## THEA~TORNEYGENERAL OF TEXAS

March 17, 1961

Mr. L. D. Ransom OpinionNo. ~~-1016 Administrator Texaa Real Estate Re: Whether a Real Estate Board Commission Is subject to licensingwhen 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 determinewhether real estateboards are subject to real estatebroker's licensewhen 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 estateboard consists of individual real estatebrokerswho have joined together in an attempt, generally, to promote and advertise the advantages to owners or prospectivebuyers of real estate of dealing with real estate brokers. Certainlyas long as an association confines Itself to these activities, it would not be subject to licensingunder the provisions of Article 6573a, Vernon's Civil Statutes. Section 3 of Article 6573a,Vernon's Civil Statutes, provides as follows:

"Fromand after the effectivedate of this Act It shallbe unlawful for any person, partnership,associationor 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 licenseas a Real Estate Broker or Real Estate Salesmanas provided for in this Act."Mr. L. 1).Ransom, Page 2 (~~-1016)

In determiningwhether or not a person or partnership or association or corporation is Subject to licensing, an examinationmust be made of the definitions lneludedwithin the Act in Section 4 of Article 6573a, Vernon's Civil Statutes. Subsection (1)of Section 4 provides: "The term 'RealEstate Broker' shallmean and include any person who, for another or others and for compensationor with the Intention or In the expectationor 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 estateboard is subject to licensingunder 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 determinationof whether a real estateboard, be it a group of Individualsor a corporation,Is offering to appraise or is appraising real estate for compensation is a fact question. The fact that the individualmembers of the real estate board are brokers and are the ones actuallymaking the appraisal does not mean that theboard can use its facilities to advertise appraisalsas 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 subjecta real estateboard to licensing. SUMMARY A real estateboard is required to be licensed as a real estatebroker 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

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# By Yfi?fSZin+ AssistantMr. L. D. Ransom, Page 3 (~~-1016)

APPROVED: OPINION COMMITTEE W. V. Geppert, Chairman J. C. Davis w. my %X’UggS LawrenceHargrove F. C. Jack Goodman REVIEWED FOR THE ATTORNEYGENERAL BY: Morgan Nesbltt