The Washington times., 1906-03-06
REAL ESTATE LAW
MUST Be OBEyED
So Says Commissioner West
on Alleged Violations.
IS SEEKING EVIDENC
Allegations Made That Attorneys Act
as Agents Without Brokers
License.

Acting on protests made by a num-
Der of local real estate firms that
numerous attorneys are In the habit OF
negotiating real estate transactions
without paying a brokers' license, as
required by law, District Commissioner
West has determined 10 put an imme-
date stop TO the practice. ana, with
the aid Of Assessor Hope II. DarneIlie,
will endeavor to enforce the law by
securing the conviction Of any attor-
neys that may be offenders. He will
he states. If it becomes necessary to
carry the matter to an extreme, upon
the conviction Of one seeking to evade
this tax under the cloak of a profess
sion, invoke the court to administer a
fine or jail sentence, at its discretion
Strong Protests Made.
Recently representatives of two we'll
known real estate firms called upon
Commissioner West and requested his
aid In putting a stop to what they
termed "a decided menace to their
business interests" They told the
Commissioner that the chief Offenders
in this tax evasion were of a class
known as real estate lawyers" who
did little or no court practice, and d
great deal or real estate business. They
considered themselves exempt from this
brokers' tax, the complaining real es-
tate men said, because they were mem
bers of the legal profession and did
not advertise as conducting any real
estate deals. They explained TO Com
missioner West that because they were
attorneys and handled large trust funds
it gave them a decided advantage over
the average real estate broker, who,
IN many cases, would be compelled to
= fa r-rc-rzu
banks and trust companies. and pay d
stated commission for doing SO. Where
an attorney had such trust funds on
hand for immediate call they pointed
cut, the advantage he held over the
broker was apparent
A Loss to District.
However such tax evas'on migh- af-
feet the interests of the real estate men.
Commissioner West could only view it
as a distinct loss to the District reve-
nues. and on that basis alone decided
TO make the matter the subject OF a
personal investigation. He at once call
cd in the aid of Assessor DarneiHe, who
explained that although convictions
might be hard TO secure because OF lack
Of evidence. no opportunity would be
lost by his office to put an end to the
practice. He Immediately delegated four
cent real estate transactions. report on
the character. Of the deal. the amount
involved, and the person acting as the
broker; and. il il was determined that
the party acting as broker had not pre-
VioUsly paid a license, a prosecution
would be Immediately started. After
such evidence was secured. Assessor
DarneilIle stated, the plea from an Of
fender that he would comply with the
law by purchasing a license then would
not be entertained. but the Police Court
would be asked 10 impose a f1ne or i'm
pFtSonment.
Not Fault of Law.
The fact that such tax evasions have
become SO fragrant is not the fault of
the law. Commissioner West states.
The law. ne affirms. allows for no ex-
emptions. but cites specifically that any
person who trausScts a real estate deal
shall pay a brokers' license OF fifty dol
lars.
The law under which this tax is levied
reads as follows;
That real estate brokers or agents
shall pay a license tax OF fifty dollars
per annum. Every person who sells. or
offers for sale, as agents for other, real
estate. wherever located. including min
ing and quarry property, OF who makes
or neSofiates a loan thereon, or who
rents houses. buildings. stores. or real
estate, or who collects rents for otE ere,
shall he regarded as real estate bro ker
or agent.
Provided. that the practice of a pro-
fessiOn in connection with the real as.
tate business shall not exempt any per-
son from the requirements Of this para
graph who would otherwise be liable
hereunder"