Evening star., 1939-08-12
Realty License Laws
Adopted by Texas
and Maryland
Measures Now Protect
Total Population
OF "a, 900, 900

protection of the public in their real
estate transactions has been provid-
ed through real estate license laws.
The Maryland Real Estate Associa-
ton and the Texas Real Estate As
sociation have for some years urged
such action Michigan, at its legis-
lative session this year, enacted
strengthening amendments to its
license law, urged by the Michigan
Real Estate Association. One of the
new provisions sets up State control
on sale in Michigan of lands outside
the State.
Thirty-three States, the District
of Columbia and the Territory of
Hawaii now have real estate license
laws to protect against frauds and
against dishonest or incompetent
persons holding themselves out to
the public as real estate brokers or
statesmen. A total population of
more than $4,000 900 people mot in
cluding the population of HawaiD
now live under the protection of
these measures, the National Asso-
citation Of Real Estate Boards re-
ports. This means 70 per cent Of the
country's population
In a half dozen remaining States
licensing measures are under active
discussion.
Features Summarized.
Freehold, magazine of real estate,
IN its current issue summarizes i'm
portant technical features of this
years real estate license legislation.
Some of these:
The Texas law stipulates II acts
for which license may be revoked
or refused. The Maryland law
specifies IS causes as sufficient basis
for revocation, covering in some
cases identical ground. Both, while
naming substantial misrepresenta-
tion of any kind, including misrep-
resentation in advertising, as cause
for revocation, specifically state
licenses may be revoked for the fol-
lowing practices: Acting for more
than one party in a transaction
without the knowledge of all parties;
failure within a reasonable time to
remit moneys which belong to an
other; dividing commissions or fees
with any one not licensed under the
act; soliciting or offering for sale
real property through free lots" or
conducting lotteries for the purpose
OF influencing purchaser; guaran-
teelng, or having authorized or per-
mitted any person to guarantee, fu-
ture profits which may result from
the resale OF real property: inducing
any party to contract of sale or
lease to break such contract for the
purpose of substituting in lieu there
OF a new contract with another
principal
Penalty provided in both the
Maryland and the Texas law for en-
gaglng in the capacity of real estate
broker or salesman without a license
or continuing after suspension or
revocation OF license is a fine up to
$500 or imprisonment, or both.
New Michigan Provisions.
Michigan amended its real estate
license law to include new provi-
sions, as follows:
l. Brokers who propose to engage
IN sales of promotional nature in
Michigan of property located out
SIDE OF Michigan, must submit to
the commission tthe Michigan Cor
poration and Securities Commission
which administers the act) full par
uculars regarding such property and
the proposed terms of sale, and they
and their statesmen must comply
with such rules, restrictions, and
conditions pertaining thereto as tbs
commission may impose All eX-
penses incurred by the commission
IN investigating such property and
the proposed sale thereof in Mich
igan shall be borne by the broker.
NO broker or salesman shall in any
manner refer to the Michigan Cor
poration and Securities Commission,
or to any officer or employe thereof
In selling, offering for sale, or adver-
tlslng. or otherwise promoting the
sale, mortgage or lease of any such
property, nor make any representa-
ton whatsoever that such property
has been inspected or approved or
otherwise passed upon by said COM
mission, or by any State official, de-
partment or empIoye."
z. mo plan or scheme involving lot
terles or drawings shall be used by
any broker or salesman for the sale
or promotion of sales of real estate "
The Michigan act provides tina,
revocation of a brokers license
shall automatically suspend everv
real estate salesmans S license granted
to any person by virtue of his en-
ployment by the broker whose license
has been revoked, pending a change
of employer and the issuance of q
new license. Such new license
shall be issued without charge, if
granted during the same year in
which original license was granted >
Measures for State control agains,
fraud and incompetency in persons
holding themselves out to the public
as real estate brokers follow in
general outline of a model real
estate license law proposed in 1914.
IS by the National Association O
Peal Estate Boards