This section is from the book "American Law Of Real Estate Agency", by William Slee Walker. Also available from Amazon: American law of real estate agency.
Where brokers, making a sale, give the vendee a receipt for the first payment, signed by themselves as agents, in which it is stated, "it is agreed that in case the title appears to be not good, this $1,000 will be refunded by us," they are personally liable to the vendee, in case of failure of title, even though the contract of sale by the vendor contains a similar provision. Mead v. Altgeld, 136 I11. 298, 26 N. E. 388; Reed v. Riddle, 48 N. J. Ch. 359, 7 A. 487; Smith v. H. E. Orr Co., 147 P. 1, 84 Wash. 561. See also Secs. 76a, 168.
 
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