherwise, and to 
 compromise and agree for the same, and acquittances or other sufficient dis- 
 charges for the same for me and in my name, to make, seal and deliver ; to 
 bargain, contract, agree for, purchase, receive and take lands, tenants, 
 hereditaments, and accept the seisin and possession of all lands and all 
 deeds and other assurances in the law therefor, and to lease, let, demise, 
 bargain, sell, give options and contracts of sale in respect to, remise, con- 
 vey, mortgage and hypothecate lands, tenements and hereditaments, upon 
 such terms and conditions, and under such covenants as he shall think fit. 
 Also, either in person or bv proxy, to vote on any stock bonds or other 
 securities belonging to me, at any meeting of stockholders or of bond or 
 certificate holders or of creditors, however convened. Also to bargain 
 and agree for, buy, sell, mortgage, hypothecate and in any and every way 
 and manner deal in and with goods, wares and merchandise, choses in 
 action, and other property in possession or in action ; and to make, do and 
 
166 HOW TO BUY AND 
 
 transact all and every kind of business of what nature or kind soever ; and, 
 also, for me and in my name and as my act and deed, to sign, seal, execute, 
 deliver and acknowledge such deeds, covenants, indentures, agreements, 
 mortgages, hypothecations, bottomries, charter parties, bills of lading, bills, 
 bonds, notes, receipts, evidences of debt, releases and satisfaction of mort- 
 gage, judgment and other debts and proxies to vote stock or bonds, and 
 such other instruments in writing of whatever kind or nature as may be 
 necessary or proper in the premises. 
 
 GIVING AND GRANTING unto my said attorney full power and authority 
 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 ?11 intents and 
 purposes as I might or could do if personally present, hereby rati- 
 fying and confirming all that my said Attorney shall lawfully do or cause 
 to be done by virtue of these presents. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and seal the 2Oth 
 day of April, A. D., one thousand nine hundred and five. 
 
 BARNEY BARNATO. (Seal) 
 (Acknowledgment.) 
 
 FORM NO. 72 REVOCATION OF POWER OF ATTORNEY. 
 
 KNOW ALL MEN BY THESE PRESENTS, That, whereas, I, Barney Bar- 
 tiato, of the City and County of San Francisco, State of California, in 
 and by my letter, warrant or power of attornev, in writing, bearing date 
 the twenty-ninth day of April, A. D. one thousand nine hundred and five, 
 did make, constitute and appoint Abner Anderson, of said City, my true 
 and lawful Attorney, for the purposes and with the powers therein set 
 forth, as will more fully and at large appear by reference thereto, or to the 
 record thereof, made on the said twenty-ninth day of April, A. D. 1905, 
 in Book "3," of Powers of Attorney, page 48, in the office of the County 
 Recorder of the said County of San Francisco. 
 
 Now, therefore, I, the said Barney Barnato, for divers good causes 
 and considerations, me hereunto moving, have revoked, countermanded, 
 annulled, and made void, and by these presents do revoke, countermand, 
 annul, and make void the said Letter, Warrant, or Power of Attorney, 
 and all power and authority thereby given, or intended to be given, to the 
 said Abner Anderson. 
 
 In witness whereof, I have hereunto set my hand and seal, the 
 twenty-second day of May, A. D. one thousand nine hundred and five. 
 
 BARNEY BARNATO. (L. S.) 
 ( Acknowledgment. ) 
 
 FORM NO. 73 POWER OF ATTORNEY TO COLLECT INSUR- 
 ANCE. 
 
 KNOW ALL MEN BY THESE PRESENTS, That I, Edmund Fitzgerald, of 
 Los Angeles, County of Los Angeles, State of California, have nom- 
 inated, constituted and appointed, and by these presents do nominate, con- 
 stitute and appoint, Almon H. Fogg, President of the Houlton Savings 
 
ESTATE AT A PROFIT 167 
 
 Bank, of Houlton, Aroostook County, Maine, my true and lawful attorney, 
 for me and in my name, place and stead, to ask, demand, sue for, require, 
 recover and receive, any sum or sums of money, due or that may become 
 due, on any policy of insurance, return premiums or deposits, that may 
 now or hereafter be due to me by reason of any insurance heretofore 
 effected by me, or in my behalf, or assigned or transferred to me, or in 
 which I may have any interest, on any property or premises owned or con- 
 trolled by me, or in which I have any interest whatever either as mort- 
 gagee, lien holder, owner or tenant, or otherwise, in the County of 
 Aroostook, State of Maine, and upon receipt thereof or any part or parts 
 thereof, in my name to make, execute and deliver any and all receipts, 
 releases or discharges of the same, and all other papers that may be neces- 
 sary for that purpose, whether under seal or otherwise, as to my said attor- 
 ney may seem meet and proper for carrying on and fully completing said 
 business; or, in case of absence of said Almon H. Fogg, or his inability 
 to act as my said attorney, then the powers hereby conferred upon said 
 Almon H. Fogg shall and may be lawfully exercised by F. A. Powers, 
 Cashier of the said above named Houlton Savings Bank, who shall be 
 clothed with all the powers and authority heretofore, in this power of at- 
 torney, conferred upon said Almon H. Fogg: Hereby giving and grant- 
 ing unto my said attorney, or either of them, acting under this power of 
 attorney, full power and authority to do and perform every act and thing 
 whatsoever requisite and necessary to be done in and about the premises, 
 as fully as I could do if personally present. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and seal, this 
 Seventeenth day of April, One Thousand Nine Hundred and Five. 
 
 EDMUND FITZGERALD. (Seal) 
 
 FORM NO. 74 POWER OF ATTORNEY TO MAKE APPLICATION 
 
 FOR PATENT FOR MINING GROUND. 
 
 KNOW ALL MEN BY THESE PRESENTS: That we, Albert Stephens, C. 
 M. Dent, Dennis Hoyt and Gilbert Doyle, do hereby constitute and ap- 
 point Andrew McTighe as our attorney in fact for us and in our names, 
 to make application to the United States for the entry and purchase of 
 certain Government Lands, in the Searchlight Mining District, Reno 
 County, State of Nevada, known as the Gold Coin Group No. I mining 
 claim and premises ; and to have the same surveyed, and to take any and 
 all steps that may be necessary to procure from the Government of the 
 United States a patent to the said lands and premises, granting the same 
 to us. And to do all other acts appertaining to the said survey and entry 
 as aforesaid, as we ourselves could do by our own acts, in our own proper 
 persons. 
 
 IN WITNESS WHEREOF, we have hereunto set our hands and affixed 
 our seals the 21 st day of July, A. D. 1905. 
 
 C. M. DENT, (Seal) 
 
 DENNIS HOYT, (Seal) 
 
 GILBERT DOYLE, (Seal) 
 ALBERT STEPHENS. (Seal) 
 (Acknowledgment.) 
 
168 HOW TO BUY AND SELL 
 
 FORM NO. 75 POWER OF ATTORNEY TO ACQUIRE COAL 
 
 LAND. 
 COAL LANDS. 
 
 POWER OF ATTORNEY. 
 
 KNOW ALL MEN BY THESE PRESENTS, That I, L. D. Benton, of the 
 County of Archuleta, State of Colorado, having, under the provisions of 
 the Revised Statutes of the United States relating to the sale of Coal' 
 Lands, made application to purchase the N. W. l /4 of the S. W. y$ of 
 Section 10, in Township 3 North of Range 21 West of the Principal Me- 
 ridian, in the district of lands subject to sale at the Land Office at Gunni- 
 son, Colo., do hereby constitute and appoint Benjamin Butler, of Denver, 
 Arapahoe County, Colorado, my true and lawful agent and attorney, for 
 me in my name and stead, and for my 'sole use and benefit, to file the 
 same with the Register of the said Land office, to make or procure to 
 be made all necessary and proper affidavits and proofs, at any time re- 
 quired, and to file the same in said Land Office, to make payment for and 
 entry of said land in my name, to do all and singular the acts and things 
 requisite, lawful and proper to be done in the premises, especially to make 
 the required non-mineral affidavit, as I am assured and believe that he is 
 well acquainted with the character of each and every subdivision of said 
 described land ; and to procure for me from the United States the receipt and 
 patent for said lands ; as fully and completely as I might or could do, with full 
 power to substitute one or more agents O attorneys for the purposes 
 aforesaid, and to revoke any such appointment ; hereby ratifying and con- 
 firming all that my said agent and attorney or his substitute may lawfully 
 do in the premises. 
 
 IN WITNESS WHEREOF, I have 'hereunto set my hand and seal this 
 30th day of January, 1905. 
 
 L. D. BENTON. 
 Signed in presence of 
 
 F. S. BELLAH. 
 State of Colorado, County of Archuleta, ss. 
 
 On the 3Oth day of January, A. D. 1905, at my office at Pagosa 
 Springs, before me, W. C. Gould, a Notary Public, in and for the County 
 and State aforesaid, personally appeared L. D. Benton, known to me to 
 be the same person whose name is subscribed to the foregoing instrument, 
 and acknowledged to me th;at he executed the same. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my 
 official seal, the day and year in this certificate first above written. 
 
 My Commission expires October i, A. D. 1906. 
 (Notarial Seal) W. C. GOULD, 
 
 Notary Public. 
 
 FORM NO. 76 TORRENS LAND ACT NOTICE OF FILING 
 
 PETITION. 
 
 In the Superior Court of the County of , State of California. 
 
 No Department No 
 
 In the Matter of the Application of to have 
 
REAL ESTATE AT A PROFIT 169 
 
 land brought under the operation of "An Act for the certification of Land 
 
 Titles," etc., approved March I7th, 1897. 
 
 To and to Whom it May Concern: 
 
 Notice is hereby given that on the day of 189..., 
 
 a verified petition to the above-named Court was filed with the County 
 Clerk of said County by , the owner of an estate or in- 
 terest in and to the land hereinafter described, for the purpose of bringing 
 said land under the operation of an Act entitled "An Act for the certifi- 
 cation of land titles and the simplification of the transfer of real estate," 
 approved March 17, 1897, an d that a hearing upon said application has 
 
 been fixed by the said Court for the day of 189 , at 
 
 the hour of o'clock M., at the court room of Department 
 
 of said Superior Court in the City of County of , 
 
 State of California, at which time and place all parties interested as 
 shown by said petition, and the abstract of title accompanying said peti- 
 tion, may appear and object to the granting of the application. 
 
 And you are further notified that you are required to appear and 
 answer said petition within ten days from the date of the service of this 
 notice upon you, if served within this County, and within thirty days 
 from date of such service, if served elsewhere; and upon your failure 
 to so appear and answer, your default will be entered in said proceeding 
 and judgment entered against you as prayed for in said petition. The 
 property hereinbefore referred to is described as follows, to- wit: 
 
 (Description.) 
 
 WITNESS my hand and the seal of said Superior Court this 
 
 day of 189... 
 
 Clerk. 
 
 By 
 
 Deputy Clerk. 
 
 FORM NO. 77 TORRENS LAND ACT CERTIFICATE OF TITLE. 
 
 No 
 
 CERTIFICATE OF TITLE. 
 
 Entered in Vol of Register of Titles, Folium No 
 
 in the office of the Registrar in and for the County of State of 
 
 California. 
 
 State of California, County of , ss. 
 
 residing in at No 
 
 Street, State of California, whose occupation is that 
 
 Married the owner of an estate 
 
 in the following described land: 
 
 (Description.) 
 
 Subject, however, to the estates, easements, liens, incumbrances 
 and charges hereunder noted. 
 
 IN WITNESS WHEREOF, I have hereunto set my hand and caused my 
 
170 HOW TO BUY AND 
 
 official seal to be affixed this day of , 189. . ., at 
 
 o'clock and.. . minutes M.. 
 
 Registrar of Titles in and for the 
 
 Coun ty of State of California. 
 
 MEMORIAL 
 
 *NOTE : If person to whom issued is minor, state age ; if under any 
 other disability, the nature of the disability ; if executor or administrator, 
 give name of testator or inestate ; if assignee in insolvency, give name of 
 insolvent. 
 
 FORM NO. 78 LOCATION NOTICE LODE OR QUARTZ CLAIMS, 
 LOCATION NOTICE. 
 
 NOTICE is HEREBY GIVEN, that the undersigned, in compliance with 
 the requirements of the Revised Statutes of the United States, have this 
 day located and claim 1500 linear feet along the course of this lead, 
 lode or vein of mineral-bearing quartz, and 600 feet in width on each 
 side of the middle of said lead, lode or vein, together with all mineral 
 deposits contained therein, and all the timber growing within the limits 
 of said claim, and all water and water privileges thereon or appurtenant 
 thereto, situate in the No Name Mining District, County of Los Angeles, 
 State of California, and more particularly described, and the surface 
 boundaries thereof marked upon the ground, as follows, to-wit : 
 
 Beginning at this monument of stone, same being at the discovery 
 shaft (at which this notice is posted), being in the center of the westerly 
 end line of said claim ; thence northerly 300 feet to a monument of stone, 
 same being the northwest corner of said claim ; thence easterly 1500 feet 
 to a monument of stone, same being the northeast corner of said claim ; 
 thence southerly 600 feet to a monument of stone, same being the south- 
 east corner of said claim; thence westerly 1500 feet to a monument of 
 stone, same being the southwest corner of said claim ; thence northerly 
 300 feet to the place of beginning. 
 
 The general course of the vein or lode is easterly and westerly, 
 and at right angles therewith, and along either side of said vein, making 
 parallel end lines 300 linear feet from the center of said auartz lode, vein, 
 ledge or deposit, and along same, including all its dips 2 variations, spurs, 
 angles and veins. 
 
