The Waterbury Democrat., 1939-07-28

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 salesmen. A total population of more than s4,0Oo,0O0 people tnot including the population of HawaiD now live under the protection of these measures, the National Associ- ation of Real Estate Boards reports. This means 73 per cent of the coun- try's population.
 In a half dozen remaining states licensing measures are under active discussion.
 New Specific Power
 Freehold, magazine of real estate, in It's current issue summarizes itn- portant technical features of this years real estate license legislation. Some of these: ..
 The Texas laws stipulates i7 acts for which license may be revoked or refused. The Maryland law specifics l5 causes as sufficient basis for revocation, covering in some cases identical ground. Both, while naming substantial rnisrepresenta- ton of any kind, including misrepre- sentation In advertising, as cause for revocation, specilifically state license 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 q reasonable time to init moneys which belong to another; dividing commissions or fees with anyone not licensed under the act; soliciting or offering for sale real property through free lots," or con- ducting lotteries for the purpose of influencing a purchaser; guaran. teeing, or having authorized or per- mitted any person to guarantee, future profits which may result from the resale of real property: induc- ing any party to Q contract of sale or lease to break such contract for the purpose of substituting in lieu thereof a new contract with another principal.
 Penalty
 Penalty provided in both the Maryland and the Texas law for engaging in the capacity of real estate broker or salesman without license or continuig after sus. pension or revocation of license is 6 fine up to $500 or imprisonment, or both.
 The new Maryland act went into effect June 1. The Texas act takes effect October 1.
 New Michigan Provisions
 Michigan amended its real estate license law to include new provis- ions as follows:
 1. Brokers who propose to en- gage in sales of a promotinal nature in Michigan of property located out- side of Michigan, must submit to the commission (the Michigan Cor i poration and Securities Commission, which administers the act) full par ticulars regarding such property and the proposed terms of sale, and they and their salesmen must comply with such rules, restrictions, and conditions pertaining thereto as the commission may improve. All ex- penses incurred by the commission in investiga ting such property and the proposed sale thereof in Michigan, shall be borne by the broker. No broker or salesman shall in any man. ner refer to the Michigan Corpora ton and Securities Commission, or to any officer or employe thereof, in selling, offering for gale, or advertising, or otherwise promoting the sale. nnrtgage or lease of any such property, nor make any repre- sentation whatsoever that such property has been inspected or ap- proved or otherwise passed upon by said commission, or by any state offi- cial, department or employe."
 2. No plan or scheme involving lotteries or drawings shall be used by any broker or salesman for the sale or promotion of sales of real estate"
 The Michigan Act provides that revocation of a brokers license shall automa tically suspend every real estate salesman's license grant, ed to any person by virtue of his employment by the broker whose license has been revoked, pending a change of employer and the issuance o ia 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 against fraud and incompetency in persons holding themselves out to the public as real estate brokers follow in gen. eral outline of model real estate license law proposed in l9l4-i9l5 by the National Association of Real Estate Boards.