Evening star., 1937-01-09
REALTY LICENSE
LAWS REVIEWED
183.Page Monograph Goes
Over Situation in %
States.

A detailed survey OF real estate
license laws as they now exist in %
States, made by Robert w. SemenoW
of Pittsburgh, for the National Asso-
ciation of Real Estate Boards and the
National Association of License Law
Officials, has come from the press this
week. The monograph, a l83-page
study, has been placed in the hands OF
all administrative officers of State real
estate license laws, all State real estate
associations, and all local real estate
boards in the membership of the Ma
tional Association of Real Estate
Boards.
Semenow, secretary-treasurer OF. the
National Association of License Law
Officials, was formerly director Of real
estate license administration for the
Commonwealth of Pennsylvania.
The survey, the most comprehensive
study yet made in the field Of real
estate license legislation, tabulates
administrative plans, educationa re-
quirements, disciplinary grounds and
other central features of the existing
State laws, reviews court decisions
upholding constitutionality of the laws
and of specific features, and discusses
administrative problems.
Incompetent Dealing Fought.
The draft of the suggested State real
estate license act prepared by Seme-
now on the basis of this study is at
tached to the survey report. The
study was initiated to aid in strength
ening existing State legislation and
supply facts for drafting the most
effective further legislation for pro-
lection of the public against fraudu-
lent, dishonest or incompetent dealing
in real estate in the period ahead.
Such legislation, officers Of the national
real estate association point out, is es-
pecially important in a period OF IN
creasing interest in investment, such
as We appear to be entering.
Mr.. Semenow's report recommends
that a definite provision be lncor-
porated in license laws expressly con-
ferring upon real estate brokers the
right to prepare all papers, mstru-
ments or documents necessary, incl
dental or concomitant to or IN any
real estate transaction, to which
transaction said broker is a party.
It recommends that a license once
issued should not expire except 1or
cause, the renewal fee to be PAID 1of
an annual registration OF the certlfl-
cate of original licensure. Failure to
renew would make the hcensee liable
to a summary conviction. This pro-
cedure is followed in most States IN
the administration of the professional
acts, such as those governing medl-
cine and dentistry.
Reciprocity provisions are recon-
mended for all States, where the
States have substantially similar quail
f1cations and standards. New YORK
and Pennsylvania now have a reci-
procity provision in their real estate
license laws.
States Requiring Examination.
States in which passing an examina-
ton is a prerequisite to the issuance
of a brokers' license, plan strongly
recommended for all States, are listed
as follows: Alabama. California.
Florida, Illinois Gf applicant has not
had one year of experience), Michigan.
Nebraska, New Jersey, New York,
North Carolina, Ohio, Pennsylvania,
Wisconsin and wyoming.
The causes for which real estate
brokers' license is revocable in the. va
rious States, and the list of 18 causes
included in the suggested act appended
to Mr.. Semenow's report, give very
clear picture of the effectiveness of
such laws to protect the public
against frauds and misrepresenta-
tions in real estate transactions.
All of the States include making a
substantial mis- epresc 10 n"
grounds for suspension or revocation
of license. The second ground for
suspension or revocation of license
found generally in the various license
laws is making any false promises
Of a character likely to influence,
persuade, or induce" party to
enter into a real estate transaction.
Promises of resale at fabulous prices.
guarantees of enormous profits, are
common instances of violation of this
provision. Reason dictates that no
one can positively guarantee future
profits. Many statutes provide that
deceptive or misleading advertise
ments" shall constitute grounds for
disciplinary action This is held to
be a very effective proviso.