Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-10
REAL ESTATE LAW
GOES TO FULL BODY
Subcommittee Strikes Out
All But One Provision
in License Bill.

The proposed real estate license Law
for Washington will be laid before the
full House District committee for ac-
ton by the judiciary committee, which
has held hearings on the subject, it was
announced this afternoon by Repre-
sentative Mcleod of Michigan. acting
chairman Of the District committee.
The bill will be submitted to the full
District committee with all its pro-
visions stricken out except the refer
ence in the title to penalties and Sec
ton IA of the measure, relating to
simulated sales.
Hearings Concluded.
Decision was reached to present the
bill in this form to the full COMMITTEES
after hearings on the subject we're con-
Guided today before the judiciary SUBJ
waited measure was expected to throw
the redrafting or other disposition OF
the proposed legislation into the hands
of the full committee, unless 1t be re-
ferred back to the subcommittee.
The simulated clause, now constitute
ing the measure as cut by the SUBJ
committee, was the one feature over
which there has been real division of
opinion among witnesses. Though the
Washington Real Estate Board did not
directly object to the bill with this
clause included, its spokesman had sug-
gested that the clause was not needed.
Favors Separate Law.
While not making direct objection to
this clause at the hearing, John A.
Petty, secretary of the Washington Real
Estate Board, contended that the mis-
representation at which 1t was directed
was covered in another general clause
providing for revocation Of the broker
license. He said the board felt such
specific legislation should be made in
separate law and not be confused
with purely license measure. He added,
however, that simulated sales with the
intent of defr auding was of course, a
thing that no Legitimate dealer would
countenance.
Oscar H. Brinkman, foi ner secretary
of the Senate District committee, said
he felt the clause should be incorporated
in order to provide sure &C ion against
dealer who INDUCED In artif1cially
boosting prices as a means of obtaining
a higher sale price in a later deal. He
said such simulated sales were made In
Washington, but that this was not 8
practice peculiar to this city. He cited
cases in New York and Kansas City
Mo.
H. L. Rust, ST., prominent Washing
ton mortgage banker, said he was "un-
alterably opposed" to the simulated sale
clause, because he feared it might inter-
fere with legitimate business as well as
striking at Misrepresentation.
Refuses Categorical Answer.
A colloquy ensued between Rust and
Representative Patman of Texas, men,
Der of the committee, over the question
as to whether simulated sales were
practiced In Washington. Repeatedly
Rust declined to give categorical an
cause the general wording of the clause
was such that no one could tell exactly
what it did cover. He said he would
be in favor of inclusion in the license
law of a clause making it unlawful for
one to execute a mortgage or sale and
wherein the consideration stated was
higher than that given in fact, for the
purpose of defrauding. The clause as
1t now stands, however, he said, did
not so provide.
Mr.. Patman said he felt this clause
as 1t now stands would not interfere
with legitimate business because 1t re-
ferred to simulated sales which were
executed for the purpose and with the
intent of misleading others as to the
value of property"
The Texas Representative also raised
the question of including in the license
measure a provision for the maximum
that licensed brokers and statesmen
could charge as commission ON sales
and rentals.
In reply, Mr.. Petty said the real
estate board would oppose such provi-
sion, pointing out that the per cent
commission, which it now preScribes
for sales in the District for the first
$4,000 and the 3 per cent commission
for higher sums had been approved in
court as fair. He contended there was
no reason why sales commissions should
be regulated, since 1t was private bust
ness, not public utility, and did not
have a monopoly.