Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-08
REALTORS EXPECT
BENEFIT FROM QUIZ
Two Laws to Protect Buying
Public Believed Helpful
to Profession.
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ing not essential to the protection of
the public They are convinced on the
experience of other jurisdictions that
laws can be passed that will definitely
strike at the shyster, protect the public
and safeguard the reputation of the
honest dealer without 1nJurtng business.
Twenty-Five States and one province
in Canada already have in operation
laws providing for the licensing of real
estate brokers and statesmen. Reports
from over the country indicate it Is
working successfully to protect the IN
veStor. These laws were sought by the
National Association Of Real Estate
Boards, and are fashioned after the
model license law drafted by the ma
tional organization. Local boards joined
with the national body in petitioning
for their passage. This model law is
the foundation of a license law which
Washington realtors have requested
Congress to enact for the District.
The Better Business Bureau of Wash
ington for number of years has ap-
pealed to Congress to enact a law regu-
lating transactions in securities with
out insisting on any one form of law
The District of Columbia Bankers AS
ISOLATION, local investment bankers, the
Washington Stock Exchange and the
Washington Real Estate Board also,
have Endorsed a securities law. There
has been some difference of opinion re-
6arding some provisions of such a law,
but all Endorsed the principles OF a
securities act.
Blue Sky Law Successful.
"Blue-sky' laws are reported to have
been remarkably successful in num-
Der Of States in foreStalling crooked
dealing in real estate stocks and bonds.
Ohio, Pennsylvania and Virginia are
cited as examples. Such a law pro-
vides generally for the licensing of the
securities before they can be offered for
sale, as well as the licensing of the
brokers.
Through such measure a duly APP
pointed commission can Scrutini2e bond
and stock Issues before they are fioated,
ana if there is found prima facie evil
dence that they are fraudulently con-
ceived or not having adequate security
the commission is empowered to decline
to license their sale. The license re-
CURED for security statesmen and brok-
erS also places an effective weapon IN
the hands of the commission as the
public guardian.
Then there is the fraud law, which
provides generally for the licensing OF
POND and stock statesmen and brokers
and for possible summary action by the
district attorney on the showing Of evil
dence of nlegality in such transactions.
The real estate license act proposed
last session for Washington would
create a real estate commission of three
persons who for a period of 10 years
have been actively engaged in the real
estate business, to be named by the
District Commissioners. This commits
sion ewould license real estate brokers
and statesmen, and the cost of the oper-
alton of the commission would be paid
out of license fees and fines accrulng to
the District The commission members
would be paid $25 per day for each day
actually spent on the work Of the COM
mission, plus expenses.
The original fee for a broker would
be $40, with an annual renewal fee OF
SIS. The original fee for statesmen
would be ST. with a renewal fee of 81.
The law would provide that license
be granted only to persons who bear a
good reputation for honesty, truthful
ness and fair dealing and are competent
to transact the business of real estate
broker or a real estate salesman in
such manner as to safeguard the in
terests of the public"
Revocation of Licenses.
Further teeth" are seen in the law
in its provisions for the revocation OF
license. The proposed model law states
that:
THE commission may, upon its own
motion, and shall, upon verified COM
plant in writing Of any person, pro-
yided such complaint or such COM
plants, together with evidence, docu-
mentary or otherwise, presented in con-
nection Herewith, make out prlma
facie case, investigate the actions OF
any real estate broker or real estate
salesman, or any person who shall as
sumo to act in either such capacity
within the District of Columbia, and
shall have the power to suspend or to
revoke any license issued under the
provisions of this act at any time where
the licenSee has by false or fraudulent
representation obtained license; or
where the licensee, in performing or
attempting to perform any of the acts
mentioned herein, is deemed to be
guilty Of:
'ta) Making any substantial mis-
''(b) Making any false promises OF
a character likely to influence, per-
suade, or induce; or
"(c) Pursuing a continued and IA
grant course of Misrepresentation OF
making of false promises through agent:
or statesmen, or advertising, or other
wise: or
Id Acting for more than one party
In a transaction without the knowledge
of all parties for whom he acts; or
"te) Accepting a commission or val
liable consideration as a real estate
salesman for the performance of any o
the acts specified in this act from an.
person except his employer, who mus
be a licensed real estate broker; or
80 Representing or attempting T.
represent a real estate broker othe
than the PYnployer without the EXPIRES
knowledge and consent of the employer
or
"(g) Failing within a REASONABLE
time to account for or to remit an,
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