THEA~TORNEY GENERAL 

OFTEXAS 

Gerald C. Mann 

Hon. M. .O. Flowers 

Seoretary 0r State 

Austin, Texas 

Attention or Mr. K. King 

Dear Sir: 

Opinion No. O-1925 

Rer Are companies such as John 

Hancock Mutual and Jef’rerson 

Standard subject to the Real 

Estate Dealers License Aot? 

Your request for an opinion on the above stated question has been received by this department. 

Your letter reads as follows: 

ItIt is the desire of this office to secure an 

opinion from the Attorney General as to whether 

companies such as John Hancock Mutual and Jefferson 

standard. etc., are subject to the Real Estate Dealers Liceise Act. 

“These companies operate their own loan and 

sales department, paying straight salaries instead 

of commissions.~ 

You further inform us that Jefferson Standard is a 

regular life, health and accident insurance company, organ$zed 

under Chapter 3, Title 78 of Vernon’s Civil Annotated Statutes. 

Companies such as John Hancock Mutual and the Jefferson Standard make loans upon first liens upon real estate ana occaslonally it Is necessary for such companI.es to foreclose such liens 

and sell,the property obtained by such foreclosures. 

Article 4818, Vernon’s Civil Annotated Statutes, proviaas in part: 

“Mutual life insurance companies shall invest 

their funds in accordance with the provisions of the 

third ohapter of this title, concerning investments 

of life Insurance oompanies in this State;. . ..” 

Article 472.5, Vernon’s Civil Annotated Statutes, setting out the seaurities in which a life insurance company organized under the laws of this State may invest or loan money, 

provides among other things: 
Hono M. 0. Flowers, page 2 (O-1925) 

” 

. . ..It may also make loans upon rirst liens 

upon real estate, the title to which is valid and 

the value of which is rmty (40%) per cent more 

than the amount loaned thereon; or upon first liens 

upon leasehold estates in real property and improve& 

ments situated thereon, the title to which is valid, 

and the leasehold has not less than thirty (30) 

years to run before explratlonj provided that the 

duration of any loan upon such leasehold estates 

shall not exoesd a period or ten (10) years; or upon 

any obUgatlon secured collaterally by any suah 

rlrst liens. a .n 

House Bill No. 17r as passed by the 46th Legislature, 

commonly known and tit ad as “The Real Estate Dealers License 

Act’1 reads in part as followsr 

‘lSeo. 2, The following terms shall unless the 

context otherwise Indicates, have the roilowing meanIngs: 

‘I (a) e (1) e The term ‘Real Estate Dealer’ shall 

include every person ,or company, other than a salesman 

ano f her 

and licensed and registered attorneys, who for 

or others for compensation or other valuable 

consideration, or who with the intention or in the 

expectation or upon the promise of receiving or collectlng compensation or other valuable consideration, 

list’s ror sale, sells, exchanges, buys 

e 

or rents 

o%rers, or attempts, or agrees to nego iate a 3. 

or 

exchange, purchase, 

sa e, 

or rental of an estate or interemst in real estate, or collects, or offers, “r attempts, or agrees to collect rent for the use of 

real estate , or negotiates, or offers, or attempts, 

or agrees to negotiate a loan, secured or to be secured by mortgage or other lnaumbrance upon or transfer of real estate! or auctions, or offers, or 

attempts, or agrees to auction any real estate; or 

appraises, or offers, or attempts, or agrees to appraise any real estate! or who advertises, or holds 

Itself, himself, or themselves out as engaged in the 

business of selling, exchanging, buying, renting, or 

leasing real estate, or assists or directs in the 

procuring of prospects, or the negotiation or closing 

of any/transaction which does or is calculated to result in the sale, 

any real estate 

exchange, leasing, or renting of 

or ofrers to i 

or who buys or offers to buy, sells 

se 1, or otherwise deals in options on 

real estate or in the Improvements thereon. 
Hon. M. 0. Flowers, page 3 (0-19,225) 

“(2). The term ‘Real Estate Dealer’ shall 

also include any person or company employed by 

or on behalr of the owner or owners of lots or 

other parcels of real estate at a stated salary, 

or upon a oommission, or upon a salary aa .oommission basis, or otherwise, to sell such real 

estate In any parts thereof, in lots or other parcels 

c 

and who shall sell or exchange, or offers, 

or a tempts, or agrees to negotiate the sale or 

exchange of any such lot or parcel of real estate; provided however, if the owner of lots 

or other parce i s is engaged in the business of 

buying selling exchanging, leasing, renting of 

properly and hoidlng himself out as a full or 

part-time dealer in real estate, then such person 

employed by said owner may be licensed as a salesman of said owner if said owner has been licensed 

as a dealer in real estate. 

