220 Mich. 176 | Mich. | 1922
The plaintiffs are real estate brokers in the city of Detroit. They are here suing for commission. Their declaration is on the common counts with notice of the following special contract:.
“June 17, 1920.
“I agree to pay James P. Casey and John C. Reedy a commission of $1,000 less the State and county taxes on the property located No. 45-47-49 Adelaide street, for deal with Mr. Bernstein.
“T. H. Hetherington,
“Louise B. Hetherington.”
The defendants’ plea was the general issue to which
It is defendants’ claim that Mr. Hetherington told the plaintiffs that the leases were for a longer period than 22 months, and that he would not sign the agreement until he had an opportunity to examine them; that the plaintiffs urged him to sign, saying that if, after the leases were examined, it was found that they were for a longer period, the agreement would be torn up and the deal would be off, and that with this understanding they signed it. This claim of the defendants is denied by the plaintiffs, who say that there were no conditions as to the signing of the agreement, and that Mr. Hetherington positively informed them that the leases were not for a longer period than 22 months. When the leases were obtained it was found that they were for a longer term, and Mr. Bernstein declined to complete the purchase. The defendants refused to pay a commission and this suit followed. The verdict and judgment were against plaintiffs, and they seek a review of the cause on writ of error.
“where a broker, who, at the time he makes his contract with the owner, knows of defects in the employer’s title, or who knows of facts sufficient to put a prudent person on inquiry, which if followed with reasonable diligence, would have resulted in such knowledge, he is not entitled to recover where the sale failed because of such facts, unless it was the intention of the parties that the employer should subsequently perfect his title in order to be able to perform. Cain v. Masurette, 196 Mich. 7.” Gettleson v. Lewis, 206 Mich. 113.
In the instant case the sale failed of consummation because of the fact that there were incumbrances consisting of existing leases for a longer term than 22 months and options for renewals. If the plaintiffs knew this before the preliminary agreement for purchase was made, they cannot recover in this action. The defendants assert that they did have such knowledge ; the plaintiffs deny it. Thus there was presented a question of fact for the jury, who found against the plaintiffs. This was the controlling question. All other facts were undisputed. On the determination of this depended plaintiffs’ right to recover and, as it was fairly and properly submitted to the jury, it disposes of the case.
We have given consideration to all of the other assignments presented by the record and have discovered no reversible error.
The judgment is affirmed, with costs to the defendants.