Sampson v. Harmstrom

<p>Abstract of the Decision.</p> <p>1. Exchange of property, § 10*—when party not entitled to rescission. Where a woman, after making loans through a real estate and loan broker, entered into a contract with the broker for an exchange of real estate and gave her note secured by mortgage for the difference in the value of the properties and subsequently became in arrears in making payments, whereupon the broker required her to execute to him a quitclaim deed as an equitable mortgage, held there was no fiduciary relation existing between the parties at the time the contract was made or the deed was given nor any ground for rescinding the same in equity.</p> <p>2. Brokers, § 6*—relation with person maJcing loan. Where a mortgage hanker or dealer in securities sells to a person a note secured by a mortgage, the buyer is an investor, and the relation growing out of the transaction is that of banker and customer or seller and buyer and not a fiduciary or trust relation."</p> <p>3. Brokers, § 6*—when fiduciary relation created. When a person intrusts money to another to invest for him ánd the person who is intrusted with the money selects the security and makes the investment, a trust or fiduciary relation is created.</p> <p>4. Brokers, § 6*—when fiduciary relation not created. The fact that a person buying a note from a loan broker paid for it with money which the broker had collected for him, and that the note and interest coupons were payable at his office and the interest was paid there and turned over to the buyer of the note, held not to create a trust or fiduciary relation between them.</p> <p>5. Brokers, § 6*—when not a general agent. An owner by listing lots with a real estate agent for sale does not make the agent the owner’s general agent.</p>