 This claim shall be known as the North Tunnel Quartz Mine, and 
 is situate at the head of Penn Gulch, in the Big Dalton Canon, and is the 
 northeast extension of the South Tunnel Mine. 
 
 Located this I5th day of February, 1905. 
 
 The date of discovery and of the posting of this notice is February 
 I5th, 1905. 
 
 FRANK SMITH, ) 
 
 ALEX. BROWN, ) Locators. 
 
 JAMES ROBINSON, ) 
 
REAL ESTATE AT A PROFIT 171 
 
 FORM NO. 79 LOCATION NOTICE OF PLACER CLAIM. 
 LOCATION NOTICE. 
 
 NOTICE is HEREBY GIVEN, that the undersigned, in compliance with 
 the requirements of the Revised Statutes of the United States, have this 
 day located the following described petroleum placer mining ground, viz. : 
 
 Commencing at the southeast corner of the Deer Lick Claim, the same 
 being the northeast corner of the claim hereby located, and being witnessed 
 by a post, two inches square, painted white, set two feet in the ground, 
 and protruding six feet above the ground, and to which this notice is at- 
 tached ; thence, running in a westerly direction, along the southerly bound- 
 ary of said Deer Lick Claim, eighty (80) rods, more or less, to a mound of 
 rocks two feet high and being the northwest corner of the claim hereby 
 located; thence southerly forty (40) rods, more or less, to a stake, two 
 inches square, nainted white, and set in the ground, and being the south- 
 west corner of the claim hereby located; thence easterly eighty (80) rods, 
 more or less, to a mound of rocks, two feet high, set in the bank of a dry 
 arroyo, and being the southeast corner of the claim hereby located ; thence 
 northerly forty (40) rods, more or less, to the point of beginning, and con- 
 taining 160 acres, more or less, the same being situate in Sespe Petroleum 
 Mining District, County of Ventura, State of California. 
 
 This claim shall be known as the Oil Spouter Placer Mining Claim. 
 
 Located the 2ist day of March, 1905. 
 
 John Brown, Dennis Fogarty, Peter Smith, Allen Jones, Dick Robin- 
 son, Albert Davis, Eben Edmunds, Abram Cohn, Locators. 
 
 FORM NO. 80 AFFIDAVIT AS TO ANNUAL ASSESS- 
 MENT WORK. 
 
 Affidavit as to Assessment Work on the Oil Spouter Oil Claim in the 
 year 1906. 
 State of California, County of Ventura, ss. 
 
 John Brown, being duly sworn, denoses and savs : 
 
 That the Oil Spouter Oil Claim, situate in the Sespe Petroleum Min- 
 ing District, County of Ventura, State of California, was located March 
 2ist, 1905, bv Dennis Fogarty, Peter Smith, Allen Jones, Dick Robinson, 
 Albert Davis, Eben Edmunds, Abram Cohn, and said John Brown, and the 
 location notice thereof was recorded March 23rd, 1905, in Book 4, page 234, 
 of Mining Claims, in the office of the County Recorder of said County of 
 Ventura ; 
 
 That said locators and owners caused labor and improvements to be 
 made on said Claim in the year 1906 to the value of at least One Hundred 
 Dollars; that such labor and improvements consisted of the making of a 
 road on said claim and the grading of a site for an oil well derrick thereon, 
 and such expenditure was made by said owners for the purpose of holding 
 said claim. 
 
 JOHN BROWN. 
 
 Subscribed and sworn to before me, this loth day of December, A. D. 
 1906. 
 
 RICHARD ROE, 
 Notary Public in and for the County of Ventura, State of California. 
 
172 HOW TO BUY AND 
 
 FORM NO. 8o54 AFFIDAVIT AND NOTICE OF FAILURE TO 
 
 CONTRIBUTE. 
 
 State of California, County of Ventura, ss. 
 
 David Houston, being first duly sworn, deposes and says : 
 
 That that certain petroleum mining claim known as and called "Sul- 
 phur Spur Oil Claim," containing eighty acres, more or less, was located 
 by Oliver Olsen, Neil McTighe, R. L. McCordell and the said David 
 Houston, on the 3d day of April, 1902, the lands covered by said claim 
 being described as follows, to-wit: The North l / 2 . of the Northeast *A 
 of Section 19, Township 16 South, Range n East, in the County of Ven- 
 tura, State of California, and that the notice of location thereof was re- 
 corded April 4, 1902, in the office of the County Recorder of said County 
 of Ventura, in Vol. 3 of Miscellaneous Records, at page 76; 
 
 That this affiant, in the year 1903, caused labor to be performed and 
 improvements to be made on said claim of the value of at least One hun- 
 dred dollars ($100) ; 
 
 That thereafter this affiant served upon each of said persons, to-wit, 
 R. L. McCordell, Oliver Olsen and Neil McTighe, a notice in writing, 
 in the form and to the effect of the copy of notice hereunto annexed and 
 made a part hereof, and that he served said notice on said persons on 
 July ist, 1904; 
 
 That more than ninety days have expired since the service of said 
 notice upon the said R. L. McCordell, Oliver Olsen and Neil McTighe, 
 and that each of them refused, and during said period of ninety days each 
 of them has continued to refuse, to contribute to said affiant his respective 
 proportionate share of said expenditure, or any part thereof. 
 
 WHEREFORE, this affiant, David Houston, claims that by virtue of 
 the premises, and of Section 2324 of the Revised Statutes of the United 
 States, he became the owner of the interests of said R. L. McCordell, Oliver 
 Olsen and Neil McTighe, of, in and to said Sulphur Spur Oil Claim. 
 
 Dated at Ventura, California,, November 10, 1904. 
 
 DAVID HOUSTON. (Seal) 
 
 Subscribed and sworn to before me, this loth day of November, 
 A. D. 1904. 
 
 (Notarial Seal) J. B. WILLIAMS, 
 
 Notary Public in and for the County of Ventura, State of California. 
 (Copy of Notice.) 
 
 VENTURA, CALIFORNIA, July ist, 1904. 
 To R. L. McCordell Oliver Olsen and Neil McTighe: 
 
 You are hereby notified that, Whereas, on the 4th day of April, 
 1902, yourselves, in company with David Houston, located under the laws 
 of the United States, and local customs laws and regulations, 80 acres of 
 placer mining ground containing petroleum, situated in Ventura County, 
 State of California, and particularly described as the North ^ of the 
 Northeast % of Section Nineteen, Township Sixteen, South of Range 
 Eleven, East M. D. B. & M., and designated said claim as Sulphur Spur 
 Oil Claim, and on the 4th day of April, 1902, caused the notice of said 
 
REAL, ESTATE AT A PROFIT 173 
 
 location to be filed and recorded in the office of the County Recorder of 
 said County of Ventura, in Vol. 3 of Miscellaneous Records, at page 67; 
 and, 
 
 Whereas, in order to hold, work and secure patent to said mining 
 claim, it was necessary that not less than $100.00 in labor and improve- 
 ments should be expended on said claim in the improvement and develop- 
 ment thereof for and during the year 19x53, and a failure to make such 
 expenditure would cause said claim to be open to re-location in the same 
 manner as if no location had ever been made; and, 
 
 Whereas, said David Houston, in the month of December, 1903, 
 caused labor to be performed and improvements to be made on said claim, 
 to the value of $100.00, for the year 1903, as will appear by the affidavit 
 of such assessment work filed in the office of the County Recorder of said 
 County of Ventura, and recorded therein on January 3d, 1904, in Vol. 3, 
 Miscellaneous Records, at page 198 : 
 
 Now, therefore, you, and each of you, are hereby notified to con- 
 tribute your proportionate share of such expenditures, to-wit, each of 
 you the sum of $25.00, and unless you each pay to the undersigned the 
 sum of Twenty-five Dollars within Ninety (90) days from the receipt 
 of this notice, the interest and right of such of you as shall fail or refuse 
 to contribute your proportionate share of such expenditures, within the 
 time specified as aforesaid, shall be forfeited and become the property 
 of the co-owners as shall have made the required expenditures and con- 
 tribution in accordance with the provisions of Section 2324 of the Re- 
 vised Statutes of the United States. 
 
 DAVID HOUSTON. (Seal) 
 
 FORM NO. 81 PETITION TO CITY COUNCIL FOR PIPE LINE 
 RIGHT OF WAY. 
 
 Los ANGELES, CAL V March i, 1904. 
 To the City Council of the City of Los Angeles, State of California: 
 
 GENTLEMEN : Your petitioner, the Starlight Refining Company, a 
 corporation, respectfully represents : 
 
 That your petitioner at present owns and operates an oil pipe-line 
 in the City of Los Angeles, and, in order the better to accommodate its 
 customers, desires the privilege and license of laying, operating and main- 
 taining an oil pipe-line not more than six inches in diameter along the 
 following streets in the City of Los Angeles, namely: Beginning, etc. 
 
 Your petitioner therefore prays that your Honorable Body grant 
 your petitioner a permit to lay, operate and maintain a pipe-line, not more 
 than six inches in diameter, along the streets hereinabove designated, 
 said pipe-line to be so laid and operated as to cause no obstruction or 
 detriment to the full and proper use of said streets by the public 
 
 And your petitioner will ever pray. 
 
 (Corporate Seal) STARLIGHT REFINING COMPANY. 
 
 By L. D. NIDIVER, Secretary. 
 
174 HOW TO BUY AND SELt 
 
 FORM NO. 82 PETITION TO ESTABLISH COUNTY ROAD, 
 WITH ACCOMPANYING BOND. 
 
 To the Honorable Board of Supervisors of the County of Ventura, State 
 of California: 
 
 GENTLEMEN : We, the undersigned, freeholders of Road 
 
 District, in the County of Ventura, State of California, taxable in said 
 district for road purposes, respectfully petition your Honorable Body to lay 
 
 out and establish a public highway in said Road District, County of 
 
 Ventura, State of California, as hereinafter described ; that said proposed 
 road is situate in Road District, County of Ventura, State of Cali- 
 fornia, and the general route of said road is as follows, viz : 
 
 (Description. ) 
 
 And 1 said proposed road runs over and across lands belonging 
 to 
 
 Wherefore, your petitioners pray your Honorable Body to lay out 
 and establish said proposed road as heretofore described. 
 
 And your petitioners will ever pray. 
 
 (Signatures.) 
 
 KNOW ALL MEN BY THESE PRESENTS : That we 
 
 residents and freeholders of Ventura County, State of California, are held 
 and firmly bound unto the Board of Supervisors of said county in the 
 
 sum of dollars, gold coin, for the payment of which sum, well 
 
 and truly to be made, we bind ourselves, our heirs, executors and adminis- 
 trators, jointly and severally, firmly by these presents. Sealed with our 
 seals, and dated this day of A. D. 189. . . 
 
 THE CONDITION of this obligation is such that, whereas 
 
 have filed or are, about to file with the Clerk of the Board of Supervisors 
 of Ventura County a petition praying the Honorable Board of Supervisors 
 of Ventura County, to lay out and establish a public road, as in said pe- 
 tition described and particularly set forth, and which is hereby made a 
 part hereof. 
 
 Now, THEREFORE, if the prayer of said petition is not granted by 
 said Board of Supervisors of said County, we will pay all costs of viewing 
 and surveying said road; but on the other hand, if the prayer of said 
 petition is granted by said Board of Supervisors, then this obligation is 
 to be void and of no effect, otherwise to be and remain in full force and 
 effect. 
 
 (Seal) 
 
 (Seal) 
 
 (Justification of Sureties.) 
 
 (For Deed to County, See Form No. 17.) 
 
 FORM NO. 83 PARTY WALL AGREEMENT. 
 
 PARTY WALL AGREEMENT. 
 
 THIS AGREEMENT, made this loth day of April, 1905, by and between 
 Hiram White, hereinafter described as the party of the first part, and 
 William Willard, hereinafter described as the party of the second part, 
 
REAL ESTATE AT A PROFIT 175 
 
 both of the City of Los Angeles, County of Los Angeles, State of Cali- 
 fornia, 
 
 WITNESSETH : Whereas, said party of the first part is the owner of 
 that certain real property situate in the City of Los Angeles, County of 
 Los Angeles, State of California, described as follows, to-wit : Lot One 
 (i), Block One (i), of the Hobbs Tract, as per map of said tract re- 
 corded in the office of the County Recorder of the County of Los Angeles, 
 in Book 3, of Miscellaneous Records, at page 325, said lot fronting on the 
 westerly side of Spring Street, in said City : and, 
 
 WHEREAS, said party of the second part is the owner of Lot Two 
 (2) in said Hobbs Tract, said Lot Number Two (2) fronting on the 
 westerly side of Spring Street, in said city, and lying contiguous to said 
 Lot Number One (i), on the northerly side thereof; and, 
 
 WHEREAS, said dividing line between the lots aforesaid is one hun- 
 dred and sixty-six (166) feet in length; and, 
 
 WHEREAS, pursuant to a memorandum of agreement heretofore ex- 
 ecuted by and between the parties hereto, to-wit, on the 27th day of 
 November, 1897, an d recorded in the office of the County Recorder of 
 Los Angeles County, in Book 676 of Deeds, at Page 67, a party wall has 
 been constructed and is now in use between the parties hereto, said party 
 wall extending westerly from the westerly building line of Spring Street, 
 for a distance of ninety (90) feet on said dividing line, and it is not the 
 intention of this instrument to change or alter the rights of the parties 
 hereto conferred upon them by said memorandum of agreement, except 
 as hereinafter modified, a copy of said memorandum of agreement being 
 hereto annexed, marked "A" and made a part hereof; and, 
 
 WHEREAS, said parties desire to agree as to the continuation of a 
 party wall along the boundary line between their said respective lots as 
 aforesaid ; 
 
 Now, THEREFORE, in consideration of the mutual advantages to each 
 of the respective parties hereto and to their respective lots as aforesaid, 
 the parties hereto hereby mutually covenant and agree, each with th'e 
 other, as follows, to-wit : 
 
 First: Said party of the first part may erect a party wall along 
 that portion of said dividing line, commencing at a point about ninety 
 (90) feet westerly from the westerly building line of Spring Street and 
 extending from said point of commencement westerly along said dividing 
 line sixty-five feet, more or less, to a point 155 feet from said westerly 
 building line of Spring Street, said wall to be of corresponding thickness 
 with the wall already constructed, as mentioned in said memorandum of 
 agreement, upon the ninety (90) feet therein mentioned. The said sixty- 
 five (65) feet of additional wall shall be erected of the height hereinafter 
 mentioned, to-wit: the first thirty-five (35) feet shall be from 20 to 22 
 feet in height and the rear thirty (30) feet thereof shall be of such 
 height as the party of the first part may desire, not exceeding eight (8) 
 stories of average height. 
 
