Evening star., 1935-02-16
LICENSING FIGHT
VICTORY IS SEEN
BY D. c. REALTORS
Senate Passes Old Measure
to Regulate Brokers and
Statesmen.
FAVORABLE ACTION
IN HOUSE EXPECTED
New Law Would Drive Unscrup-
ulous and Unethical From
Business Here.
BY JAMES Y. NEWTON.

The l0-year fight of the Washing
ton Real Estate Board to have enacted
q law to regulate and license real
estate brokers and statesmen and there
by drive the unscrupulous and un-
ethical from the business in the Dis
trict appears near completion with the
passage of the bill by the Senate Tues
day.
It is substantially the same bill that
In past sessions of Congress has been
permitted to die after receiving favor
able action first from the House and
then from the Senate. However, the
action by the Upper House Tuesday
was earlier in the session than any OF
the previous attempts to have the
license bill enacted into law.
Favorable House Action Expected.
The Real Estate Board is extremely
hopeful that the House will give the
bill favorable action before the END OF
the present session. Within short
time it will be taken up for hearing
by a subcommittee of the House Dis
trict Committee. No concerted oppo-
sition Is expected to develop, as the bill
has the Endorsement of most OF the
prominent officials and organizations
Of the Capital.
The bill last year was not passed
by the Senate until May, late in the
session, and was lost in the press OF
national and District legislation in the
House.
introduced by Senator King. chair
man of the District Committee, the
bill is described as one ito define,
regulate and license real estate brokers
and real estate salesmen; to create a
Real Estate Commission in the Dis
trict Of Columbia; to protect the pub
lie against fraud in real estate trans
actions and for other purposes"
Provision of Act.
Section l provides that on and
after 30 days from the date OF enact
ment of this act it shall be unlawful
for any person, firm, partnership, CO.
partnership, association or corporation
to act as a real estate broker or real
estate salesman, or to advertise or as
sumo to act as such. without license
issued by the Real Estate CommS-
sion."
The Real Estate Commission, under
the terms of the bill, would be COM
posed of the District assessor (serv1ng
ex oficio and without additional SAL
ary) and two other members to be ap-
pointed by the District Commissioners.
Not more than one of the appointees
shall have been engaged in or closely
connected with the real estate business
within five years prior to his appoint
ment. The salaries of the two paid
commissioners are not to exceed $1,000
. year each.
The bill exempts from its provisions
and the requirement for licenses, re-
ceivers, referees, administrators. ex-
ecutors, guardians, or other persons
appointed or acting under the Judg-
ment or order of any court, public Of
ficers while performing their official
duty, and lawyers in the ordinary
practice of their profession.
Bond Must Be Furnished.
Power is given the commission to
inquire into the character, reliability,
and competency Of applicants Tor
licenses. Each broker applying Tor
license must furnish bond OF $2,5OO,
while statesmen would be forced to
post a 1000 bond each. The bond
for brokers was reduced from $4,000
and for statesmen from $4,000, re-
ouired in last sessions bill, in order
that no hardship will be exacted on
small offices. Brokers are required TO
pay a SIS annual license fee, while
IS annual license fee must be paid by
statesmen. License would expire year.
", but will be subject to revocation
at any time. Presentation OF charges
and a public hearing must precede
such revocation.
The grounds for revocation, as
stated in the bill, include substantial
misrepresentation, false promises, act
ing for more than one party in a
transaction without the knowledge
of all. failure to account for money or
property belonging to others, in
competency and dishonest conduct.
In submitting the bill to the Senate,
Senator King said:
1.-THE bill will help to end present
usurious practices of certain money
lenders In the District, who, while
now licensed as real estate brokers,
are subject to no regulation or super
vision. 1t would place under super
vision those who lend money on Sec
ond or third trusts on real estate;
make possible the discovery by exam
ination of records whether usurious
rates Of interest, commissions, ETC.,
are being charged; whether fore
closures are being made without ade-
0uate notice. and would make possible