” (3) . The term (Real Estate Dealer’ shall 

include any person or company engaged in the business of buying, selling, exchanging, leasing 

renting 0r property on his or its own accoun 4 ana 

holding himself or ltselr out as a full or parttime dealer in real estate. 

” (b) . The term ‘Real Estate Salesman’ shall 

mean and include any person or company employed 

or engaged by or in behalf of a licensed real 

estate dealer to do or deal in any act acts, or 

transactions set out and comprehended by the definition of a ‘Real Batate Dealer’ In Seotlon 2, 

Subsection (a) of this Act. 

“‘(0). If the sense requires it, words in 

the present tense include the future tense; in 

the masculine gender, Include the feminine or neuin the singular number, Include the 

In plural number include the singumay be read ‘or’; and Ior1 may 

“Sea. 3. The provisions of this Act shall 

not apply to and the terms ‘Real Estate Dealer’ 

and ‘Real E&ate Salesman I, 

shall not Include: 

as above deflned, 

“(a). 

or lessor, 

Any person or company who, as owner 

shall perform any of the acts set out 
* 

. 

Hon. 14. 0. Flowers, page 4 (04925) 

in 

to 

Section 2, Subdivision (a) with reference 

property owner or leased by them, or to the 

regular employees thereof with reference to the 

property owner or leased by such pers.on or cornpany where such acts are performed in the regular course of, or as incident to, the management 

of such property and the investment therein, 

unless such person or company is engaged In the 

business of buying, selling, exchanging., leasing, or renting of property and holding himself 

or itselr out as a full or part-time dealer in 

real estate. 

” (b) o Persons acting as an attorney in 

fact under a duly executed power of attorney 

from the owner authorizing the final consummation by performance of any contract for the sale, 

leasfng, or exchange of ,real estate; services 

rendered by an attorney at law, recefver, trustee in bankruptcy, adminfstrator, or executor, 

or any person doing any of the acts speclfled in 

Section 2, Subdlvislon (a) ~of this Act under order of any court; a trustee acting under a trust 

agreement, deed of trust, or will, or the regular salaried employees thereof. 

“Cc) 0 Any person, partnership, or corporation who has secured a license under Texas Securlties’ Act, House Bill No. 521, Regular Session, Forty-fourth Legislature 0 

Wet. 4. 

‘2, Subdivision 

An one act set out in Section 

(a ‘; of this Act when performed 

‘for another or others for compensation or valuable consideration or who with the intention or 

in the expeotation or upon the promise of receiving or collecting compensation shall constitute 

a person or company performing, offering or attempting to perform such act or acts, a real 

estate dealer or a real estate salesman within 

the meaning of this Act.” 

The provisions of the above mentioned act do’not 

apply to, and the terms “Real Estate Dealer” and “Real Estate 

Salesman’* as above defined by the statute, do not include 

any person or company who, as owner or lessor perform any of 

the acts set out in Section 2, Subdivision (a3 with reference 

to property owned or leased by them, or to the regular employees thereof with reference to the property owned or leased by 

such person or company where such acts are performed in the 
Hon. M. 0. Flowers, page 5 (O-1925) 

regular course of or as Incident to, the management of such 

property and the investment therein, unless such person or 

company is engaged in the business of buying, selling, exchanging, leasing, or renting of property and holding himself 

or itself out as a full or part-time dealer in real estate. 

We believe that the buying, selling, exchanging, leasing, or 

renting of property obtained under foreclosure proceedings by 

the companies above named or like companies would be acts performed in the regular course of, or as Incident to, the management of such property and the investment therein. 

Therefore, you are respectfully advised that it Ls 

the opinion of this department that the John Hancock Mutual 

Insurance Company and the Jefferson Standard Life, Health and 

Accident Insurance Company and like companies when engaged in 

the above mentioned acts would not be subject to the Real Estate Dealers License Act. 

Trusting that the foregoing fully answers your inquiry, we remain 

Very truly yours 

ATTORNEY GENERAL OF TEXAS 

By /s/ Ardell Williams 

Ardell Williams, Ass&stant 

APPROVED FEB 16, 1% 

/s/ Gerald C. Mann 

ATTORNEY GENERAL OF TEXAS 

APPROVED: OPINION COMMITTEE 

BY: BWB,CHAIRMAN 

AW:AW:wb