The herald., 1897-09-23
MORTGAGES AND RELEASES
DAMAGES FOR DELAYED BUILD
ING OPERATIONS
Who Should Pay the Taxes, Buyer or
SellerP--Building and Loan
Associations


ket: added to this there have been two
legal holidays in the current month,
namely. Labor day ard Admission Gay,
each Of which has had its influence
transfers the first fifteen days Of the
month were 469 in number. and amounted
to $354, ,45S, from which it may be inferred
that unless business picks up a good
deal the record for September Will be
much lighter than that for August.
While no important sales appear TO
have taken place during the week, yet
. large amount of activity prevails in
the line of building operations, and real
estate dealers and owners are plottisg
and plating subdivisions TO put upon
the market The boulevard agltators
are pushing their pet projects. by word
of mouth at any rate, and there is a
generally hopeful and expectant tone
prevailing in business circles.
An examination of the mortgage re-
corded in this county during the month
of August shows that there were 4l4
which aggregated 81, $50, 6S5, as against
4S5 for August, 1896. amounting to $685.
545, and 429 for August, 1895, amounting
to $737 1913. 1t will be observed that the
transactions are fairly equivalent in
number and the large increase in the
amount for August of the current year
is explained by the fact that three un-
usually large transactions were record
ed ramely, trust deed by the South
n t0 no
Title Insurance and Trust company for
$500, 600, blanket mortgage for $S35,0O0
on z. ]. Baidwin's property and morl-
gage by the Redondo Beach company for
$500, ,O21.7o Allowance being made for
these exceptional amounts it Will be
seen that the general average of mort
cages was in the neighborhood of s455,
900, a good deal below the average for
the same month of prior years.
y + +
The releases recorded in Los Angeles
county, an account of which is published
exclusively in this column, were for the
month of August 321, and amounted to
$470,o37; for August, 1896, they were $50
In number and amounted to $3.50, ASS,
while for August, 1895, they were $40 in
number and amounted to s56S ,911.
Thomas MCGEE & Sons Real Estate
Circular gives the following statement
Of membranes and releases recorded
In San Francisco last month as follows:
There were 1856 mortgages recorded
last month OF the value of 81 CSC. .276, and
189 releases recorded, amounting to
$670.3S1. From these figures there was
apparently one million dollars of new
mt !,
gust. This was not the case, for one
mortgage to the Hibernia bank from
E. j. Baldwin for $3.50, 900 helped to swell
the figures. This was blanket mort
gage, and probably represented only a
comparatively small amount of new
money loaned. The same authority
says that interest rates at the banks
remain as they have been for several
months past, nearly all of the banks
lending at 61a per cent, they paying the
mortgage tax. With prospects for bet
ter business in all lines we anticipate an
increased demand for money to be used
In real estate, building, mining anG
commercial business generally.
THE QUESTION OF DAMAGES FOR
DELAY
1t Is usual to provide in building con-
tracts that damages shall be deducted
in case of delay in their performance
and the construction to be given by the
, courts of such clauses Is one of i'm
portance to the investor and the con-
tractor as well as the architect, who
generally prepares the contract. re-
cent decision on this subject may, there
fore be of interest to our readers. the
substance of which is given below:
1t was provided in the contract for
the construction of residence that the
builder, in case of completion of the
house by gwen ~date should pay $40
for each days delay. The court said:
The question to be settled is, was the
agreement to pay the damages specific d
a provision for a penalty or for liqui-
dated damages. There has been some
conflict of authority on this question,
each case, however, necessarily being
decided with reference to its own par
ticular circumstances and particular
language of the contract. We are sat
isfed, however, that the overwhelm in g
weight of authority sustains the con-
tention that this contract provides for
liquidated damages. There is nothing
inequitable in the terms of this provi-
sion. The amount does net seem to US
to be excessive or unreasonable II does
not provide for the payment of a sum
In gross on a failure to comply with the
contract at the expiration of the linn
ited bu. the damages accrue according
to the length Of time the breach contin
ues; and again there is an element of
uncertainty as to the real damages
which would be sustained by the owner
which render it more or less imprac-
ticable to be determined by a jury
Values of rents are f1uctuating and
dwelling houses of the character and
description Of this one are ordinarily
not built for rent at all, but for the con-
venience and comfort of the owners;
and inasmuch as the parties saw fit to
settle in advance the question of dam
ages, and it seems to be on an equitabl
basis, we do not feel justified in disturb
ing that contract and holding that II
was contract which the parties had
no right to make.
The following cases are cited to con-
firm the views Of the court:
In Cothead VS.. Talmage, 8 N. Y. 551
1t was held that: Where the damages
resulting from breach of an agreement
are in their nature entirely indefinite
and uncertain and the parties have men,
tioned \ specific sum an LIQUID ated. dam.