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gage, subsequent mortgagees will get nothing. If the first mortgage be paid and discharged, this will advance the second to first place.

600. Mortgagee's Remedies.-A mortgage, as we have said, is drawn to secure either a debt or an obligation. In case it is the former, it is usually evidenced by one or more notes, which are fully described in the mortgage. The mortgagee may sue on these notes and disregard the mortgage, in which case he gets a personal judgment against the mortgagor, a judgment that will be a lien upon all his property, not exempt (sec. 92), or he may foreclose, (sec. 601), and in his bill of foreclosure he may ask that in case the proceeds of the sale of the property do not satisfy the debt, that he may have a personal judgment over for the balance. If one or more notes are not given, but only the mortgage evidences the debt, no liability exists for the deficit in case the property when sold does not pay the debt in full. When one buys real property, that is mortgaged, the deed that he gets may recite that he buys it "subject to the mortgage," or "that he assumes the mortgage." There is a vast difference in the meaning of these provisions. In the former, if the sale of the premises does not produce enough to pay the mortgage debt, no personal judgment can be secured against the purchaser of the equity of redemption. In the latter case, a judgment may be secured against him for the deficit, for he has assumed its payment, which agreement inures to the benefit of the mortgage creditor.

601. Foreclosure. The course most commonly pursued to realize on a mortgage when there has been a default, is to file a bill of foreclosure. This is now largely a matter of statute. The decree of court gives power to advertise, for a certain time, the property for sale, after which it is sold at public sale, to the highest bidder. If anything remains of the sale price after the payment of the debt and costs it is turned over to the mortgagor. This does not entirely shut the mortgagor out, for he still has some time, called the period of redemption, in which to repay the purchaser, and regain title to his property, and usually during this period he may retain possession thereof.

602. Discharge.-When a mortgage is paid it should be discharged of record, so that the title may be cleared. This may be done by the mortgagee making a personal discharge on the margin of the record, or when this is impracticable, it should be done by a release deed, which is acknowledged, and recorded as before described.

RELEASE DEED.

Know All Men by These Presents, That I, Charles H. Hathaway, of the County of Cook and State of Illinois, for and in consideration of One Dollar, and for other good and valuable considerations, the receipt whereof is hereby confessed, do hereby remise, convey, release and quit-claim unto Martin F. Deale, of the County of Ford and State of Illinois, all the right, title, interest, claim or demand whatsoever I may have acquired in, through or by a certain mortgage deed bearing date the 24th day of August, A. D. 1901, and recorded in the Recorder's office of Cook County, in the State of Illinois, in Book M of Mortgages, page 187, to the premises therein described, as follows, to-wit:

The South East quarter (S. E. 4) of the North West quarter (N. W. 1⁄4) of Section twenty-nine (29), Township thirty-eight north (38 N.) of Range fourteen (R. 14), East of the third principal meridian.

Together with all the appurtenances and privileges thereunto belonging or appertaining,

Witness, my hand and seal this first day of September, A. D. 1901. CHARLES H. HATHAWAY. [SEAL]

The law does not impose on the mortgagee the duty of preparing this release, but it does impose on him the duty to execute it when presented to him, together with his reasonable expenses for doing so. In many States he is liable to heavy damages for his refusal.

603. Trust Deed.-In many States, and especially in the large cities, trust deeds have largely superseded mortgages. In the trust deed a conveyance is made to a third person, called the trustee, who holds the naked title for the benefit of the creditor. In case the debt is represented by notes, it enables the creditor, called also the beneficiary, to sell and dispose of these notes to different parties, or all to one party, and the trustee holds the title to the property for the benefit of all. For this reason it is much preferred by those creditors who expect to transfer the notes.

The remedy formerly was to have the trustee sell the property immediately on default, and thus deprive the debtor of his equity of redemption, but many states now provide by Statute that a trust deed must be regularly foreclosed in the same manner as a mortgage.

