### THEA~TORNEY GENERAL OFTEXAS
Gerald C. Mann

Hon. M..O. Flowers Seoretary 

## 0r State Austin, Texas Attention 

### orMr.K. King Dear Sir: Opinion No. O-1925 Rer Are companies such as John Hancock Mutual andJef ’rerson Standard subject to the Real Estate Dealers License Aot?

Your request for an opinion onthe 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 JohnHancock Mutual andJefferson 

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

“These companies operate their ownloan 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 JohnHancock Mutual andthe Jefferson Stand

## ardmakeloans 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, pro

## viaas 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 companyorganized under the laws of this State mayinvest or loan money, provides amongother things:HonoM. 0. Flowers, page 2 

### (O-1925)

”

....It mayalso makeloans 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 amountloaned thereon; or upon first liens upon leasehold estates in real property and improve& ments situated thereon, the title to which is valid, andthe 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, commonlyknownand tit adas “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 Theterm ‘Real Estate Dealer’ shall include every person ,or company, other than a salesman anoher f and licensed andregistered attorneys, whofor or others for compensation or other valuable consideration, or whowith 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, buyse or rents o%rers, or attempts, or agrees to nego iate a 3.or exchange, purchase, sa e, or rental of an estate or interemstin 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 whoadvertises, 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, anyreal estate exchange, leasing, or renting of

or ofrers to i or whobuys 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 andwhoshall 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 parceis is engaged in the business of buying selling exchanging, leasing, renting of properly andhoidlng himself out as a full or part-time dealer in real estate, then such person employed by said owner maybe licensed as a salesmanof 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 ownaccoun4 ana holding himself or ltselr out as a full 

### or parttime dealer in real estate. ”(b)

. The term ‘Real Estate Salesman’ shall meanand 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 andthe terms ‘Real Estate 

### Dealer’ and ‘Real E&ate SalesmanI, shall not Include: as above deflned,

“(a). or lessor, Anyperson or companywho, 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 bythem, 

### or to the regular employees thereof with reference to the property owner or leased by such pers.on or cornpanywhere 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 companyis engaged In the business of buying, selling, exchanging., leasing, or renting of property andholding 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) ~ofthis 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 Anyperson, partnership, or corporation whohas 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 whenperformed

‘for another or others for compensation or valuable consideration or whowith the intention or in the expeotation or upon the promise of receiving or collecting compensation shall constitute a person or companyperforming, offering or attempting to perform such act or acts, a real estate dealer or areal 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, donot include any person or companywho, as owner or lessor perform any of the acts set out in Section 2, Subdivision (a3 with reference to property ownedor leased by them, or to the regular employees thereof with reference to the property owned or leased by such person or companywhere such acts are performed in theHon. M. 0. Flowers, page 5 (O-1925)

regular course of or as Incident to, the managementof such property andthe investment therein, unless such person or companyis engaged in the business of buying, selling, exchanging, leasing, or renting of property andholding himself or itself out as a full or part-time dealer in real estate. 

### Webelieve that the buying, selling, exchanging, leasing, or renting of property obtained under foreclosure proceedings by the companies above namedor 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 Companyand the Jefferson Standard Life, Health and Accident Insurance Companyand 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, weremain Very truly yours ATTORNEY

GENERAL

OFTEXAS By/s/ Ardell Williams Ardell Williams, Ass&stant APPROVED

FEB16, 1% /s/ Gerald C. Mann ATTORNEY

GENERAL

OFTEXAS APPROVED:

OPINIONCOMMITTEE BY: BWB,CHAIRMAN AW:AW:wb