Los Angeles herald., 1908-11-22
PROPOSED BILL
TO HELP REALTY
WILL WORK RADICAL CHANGE
IN BUSINESS METHODS
AIMS TO REMOVE FAkERs FROM
RESPECTABLE CALLING
Real Estate Boards Throughout State
Are Presented with Bill for Dis
cusslon-Public Supervision
and Bond

II the bill just printed by the legis-
lative committee of the State Realty
federation and presented to the MEM
bers of hat body for discussion is
adopted and eventually passed by the
state legislature, 1t seems likely to
bring about a very radical change in
some of the methods of transacting
business in real estate. According to
its sponsors 1t would confer financial
responsibility upon everyone doing
business as a real estate agent and
would almost eliminate from the ranks
of the agents those whose shady past
or present methods too often entail
odium upon what should be a digni-
fed, responsible and important calling.
1t is not disputed that the majority
of persons calling themselves real es-
tate agents or dealers in Los Angeles
are, to say nothing as to character,
financially worth but little from the
standpoint of judgment creditor. The
minority, most of whom are honorable
men of refinement, intelligence and
ability second to none in the business,
or as a class, in the professional world,
are too often blamed for the incapacity
and responsibility of the compare
lively unknown crowd. This minority
includes a greater number Of men of
wealth against whom Judgment of
tens of thousands of dollars would be
good. But the majority of irresponsi-
bles includes many whose outward and
visible display might we'll lead the un-
informed to regard them as of equal
Importance with the established and
reputable firms. In case of a suit to
recover from them 1t is discovered that
If they have any property it Is In
others names.
The bill now under discussion 1t is
claimed, would compel the abandon
ment of such tricky subterfuges and
would give the victim of fraud or mis-
representation in real estate deal q
chance to recover real money. And IN
so doing 1t is further claimed 1t would
protect the responsible and reputable
dealer and agent from the competition
of rascals and from the criticism which
is directed at present against the busi-
ness as a whole. De Witt H. Gray Of
Fresno is the actual author of the bill
which in it's present form was approved
by committee including Mr.. Gray and
the representatives of the two largest
local boards in the state-Leslie Burks
of San Francisco and Herbert Burdet'
of Los Angeles.
The bill will be discussed during the
next ten days at meetings of every To-
cal board and final vote will be taker
as to whether or not the measure shall
be presented to the legislature, in whlct
not only the local boards but the in
dividual members of the federation viii
participate. The latter comprise ovel
forty of the leading agents in the small
er cities and towns of the state.
The principal arguments advanced by
the author Of the bill are comprised un-
der the caption, ION Behalf Of the Ii
censed Bond Bill"
Synopsis of License Bond Bill
In this bill it is made a misdemeanol
to engage in the business of real es'
tate agent without first obtaining
license from the building and loan bu'
reau and without fling with the secre'
tary of state q bond to the state fol
the benefit of persons with whom the
applicant shall deal as real estate
agent Penalty for violation is fint
not less than $25 nor more than $500
or Imprisonment not less than five MOI
more than thirty days, or both fine anc
Imprisonment.
A real estate agent is defined as
person who for commission or compen
sation engages in or holds himself gu
as being engaged in the business of sell
ing or negotiating sales of real estate
belonging to others whether such sale
or negotiations shall be based upol
contracts or agreements with owner
for such sale or upon options to pur
chase taken from such owners; pro
vided, however, that a person shall no
be deemed to be a real estate agen
by reason Of any sale or negotiation
for the sale of land based upon an op
ton or upon a contract to purchas
for which he shall have actually pai'
to the owner as consideration OF as tn
first payment at least 10 per cent o
the value of said land as stated in sucl
option or contract.
The term person" as used in this &C
shall embrace individuals, partnerships
associations or corporations.
Provision is made for application TO
a license for which the fee shall b.
paid and for giving bond, the amour
of which shall be fixed by the bureau
of building and loan supervision, ant
shall be not less than $4,000. Is made
The bond shall provide for the pay
ment to the person entitled thereto
all sums of money received by the ap
plicant in the transaction of the bust
ness of q real estate agent, and shal
also be conditioned for the payment o
ali damages which may be caused .
any person in any transaction Wit
the applicant as such real estate agent
. nv reason of the misrepresentation o
deceit of the applicant with respect t
the subject matter of such transaction
The bureau is required to investigat
anv complaints made under oath tina
through Misrepresentation or deceit o.
the part OF licensed person the com
nIainant has suffered or that the agen
has failed to account for money. Ac
tion may be brought upon the bon
within q year after the filing Of such
complaint. Bonds shall be renewed an
nuaiiy and a statement Of the bushes
done shall be rendered to the bureau a
guide in fixing the amount Of tn
bond. Licenses are revocable for caus
after notice and hearing.
TWENTY-O NE NEW HOUSES