Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-14
NEW TYPE SERVICE
| BY REALTY BOARDS
Certificate of Approval Helps
Public to Identity Sound
Projects.

I The first certificate of approval 10 be
sissued by the consultation bureau of the
National Association of Real Estate
sBoards will be made public formally
sthiS week. It's issue marks the begin
sning Of a new type of service by busi-
&neSS association. The service has been
sorganized to aid in the establishment of
Sound standards within the business
ssnd to give the general public means
.of identification Of sound cooperative
building projects.
! The consultation bureau was set up
six months ago by the cooperative
apartment division of the Association
sof Real Estate Boards It's first certifi-
scate of approval dated July 10. was
given 10 Chicago realty organization,
IL was signed by r, Bates Warren of
sthis city. who is past chairman of the
Sco-operative apartment division of the
realtors' organization. and by other ma
fional officers,
First Time of Such Action.
/ The action marks the first time that
= group representing the entire field OF
<he real estate business has passed upon
and certified an individual real estate
proIecf The service of the conSulta-
Sion bureau begins before the founda-
tion of a proposed building is laid. Gen.
erally planned to guide the novices in
this still new field and to discourage
Nnserupulous operators. the officers of
the cooperative apartment division OF
Fhe real estate association point out
that even the seasoned developer can
De assisted by the counsel of the bureau
experts.
The consultation bureau. in which sit
sexacting specialists on architecture, law.
finance, management and selling. sur
Lvevs proposed cooperative apartment
buildings from the view from the front
floor TO the last whereas" in the impor-
AMI legal documents that constitute the
esctual ownership of an apartment home.
sAfter an exhaustive check has been
had. on every plan OF the operator APP
caring before the bureau and II his set
ID complies with the rigid requirements
ST tlre bureau. or If the operator revises
Sis plans and procedure TO meet these
s eouirernents, the coveted certificate Is
,rthcoming. The bureau survey. which
4 couples weeks of time for each project,
{ 5, OF course. sought by the operator.
For Public Information.
So that the public may be able TO
Z entity structures that have received
{ lis stamp of approval. the co-opera-
Z ve apartment consultation bureau per-
its the wide use Of the certificate IN
s / advertising undertaken for the APP
{ roved structure. 1t is expected tnat
& ne signed certificate viii be reproduced
y newspaper advertising, literature and
4 ationery throughout the country. ana
4 lat in the near future it will become
/ ae bench mark of safe cooperative
4 oartment enterprise.
3 Individuals purchasing apartments IN
+ Operative buildings which boast one
1 these certificates will be insured from
3 adequate legal structure, extravagant
+ asncing. poor architectural planning
3 I'd other difficulties which may arise
/ ON the work of the novice promoter.
& Id through research in this fairly new
] i'd the bureau expects to show estab-
! he'd and successful operators how to
! axe their buildings more efiicient.
Firm Gets Detailed Report.
1 Whether or not project placed in
re hands of the consultation bureau
er its examination and advice receives
& ae bureaus certificate of approval, the
{ m submitting the plan Is given a de-
+ lied report of the bureaus findings.
IL the case Of the building upon which
4 he first certificate was issued. for ex-
nple. this report covered so typewrit-
s n pages.
4 The carefully planned cooperative
s 1artment corporation reaches INTO
any fields, according to the bureau Of
-fals Because under our laws u Is
Necessary to form real corporation IN
Z der to make possible the sale OF por-
S1ns of a building to various Indi-
EQUALS. several legal forms are neces-
4 ~ at the outset.
The wrong forms. the absence OF one
Kae in one of these forms, the addition
single phrase to the right forms,
5srhaug done with the best OF inten-
g3ns by the operator using them, can
eject the success Of the unoertaknng.
these forms include the proprietary
Ease issued to the individual owners
nd the important bylaws OF tne COZ
xaratiora The owner OF an apartment
= = building organized with defective
ss~rns Is in the same position as the
Amer of an individual dwelling with
Elective title, the association states.
Forms Meet Standards.
the consultation bureau insists that
N legal forms used in the organization
projects approved by the bureau meet
8 general the standards OF the forms
kenared recently at great cost by the
A-noprative apartment division OF the
RATIONAL Association OF Real Estate
sosrds. ...
the financing plan is examined from
Ae mint Of view Of asceriaining the
reos,scy of budgets. equitable distribu-
<,r Of stock. amortization and interes.
@hedlle. insurance coyerage sno
seff1od Of escrowing payments. and me
1erator applying for the certificate
aust furnish detailed information COW
~fng all Of these points. Ii any OF
.ese items are out Of line. complete re-
sion is required by the bureau peioIe
Sc applicant even sees the color OF Inc
.zw certificate Of approval
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