 Second: The party wall to be erected under the terms of this agree- 
 
176 HOW TO BUY AND SEW* 
 
 ment shall be constructed so that one-half ($) the width or thickness 
 thereof shall be situated upon said property of said party of the first part, 
 and one-half (y 2 ) the width or thickness thereof shall be situated upon 
 said property of said party of the second part, to-wit, one-half (^) of 
 said party wall shall be situated upon each side of said dividing line. It 
 is hereby agreed that the northerly half of said party wall, to-wit, that 
 portion thereof which shall be situated upon the property of said party of the 
 second part, and being the portion on the northerly side of said dividing 
 line, shall be the property of said party of the second part; and that the 
 southerly one-half ( l / 2 ) of said party wall, to-wit, that portion thereof 
 which shall be situated upon the property of said party of the first part, 
 and being that portion on the southerly side of said dividing line, shall 
 be the property of said party of the first part; but that said wall shall 
 be a party wall for the mutual benefit of the respective parties hereto, 
 and their successors in ownership of their respective lots, their executors, 
 administrators, heirs and assigns, forever. 
 
 Third: The said memorandum of agreement between the parties 
 hereto relating to the construction of the aforesaid ninety (90) feet of 
 said party wall, is hereby modified, as follows, to-wit: That portion of 
 said 90 feet of said party wall commencing at the westerly building line 
 of Spring Street and extending westerly a distance of thirty (30) feet, 
 may be increased in height by said party of the first part to such height 
 as he may desire, not exceeding eight stories of average height. 
 
 Fourth: It is further agreed that said party of the first part, in 
 constructing his building above the first story thereof, shall set back the 
 northerly wall thereof a distance of five (5) feet in the clear from the said 
 party wall between the following points, to-wit: commencing at a point 
 90 feet from the westerly building line of Spring Street and running back 
 westerly a distance of 35 feet ; and said party of the second part, in con- 
 structing his building on the northerly side of said party wall, shall set 
 back his southerly wall a distance of two (2) feet in the clear from the 
 said party wall between the same points, so as to leave a light well be- 
 tween said points of at least seven (7) feet in width above the first 
 story. 
 
 Fifth: That portion of said party wall already constructed, extend- 
 ing from the point 30 feet from the westerly building line of Spring Street 
 to a point distant 90 feet from said westerly building line of said Spring 
 Street, shall not be extended above three stories in height; and it is 
 agreed that said party of the first part, in constructing his building above 
 the first story thereof, shall set back the northerly wall thereof between 
 the points last aforesaid, a distance of five (5) feet in the clear from said 
 party wall. And in case said party of the second part should at any 
 time increase the height of his building on the northerly side of said 
 party wall above three stories, he shall set back the southerly wall thereof 
 between the points last aforesaid above the third story, a distance or two 
 (2) feet in the clear from said party wall, so as to leave a light well be- 
 tween said points of at least seven (7) feet in width above the third 
 story. 
 
REAL, ESTATE AT A PROFIT 177 
 
 Sixth: The spaces mentioned in the last two clauses of this agree- 
 ment, as to be left for a light well, shall forever be maintained and kept 
 by the parties hereto free from any buildings or obstructions. 
 
 Seventh: It is hereby agreed that neither the said party of the 
 second part, nor his successors, executors, administrators, heirs or assigns, 
 shall be entitled to use said party wall, to be constructed by the party of 
 the first part, as herein mentioned, until said party of the second part, 
 or his said executors, administrators, heirs or assigns, shall first pay to 
 said party of the first part, his successors, executors, administrators, heirs 
 or assigns, one-half (^) of such amount as would be the reasonable cost 
 of constructing said wall at the time at which such use shall be com- 
 menced. It is agreed that the party of the first oart shall, in the first 
 instance, pay the entire cost of constructing said party wall so to be con- 
 structed by him, as herein mentioned, and that said party of the second 
 part, his successors, executors, administrators, heirs or assigns, shall not 
 be required to pay any portion of the cost of such construction until such 
 time as said party of the second part, his successors, executors, adminis- 
 trators, heirs or assigns desire to make use of said wall; and that said 
 party of the second part, his successors, executors, administrators, heirs 
 or assigns, shall, before using said wall, pay to said party of the first 
 part, his successors, executors, administrators, heirs or assigns, one-half 
 (34) of such sum as would constitute the reasonable cost of the con- 
 struction of said wall at the time at which such use shall begin. 
 
 Eighth: It is agreed that all extensions and constructions hereunder 
 shall be made of first-class materials, and in compliance with the ordi- 
 nances of the City of Los Angeles in force at the time of such extensions 
 or constructions. 
 
 Ninth: It is understood and agreed that all of the covenants hereof 
 are made as and for covenants running with the lands of the respective 
 parties hereto, hereinbefore described, and shall bind the parties hereto 
 and their respective successors in the ownership of said respective lots, 
 and their respective executors, administrators, heirs or assigns. 
 
 IN WITNESS WHEREOF, the parties hereto have hereunto set their 
 hands and seals the day and year first above written. 
 
 HIRAM WHITE. (Seal) 
 
 WILLIAM WILLARD. (Seal) 
 (Acknowledgment. ) 
 (Copy of Agreement "A.") 
 
 FORM NO. 84 PIPE LINE RIGHT OF WAY. 
 THIS INSTRUMENT WITNESSETH : That Ventura Improvement Com- 
 pany, a corporation, organized and existing under the laws of the State 
 of California, and having its principal place of business at the Town of 
 Ventura, State of California, in consideration of Ten Dollars, the receipt 
 whereof is hereby acknowledged, hereby grants to Blue Bird Oil Company, 
 a corporation, having its principal place of business at Santa Paula, 
 Ventura County, California, and to its successors and assigns, the right, 
 privilege and easement to lay, build, operate and maintain a pipe-line for 
 
178 HOW TO BUY AND 
 
 the conveying of petroleum oil, water and other liquid substances, in, 
 upon, over and across that certain tract of land, situate in the County of 
 Ventura, State of California, and particularly described as follows: 
 
 (Description.) 
 
 Said pipe line to extend across said nremises at, and to be laid as 
 nearly as possible to, the fence running along the northern boundary line 
 of the right of way of the Southern Pacific Company, for a distance of 
 about eighty (80) chains, more or less; said grant being subject, never- 
 theless, to the following covenants and conditions, on the part of said 
 Blue Bird Company, its successors and assigns, to be kept and performed, 
 namely : 
 
 First: That said Blue Bird Oil Company shall, at its own cost and 
 expense, lay, operate and maintain said pipe line, and that all of said pipe 
 line shall be buried not less than eighteen inches below the surface of the 
 ground; 
 
 Second: That said Blue Bird Oil Company shall be responsible 
 for, and shall pay to the parties entitled thereto, any damage that may 
 be caused or result from the laying and operating of said pipe-line or 
 by leakage thereof; said Ventura Improvement Company reserving to 
 itself the right to be the sole judge as to any damage that may occur by 
 reason of the location of said line of pipe on its premises and the man- 
 ner of maintaining it; provided, however, that the damage so estimated 
 shall always be reasonable and just and commensurate to the injury 
 suffered ; 
 
 Third : That said Blue Bird Oil Company, its successors or assigns, 
 may, at any time, remove said pipe-line from said premises, and upon 
 such removal, shall fill up the trench wherein said pipe-line lay, and leave 
 the surface of the ground in good condition; provided, however, that if, 
 after any such removal, said Blue Bird Oil Company, its successors or as- 
 signs, shall not make use of the right of way herein granted for the space 
 of six successive months, the rights hereby granted shall be forfeited 
 and cease; 
 
 Fourth : That the exercising, by the Blue Bird Oil Company, of 
 the rights hereby granted, shall be conclusive proof of the entering into 
 of the covenants herein contained on its part to be kept and performed 
 equally as though these presents were signed and sealed by said Blue 
 Bird Oil Company. 
 
 IN WITNESS WHEREOF, said Ventura Improvement Company has 
 hereunto caused its corporate name and seal to be affixed by its President 
 and its Secretary, this ninth (9th) day of September, A. D. 1905. 
 
 (Corporate Seal) VENTURA IMPROVEMENT COMPANY. 
 
 By its President DWIGHT HILLIS. 
 By its Secretary ABNER ANDREWS. 
 (Corporate Acknowledgment.) 
 
REAL ESTATE AT A PROFIT 179 
 
 FORM NO. 85 OLOGRAPHIC WILL UNDER CALIFORNIA LAW. 
 
 LAST WILL AND TESTAMENT OF DOUGLASS JERROLD. 
 
 I, Douglass Jerrold, do make, publish and declare this to be my last 
 will and testament. 
 
 I give, devise and bequeath to my beloved wife, Mary Jane Jerrold, 
 all of my property, real, personal and mixed, of which I shall be pos* 
 sessed, and to which I shall be entitled, at the time of my death. 
 
 I hereby appoint my beloved wife, Mary Jane Jerrold, the sole 
 executrix of this my last will and testament, and do request that as 
 such executrix she be exempt from giving bond. 
 
 IN WITNESS WHEREOF, I have written, dated and signed this will 
 entirely in my own handwriting, this first day of December, A. D. 1905. 
 
 DOUGLASS JERROLD. (Seal) 
 
 FORM NO. 86 WRITTEN AND WITNESSED WILL. 
 
 LAST WILL AND TESTAMENT OF 
 
 I, of , in the County of and State of 
 
 , being of sound mind and memory, do make, publish, and de- 
 clare this to be my last will and testament, hereby revoking all former 
 wills by me at any time made. 
 
 My will is, that all my just debts and funeral expenses shall, by 
 my executors hereinafter named, be paid out of my estate, as soon after 
 my decease as shall by them be found convenient. 
 
 I give, devise, and bequeath to my beloved wife, , all my house- 
 hold furniture, and also dollars in money, to be paid to her by 
 
 my executors, hereinafter named, within months after my de- 
 cease ; to have and to hold the same to her and her executors, adminis- 
 trators, and assigns forever. I also give to her the use and income of my 
 dwelling house, land, and its appurtenances, situated in (describ- 
 ing the same), to have and to hold the same to her for and during the 
 term of her natural life. 
 
 I give, devise, and bequeath to my son, , the reversion or 
 
 remainder of my dwelling house and its appurtenances, situate in 
 
 aforesaid (describing it), and all profits, income, and advantage that may 
 
 result therefrom, from and after the decease of my beloved wife, ; 
 
 to have and to hold the same to him, the said , his heirs and as- 
 signs, from and after the decease of my said wife, to his and their use 
 and behoof forever. 
 
 All the rest and residue of my estate, real, personal, and mixed, of 
 which I shall die seized and possessed, or to which I shall be entitled at 
 
 my deceasej I give, devise, and bequeath, to my sons and 
 
 to be equally divided between them, share and share alike. 
 
 And, lastly, I do nominate and appoint my said sons and 
 
 to be the executors of this my last will and testament. 
 
 IN WITNESS WHEREOF, I. the said , have to this, my last 
 
 will and testament, consisting of sheets of paper, subscribed my 
 
180 HOW TO BUY AND 
 
 name and affixed my seal this day of , in the year of our 
 
 Lord one thousand nine hundred and 
 
 (Seal) 
 
 Signed and sealed in our presence by the testator, and acknowledged 
 by him to each of us, and he at the same time declared the foregoing 
 instrument, so signed, to be his last will and' testament, and thereupon 
 we, at the request of the testator, and in his presence, and in the presence 
 of each other, signed our names as witnesses thereto, together with our 
 places of residence. 
 
 (Signatures of Witnesses.) 
 
 . . residing at Street. 
 
 residing at Street. 
 
REAL ESTATE AT A PROFIT 181 
 
 CHAPTER X. 
 
 SUBDIVISIONS. 
 
 Sales of Subdivisions are Remunerative Transactions Outlines of the Several 
 Methods of Handling Tracts Making, Filing, Accepting, Endorsing and Recording 
 Map -Gain on Lots in New Subdivisions Generally Small. 
 
 Sec. 134. Buying acreage property within a city, or con- 
 tiguous to or adjacent to the city limits, and subdividing and 
 selling the same as lots, is one of the most remunerative of real 
 estate transactions. This is done in one of three or more ways, 
 to wit : (a) by buying the acreage outright, and then subdivid- 
 ing and improving it, which requires the investment of consid- 
 erable capital at the outset; (b) by paying a portion of the 
 purchase price in cash, and having the property conveyed in 
 trust to a trustee preferably a title company and applying 
 a portion of the purchase price of each lot, as sold, to the ex- 
 tinguishment of the debt on the property as indicated in Form 
 No. 88: or (c) by being appointed exclusive agent for 
 the subdivision and sale of the property, as indicated in 
 Form No. 87. Both of the above mentioned forms are largely 
 self-explanatory. Subdivisions are also handled exclusively 
 by an agent on a commission basis, the commission 
 being large enough to enable other agents to partici- 
 pate therein. 
 
