The New York herald., 1922-08-21
More Points in Clauses Of New
Law Explained by State
Tax Commission.
TERN SALESMAN DEFINED
Lawyers Exempt Except as to
Splitting Fees With Real
Estate Dealers.

and various details of the new law which
quires licenses for all real estate brokers
and statesmen in all the cities of the
State and Nassau ana Westchester
counties. The statements are based on
information obtained by the Tax Com
mission from the Attorney-General The
questions and answers issued to-day
follow:
Question 10. Does s25 license en-
in the State, regardless of where his
place of business is In the State?
Answer. A licensee who has paid the
maximum fee of $25 can transact busi-
ness anywhere throughout the State, but
this is also true of any licensed broker
who has in good faith designated his
principal place of business as being, say,
in a second class city. Such licensee
may also transact business throughout
the State incidentally. However. it
would not be within the meaning OF the
act for a broker who does the bulk of
his business say. in New York city to
designate his principal office as being
in Nassau county for the purpose of
paying a smaller license fee.
Section 44O of chapter 672 defines
real estate broker and real estate
salesman. In the former case he is the
person who performs certain specified
functions "for fee, commission or
other valuable consideration" In the
case OF salesman, In order to legally
do the acts specified, he must be en-
ployed "by a licensed real estate broker"
to do such acts for or in behalf OF
such real estate broker"
is an individual, copartnership or
corporation buying and selling real es-
tate for himself or itself, and therefore
without compensation as contemplated
in the act, and for that reason appar-
emily does not require brokers' license.
He employees one or more statesmen to sell
property. negotiate leases and make
loans. Under the provisions of the law
salesman must be employed by
licensed broker
Question III. Must the principal Gin
dividual. copartnership or corporation)
take out brokers' license? If not, can
the statesmen legally apply for and be
issued salesmen's licenses?
Answer Inasmuch as Section 440
states that real estate salesman must
be employed by licensed real estate
broker, an individual. copartnership or
corporation buying and selling real estate
for himself or itself, could not employ
selves. were licensed real estate brokers'.
Section 442-g of the law licensing real
estate brokers and statesmen exempts at
torneys at law and makes the provisions
OF the entire article (Article 12A) in
applicable to them
Section 442 contains provisions pro-
hibiting the splitting of commissions by a
licensed broker with any person not a
duly licensed real estate broker or sales
man within or without the State
Question II. Is there any conflict be-
tween these two provisions? Does section
442 forbid broker to split commissions
with lawyer. or does the fact that at
torneys are exempt from all provisions
of the article relieve licensed brokers
and statesmen from complying with the
provisions of section 442?
Answer. Section 442-g exempts at
torneys at law from the provisions of
the article and allows them to perform
such acts as are included in section 440,
defining what constitutes real estate
broker and salesman, without necessi-
tating the obtaining of a license. 1t ap-
pears, however, that their privileges end
there that section 442, prohibiting a
real estate broker from splitting his fee
or commission with any one except a
duly licensed real estate salesman or a
II.
prohibit the splitting OF commissions
with an attorney a law unless he is
licensed to transact real estate business.
Question 13. Section 440 of the law
relating to brokers and statesmen makes
no mention specifically of the collection
OF rents. Many brokers have outside"
employees who do nothing but collect
rents. Must such persons be licensed
as statesmen?
Answer. In the definition OF what
constitutes real estate broker are the
words 'or collects or offers or attempts
to collect rent for the use of real estate" /"
A real estate salesman is employed by a
real estate broker to carry on for him
that work which constitutes the broker
as a real estate broker. Further a
salesman under the statutory definition
leases and rents real estate. and the
collection or rent Is part of the leasing
or renting within this definition. 1t
naturally follows. therefore, that the
salesman who collects rent which Is a
part OF the brokers' duty should be
licensed.
Question II. In many brokers' offices
there are bookkeepers who sometimes
collect rents over the counter, stenog-
raphers who may be called upon TO give
information about sales. rents. &c. and
inside clerks who may occasionally
and incidentally have to perform any
Of the above duties. All of these are
on fixed salary. Must such persons
be licensed as statesmen?
Answer. Should inside clerks perform
any of those acts included In the def1ni-
tion of what constitutes real estate
salesman, they should properly apply for
. license. II does not seem that any dis
tinction should be made as between
those who work outside and those who
work inside.
Question IS. Is IL necessary under
the law for janitor, superintendent and
elevator man who offer space for rent
in loft and Office buildings to be licensed
as salesman?
Answer. A real estate salesman must
be employed by licensed real estate
broker. A real estate broker is one
who for another" performs certain acts
which place him within the meaning of
section 440. II therefore appears that
should the janitor or superintendent of
building perform any OF those acts as
defined In this section they should obtain
o real estate brokers' license unless they