Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-17
AGENTS
UPHELD BY COURT
New York Appellate Body
Calls Profession One Of
Trust and Ability.

Ruling of the New York Court of
Appeals, the highest court of the
State, holding that the legislature of
the State acts within its lawful
powers when IL establishes system
of licenses for real estate brokers, witt
annual renewals" is of great impor.
tance as supporting the whole prin'
ciple upon which real estate license
laws have been enacted in % States.
according to an analysis of the text
of the decision made by the National
Association OF Real Estate Boards.
The opinion of the court Is predi-
Gated squarely on the thesis that the
real estate broker. by the nature Of
his calling. acts in fidueiary cap;
Rcity requiring both trustworthiness
and specialized knowledge, and that
II. is matter of public welfare that
ADMISSION to that calling be regulated
by the State so as to insure the gen
eral public against intrusting its
real estate matters to the Judgment
of irresponsible or incompetent per-
sons.
The legislature has a wide dis.
cretion in determining whether a bust.
ness or occupation shall be barred to
the dishonest or incompetent" the
opinion of the court states.
ut is said there are callings SO in
veterate and basic. so elementary and
innocent, that they must be left open
to all alike, whether virtuous or vi
cious, II. this be assumed. that of
broker is not one of them The in.
trinsie nature of the business COM
bines with practice and tradition to at
test the need of regulation.
THE real estate broker is brought
by his calling into a relation of trust
and confidence. Constant are the OPP
portunities, by concealrhent and collu-
sion to extract illicit gains. We know
from our judicial records that the OPP
portunities have not been lost. With
temptation so aggressive. the dis
honest or untrustworthy may not rea-
sonably complain if they are told to
stand aside.
Less obstrusive. but not negligible.
are the perils of incomnetence. The
broker should know his duty. To
that end. he should have "a general
and fair understanding of the obliga-
tions between principal and agent.
Disloyalty NAV have it's origin In ig-
norance as well as fraud.
"Efe should know, so the Legislature
has said. what is meant by a deed or
lease or mortgage. At any moment
he NAV have to make a report as to
such matters to expectant buyers or
lessees. Often he. goes further, per-
hans too far, and prenares a memo
randum of the contract. He is ac.
credited h,- his calling in the minds of
the inexperienced or the ignorant with
O. knowledge greater than their own.
1.-THE Legislature of many States,
awakening to these evils have adopted
statutes like to ours" the opinion
further states. citing 2 such statutes.
Legislation so general marks a ris-
ing tide of opinion which is suggestive
and informing.
The decision of the New York Court
OF Appeals was brought on a case In
volving the attempt of a broker to
collect commission fer services as a
real estate broker which he had per-
formed at a time when he had al
lowed his real estate brokers' license
to lapse. 1t therefore did not involve
any question but the straight question
Of the constitutionality of the law re-
curing a license, and does not bear
upon the requirements of the New
York law that an applicant be a citi-
zen. and that he must. If required by
the State Tax Commission which
administers the real estate license law,
not only give information TO determine
his responsible character but also give
proof of his competence.