 Sec. 135. Lots in subdivisions are sold in two ways, 
 namely: (a) by a contract of sale, whereby the purchaser 
 makes a part payment in cash, and agrees to pay the re- 
 mainder at certain specified times, together with interest and 
 taxes, he to receive a deed upon full compliance with the terms 
 of the contract ; or (b) by the purchaser paying a portion in 
 cash, and receiving a deed to the premises, and thereupon giv- 
 ing to the seller a note or notes, secured by a mortgage on the 
 lots, for the unpaid portion of the purchase price. 
 
 Sec. 136. The person subdividing is required to have a 
 map made of the premises, showing the lots and streets, with 
 dimensions and distances, and such map must be filed with, 
 and accepted and endorsed by, some designated city or county 
 official or officials, such as the city engineer, or County Board 
 of Supervisors. No map will be considered, accepted or en- 
 dorsed, unless the lines of the streets and highways shown 
 
182 HOW TO BUY AND SEIJ< 
 
 thereon are a continuation of the lines of streets and highways 
 of adjacent subdivisions, and the connections of such lines 
 must be plainly shown on the face of the map. The areas of 
 lots as shown on the map must not include any portion used 
 or offered for dedication to the public as streets or highways, 
 and all distances and courses along the side lines, and across 
 highways must be plainly written on the face of the map. 
 Where these or similar rules have not been observed in times 
 past, there are, in the streets and highways, jogs, set-offs and 
 cul-de-sacs, annoying and bewildering alike to citizens and 
 strangers. The map, after being accepted and endorsed, is 
 filed for record in the office of the County Recorder. 
 
 Sec. 137. The grades, curbs and sidewalks of streets 
 within the limits of a city must be made in accordance with 
 plans, profiles and cross-sections prepared by the city engi- 
 neer. In Los Angeles, curbs are to be constructed of cement 
 concrete. Curbs are to be six inches wide on top, twelve inches 
 wide on the bottom and eighteen inches deep. Sidewalks are 
 to be three and one-half inches thick. No more than one street 
 can be closed at one time while street work is in progress. 
 
 Sec. 138. From the standpoint of the investor, the buy- 
 ing of a lot in a comparatively close-in subdivision, where 
 building restrictions are reasonable, for the purpose of erect- 
 ing a residence thereon, is proper, provided the tract is being 
 generally improved by similar residences, and the investor pre- 
 fers to live amid semi-suburban surroundings. There are dis- 
 comforts incident to residing in new tracts which do not at- 
 tach to the older residence portions of a city. 
 
 Sec. 139. If the investor buys in .a new tract by way of 
 speculation, and makes a small cash payment, with the ex- 
 pectation of selling at an advance before the next payment be- 
 comes due, he is apt to be disappointed, as there are usually 
 too many such lots, and a number of other persons may be 
 pursuing precisely the same plan, and consequently, there are 
 likely to be more sellers than buyers. Surrounding "boom" 
 towns, there is acreage which has been sold as town lots and 
 has again reverted to acreage ; and it not infrequently happens, 
 within the limits of a city, that one may buy lots in a tract, 
 a few years after the tract has been placed on the market, 
 cheaper than when such lots were first offered. The possible 
 immediate gain on lots in new subdivisions is generally small. 
 
REAL ESTATE AT A PROFIT 183 
 
 FORM NO. 87 CONTRACT APPOINTING AGENTS TO SUB- 
 DIVIDE AND SELL PROPERTY. 
 
 THIS AGREEMENT, made and entered into, in duplicate, this Tenth 
 day of March, Nineteen Hundred and Five, by and between S. A. Belcher 
 and Sarah Belcher, his wife, of the City of Los Angeles, County of Los 
 Angeles, State of California, the parties of the first part, and James R. 
 Black and George L. White, of the County and State aforesaid, the parties 
 of the second part, 
 
 WITNESSETH : That for and in consideration of the covenants and 
 agreements hereinafter set forth, and the reservation of one inside lot 
 on Thirty-ninth street in the lands hereinafter mentioned, the said parties 
 of the first part have appointed and do hereby appoint the said James R. 
 Black and George L. White the sole and exclusive agents of said parties 
 of the first part to subdivide and sell in subdivisions, in accordance with 
 their judgment, provided that in the exercise of their judgment they shall 
 act for the best interests of all parties concerned, the following described 
 property, to-wit : 
 
 The East One-half (^) of the Southwest One-quarter (%) of Sec- 
 tion One (i) in Township Two (2) South of Range Fourteen (14) West, 
 San Bernardino Meridian, in the City of Los Angeles, State of California. 
 
 It is agreed between the parties hereto that said land shall be sold 
 for such price or prices as shall net the parties of the first part the sum 
 of Eleven Thousand Dollars ($11,000), lawful money of the United States 
 of America, without interest, except as hereinafter set forth and inde- 
 pendent of the lot reserved to said parties of the first part as hereinabove 
 mentioned. 
 
 It is further agreed by and between the parties hereto that the sale 
 of all subdivisions shall be made upon the following terms and conditions, 
 to-wit : At least one-third cash in lawful money of the United States as 
 aforesaid, One-third on or before one year from the date of sale, and the 
 remaining one-third on or before two years from date of sale. 
 
 It is further agreed between the parties hereto that all deeds convey- 
 ing subdivisions of the above described property shall be in the form of a 
 grant bargain and sale, or in form prescribed by the Civil Code of the 
 State of California, and that each such sale shall be made subject to the 
 following conditions, and the said deeds to be made pursuant to this con- 
 tract shall contain the following clauses, namely: 
 
 "Provided, however, that this conveyance is made and accepted upon 
 each of the following conditions which shall apply to and be binding upon 
 
 the grantee heirs, devisees, executors, administrators and assigns, 
 
 namely: That said premises shall be used for residence purposes only; 
 that no residence shall be erected, placed or permitted on said premises 
 that shall cost or be fairly worth less than one thousand dollars ($1,000) ; 
 that said residence and all portions and projections thereof shall be located 
 
 not less than feet from the front line and feet from the 
 
 side lines of said premises and shall face the front line of said premises^ 
 namely, on ; that no barn, no store building, 
 
184 HOW TO BUY AND SEW, 
 
 shop or place for the sale of merchandise of any description shall be 
 erected, placed or permitted on said premises. 
 
 "Provided, further, the party of the second part heirs and 
 
 assigns, shall not convey, lease, or rent said premises or any part thereof 
 to any person of African descent. 
 
 "Provided, that upon the breach of any of the foregoing conditions 
 
 the said premises shall revert to the said grantor , successors or 
 
 assigns, each of whom shall have the right of immediate re-entry upon said 
 premises." 
 
 And that such deeds are to be delivered to the purchaser upon the receipt 
 of the first payment, and of promissory notes and mortgages evidencing 
 and securing the second and third payments; that all notes shall be pay- 
 able to the parties of the first part, and that the parties of the first part 
 shall have the notes secured by a first mortgage on the property sold and 
 to which said mortgages relate, and that such mortgages shall be in the 
 form in use by the Title Insurance and Trust Company, or the Title 
 Guarantee and Trust Company, both of the said City of Los Angeles ; that 
 said notes shall bear interest at the rate of nine (9) per cent per annum, 
 payable semi-annually, and that the parties of the first part shall execute 
 and deliver to the purchaser a tax agreement, in the form in use by the 
 Trust Companies aforesaid, providing in effect that if the purchaser shall 
 pay all taxes upon the lands so purchased by him, the parties of the first 
 part shall account for all interest upon said promissory notes in excess 
 of six (6) per cent, per annum. 
 
 It is further agreed between the parties hereto that upon the making 
 of each and every sale, and prior to the execution of any deed therefor, 
 the said parties of the second part shall render to and for the information 
 of said parties of the first part, a statement in writing of the transaction, 
 showing in detail the property sold, the price to be paid therefor, and the 
 amount of cash received and the amounts and terms of the deferred pay- 
 ments; and that 70% of the cash received on all sales shall be given to 
 said parties of the first part immediately after the consummation of the 
 sale and the remaining 30% shall be retained by the parties of the second 
 part for their own use and benefit. 
 
 It is further agreed between the parties hereto that the parties of the 
 second part shall keep all their transactions relating to the property herein- 
 above described, and their accounts with the narties of the first part, in a 
 book separate from all transactions of the parties of the second part in 
 relation to other business matters, and that such book shall at all times 
 be open to the inspection of said parties of the first part, their agents and 
 attorneys. 
 
 It is further agreed between the parties hereto that said parties of 
 the first part shall pay for bringing down to date an unlimited certificate 
 oif title in respect to said premises, such certificate to be issued by the 
 Title Insurance and Trust Company of Los Angeles at the request of said 
 parties of the second part, and that the said parties of the second part 
 shall pav for each separate certificate of title, or policy of title insurance, 
 
REAI, ESTATE AT A PROFIT 185 
 
 als the lots are sold, such certificates or policies of title insurance to be 
 delivered to the parties of the first part with the promissory notes and 
 mortgages aforesaid. 
 
 It is further agreed between the parties hereto that the parties of the 
 second part shall at once and as continuously as practicable and without 
 delay, survey and subdivide all of the land herein mentioned, and lay out 
 at least one street, and grade, sidewalk and curb the same, and furnis'h 
 therefor all necessary labor and materials at their own cost and expense 
 and pay for all work and materials done and provided upon and for the 
 above described premises ; provided, nevertheless, that every lot shall front 
 on a street that has been graded, sidewalked and curbed. 
 
 It is further agreed between the parties hereto that all mortgages 
 given as aforesaid to said parties of the first part shall be recorded without 
 delav in the office of the County Recorder of the County of Los Angeles, 
 in the proper records in said office, at the cost and expense of said parties 
 of the second part, and that the said parties of the second part shall pay 
 to all outside real estate dealers or brokers for sales made by them of lots 
 in the premises above described, a commission at the rate of five (5) per 
 cent, on the first $1,000, and 2^/2% on amounts in excess thereof, and shall 
 also pay all taxes and assessments which may be levied on said premises 
 during the term of this agreement for State, County and municipal pur- 
 poses, excepting for the present fiscal year 1904-5, which last named taxes 
 the said parties of the first part agree to pay. 
 
 It is further agreed between the parties hereto that the parties of 
 the second part shall hold said property and the said parties of the first 
 part harmless from all liens for all work, labor and materials, or any of 
 them, done or furnished upon the property above described, and pay all 
 liens which may attach thereto when due; provided, that in the event the 
 amount of, or the validity of, any lien is disputed by the parties of the 
 second part, they shall, at their own cost and expense, contest the same, 
 paying all costs and expenses connected therewith, including attorney's 
 fees, and shall not be obliged to pay such disputed lien until the same has 
 been finally adjudged a lien against said land or a claim against the 
 parties of the first part, or against the parties of the second part, either 
 by operation of law or otherwise, and that in the event a lien is in pro- 
 cess of litigation at the expiration of the term hereinafter mentioned, the 
 parties of the second part agree to continue their obligation to pay the 
 same. 
 
 It is further agreed between the parties hereto, that the party of the 
 second part will pay for all labor and materials supplied on the premises 
 above described, though such materials are not herein specifically set 
 forth, and that all street and sidewalk work shall conform to the rules and 
 regulations of the Board of Supervisors of the County of Los Angeles, 
 and shall be subject to the approval of the Superintendent of Streets of 
 said City of Los Angeles. 
 
 It is further agreed between the parties hereto that in the event the 
 said parties of the first part shall sell any of the subdivisions or lots 
 
186 HOW TO BUY AND 
 
 comprising the premises above described, they shall be entitled to the reg- 
 ular commission of 5% on the first $1,000, and at the rate of 2^% on all 
 amounts in excess of said sum of $1,000, such commission to be allowed 
 them upon consummation of sale. 
 
 It is further agreed between the parties hereto that the parties of the 
 first part shall be entitled to receive and retain, for their, own use and 
 benefit, all interest accruing on the notes and mortgages made in their; 
 favor as a part of the purchase price of said subdivisions or lots, and such 
 interest shall not be taken to be, or deemed as, a part of the aforesaid sum 
 of Eleven Thousand Dollars ($11,000) to be paid to the said parties of 
 the first part. 
 
 It is further agreed between the parties hereto that after the said 
 parties of the second part shall have paid to the parties of the first part 
 the sum of Eleven Thousand Dollars ($11,000), net, as aforesaid, the par- 
 ties 'hereto shall each receive one-half of the balance, whether in lots, 
 monies or mortgages, or any or all of them, after said street work, ex- 
 penses, advertising and commissions are deducted and when the same are 
 fully discharged. 
 
 It is further agreed between the parties hereto that the parties of the 
 first part shall make all conveyances or other instruments in writing as 
 shall be necessary to effect such division, upon the request of said parties 
 of the second part, after their final settlement with the parties of the first 
 part, provided the parties of the second part shall have fulfilled on their 
 part the covenants of this agreement. 
 
 It is further agreed between the parties hereto that time is of the 
 essence of this agreement, and that the parties of the second part agree 
 to complete the sale of the entire premises above described as soon as the 
 same can reasonably be done, not to exceed three years from and after 
 the tenth day of June, 1905. 
 
