The San Francisco call., 1906-05-19
FIRE TANGLES
many DEALS
Lawyers Are Consulted in
Matter of Burned I'm
pf0Venents.
Buyers and Sellers Hold Op-
pOsite Views on Con- !
tracts.

Sellers and purchasers Of San Fran
cisco real estate who before the great
fire signed contracts to sell and buy
are now in the midst of a hot contro-
versy as to whether the destruction OF
the improvements that were stand
Ing when the contracts were filed has
set aside the liability of purchasers
In March the sales of real estate in
San Francisco amounted to more than
S1s,o0o,000. April found In full swing
the greatest speculative market 70,
real estate holdings In this city that
has ever been known. Between April
l and is contracts were entered into
pending the search Of titles. that rep
resented possibly as much as half OF
the total sales of March, or SO, ,000, 900
After the deposityis made on con-
tract to buy and sell some time is al
that it may be determined how strong
the title is.s All the title companies
and many private concerns that search
records Of realty were kept busy night
and day during the period inm ediately
preceding April Is, the volume of bust
ness and the aggregate of values un-
der selling contracts being large. Pur-
chasers made point that improve
ments were bringing in a certain year
ly income when the price was made
for properties. This was considered by
purchasers, especially where large
sums were borrowed on mortgage
notes to carry the property. the in
come being relied upon to pay the in
terest money and taxes pending sale
or payment Of the face of notes. In
some contracts for sale the improve
nents were mentioned; probably in a
majority of cases such was the fact,
but there We're many others where the
improvements were not in terms al
luded to.
The fire destroyed nearly every
building in the business section Of the
city, which was the scene of the great
est activity in the real estate dealings
that were on foot. Consequently the
question raised by the burning Of busi-
ness blocks is OF large proportions
from the financial point Of view.
Parties on both. sides Of the question
are consulting attorneys and the buzz
of legal talk is general on Fillmore
street and on other thoroughfares
where real estate brokers have offices.
Radically opposite views may pos
sibly be obtained in the matter of ad-
vice. Some parties, financially inter-
ested, who were particularly active in
real estate speculation. were on both
sides Of the house. being purchasers of
some properties and sellers in other
instances and having contracts open at
the time OF the fire last month both to
sell and to buy.
Certain attorneys. among them
Henry w. Bradley Of Bradley & Nc
Kinstry. take the ground that when a
contract of sale has been made and
part Of the price. the deposit, paid
and the title is good, the purchaser has
become the equitable owner of the
property and the seller is merely the
trustee of the property pending the
payment OF the remainder OF the
purchase price agreed upon. The
opinion N on which many Ameri-
can opinions rest was delivered
by Lord Eldon in England, which Is IN
accordance with the idea that the pur-
chaser is the equitable owner, the title
being good, from the time the deposit
is made Lord Eldons decision was
in the case of Payne VS.. Miller.
The controversy Is likely to get be-
fore the Supreme Court Of California
because of the millions of dollars that
may be involved.