March29, 1950

Ron. L. D. Ransom Oplnlon Ro. v-1020. Admlnietrator ..~~ Texas Real Estate Colaisslon Re: Thelegality of laAustin, Texas suing a real estate dealer,'8 license toanout-of-state re8- ident whorls licensed in a state which requires applicants to take an examination. Dear Mr. Ransom:

Your request for an opinion reads as follows: "Wedesire the opinion of your office as to whether the Texas Real Estate Commlsslon can Issue a license to an out-of-state resident under Article 6573a, as amendedby Senate Bill 100.28, Section 7(b), whensald resident's state requires anexamination In order to qualify as abroker la that state. "A typical case is this: Thie office recently received an application for renewal of a real estate dealer's license, together with the proper fee of $10.00, from one Leon Block of 110S. Dearborn Street, Chicago 3, Illinois. Said applicant has previously held aTexas real estate dealer's license under the interpretation given to Article 6573a, Section 7(b), by prior administrators. "This Commlaslon 1s of the opinion that said LeonBlock 1s not entitled to aTexas license andhas refused to Issue same. This Commlsslon is of the further opinion that the Real Estate License Lawof the State of Illinois requires anexamination of its licensees andthat, therefore, the legal requirements of said state have not for their purpose the samestandards proposed byArticle 6573a, as amended. Dueto the great numberof licensesHon. L. D. Ransom, Page.2, V-1020.

issued to residents of Illinois by prior administrators andthe persistent correspondence from said LeonBlock, demanding that he be issued a license, wewould like a clear Interpretation of Section 7(b).

“It Is our opinion that this Is not the samequestion as that involved In Section 7(c) of titlcle 6573a, as amended, .authorislng the Texas Real Estate Commlsslon to Issue non-resident licenses to out-ofstate applicants whose state allows reciprocity to this State.

“It Is to be noted that LeonBlock is ready andwilling to file with the Commission a Consent to Sepvlce, as required by Section 7(d).

“Question: Maythis office Issue to said LeonBlock a real estate dealer’s licenee for the year 19501” Weshall coliflne this opinion to the single question of law Indicated in the third paragraph of your--~ letter vhich Involves Seatlon 7(b) of Article 6573a, Vernon’s Civil Statutes, which provides:

**HA**non-resident **of** this State maybe licensed as a real estate dealer or salesmanprovided such non-resident is at the time licensed under the laws of the State where he resides andwhich said State has legal requirements which have for their purpose the standards proposed In this Act; provided, however, that such non-resident, must procure **from**the agency admlnlsterlng -~ such lav in suahState, a certificate recognizing andapproving. the reliability and standing~of such non-*eMdent iii such other State;’ Bndfile Samewith the Commission.” (Emphasis supplied) Wedo not construe the underlined provision as pertaining to the specific requirements of applicants for a license. Particular requirements such as anexamination, educational attainments, numbers of character references, andthe like, **do**not necessarily render the “kurposesn of the Illinois law different, from the “purposes of the TexasHon. L. D. Ramsom,Page 3, V-1020.

Act, nor the "standards" sought to be effected in the real estate business different from the "standards" sought to be effected by the Texas Act. The "standards" of the Texas Act there referred to are general standards of honesty and competency sought to be effected by requiring applicants to present various data attesting their "honesty, truthfulness, integrity and competency" so that the Commission maypass upon "the good business repute" of each applicant andthe prospect that "the business will be conducted in anhonest, fair, just andequitable manner." See Sections 6; 8 andg(a), Article 6573a.

Anexamination requirement would seemto be designed for more perfect attainment of those purposes. Wecannot conceive of any other purpose for such arequirement, andyou have not indicated that the Illinois law seeks to attain any end at variance with the Texas law. You are, therefore, advised that an examination requirement of the Illinois law does not, by reason, of such requirement alone, change the purposes and standards of the Illinois lawfrom those of the Texas Act and thereby render aresident of Illlnols~inellglble for a Texas 1,.lcense because of the p~ovislons of Section T(b). SUMMARY The "purpose andstandards proposed" by the Texas Real Estate Dealers License Act, referred to in Section 7(b), Article 6573a, V.C.S., mean6the general purpose to effect honest and competent dealings in the real estate business. Anexamination requirement by the Illlnols license law does not render its purposes and standards different from the Texas Act so as to render anIllinois licensee Ineligible for a Texas license under Section 7(b), Article 6573. Yours very truly,

APPROVED: Charles D. Mathews Executive Assistant RRc:jmc PRICEDANIEL Attorney General

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Assistant