 It is further agreed between the parties hereto that the parties of the 
 second part shall not assign, set over or transfer this contract, or any of 
 the rights hereunder, to any person or persons without the consent in 
 writing first had and obtained from said parties of the first part. 
 
 It is further agreed that all conveyances, and agreements to convey, 
 shall be made only by the parties of the first part. 
 
 It is further agreed between the parties hereto that this contract 
 is made on each and all of the said covenants and agreements, and the 
 failure to comply with each and every one of the above covenants will 
 immediately, at the option of the parties of the first part, work a forfeiture 
 of this contract and terminate the same. 
 
 The covenants herein by which the respective parties have bound 
 themselves shall bind their respective heirs, executors, administrators, as- 
 signs and successors in interest, and all reservations herein made and all 
 benefits to accrue hereunder to the respective parties hereto shall inure 
 to the benefit of their respective heirs, executors, administrators, assigns 
 and successors in interest. 
 
REAL ESTATE AT A PROFIT 187 
 
 IN WITNESS WHEREOF, the said parties hereto have hereunto set their 
 hands and seals the day and year first above written. 
 
 S. A. BELCHER. (Seal) JAMES R. BLACK, (Seal) 
 
 SARAH BELCHER, (Seal) GEORGE L. WHITE, (Seal) 
 
 FORM NO. 88 DECLARATION OF TRUST AS TO PROPERTY 
 
 "CONVEYED TO TITLE COMPANY TO BE 
 
 SUBDIVIDED AND SOLD. 
 
 DECLARATION OF TRUST. 
 
 KNOW ALL MEN BY THESE PRESENTS, that, Whereas, there has been 
 conveyed by Q. A. Sawyer, of the County of Los Angeles, State of Cali- 
 fornia, to the Title Insurance and Trust Company, a corporation organized 
 and existing under 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 California, the following described real property, situate, 
 lying and being in the County of Los Angeles, State of California, to-wit : 
 (Description of Property) ; and, 
 
 WHEREAS, the partial consideration for said conveyance, to-wit, the 
 sum of Three Thousand Dollars ($3000), has been paid to said Q. A. 
 Sawyer by Hiram Tuttle and Ebenezer Strout, of the County and State 
 aforesaid, hereinafter referred to as the beneficiaries hereunder, and no 
 part of such consideration has been paid by the Title Insurance and Trust 
 Company, and the said Tuttle and Strout are in fact the owners of said 
 property, subject to the indebtedness owing by them to said Q. A. Sawyer 
 as hereinafter mentioned and referred to : 
 
 Now, THEREFORE, the Title Insurance and Trust Company declares 
 that it Holds Said Real Property in Trust for the purpose of selling the 
 lots in a subdivision of said property hereinafter mentioned and referred 
 to, at prices not less than the schedule of prices hereto affixed and made 
 a part hereof, and of applying and disposing of the proceeds arising from 
 said sales in accordance with the terms of this instrument. 
 
 All deeds executed by the Trustee shall be substantially in the form 
 of the said deed hereto annexed, marked "Exhibit A," and made a part 
 hereof, and all agreements to convey shall contain like restrictions as in 
 said deed contained. 
 
 The Trustee shall cause said property to be subdivided into lots and 
 blocks, according to the map thereof attached hereto and made a part 
 hereof, and dedicate to public use the streets and alleys of such subdivi- 
 sion and record said map in the office of the County Recorder of said 
 County. 
 
 The monies received by the said Trustee from the sale of said prop- 
 erty shall be applied and disbursed as follows : 
 
 To said Q. A. Sawyer, the sum of Five Thousand Dollars, as fol- 
 lows: 
 
 One thousand dollars on or before July 10, 1905; one thousand dol- 
 lars on' or before January 10, 1906; one thousand dollars on or before 
 July 10, 1906; one thousand dollars on or before January 10, 1907, and 
 one thousand dollars on or before July 10, 1907, together with interest 
 
188 HOW TO BUY AND 
 
 on said deferred payments, from date until paid, at the rate of seven per 
 cent, per annum, payable quarterly. 
 
 Partial payments may be made by said Trustee to the said Q. A. 
 Sawyer on the foregoing indebtedness from monies received from sales 
 of said property upon the basis of the following schedule of prices : 
 (Copy of schedule.) 
 
 The balance of the monies received by said Trustee from the sale of 
 each half block after the said Q. A. Sawyer shall have been paid for each 
 half block respectively, according to the foregoing schedule of prices (such 
 payments to said Q. A. Sawyer not to exceed in the aggregate the amount 
 owing to him hereunder with interest), shall be applied and disbursed as 
 follows : 
 
 To the expenses of the Trustee, in the recording of deeds necessary 
 to vest the title to said property in the said Trustee, and to the fees for 
 the recording of the map of the subdivision of said property, and to the 
 charges of the Trustee in the execution of this trust, hereby fixed at 
 
 per lot, and to the cost of certificates of title, hereby fixed at 
 
 per lot, and for each additional lot included in the 
 
 same certificate, and for the acknowledgment of each deed 
 
 executed hereunder : 
 
 To the payment of the taxes levied, assessed or imposed on or against 
 said property, not payable by purchasers thereof, save and except the taxes 
 of the fiscal year 1905-1906: 
 
 To the expenses in surveying said property for the purpose of sub- 
 dividing the same, and for improving the streets and for laying sidewalks 
 thereon : 
 
 To pay five per cent, commission on all lots sold : 
 
 To pay advertising and other incidental expenses incurred in placing 
 said property on the market : 
 
 All bills contracted shall be O K'd by said Tuttle and Strout, or 
 either of them, for payment by said Trustee. 
 
 The remainder of the mone^ so received by said Trustee shall be paid 
 to the beneficiaries hereunder, as their interests therein may appear. 
 
 No conveyance shall be made unless at least one-fourth of the agreed 
 price for such lot (which price shall in no case be less than the schedule 
 
 price of snch lot) shall have been paid in cash, and in 
 
 months, and in months, and in months 
 
 after date, with interest at the rate of per cent, per annum, pay- 
 able semi-annually, the deferred payments to be secured by a mortgage 
 on the purchased premises. 
 
 When the whole sum of Five Thousand Dollars, with interest there- 
 on as herein provided, shall be paid, then and thereupon this trust as to 
 the said Q. A. Sawyer shall cease and terminate and all the said real 
 property remaining unsold, and all contracts, agreements, notes and mort- 
 gages in the hands of said Trustee, representing or securing the deferred 
 payments upon the sale of any property made by it hereunder, shall vest 
 in and belong to the said Hiram Tuttle and Ebenezer Strout, to whom, 
 
ESTATE AT A PROFIT 189 
 
 upon the occurrence of such contingency, the same are hereby transferred 
 and conveyed; provided, however, that if default be made in the payment 
 of the monies to the said Q. A. Sawyer, within thirty days after the time 
 hereinbefore mentioned for their payment, then and thereupon this trust 
 shall cease and terminate and all of said property which has ; not been 
 conveyed by said Trustee shall vest in and belong to the said Q. A. Saw- 
 yer, and all contracts and agreements in the hands of said Trustee shall 
 also vest in and belong to the said Q. A. Sawyer, and all of said reai 
 property so remaining shall be conveyed to the said Q. A. Sawyer, and 
 all contracts and agreements in the hands of the said Trustee shall be 
 assigned to and delivered to the said Q. A. Sawyer, to whom, upon the 
 occurrence of such contingency, the same are hereby assigned, transferred 
 and conveyed, and all monies theretofore paid to the said Q. A. Sawyer 
 shall be forfeited to him without recourse, as agreed and liquidated dam- 
 ages. 
 
 The schedule of prices may be changed at any time by the benefi- 
 ciaries hereunder (save and except ), their heirs and assigns; 
 
 provided, in case said prices are diminished, such diminished prices shall 
 not be less than the price to be paid to the said Q. A. Sawyer. 
 
 This trust shall not cease or terminate until the said Trustee shall 
 have been paid its expenses as herein provided, and shall have been re- 
 imbursed for all monies which may have been expended in and about the 
 execution of this trust. 
 
 The said Trustee may employ all of the beneficiaries of this trusH 
 and such other person or persons as it may deem best, as its agents in 
 the sale of said property, and in the transaction of the business necessary 
 to carry out the terms of this trust. 
 
 Every stipulation, condition and agreement herein shall inure to the 
 benefit of the heirs, executors, administrators, successors or assigns of 
 the respective parties hereto. 
 
 IN WITNESS WHEREOF, said Title Insurance and Trust Company has 
 
 hereunto caused its corporate name to be subscribed and its corporate 
 
 seal to be affixed, by its President and its Secretary, and said Q. A. Sawyer 
 
 has hereunto set his hand and seal, this tenth day of January, A. D., 1905. 
 
 TITLE INSURANCE AND TRUST COMPANY. 
 
 By its President 
 
 By its Secretary 
 
 Q. A. SAWYER. (Seal) 
 
 We, the undersigned beneficiaries, do hereby certify and declare that 
 the above and foregoing declaration of trust correctly sets forth and dis- 
 closes the trusts upon which Trustee holds and shall hold said property. 
 
 HIRAM TUTTLE. (Seal) 
 EBENEZER STROUT. (Seal) 
 (Then follows schedule of prices, and "Exhibit A.") 
 
190 HOW TO BUY AND 
 
 CHAPTER XL 
 
 HOW AND WHEN TO 
 
 Sale Defined Duty Assumed by Real Estate Broker Is Entitled to His Com- 
 mission Upon Producing Purchaser Able and Willing to Purchase on Vendor's Terms- 
 Predicament of Vendor Who Does not Read Contract with Broker Suggestion as to 
 Equitable Contract Advantage of Well-Kept Premises Advertising the Place 
 Owner Insensible to Possibilities of his Own Surroundings Owner Should Deal with 
 Experienced, Well-informed Broker Best Time to Sell Selling or Holding, Which? 
 Real Estate Business Very Uncertain if Loosely Conducted Duty of Owner 
 Giving Options Bill of Sale of Personal Property Conditional Sales of Personal 
 Property Sales of Stocks of Merchandise in Bulk. 
 
 Sec. 140. A sale is a contract by which, for a pecuniary 
 consideration, called the price, one person, called the seller, 
 transfers to another person, called the buyer, an interest in 
 property. The seller is also called the vendor and the buyer 
 is called the vendee. 
 
 Sec. 141. A real estate broker or agent is one who makes 
 a bargain for another and receives a commission for so doing. 
 
 Sec. 142. The duty assumed by such a broker is to bring 
 the minds of the buyer and the seller to an agreement of sale, 
 together with the price and terms on which the deal is to be 
 made, and until he has done this, his rights to a commission 
 do not accrue; but the agreement by the purchaser must be 
 one that is valid and can be enforced. A deposit or payment 
 on account made by the purchaser to the broker, is insufficient ; 
 a writing, signed by the party to be charged, is indispensable. 
 
 Sec. 143. To entitle a broker, who has been employed to 
 negotiate a sale of real estate, to his commission as agreed 
 upon with his principal, he must produce a purchaser able, 
 ready and willing to purchase on the vendor's terms, and 
 such purchaser must sign a binding contract to purchase on 
 the vendor's terms. As soon as the purchaser has done this, 
 the agent's right to his commission accrues, and such right 
 does not depend upon the final acceptance by the purchaser of 
 a conveyance to him of the property sold ; nor does it depend 
 on the vendor completing the sale. 
 
 Sec. 144. A written contract of purchase may be rendered 
 unnecessary if the agent brings the vendor and the purchaser 
 together, and the purchaser states to the vendor that he is able, 
 ready and willing to complete the deal provided the vendor 
 will make a conveyance to him of the property. In such case, 
 
REAL ESTATE AT A PROFIT 191 
 
 the agent has done all that he can do, and if the vendor, under 
 such circumstances, refuses to complete the sale, he neverthe- 
 less will be compelled to pay the agent his commission. Where 
 the broker has brought the parties together in this way, and 
 they have agreed verbally upon the terms of the sale, it is 
 necessary for them to enter into a written memorandum of 
 sale, signed preferably by both of them, and reciting the price, 
 terms and other particulars. Such agreement relates only to 
 the deal between the parties, and if not entered into, will not 
 affect the broker's right to his commission. 
 
 Sec. 145. The object of the vendor is to make a sale of 
 his property, and the rule of law is that when a real estate 
 broker has produced a contract, executed by a solvent pur- 
 chaser, he is then entitled to pay for his services from the ven- 
 dor, whether or not the trade is finally consummated ; for, if 
 the purchaser refuses to take the property, the vendor holds 
 a contract which renders the purchaser liable for all damages 
 including the commission paid by the vendor to the broker. 
 
 Sec. 146. A land owner entered into a written agreement 
 with real estate brokers substantially as follows : 'Tor and 
 
 in consideration of the services to be performed by 
 
 I hereby employ them as my sole and exclusive agents to sell 
 for me that certain real property, situate in the county of 
 , State of , described as follows." (Descrip- 
 tion.) "This employment and authority shall continue for 
 the full term of thirty days and thereafter until withdrawn by 
 
 me in writing; and I agree to pay said in the event of 
 
 a sale by them or by anyone else, including myself, while this 
 contract is in force, the sum of $ , as and for their com- 
 pensation and commission hereunder." After the thirty days 
 had expired, and without withdrawing this authorization, the 
 owner made a sale, and the agents sued for the commission, 
 which was granted by the courts. This land owner also sought 
 to have the contract set aside on the ground of mistake, or 
 fraud, alleging that she did not read the contract in its en- 
 tirety before signing it ; but the court said that a person who 
 has the ability to read, and who fails to read a contract in its 
 entirety before signing will nevertheless be bound by it; nor 
 can such land owner rely upon the statements of the broker as 
 
192 HOW TO BUY AND 
 
 to the contents of the contract, as there is no relation of con- 
 fidence existing between the owner and the broker. No law 
 has yet been devised which will protect a person from the con- 
 sequences of his own carelessness or ignorance. 
 
