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The Brokers Rights


THE BROKER'S RIGHTS. From the principal the broker is entitled to compensation, and this is usually a commission or percentage on the value of the undertaking or employment. This rate or com mission may be established by a custom or usage when not expressly fixed. To be entitled to compensation, the broker must prove his employment, and further that it has been performed according to the terms. (Mechem on Agency, Secs. 962-6.) The principal's right to sell real estate himself continues after the employment of a broker for the same purpose, unless he has expressly waived the right, and for a sale by the principal the broker can claim no commission unless the sale was the results of his own efforts. (Hungerford v. Hicks, 39 Conn. 259; Keys v. Johnson, 68 Pa. St. 42.) But the principal cannot cut off the broker's right to compensa tion by revoking his authority before the time set for its termination, and for so doing he is liable to the agent in damages. The principal may employ two or more brokers unless he has given one an exclusive authority to sell.

For all costs and expenses incurred by the broker, and for all losses and liabilities incurred in good faith in the line of his authority, the principal must indemnify him. In case the undertaking is entire and is not com pleted by the broker, his right to reimbursement and indemnity depends upon the same principles which gov ern his right to compensation. If his employment did not contemplate payment unless the sale was consum mated, he cannot, in the absence of special agreement, recover for expenses incurred.

The broker has no general lien, not having possession of property, but in cases they have a particular lien. Thus, an insurance broker may have possession of the insurance policies negotiated by him, and has a retain ing lien for his costs and charges in securing them. (Barry v. Boninger, 46 59.) As against 'third persons the broker has no special property to protect and is only called upon to sue per sonally in case he has contracted in his own name, or is the real principal, or has a special interest in the sub ject-matter of the contract. (Mechem on Agency, Sec.

broker, principal and employment