THEA~TORNEYGENERAL 

OF TEXAS 

March 17, 1961 

Mr. L. D. Ransom Opinion No. ~~-1016 

Administrator 

Texaa Real Estate Re: Whether a Real Estate Board 

Commission Is subject to licensing when 

Austin, Texas engaged in serving or offering to serve in appraising 

real estate for others for 

Bear Mr. Ransom: compensation. 

You have requested an opinion from this office to 

determine whether real estate boards are subject to real 

estate broker's license when engaged in serving or offering to serve in appraising real estate for others for 

compensation. 

It is our understanding from the Information supplied 

by your office that a real estate board consists of individual real estate brokers who have joined together in an 

attempt, generally, to promote and advertise the advantages 

to owners or prospective buyers of real estate of dealing 

with real estate brokers. Certainly as long as an association confines Itself to these activities, it would not be subject to licensing under the provisions of Article 6573a, 

Vernon's Civil Statutes. 

Section 3 of Article 6573a, Vernon's Civil Statutes, 

provides as follows: 

"From and after the effective date of 

this Act It shall be unlawful for any person, 

partnership, association or corporation to 

engage in or carry on directly or Indirectly, 

or to advertise or hold himself, Itself, or 

themSdVe8 out as engaging in, or carrying on, 

the business, or to perform any act of a Real 

Estate Broker or a Real Estate Salesman, as 

herein defined, within this State, without first 

obtaining a license as a Real Estate Broker or 

Real Estate Salesman as provided for in this 

Act." 
Mr. L. 1). Ransom, Page 2 (~~-1016) 

In determining whether or not a person or partnership or association or corporation is Subject to licensing, an examination must be made of the definitions lneluded within the Act in Section 4 of Article 6573a, 

Vernon's Civil Statutes. Subsection (1) of Section 4 

provides: 

"The term 'Real Estate Broker' shall mean 

and include any person who, for another or others 

and for compensation or with the Intention or In 

the expectation or upon the promise of receiving 

or collecting compensation: 

. . . 

"(e) Appraises or offers or attempt8 or 

agrees to appraise real estate; . . .' 

It is our opinion that a real estate board is subject 

to licensing under the provisions of Article 6573a, Vernon's 

Civil Statutes, when it engage8 in or offers to engage in 

appraising real estate for others for compensation, Naturally, a determination of whether a real estate board, be it 

a group of Individuals or a corporation, Is offering to 

appraise or is appraising real estate for compensation is a 

fact question. 

The fact that the individual members of the real estate 

board are brokers and are the ones actually making the appraisal does not mean that the board can use its facilities to 

advertise appraisals as a group action by the board Itself. 

The acts of the members are the acts of the board when done 

in the name of the real estate board and would subject a real 

estate board to licensing. 

SUMMARY 

A real estate board is required to be licensed 

as a real estate broker under the provisions 

of Article 6573a, Vernon's Civil Statutes, when 

It offers to appraise or actually appraises 

real estate for others for compensation. 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

JCS:ms:mm 

By Yfi?fSZin+ 

Assistant 
Mr. L. D. Ransom, Page 3 (~~-1016) 

APPROVED: 

OPINION COMMITTEE 

W. V. Geppert, Chairman 

J. C. Davis 

w. my %X’UggS 

Lawrence Hargrove 

F. C. Jack Goodman 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: Morgan Nesbltt