Evening star., 1934-01-27
real ESTATE CODE
APPROVAL AWAITED
Months of Effort Cu|minate
In Presentation of Pro-
posed Agreement.

After conclusion OF hearings, the
real estate world Is now awaiting an
nouncement of approval Of a code OF
fair competition for several branches
of the real estate business.
Months of effort toward the draft
ing of a code of fair practice for the
real estate brokerage business resulted
in the successful presentation OF the
amended code at public hearings helo
recently. Deputy administrator w. A
Jansen, presided at the sessions Wnlcn
we're attended by members of the Code
Committee of the National Association
of Real Estate Boards and representa-
tives of boards from Baltimore, Brook
lyn, Bronx. Long Island, New YORK
City and Washington. The newly re-
yised code and proposed amendments
were presented by Herbert U. Nelson,
national executive secretary Support
ing statements in behalf of the Ma
tional association were made by Presl.
dent w. c. Miller, j. w. Cree, jr. OF
Pittsburgh, chairman Of the Code Com
mittee, J. Souls Waterfield of Chicago
and H. Clifford Bangs of Washington,
chairman of the brokers division.
The new code as submitted defines
Jnc real estate UlOhcl dSC liioOotAy ehS
follows: The term real estate
brokerage industry is hereby defined to
mean the representation of others, as
a whole or partial vocation, in the
selling or offering for sale, buying or
Offering to buy. exchanging or offering
to exchange, or negotiating for the sale.
purchase or exchange of real property
leasing or offering to lease. renting or
Offering to rent, or negotiating for the
lease or rental Of real property, and
the collection Of rent; appraising or
offering to appraise the value of real
property: the brokerage of insurance or
the negotiating and procuring OF loans
on real property as an adjunct to the
business. for compensation, fee or
valuable consideration
Little Internal Opposition.
Very little opposition was offered
to the code from among real estate
sources, the major attacks coming from
outside of the real estate ranks and dl-
rected against the inclusion Of any por-
tion OF the business OF making ap-
praisals. Several persons representing
individuals and firms carrying on ap-
raisal service attacked this phase of
the proposed code. Mr.. Nelson stated
to the deputy administrator that there
are 2,529 board members in the ma
tional association who are conducting
appraisal services and that through the
American Institute of Real Estate Ap-
praisers the national association is
developing a professional standard Tor
real estate appra1Sals.
Several amendments Of minor ma
ture were submitted by the national
committee and others governing the
administration Of the code.
Under the trade practice rules modi-
fications were submitted for the pur-
pose of clarifying the unfair practice
which will be prohibited when the code
is adopted. These practices, as
amended. follow:
"a Offering to transact Of transact
ing business for a commission or fee,
which IS determined on basis less
than the established rates under this
code.
"b. Paying commissions or fees to,
or dividing commissions or fees with,
any one except members Of the indus
try. All members of the industry to
whom commissions or fees are paid or
with whom commissions or fees are di-
vided must be registered with the code
authority, and in States having real
estate license laws, such members must
also be licensed.
&c. Using any trade name or insignia
OF membership in any organization OF
this industry unless entitled to use 1t.
ID. Accepting, giving, or charging
any undisclosed commission, rebate, or
profit on expenditures made for prin-
cipal.
"e Seeking prospects or purchasers
for real estate by offering so-called
free lots or through lotteries.
#. Acting in the dual capacity of
agent and undisclosed principal in any
transaction.
Profit Guarantees Forbidden.
"g Making of any specific guarantee
as to future profits from resale OF real
estate or authorizing any one so to do.
"h. Placing Of for sale or for rent
signs on any property without the
owners written consent.
Il. Publishing advertising whether
printed, radio. display or of any other
nature) which is misleading or mac
curate in any material particular. or
in any way disappearing any prop
critics, terms. values, policies or services
OF the business conducted
81. Inducing any party to con-
tract of sale or lease to break such
contract for the purpose of substitute
ing in lieu thereof a new contract with
anotner principal.
"k. Negotiating the sale, exchange or
lease OF any property directly with an
owner or lessor II such owner or lessor
granting exclusive agency in connection
with such property with another
broker
81. Offering property for sale or for
lease without the knowledge and con-
sent Of the owner or his authorized
agent, or on any terms other than those
authorized by the owner or his au-
thorized agent.
IN. Accepting employment or COM
pensation for appraising contingent
upon the reporting Of predetermined
or specified amount of value.
IN. Issuing an appraisal report on
property in which the appraiser has
any present or contemplated future in
terest, as broker, loan agent, manager,
or owner, unless such interest is fully
disclosed In the appraisal report.
20. Making an appraisal OF property
by adding the value of the land to the
value of the Improvements thereon to
arrive at the total value of the prop
erty. without showing that no incom-
patible conditions were assumed in
making the appraisals Of the land and
the improvements. or issuing an ap-
praisal report on land or on improve
ments only. without indorsing thereon
a statement to the effect that such ap-
praisal shall not be used in conjunc-
ton with any appraisal by another Of
Improvements only or land only, as the
Unusual