604. Real Estate Contract.-When land is purchased, the sale is usually evidenced by a contract, which must be in writing, (sec. 99). This contract, it will be observed, contains, in addition to all the essential features of the agreement, a provision that the seller is to furnish to the purchaser a complete abstract of title, showing an indefeasible title in the seller, and that the purchaser is to have a

certain length of time in which to examine it. When the title has been found perfect, then the sale is completed by paying over the money and taking a deed, or complying with any other provisions of the contract. It will thus be seen that the office of the contract is usually to bridge over the period between the agreement and such time as the purchaser can satisfy himself that the title is good.

REAL ESTATE CONTRACT.

This Memorandum Witnesseth, That Charles H. Hathaway hereby agrees to sell, and Martin F. Deale agrees to purchase at the price of Two Thousand Dollars the following described real estate, situated in Cook County, Illinois: The South East quarter (S. E. 4) of the North West quarter (N.W.) of Section twenty-nine (29), Township thirty-eight north (38 N.), of Range fourteen (R. 14), East of the third principal meridian. Subject to (1) existing leases, the purchaser to be entitled to the rents, if any, from the time of delivery of Deed; (2) all taxes and assessments levied after the year 1901; (3) any unpaid special taxes or assessments levied for improvements not yet made.

Said Purchaser has paid One Hundred Dollars as earnest money, to be applied on said purchase when consummated, and agrees to pay, within five days after the title has been examined and found good, the further sum of Nine Hundred Dollars, at the office of Charles H. Hathaway, Chicago, provided a good and sufficient full covenant Warranty Deed, conveying to said purchaser a good title to said premises (subject as aforesaid), shall then be ready for delivery. The balance to be paid as follows: One Thousand Dollars in one year, with interest from August 24th, at the rate of 6 per cent per annum, payable annually, to be secured by notes and mortgage, of even date herewith, on said premises. A complete Abstract of Title, or merchantable copy, to be furnished, within a reasonable time, with a continuation thereof brought down to this date. In case the title, upon examination, is found materially defective, within ten days after said Abstract is furnished, then, unless the material defects be cured within sixty days after written notice thereof, the said earnest money shall be refunded, and this contract to become inoperative.

Should said purchaser fail to perform this contract promptly on his part, at the time and in the manner herein specified, the earnest money paid as above shall, at the option of the vendor, be forfeited as liquidated damages, including commissions payable by vendor, and this contract shall be and become null and void. Time is of the essence of this contract, and of all the conditions thereof.

This Contract and earnest money shall be held by J. L. Talbot, for the mutual benefit of the parties hereto.

In Testimony whereof, said parties hereunto set their hands, this 22d day of August, A. D. 1901.

CHARLES H. HATHAWAY.
MARTIN F. DEALE.

605. Abstract of Title.

This is a brief epitome of the records of title pertaining to any given piece of realty. It is prepared by persons skilled in the matter. Only the essential features of a conveyance are given, but if there are any defects in a conveyance they are noted. Liens, including judgments, are noted, in fact everything of record having a bearing on the title is noted for the inspection of the examining attorney.

17

Frank Seifried, bachelor,

to

George F. Borman.

Doc. 343,839.

PART OF AN ABSTRACT OF TITLE.

Quit Claim Deed, dated March 26, 1880, recorded Aug. 20, 1881, book 1,047, page 639. Consideration $500.

Conveys and quit claims all interest in the following described real estate, to wit: Lot 14 in Block 13, in Duncan's Addition to Chicago; also the North half of the South half, and the South half of the North half of the North East quarter of the North East quarter of Section 13, T. 38 N., R. 13 E. of the 3d P. M., in Cook County, Illinois.

18

Homestead rights waived.

Acknowledged March 26, 1880.

Henrietta L. McGrath and

Thomas McGrath

to

Jacob R. Custer

Doc. 316,193.

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Mortgage and warrant all their undivided interest in and to the following described real estate, to wit: Lot 14 in Block 13, in Duncan's Addition to Chicago. Also the North half of the South half, and the South half of the North half of the North East quarter of the North East quarter of Section 13, T 38 N., R. 13 E. of the 3rd P M., except about 14 acres heretofore sold to the commissioners, in Cook Co. Ill.

