Management Clearing, Inc. v. Vance

464 P.2d 977, 11 Ariz. App. 390, 1970 Ariz. App. LEXIS 502
CourtCourt of Appeals of Arizona
DecidedFebruary 9, 1970
DocketNo. 1 CA-CIV 1126
StatusPublished
Cited by2 cases

This text of 464 P.2d 977 (Management Clearing, Inc. v. Vance) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Management Clearing, Inc. v. Vance, 464 P.2d 977, 11 Ariz. App. 390, 1970 Ariz. App. LEXIS 502 (Ark. Ct. App. 1970).

Opinion

HATHAWAY, Judge.

This appeal arose from the granting of a motion for summary judgment to the appellees Vance.

Mr. Vance entered into an exclusive listing agreement for three months with Management Clearing, Inc., on August 27, 1968. This agreement was not signed by Mr. Vance’s wife, and the agreement concerned the sale of the Vances’ community realty.1 The brokers procured a prospective purchaser, a Mr. Ronald J. Walek, who signed a purchase contract and receipt on November 8, 1968. The terms of the purchase contract were identical to the terms in the listing agreement signed by Mr. Vance, except for one additional clause in the purchase contract which provided :

“4A. This offer is subject to an inspection and approval of the interiors.” The Vances refused to sign the purchase contract, and Management Clearing, Inc. commenced this suit to collect the brokerage commission.

The trial court in granting the Vances’ motion for a summary judgment stated there were no material disputed issues of fact and that the listing agreement was null and void because the wife of Mr. Vance had not signed it.

We are first faced with the question of whether a husband can individually encumber or bind the community for payment of a real estate commission by signing a listing with a real estate broker.2 This question has not expressly been considered before in Arizona, although it was raised in Lockwood v. Mattingly, 97 Ariz. 85, 397 P.2d 64 (1964) which was decided on other grounds.

A.R.S. § 33-452 states in part:

“A conveyance or incumbrance of community property is not valid unless executed and acknowledged by both husband and wife, * *

The State of Washington has considered this question in McGlauflin v. Merriam, 7 Wash. 111, 34 P. 561 (1893) and Geoghegan v. Dever, 30 Wash.2d 877, 194 P.2d 397 (1948). The Washington courts held that a husband’s contract with a real estate broker to sell community property was not binding on the wife or on the community. The reasoning of those cases is that since the husband alone does not have any authority to sell community real estate, neither may he authorize a real estate agent to sell the property.

As Arizona’s community property law was patterned after that of Washington’s, decisions of that state are generally accorded great weight. Cosper v. Valley Bank, 28 Ariz. 373, 237 P. 175 (1925). If the listing agreement between the parties in this case was one authorizing Management Clearing, Inc. to sell the community property, the contract would not be valid. A.R.S. § 33-452. A husband cannot authorize another to do what he himself has no authority to do. There is no statutory or implied agency on the part of the husband to sell community real property. Rundle v. Winters, 38 Ariz. 239, 298 P. 929 (1931).

We are in agreement with the Washington view that a husband cannot attthorize another to sell community real property. However, we do not believe that the listing agreement entered into by the parties in this case purports to authorize the broker to sell the property.

A brokerage contract places only the duty on the broker of finding a pur[393]*393chaser who is ready, willing and able to purchase upon the terms specified. It does not authorize the broker to sell the property except where such is expressly provided. Solana Land Co. v. National Realty Co., 77 Ariz. 18, 266 P.2d 739, 43 A.L.R.2d 1002 (1964). In the Solana case the listing agreement provided in part: “ * * * you are hereby authorized to sell * * The court, after extensively citing from Landskroener v. Henning, 221 Mich. 558, 191 N.W. 943 (1923), held “ * * * that the sales listing agreement herein set forth, properly construed does not confer upon Drachman the power to conclude an agreement for the sale of the property that would be binding upon the owner. The sales listing is nothing more than the employment of an agent to produce a purchaser, ready, willing, and able to buy the property upon the owner’s terms.” 77 Ariz. at 27, 266 P.2d at 745.

The general rule is that a brokerage contract is a contract of employment for personal services. James v. Hiller, 85 Ariz. 40, 330 P.2d 999 (1958); Texas Reserve Life Insurance Co. v. Security Title Co. (Tex.Civ.App.), 352 S.W.2d 347 (1961). “ * * * a party may contract with a broker to procure a suitable purchaser for property which he does not own and his subsequent failure to perfect a title which would enable him to complete a sale does not affect his liability to the broker.” McDonald v. Bernard, 87 Cal.App. 717, 262 P. 430, 431 (1927), cited with approval in Diamond v. Chiate, 81 Ariz. 86, 300 P.2d 583 (1956). A broker has nothing to do with the title or ownership of the property and has a duty to only find a purchaser ready and willing to purchase the property on the terms specified. Martin v. Ede, 103 Cal. 157, 37 P. 199 (1894), also cited with approval in Diamond v. Chiate, supra.

We therefore hold that the listing agreement in this case did not authorize Management Clearing, Inc. to sell the community realty, but only authorized them to find a prospective purchaser. Solana Land Co. v. National Realty Co., supra; Diamond v. Chiate, supra; Landskroener v. Henning, supra; McDonald v. Bernard, supra; Martin v. Ede, supra; Katz v. Anderson, 48 Ill.App.2d 406, 198 N.E.2d 715 (1964); Queen City Lumber Co. v. Fisher (N.D.), 111 N.W.2d 714 (1961); Heinrich v. Martin (N.D.), 134 N.W.2d 786 (1965); Gill v. American Security Corporation, D.C. App., 209 A.2d 629 (1965) ; Young v. Lasswell, 86 R.I. 287, 134 A.2d 170 (1957); Gallant v. Todd, 235 S.C. 428, 111 S.E.2d 779 (1960); and Handlos v. Missman, 7 Wis.2d 660, 97 N.W.2d 419 (1959). And see 12 C.J.S. Brokers § 20.

In the case of Johnson v. Allen, 108 Utah 148, 158 P.2d 134 (1945) the court was faced with this identical problem. The court stated:

“The contention that the contract was void because of the fact that the wife, who under Idaho community property law was a part owner of the land, did not sign the contract is based on a statute relating solely to transfers or contracts to transfer an interest in the land itself. This was a contract of employment and did not purport to convey an interest in land. The defendant, by this contract, employed the plaintiff to find a purchaser for certain lands.

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Related

Mayberry v. Davis
178 N.W.2d 911 (Supreme Court of Minnesota, 1970)
Management Clearing, Inc. v. Vance
471 P.2d 707 (Arizona Supreme Court, 1970)

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Bluebook (online)
464 P.2d 977, 11 Ariz. App. 390, 1970 Ariz. App. LEXIS 502, Counsel Stack Legal Research, https://law.counselstack.com/opinion/management-clearing-inc-v-vance-arizctapp-1970.