Lyle v. Etheridge

1. Whatever may be the reciprocal duties imposed by law on a real-estate broker and his principal, the relationship is one of mutual confidence, and the law requires that the broker, in the discharge of his duties, act towards his principal in the utmost good faith. Civil Code, § 4627. Although a real-estate broker, when obtaining for the owner of real estate a tenant for the property, is under no duty, arising out of the relationship to his principal, to guarantee the financial standing of the lessee and the lessee’s ability to perform the proposed lease contract, yet where «the broker makes…