19

Acknowledged March 18, 1881

Jacob R. Custer

to

Henrietta L McGrath &

Thomas-McGrath.
Dec 343,841

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Release, dated Aug 20, 1881, recorded Aug. 20, 1881, book 1,134, page 223. Consid. $1

&c.

Releases all right, title interest, &c., acquired by mortgage, bearing date March 18, 1881, and recorded &c., in book 1,076 of records, page 270, to the premises therein described as follows, to wit: in Block 13 in Duncan's Addition to Chicago, also North half of South half and South half of the North half of the North East quarter of North East quarter of Section 13, T 38 N., R 13 E. of the 3d P. M., except about 134 acres heretofore sold to the-park commissioners

Lot 14

Acknowledged Aug. 20, 1881

We have examined our indexes to records in Cook County, Illinois, and find:

No conveyances of the premises described in the caption hereto, executed by any of the parties named herein as grantor or grantee, shown thereby to have been recorded in the recorder's office of said county since February 12, 1875, except as shown on the twenty-one (21) preceding sheets.

No judgments rendered in any court of record in said county against Adolph Carl Heinrich Bor mann on July 6 & 7, 1874, or since Feby. 12, 1875, & prior to Aug. 30, 1881; Frank Seifried since Oct. 8, 1871, & prior to Aug. 21, 1881; George Friedrich Bormann or Henrietta Louise Bormann (or McGrath) on July 6 & 7, 1874, & since Feb. 12, 1875, or Henry Seifried since Oct. 8, 1871, which we consider liens on said premises.

NOTE. No examination made for judgments vs. the South Park Park Commissioners, or against "Frederick Bormann."

No tax sales or forfeitures of said premises appearing on record as had on or since Septr. 28, 1874, not marked cancelled or paid.

CHICAGO, March thirteenth (13th), 1882.

HADDOCK, VALLETTE & RICKCORDS,

Successors to Haddock, Coxe & Co.

CHAPTER L.

LANDLORD AND TENANT.

606. Introduction.-The relation between landlord and tenant has become very important. The owner is the landlord, or lessor, and the person to whom the property is leased is called the tenant, or lessee. The compensation agreed to be paid is the rent, and the contract, whether verbal or written, is called the lease.

LEASE.

This Indenture, Made the 28th day of August, in the year of our Lord one thousand nine hundred one,

Witnesseth, That I, Henry T. Clarke of the City of Jacksonville in the County of Morgan and State of Illinois, do hereby lease, demise, and let unto Henry Templeton of the City of Chicago, County of Cook and State of Illinois, a certain house in said last named city, known as No. 516 W. Taylor Street, with the land under and adjoining the same.

To Hold for the term of one year from the 30th day of August, 1901, yield ing and paying therefor the rent of twelve hundred dollars.

And said lessee does promise to pay the said rent in four quarterly payments on the first day of September, December, March, June, and to quit and deliver up the premises to the lessor or his attorney, peaceably and quietly at the end of the term, in as good order and condition, reasonable use and wear thereof, fire and other unavoidable casualties excepted, as the same now are or may be put into by the said lessor, and to pay the rent as above stated, and all taxes and duties levied or to be levied thereon during the term, and also the rent and taxes as above stated, for such further time as the lessee may hold the same, and not make or suffer any waste thereof; nor lease, nor underlet, nor permit any other person or persons to occupy or improve the same, or make or suffer to be made any alteration therein but with the approbation of the lessor thereto in writing, having been first obtained; and that the lessor may enter to view, and make improvements, and to expel the lessee, if he shall fail to pay the rent and taxes as aforesaid, or make or suffer any strip or waste thereof In witness whereof, The said parties have hereunto interchangeably set 'heir hands and seals the day and year first above written. Signed, Sealed and Delivered in the Presence of

HENRY T. CLARKE. [SEAL]
HENRY TEMPLETON. [SEAL]

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