Evening star., 1939-08-19
Builders Who Sell
Required 10 Hold
Broker's License
Changes in Districts
Realty Law Now In
Effect, Allen Warns

Oklucl Oiic dulclluIllcIltS W lIlC
real estate brokers license law,
recently approved by President
Roosevelt, builders erecting new
houses for sale are now required to
obtain a real estate brokers' license
If they offer such houses for sale,
according to Fred D. Allen, chair
man of the Real Estate Commission.
Mr.. Allen also pointed out that
subdivision operators are now re-
ouired to be licensed as real estate
brokers in order to sell lots, even if
they are owners of the land. Banks,
trust companies and building asso-
Citations also come under the require
ments for licensing if they handle
real estate transactions for others
for compensation. Employees of such
builders, subdivision operators or
banking institutions, Mr.. Allen ex-
!. planned, are required to be licensed
as salesmen if they perform such
services.
Becomes Law Immediately.
"Since these new requirements be-
came effective when the President
signed the law" Mr.. Allen said, sit
is important that those affected
secure licenses promptly. Applica-
ton forms are now available in the
Office of the Real Estate Commission
In the District Building, where de-
tailed information in respect to
qualifying for license may also be
obtained.
Iv,,n al
the status of property owners, in
Guiding those operating apartment
houses and Office buildings by a
provision which specifically eXemptS
property owners and their employees
from the requirement to be licensed
except as otherwise provided for In
respect to builders and lot sellers.
"a probationary period is provided
for statesmen under which salesmen
.,may now be licensed without taking
an examination. However, they must
comply with all the other require
ments of the law and the license
issued them will be automatically
Cancelled if they fail to pass an
examination before the expiration OF
six months.
Broker License Reduced.
While the fee for salesman's
license remains at $40, the fee for
brokers license has been reduced
from $50 to $50. In addition the
..e for members of firms and part
nerships and officers of corporations
was changed so that only one such
member or officer pays $50 and all
additional members and officers pay
only $40. Proration of fees was
established on a basis of one-half
in cases where applications are
filed between January l and July /.
"All changes in respect to fees be-
came effective August 10, 1899, and
do not apply to those who were
licensed prior to that date, most of
whom recently paid on a basis of the
former schedule to obtain their re-
newal licenses on July l.
Provision has been made for
licensing business chance statesmen
and the fees for both business
chance brokers licenses and busi-
ness chance salesmen's licenses are
the same as those fixed for real es-
tate licenses.
Nonresident licensees who have
heretofore been required to maintain
a place of business in the District
of Columbia have been relieved of
this requirement If they maintain
an Office in the State in which they
are licensed.
Free Lots Outlawed.
Awarding free lots or giving
prizes in connection with the sale
or promotion of real estate by either
brokers or owners is now violation
of the law, punishable by fine or i'm
prisonment. Likewise the payment
of commission for real estate serv-
ices to any one who is not licensed
Is violation of the law, and if done
knowingly would be punishable by
a fine or imprisonment"
Approval of the amendments to
the real estate license law marked
the successful conclusion of the
Washington Real Estate Boards
campaign to improve the original
law, according to Francis A. Murray,
president of the realtor organization.
A number of important changes
were made in the basic law, many
of which were originally sponsored
by the board. One change affected
the amount of the fee to be paid by
real estate brokers which will effect
a great saving to every broker oper-
ating under the District law.
Under the reciprocal clause in the
Maryland law nonresident brokers
had to comply with the same rules
and regulations which Maryland
brokers were required to meet in
qualifying for District of Colum-
!, bia license. The Maryland Real
Estate Commission advises that
bond must be filed by nonresident
brokers and statesmen, Mr.. Murray