 Sec. 147. From the standpoint of equity, and of the agent 
 sharing with the owner the contingencies of sale, the agreement 
 between the vendor and the agent as to commissions should 
 provide for: 
 
 (i.) The price at which the agent is to sell and the terms. 
 
 (2.) That the owner himself may make a sale without 
 payment to the agent of commission. 
 
 (3.) That the agent shall not be entitled to his commis- 
 sion until the transfer has been completed and the money paid 
 over, and shall be payable out of the monies received from 
 the sale of the property ; and if such monies be payable in in- 
 stallments, that the commission also be payable in install- 
 ments. 
 
 (4.) That if the deposit made by the purchaser be for- 
 feited to the vendor, the agent's commission shall be calculated 
 only on the amount of such deposit. Form No. 90 seems to 
 meet most nearly the requirements of the average sale. 
 
 Sec. 148. An experienced real estate man, who had spent 
 a lifetime in selling farms, once remarked that a neat, well- 
 kept yard added at least five hundred dollars, and sometimes 
 as much as one thousand dollars, to the selling value of a farm. 
 The same is true in a lesser degree of the yards of city lots. 
 The neat, cozy, homelike appearance which prevails around 
 some houses assists greatly towards making a sale, particu- 
 larly when the wife of the prospective buyer comes to view the 
 premises. The beauty of the ceiling or wall decorations often- 
 times tends to make a sale. The chances of making a sale are 
 lessened where the seller has to apologize at every step for 
 the untidy appearance of the interior of the house. A coat of 
 fresh paint on a weather-beaten house vastly improves its ap- 
 pearance, preparatory to a sale. 
 
 Sec. 149. If one wishes to dispose of a place by means of 
 advertising, he can readily undertake the matter by placing an 
 advertisement in the newspaper most likely to reach prospec- 
 tive buyers. Parties who have resided for a long time in a 
 
REAL ESTATE AT A PROFIT 193 
 
 certain place, do not realize the advantages of that place as 
 well as do outsiders, and an advertisement gotten up by such 
 a party is apt to be rather tame. Newspaper advertising at 
 the present day, when so much of it is being done, requires ex- 
 perience and study to make it effective. A story is told of a 
 man who became tired of living in a certain community and 
 offered his farm for sale through a real estate broker. The 
 broker advertised the property extensively and the following 
 week it happened that this party read in a newspaper the 
 broker's description of his place. He did not recognize the 
 place from the description and asked his wife whose place it 
 was. After considerable discussion, they discovered it to be 
 their own place, the good qualities of which had been described 
 by the agent in a way that had not occurred to them. The possi- 
 bilities of their own surroundings were thus forcibly impressed 
 upon them and the party withdrew the place from the market. 
 A suggestion for an advertisement by an owner is shown on 
 page 194. Real estate dealers prepare elaborate advertise- 
 ments, a sample of same being shown on page 195. 
 
 Sec. 150. An investor will obtain more satisfactory re- 
 sults, either in selling or buying, if he deals with a real estate 
 broker of experience and who is well acquainted with real es- 
 tate values, and who has been in the business in one section 
 for a considerable length of time. A broker who makes a spe- 
 cialty of a certain section of a city is often at sea as to values 
 in another part of the city. The investor should consult the 
 broker best acquainted with the section in which the invest- 
 ment is to be made. 
 
 Sec. 151. The best time to sell is when there are several 
 buyers for the same property; that is to say, when the demand 
 exceeds the supply. There is then no difficulty in making a 
 sale. When one has bought a desirable property, he should 
 determine immediately the price at which he will sell, as by 
 adhering to the price he will be the more likely to obtain it, 
 provided the price is reasonable. 
 
 Sec. 152. Where property is situate near the center of a 
 large and growing city, it will always be a debatable question 
 with the owner whether to sell or not to sell, with the weight 
 of the argument in favor of not selling, provided the circum- 
 
194 
 
 HOW TO BUY AND SELL 
 
 Be Wise! Notice! Look; Here! 
 
 Buy A Great Bargain Now 
 
 ~-\ 
 
 3S22S&4 
 
 Wiiiim^iMmm 
 
 We don't believe you can EQUAL THIS ONE for an 
 
 Ideal, Cozy, Convenient Home, and its Location 
 
 esj^cially recommends it. In KfrlgSVille (Ashtabula Co.); Ohio, 
 one of the PRETTIEST little towns to live in you ever saw, only a few 
 moments' ride on either the P. & O. ELECTRIC LINE, or the L. S.-M. S., or 
 NICKEL PLATE H. R. or to drive it is delightful, and good roads always. 
 KINGSVILLE Is th FATHER of the "CENTRALIZATION SCHOOL PLAN" 
 Where ALL CHILDREN are brought Jnto ACRES SEEDED to clover and timothy 
 TOWN*, receiving the SAME ADVAN- for this year's harvest. ;is well as QIIOW- 
 TAOES as do the town children, and this I TN'G WHEAT and RYE. arid 15 acres for 
 BEAUTIFUL HOME Is located not over a ! spring crops. Last year we raided the 
 BLOCK from this ELEGANT SCHOOL, BEST CORN AND OATS US. OLD AS- 
 or from tho BAPTIST CHURCH and ouly TABULA CO. en this place. EKD now 
 two blocks from tho METHODIST or. FOR SALE. It also contains 20 acres of 
 PRESBYTERIAN CHURCHES. The; the BEST PASTURE, \vlth 300 ELEGY-NT 
 TOWNM^-IDEAL, tho PEOPLE SPLEN- i MAPLE TREES, constituting one of the 
 DID, and the home elf gant and modern in I b'-st "SUGAR BUSHES" IN THE CO., 
 EVERY SENSE OF THE WORD. Has \. with a good SUGAR HOUSE and BARN 
 NICE FURNACE. NATURAL . GAS and I ami well of FINE WATER. Farm just 
 ELEGANT FIXTURES throughout, fine CLEANED AND UX&BRBRUSHED rnd 
 LARGE PORCHES, PLATE GLASS WIN- * FENCED. This Is, one of the OLD and 
 DOWS and DOORS, GRATE and MANTEL PROSPEROUS and WELL KEPT 
 
 FOR GAS. 10 ROOMS, all flno-and NEWLY 
 PAPERED, GOOD BARN, CHICKEN 
 PARK. ICE HOUSE and 12 ELEGANT 
 FRUIT TREES, all heaving; FINE CIS- 
 TERN, with water in kitchen, BROAD, 
 EASY OPEN STAIRS in OAK and ALL 
 FINtSHUD IN NATURAL WOOD 
 THROUGHOUT. This is the most "oxy 
 and UP-TO-DATE HOME in Ihe place. 
 
 NOTHING LACKING. LOT w,.\ir,o, -with 
 
 elegant WELL- OF SOFT SV'RINC, 
 WATER. BEST NEIGH HOKS, .lur.t a 
 fihort distance from Lake Erie. Also 
 
 We have a BEAUTIFUL FARM of 70 
 acres jtut one-half mill- south of tho 
 homo. HIGHLY IMPROVED, with 30 
 
 189 Main-st 
 
 FARMS. ALL KINDS OF SOiL. You 
 can raise anything on It^-EVEN MORT- 
 GAGES. Wo will sell ANY NUMBER 
 OF ACRES, or all. of this farm with the 
 abovo homo t or the HOME, or FARM 
 SEPARATE. Immediate possession, if 
 desired.' We will name a CASH PRICB 
 that will surprise vou, or will soil on any 
 tcrrnn suitable. Wo are In AshtHbula? 
 where businofs prevents us from longer 
 {xrupylcg the plaee, our only reason for 
 ;<-!ll!i. D-jn't delay. Don't look farther. 
 Come ai'd sf-e nu^; don't write unless you 
 moan hiisiiicKt-. Will also ?cll t>art of our 
 hoiinchdd Koods. if desired. All new. 
 Address or rail on 
 
 C. A. Thatcher -Ashtabula.O.. 
 
REAL ESTATE AT A PROFIT 
 
 195 
 
 THE DOOR IS CLOSING 
 
 IF NOT 
 GET 
 
 On This Unparalleled Opportunity 
 
 Remember, we are aiding everybody who would like to 
 get a LOT In our allotment on 
 
 GOODMAN -' FORCE-STS 
 
 by paying" them a day's wages (not to exceed $3*i for the 
 time they might " A ~ " -- -- * -- 
 
 HOME SITES 
 
 have to lose securing one of these unequaled 
 
 |n; 
 
 ic;] 
 
 / 
 
 Prices of 
 Lots 
 
 S 20'0 
 
 and up. 
 Xothlnr over $450. 
 
 Water, Gas, 
 
 Stone 
 Sidewalks 
 
 and 
 Shade Trees j 
 
 We Are Closing This Door of Opportunity 
 
 Don't Fail to Get In 
 
 Go to the Allotment on Sunday 
 
 TO GET TO THE ALLOTMENT TAKE HROADWAY CAR. 
 get off at Warner Road. KO two blocks to the right on Warner 
 load to Goodman-st. OUR ALLOTMENT' OFFICE IS 100 
 OOODM-AN-ST. 
 
 England Fids'. 
 
 9:30 Saturday and Uondaj 
 
 THE KING REALTY CO. 
 
 1101 New England 
 Building 
 
196 HOW TO BUY AND SEU 
 
 stances of the owner permit of his caring for the taxes and 
 street assessments, if the property is unimproved. In 1626 
 the Dutch purchased Manhattan Island, on which is situate 
 the City of New York, for twenty-four dollars. The surround- 
 ing country was not then considered worth buying. Today 
 the value of the land and buildings of the city of New York is 
 not less than four billion, five hundred million dollars. This 
 is at the rate of one hundred and twenty-five thousand dollars 
 an acre, and there are sections on lower Broadway that could 
 not be bought for a thousand times that price. Thirty-five 
 years since, the owner offered a lot adjoining the corner of 
 Fourth and Hill streets, Los Angeles, to a friend, free of cost, 
 provided the latter would erect a house, and was laughed at. 
 The corner was recently sold for one hundred thousand dol- 
 lars. Many who are wealthy today have become so through 
 judicious investments in real estate made by their ancestors. 
 
 Sec. 153. The business of a real estate broker, if loosely 
 conducted, is the most uncertain business in the world. He 
 may expend considerable time, and some money for advertis- 
 ing, on the strength of a verbal promise from a property 
 owner, and may sell the property at the price asked by the 
 owner, take a deposit, and have the purchaser sign a contract 
 of sale, only to be informed by the owner, when the latter is 
 asked to sign the contract by way of ratification, that the 
 owner has decided not to sell. The broker is placed in an em- 
 barrassing position and the would-be purchaser is disgusted. 
 If the broker brings, or sends, a number of persons to view the 
 property, the owner obtains an enlarged idea of the value of 
 the property, and, although in other matters his word may be 
 as good as his bond, he violates his promise to the broker with 
 impunity. If an owner really wishes to sell, that end will best 
 be served by his giving a reliable real estate broker the ex- 
 clusive agency in writing for the sale of the premises, for say 
 sixty to ninety days, at a fixed, but not prohibitive, price. The 
 broker can then spend money freely in advertising and can ap- 
 proach a customer confidently and with the assurance that he 
 can deliver the property a state of mind that is helpful in 
 making a sale. 
 
 Sec. 154. Real estate brokers, in some cases, take written 
 
REAL ESTATE AT A PROFIT 197 
 
 options on property for a certain time and at a fixed price, pay- 
 ing the owner a small consideration therefor. Any increase 
 in the value of the property while the option is in force, belongs 
 to the broker if he exercises the option. When trading is brisk, 
 an owner is disinclined to give an option, as he wishes to real- 
 ize the full value of his property. 
 
 Sec. 155. Agreements of conditional sale, sometimes 
 called leases, are made where it is the intention that the title 
 to personal property, which is delivered at the time of the ex- 
 ecution of the contract, shall not pass from the vendor to the 
 vendee until the performance by the vendee of some condition. 
 A purchaser of personal property from a person to whom the 
 same is delivered under an executory contract of sale gets no 
 valid claim to the property. An absolute promise to pay does 
 not necessarily render the sale itself absolute. (See Form No. 
 
 92.) 
 
 Sec. 156. Where the sale, assignment or transfer of a 
 stock of goods in bulk, such as the contents of a store, is made, 
 the vendor must execute and acknowledge a notice, as per 
 Form No. 93, and the same must be recorded in the office 
 of the County Recorder. The sale cannot be consummated until 
 five days after the notice is recorded. Wholesalers and job- 
 bers receive from mercantile agencies daily reports of instru- 
 ments placed of record affecting merchants, and by requiring 
 the vendor's notice of sale to be recorded, the creditors of 
 shop-keepers have notice of contemplated transfers of stocks 
 of goods. If the notice is not recorded, the sale is presumed 
 to be fraudulent, and the purchaser will be held for any unpaid 
 bills relating to the goods. It is of the interest of every pur- 
 chaser of goods in bulk, in California, to see that this law is 
 complied with. 
 
 Sec. 157. Where a sale is made of personal property, such 
 as household goods, animals, or store fixtures, either in con- 
 nection with or independent of, real estate, a bill of sale of same 
 should be made, as per Form No. 91. 
 
 FORM NO. 89 OWNER'S AGREEMENT WITH AGENT. 
 
 Los ANGELES, CAL 190. . . 
 
 To. Messrs 
 
 I hereby employ you as my sole agents for days from date, 
 
198 HOW TO BUY AND 
 
 and thereafter until withdrawn, for the purpose of negotiating a sale of 
 the following described property, upon the following terms: 
 
 (Description.) 
 
 And in case of such sale being made by or through your efforts, I 
 agree to convey said property by good and sufficient deed to the purchaser, 
 and I agree to pay as a commission and full compensation for services ren- 
 dered by you, five (5) per cent on the first one thousand dollars ($1000.00), 
 and two and one-half (2 l / 2 ) per cent on the remainder of such sum as I 
 may accept as purchase price. If property is sold by me, or through some 
 other agency, I agree to pay you one-half of said commission. Commis- 
 sion to be paid out of the first money received as purchase price, or in 
 case of an exchange, as soon as the exchange is agreed upon. In case I 
 desire to change my price, or wish to withdraw this property, after expira- 
 tion of period specified above, I agree to give you days notice of 
 
 same in writing. 
 
 I also agree to furnish at my expense, an unlimited certificate of 
 title, to the satisfaction of the purchaser, showing my title to be good. 
 
 In case of exchange, I have no objection to your acting as agent also 
 for the other party, nor to your demanding and accepting from him proper 
 compensation for services so rendered. 
 
 Name (Seal) 
 
 Address 
 
 Telephone 
 
 FORM NO. 90 AGENT'S AGREEMENT OF SALE. 
 
 Los Angeles, Cal 190. . 
 
 Received from the sum of $ as a deposit on 
 
 account of the purchase of the following described real ^roperty situate in 
 the County of Los Angeles, California, namely : 
 
 which property said agrees to buy for the sum of 
 
 $ , payable as follows : 
 
 Said deposit to be applied as part of the first cash payment if sale is com- 
 pleted. All payments to be made at the office of , in United 
 
 States Gold Coin. 
 
 This sale is made by us as agents for , the owner, 
 
 and subject to approval. If so approved, it is part of the contract 
 
 of sale that the owner shall convey the premises by deed of grant free 
 
 from encumbrance, except 
 
 and that the owner will furnish within days from date an unlimited 
 
 certificate of title of the Title Insurance and Trust Co., or of the Title 
 Guarantee and Trust Co., of Los Angeles, showing the title to be in the 
 vendor free from incumbrance, except as above excepted. 
 
 If the title shall be found defective, the owner shall have thirty days 
 from the date of the discovery of the defect to perfect the title. If the 
 owner shall need any part of the purchase money to extinguish existing in- 
 
REAL ESTATE AT A PROFIT 199 
 
 cumbrances, then shall deposit deed and the purchaser 
 
 shall deposit the purchase money with the company whose certificate is to 
 be furnished, with authority to extinguish the liens and incumbrances, 
 provided that by so doing, and by the delivery and recording of the deed, 
 the title will become vested in the grantee. 
 
 Said deposit shall be held by , as agents for both parties. 
 
 If the owner cannot convey said property as herein provided, within 
 
 days from date, said deposit to be returned to the purchaser, and if the 
 purchaser does not complete the purchase within ten days after notice from 
 the owner of his ability and readiness to convey said property as herein pro- 
 vided, then the owner may retain said deposit as liquidated damages, and 
 said agents shall thereupon pay said deposit, less their commissions, to the 
 owner. 
 
 Time is made of the essence of this agreement. 
 
 Agents. 
 
 We hereby agree to all the conditions herein contained. 
 
 Owner Purchaser 
 
 Address Address 
 
 Telephone Telephone 
 
 FORM NO. 91 BILL OF SALE. 
 BILL OF SALE. 
 
 KNOW ALL MEN BY THESE PRESENTS, that I, George W. Breed, of 
 Los Angeles, County of Los Angeles, State of California, the party of the 
 first part, for and in consideration of the sum of fifty dollars, gold coin 
 
 of the United States of America, to me in hand paid by , of 
 
 the same place, the party of the second part, the receipt whereof is hereby 
 acknowledged, do by these presents grant, bargain, sell and convey unto 
 the said party of the second part, his executors, administrators and as- 
 signs, the following described personal property, to-wit : 
 
 To Have and to Hold the same to the said party of the second part, 
 his executors, administrators and assigns, forever. And I do for myself, 
 my heirs, executors and administrators, covenant and agree to and with 
 the said party of the second part, his executors, administrators and as- 
 signs, to warrant and defend the sale of the said property, goods and chat- 
 tels hereby made unto the said party of the second part, his executors, 
 administrators and assigns, against all and every person and persons whom- 
 soever, lawfully claiming or to claim the same. 
 
 In Witness Whereof. I have hereunto set my hand and seal the 
 tenth dav of December, in the year of our Lord one thousand nine hundred 
 and five. 
 
 GEORGE W. BREED. (Seal) 
 
 FORM NO. 92 AGREEMENT OF CONDITIONAL SALE OF PER 
 SONAL PROPERTY. 
 
 THIS AGREEMENT, made this day of A. D. 190... 
 
 between of , the party of the first part, and , of 
 
 , the party of the second part, 
 
200 HOW TO BUY AND 
 
 WITNESSETH i That said party of the first part has delivered, and 
 said party of the second part has received, the following described per- 
 sonal property, to-wit: (Description) of the value of $ , which 
 
 the party of the second part is to keep in like good order, and 
 
 for the use of which the party of the second part is to pay the sum 
 
 of $ (same amount as above) as follows: $ upon the 
 
 execution and delivery of this agreement, the receipt whereof is hereby 
 acknowledged, same being accepted as a payment for the first month only, 
 
 and thereafter at the rate of $ per month, payable monthly in 
 
 advance on the day of each month, at the office of the party of 
 
 the first part, without notice or demand, together with interest at the 
 rate of per cent per annum on all amounts unpaid after becom- 
 ing due, until paid. 
 
 That the said party of the first part will, at the end of said term, 
 sell and convey to said party of the second part, the said goods and chat- 
 tels for and in consideration of the sum of dollars, and will ex- 
 ecute to the said party of the second part a bill of sale thereof. 
 
 Said party of the second part hereby agrees to keep saidi property 
 insured for three-fourths of its value for the benefit of the said party of 
 the first part. 
 
 It is further agreed, that the said goods and chattels shall not be 
 removed from the premises now occupied by said party of the second part 
 during the continuance of the above mentioned lease without the written 
 consent of the said party of the first part. 
 
 It is further provided, that a failure to pay any or either of the afore- 
 said sums of money when and as the same shall become due, or any re- 
 moval or attempted removal of said goods and chattels from said place 
 without the written consent of the said party of the first part, shall make 
 void this lease and agreement at the option of the said party of the first 
 part; and the said party of the first part shall have the right to retake 
 said goods and chattels, and may enter and retake possession of the same 
 at maturity of anv payment, or any time thereafter, or upon the failure to 
 make such payments, or upon the violation of the terms of said lease in 
 any manner whatsoever, and may retain any or all sums of money paid 
 on this agreement and lease as damages for any injury to said property 
 and for the use of same, and for expenses in moving and taking possession 
 thereof ; and said party of the second part does also hereby waive all right 
 of homestead or other exemptions under laws of said state, as against this 
 obligation. 
 
 IN WITNESS WHEREOF, The said parties have hereunto set their hands 
 and seals the day and year herein first above written. 
 
 (Seal) 
 
 ..(Seal) 
 
ESTATE AT A PROFIT 201 
 
 FORM NO. 93 VENDOR'S NOTICE OF SALE OF GOODS IN BULK 
 VENDOR'S NOTICE OF SALE. 
 
 To Whom it May Concern: 
 
 NOTICE is HEREBY GIVEN, That the undersigned 
 
 intend... to sell to all that certain stock of 
 
 merchandise consisting generally of belonging to 
 
 said and located at County, California, 
 
 and that a transfer and assignment of the same will be made, and the pur- 
 chase price thereof will be paid, on the day of 
 
 190. . .at County, California, at o'clock M. That 
 
 the address of said vendor is County, California, and 
 
 the address of said vendee is County, California. 
 
 Dated 190. .. 
 
 Vendor. 
 
 ( Acknowledgment. ) 
 
202 HOW TO BUY AND SEU, 
 
 CHAPTER XII. 
 
 BOOMS AND PANICS. 
 
 Close Relation Exists Between the Buying and Selling of Real Estate and 
 Booms and Panics Boom First Affects Personal Property, then, Real Estate Sea- 
 sons of Unexampled Prosperity Indicate Impending Storm Crises Occur in Cycles 
 Symptoms of Booms and Panics Vividly Portrayed The Office and Utility of Specu- 
 lation. 
 
 Sec. 158. There is a close relation between the buying 
 and selling of real estate .and the occurrence of booms and 
 panics. When manufacturing becomes more brisk, after a 
 season of quiescence and dull prices, speculative trading at 
 first is confined to stocks and bonds. This sort of personal 
 property passes from hand to hand by endorsement and de- 
 livery, and is subject to much fluctuation in value, and for 
 these reasons is specially adapted to speculation. Legitimate 
 enterprises, at greatly inflated values, are at first exploited by 
 heavy operators, and the stocks of these are so readily floated, 
 that the major portion of the investing public, under the stim- 
 ulus of intense excitement and a gullible frame of mind caused 
 by the report of large profits, becomes educated into buying 
 almost anything that is offered, until finally some of the sub- 
 sequent exploitations of the lesser operators have so little sta- 
 bility that exposure inevitably follows. Investors by this time 
 have a dark brown taste in their mouths and in their deposit 
 boxes have sufficient stock certificates, if spread out, to cover 
 the walls of a small room, and are fortunate if they are not de- 
 prived, by means of an assessment, of whatever rights they 
 have in such certificates. 
 
 Sec. 159. The fever of speculation in personal property 
 having spent its force, real estate next receives the attention 
 of the speculative investor. During the period of excitement 
 in personal-property trading, real estate remained dormant, 
 and the real estate dealer became a stock broker. As a stock 
 broker and as a promoter of new enterprises, he could not al- 
 ways proceed with that intimate knowledge of the business 
 so necessary to success, as more than one real estate dealer 
 found to his sorrow when he attempted to float the stock of, 
 and manage, an oil company during the late boom in oil stocks. 
 When the tide turned in favor of real estate, the dealer gladly 
 sought his former calling. So long as everyone was clamoring 
 
REAL ESTATE AT A PROFIT 203 
 
 for stocks and bonds there was no demand for real estate, and 
 consequently prices were low. Some one or more individuals 
 who had passed through similar experiences, and who realized 
 that the fever of speculation would change from one species of 
 property to another, took note of the tendency in affairs, and 
 purchased at a low price and on easy terms .some very desir- 
 able piece of income property and the purchase was duly her- 
 alded in the newspapers. While everyone was intent on buy- 
 ing personal property, few improvements in the way of build- 
 ing had been made; the population had increased and rents 
 were low ; modern and more costly building improvements 
 are in demand both for residence and business purposes; 
 building commences and the new buildings are quickly occu- 
 pied at remunerative rentals ; investors are thus encouraged 
 to buy and build and a movement in real estate is inaugurated. 
 "In speculation as in most other things," says one writer, "one 
 individual derives confidence from another. Such a one pur- 
 chases or sells not because he has any particular or accurate 
 information in regard to the state of supply and demand, but 
 because some one else has done so before him." Close-in acre- 
 age property is next sub-divided and placed on the market, and 
 as money is readily made in "handling sub-divisions, other and 
 more remote tracts are sub-divided until trie last of them are 
 miles from the center of the city. New improvements erected 
 in the center of the city at the same time create a demand for 
 properties on certain close-in streets, and prices advance rap- 
 idly, and if there is sufficient excitement attending the trans- 
 fers, the movement in real estate attains the height of a veri- 
 table boom. Confidence in his own powers of judgment 
 should render a man prudent, however, in the midst of specu- 
 lation and excitement, and cause him to withdraw from the 
 madding crowd when he realizes that prices have exceeded 
 the limit of value and safety. 
 
 Sec. 160. Washington Irving asserts that those calm, 
 sunny seasons in the commercial world which are known by 
 the name of "Times of unexampled prosperity," are sure 
 weather-breeders of traffic. "Every now and then," he says, 
 "the world is visited by one of these delusive seasons when 
 the 'credit system/ as it is called, expands to full luxuriance j 
 
204 HOW TO BUY AND SELL 
 
 everybody trusts everybody ; a bad debt is a thing unheard of ; 
 the broad way to certain and sudden wealth lies plain and 
 open ; and men are tempted to dash forward boldly, from the 
 facility of borrowing. Promissory notes, interchanged be- 
 tween scheming individuals, are liberally discounted at the 
 banks, which become so many mints to coin words into cash ; 
 and as the supply of words is inexhaustible, it may be readily 
 supposed what a vast amount of promissory capital is soon in 
 circulation. Every one now talks in thousands ; nothing is 
 heard but gigantic operations in trade; great purchases and 
 sales of real property, and immense sums made at every trans- 
 fer. All, to be sure, as yet exists in promise ; but the believer 
 in promises calculates the aggregate as solid capital, and falls 
 back in amazement at the amount of pu'blic wealth, the 'unex- 
 ampled state of public prosperity/ Now is the time for specu- 
 lative and dreaming or designing men. They relate their 
 dreams and projects to the ignorant and credulous, dazzle them 
 with golden visions, and set them madding after shadows. The 
 example of one stimulates another ; speculation rises on specu- 
 lation ; bubble rises on bubble ; everyone helps with his breath 
 to swell the windy superstructure, and admires and wonders 
 at the magnitude of the speculation he has contributed to pro- 
 duce. Could this delusion always last, life would indeed be a 
 golden dream; but it is as short as it is brilliant. Let but a 
 doubt enter, and the season of 'unexampled prosperity' is at 
 an end. The coinage of words is suddenly curtailed ; the prom- 
 issory capital begins to vanish into smoke; a panic succeeds 
 and the whole superstructure, built upon credit, and reared by 
 speculation, crumbles to the ground, leaving scarce a wreck 
 behind. 
 
 "When a man of business, therefore, hears on every side 
 rumors of fortunes suddenly acquired; when he finds banks 
 liberal and brokers busy; when he sees adventurers flush of 
 paper capital and full of scheme and enterprise; when he per- 
 ceives a greater disposition to buy than to sell ; when trade 
 overflows its accustomed channels and deluges the country ; 
 when he hears of new regions of commercial adventure ; of 
 distant marts .and distant mines swallowing merchandise and 
 disgorging gold; when he finds joint stock companies of all 
 
REAIv ESTATE AT A PROFIT 205 
 
 kinds forming; when he beholds the streets glittering with new 
 equipages, palaces conjured up by the magic of speculation, 
 tradesmen flushed with sudden success and vying with each 
 other in ostentatious expense; in a word, when he hears the 
 whole community joining in the theme of 'unexampled pros- 
 perity/ let him look upon the whole as a 'weather-breeder,' and 
 prepare for the impending storm." 
 
 Sec. 161. Observers who have made a study of the mat- 
 ter, claim that booms and panics occur in cycles. Professor 
 Levi says : "The most confident advocates of the theory of 
 periodicity assign to these cycles a definite or nearly equal 
 duration of ten or twelve years. According to John Stewart 
 Mills, this cycle is divided as follows : After each panic or 
 crisis the first three years will witness diminishing trade, lack 
 of employment, falling prices, a lowering rate of interest and 
 very considerable distress. Then will be three years of active 
 trade, slightly rising prices, fair employment, improved credit. 
 Then will come three years of unduly excited trade, in which 
 speculation will be rife, prices will rise rapidly, and an unusual 
 number of new enterprises will be begun. The tenth year will 
 be one of crisis, followed by three years of depression." (Bur- 
 ton's Financial Crises.) 
 
 Sec. 162. The following is from a paper read by Mr. L. 
 M. Holt before the Editorial Association of Southern Califor- 
 nia, and sets forth in striking language the leading features of 
 booms and panics : 
 
 A boom is a convalescent panic. A panic is a bursted 
 boom. The business interests of the country are always either 
 on the up grade or on the down grade. The credit system for 
 the transaction of business is responsible for both the boom 
 and the panic. If all business was done on a cash basis, there 
 could be no panics ; neither could there be any booms. A 
 boom is a speculative condition of the market during advanc- 
 ing prices. A panic is the condition of the market after prices 
 have reached the highest point possible, and have begun to re- 
 cede. If no one was in debt for his property real or personal 
 at the time that prices began to drop there could be no panic, 
 for each individual would still own his own property and it 
 would make no difference to him whether is was worth one 
 
206 HOW TO BUY AND SELL 
 
 thousand or five thousand dollars. If, however, he owned 
 property valued at five thousand dollars and was in debt for it 
 to his neighbor to the extent of three thousand dollars, and its 
 market value should drop to two thousand dollars, it would 
 require the entire property and an additional one thousand 
 dollars to pay the neighbor, and the man's interest in the prop- 
 erty would be entirely wiped out. This would be a panic for 
 the man in fact it would be pretty near a panic for both of 
 them. 
 
 Panics and booms are governed by the law of supply and 
 demand. During a boom, the demand exceeds the supply; 
 during a panic, the supply exceeds the demand. 
 
 There is a general feeling, however, when prices are very 
 low and times are hard and there seems to be no bottom to the 
 market, that the world has reached a point in its history where 
 prices can never come up again. And then again when prices 
 are up and continually advancing and there is a veritable boom, 
 the feeling is very general that good times will always continue 
 and that hard times will never come again. Both positions 
 are wrong. Prosperous times are always followed by panics, 
 and panics are always followed by prosperous 1 times again. 
 
 After every panic, there is a time when prices of all kinds 
 of property reach bedrock. It does not require any great 
 amount of wisdom to convince a man that then is the time for 
 him to buy property; for prices must advance. Prices advance 
 because everybody thinks that it is. a good time to buy and 
 many commence buying; therefore, the demand for property 
 is great. This demand causes a further advance in prices and 
 the further advance in prices causes a still greater demand. 
 This condition of affairs continues until prices reach a point 
 beyond which they cannot go higher. The higher prices go, 
 the faster they advance, and the faster they advance, the high- 
 er they go. This is a boom. 
 
 'Finally the climax is reached and everybody knows it. 
 Each individual thinks he is smarter than anyone else. He 
 has discovered that the climax is reached, and he proposes to 
 sell at top prices before any one else finds out the real condi- 
 tion of the market. In fact, in order to be sure of success in 
 this position, he proposes to sell at a shade less than the real 
 
REAL ESTATE AT A PROFIT 207 
 
 market price. He suddenly discovers, however, that he cannot 
 sell on that basis. Others are trying to do the same thing. 
 Each one begins to cut the price still more and more in his 
 vain effort to sell, and the more they cut the price the more 
 they cannot sell. The supply exceeds the demand. This is a 
 panic. 
 
 Panics and booms are the result of laws governing trade. 
 An individual cannot make a panic; neither can he stop one. 
 He might just as well attempt to manufacture a Kansas cy- 
 clone, or stop such a cyclone when he sees it coming. Such 
 a cyclone is the result of laws over which human beings 
 have absolutely no control. So is a panic. 
 
 After a panic, when prices have reached the lowest point 
 possible, and they begin to advance again, it is strange how 
 long it takes the general public to realize the fact that an ad- 
 vance is really being made. The recovery from a panic is 
 slow; the convalescence is gradual; it comes like a thief in 
 the night or like the falling of the gentle dew. 
 
 When the climax of high prices* is reached and prices 
 begin to drop again, there is no ambiguity as to the real con- 
 dition of the case. The drop comes with a dull, sickening 
 thud like a thunder clap out of a clear sky. 
 
 During the period of business activity preceding a boom, 
 speculation is at first confined to all kinds of personal prop- 
 erty. Fortunes are made in stocks. Millionaires are made 
 in a day. Great combinations of capital are formed. The 
 heavy operators are the first to take advantage of the situa- 
 tion. Smaller operators come next and finally the general 
 public conclude that any one can make money by speculating 
 and not half try. All that is needed is a little money, some 
 credit and unlimited nerve. Real estate is the last thing to be 
 affected by a speculative period. After real estate specula- 
 tion, comes the deluge. When real estate speculation has 
 reached a giddy height, it is time for the cautious' citizen to 
 build his ark. 
 
 Sec. 163. In closing, the views of writers on economic 
 subjects are given as to the office and utility of speculation. 
 
 "Speculation is the warfare of science, equipped with the 
 
208 HOW TO BUY AND 
 
 knowledge of known forces, against the barbaric dominion of 
 chance." (Cohn.) 
 
 "Speculation, though at first pursuing its own interests, 
 has contributed more than any prince, minister, philosopher 
 or philanthropist to provide Europe with the means of com- 
 munication, to regulate commerce, to give more solid and real 
 character to business, to keep down the rate of interest, to 
 extend and consolidate credit, to limit usury, and to make 
 fraud more uncommon." (F. A. Lange.) 
 
 "Knowledge of the future is profitable for trade, and is of 
 supreme importance for the public good. To secure this profit 
 and advantage is the aim of speculation." (Faucher.) 
 
INDEX 
 
 (The references are to pages.) 
 
 Abstract 97 
 
 Acknowledgment, of deeds 51 
 
 forms of 72-74 
 
 Advertising 192 
 
 forms for 194-195 
 
 Assignments, of contract of sale 44-45 
 
 of mortgage 87 
 
 of lease 162 
 
 Bill of Sale 197 
 
 form of 199 
 
 Bonds title 45 
 
 of builder 119-126 
 
 Booms and Panics... 202 
 
 Broker 31 
 
 duty of 190 
 
 dealing with 193 
 
 broker's agreement of sale 198 
 
 Builder, contract of 122 
 
 Building and Loan Associations 77 
 
 Buyer must beware 22 
 
 Buying philosophically 25 
 
 Business, center of 17 
 
 Business, loosely conducted 196 
 
 Capital 11 
 
 Commissions, of broker 190 
 
 Community property 8 
 
 Conditions 56-61 
 
 Contracts, execution of 31 
 
 for erecting building 119-122 
 
 for drilling oil wells 157 
 
 breach of 36 
 
 rescission of 36 
 
 Corporations, deeds by 37-50 
 
 resolution of 46-66-71 
 
 Courses and distances 60 
 
 Credit 13 
 
 Curtesy 8 
 
 Date 58 
 
 Deeds, analysis of 54 
 
 by corporations 50 
 
 comments on 58 
 
 consideration in 58 
 
 essentials of ., 48 
 
 execution of 49 
 
 kinds of 49 
 
 husband and wife 63 
 
 mining 64 
 
 mining rights 68 
 
 orderly parts of 48 
 
 right of way 65 
 
 reserving life estate 72 
 
 surface rights 66 
 
 quitclaim 63 
 
210 HOW TO BUY AND 
 
 Deed of Trust 82 
 
 form of 90 
 
 Re-conveyance 93 
 
 Delivery, of deed 52 
 
 Description 28-59 
 
 Dower 8 
 
 Easements 133 
 
 Equalization, Board of 103 
 
 application to 107 
 
 Escrows 96 
 
 agreement of 108 
 
 envelope for 109-110 
 
 instructions of buyer 106 
 
 instructions of seller 105 
 
 Estates 6 
 
 Fiscal year 105 
 
 Fixtures 6 
 
 Front foot values 20 
 
 Farming lands 26 
 
 Grant, meaning of 59 
 
 Home 115 
 
 Homestead 115-121 
 
 declaration of 130 
 
 abandonment of 132 
 
 House, plan of 116 
 
 specifications for 117 
 
 completion of 120-127 
 
 cessation of work on 120-127 
 
 How to buy 15 
 
 How and when to sell 190 
 
 Improvements 19 
 
 Insurance 34-101 
 
 Investor 17-19 
 
 Investments, what to avoid 14 
 
 Interest, rules for computing 77 
 
 prompt payment of 78 
 
 notice of 86 
 
 rebate agreement 107 
 
 Judgment, what it'consists of 15 
 
 Land, accretion to 9 
 
 acquisition of 9 
 
 defined 5 
 
 Lease 134 
 
 forms of dwelling 142 
 
 farm lease, California 144 
 
 farm lease, Colorado 147 
 
 oil lease, California 151 
 
 oil lease, Colorado 149 
 
 assignment of 162 
 
 notice to change terms 163 
 
 notice to pay rent or quit 163 
 
 notice terminating tenancy 164 
 
 Liens.. 120 
 
 notice of 128 
 
 of material man 129 
 
 of mechanics... 130 
 
REAL ESTATE AT A PROFIT 211 
 
 L,oan, making a 75 
 
 from savings bank 76 
 
 from B. & L. associations 77 
 
 applications for 76-88 
 
 IvOts, key 24 
 
 agreement for sale of , 40 
 
 what to avoid 24 
 
 where to buy 17-115 
 
 Maps 61 
 
 Metes and Bounds 60 
 
 Monuments 60 
 
 Mortgage 34-61-79-80-81 
 
 assignment of 87 
 
 form of 83 
 
 release of 86 
 
 Mining claims, locating 138 
 
 location notice, quartz 170 
 
 location notice, placer 171 
 
 affidavit, assessment 171 
 
 affidavit, failure to contribute 172 
 
 Notes, promissory 84-90-95 
 
 Operative words 59 
 
 Options 31-197 
 
 forms of 42 
 
 Ownership 7 
 
 Owner's agreement with agent 191-197 
 
 Parties 58 
 
 Party wall 133 
 
 agreement for 174 
 
 Percentages, figuring , 23 
 
 Personal Property 197 
 
 Petitions 140 
 
 forms of 173-174 
 
 Pipe-line right of way 177 
 
 Power of Attorney 136 
 
 forms of 165-166-167 
 
 Ratification, of agent's acts 33 
 
 of mining ground 50-70 
 
 Recitals 58 
 
 Recordation, of deeds 53 
 
 endorsement of on mortgage 85 
 
 Release 86 
 
 Remainder , 7 
 
 Rent 5 
 
 Restrictions 29-41 
 
 Resolutions 46-66-71 
 
 Reversion 7 
 
 Sale, agreements of 191 
 
 defined 190 
 
 memorandum of 37 
 
 conditional 197 
 
 of personal property 197 
 
 floods in bulk 197 
 
 Sage, Russell, advice of 13 
 
 Saving 11 
 
 Savings banks 12 
 
 Speculation 208 
 
212 HOW TO BUY AND SEU, 
 
 Subdivisions 20-181 
 
 forms of contracts for 20-183-187 
 
 Succession , 10 
 
 Taxes 103-107 
 
 Thrift 11 
 
 Title 8-33 
 
 certificate of Ill 
 
 Title Company, liability of 101 
 
 Title Insurance 99 
 
 policy of 112 
 
 Trust, deeds of 82 
 
 Trust, declaration of 187 
 
 Torrens' L<and Act 137 
 
 forms of 168-169 
 
 Vendor's notice of sale 201 
 
 Water, appropriation of 135 
 
 form for 164 
 
 Will, execution of 140 
 
 forms of ,. 179 
 
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 American Mining Code 250. 
 
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