Evening star., 1947-01-03
Realtors Study
D. {. Draft for
Tightening Law

Tightening Law
Commission Proposes.
6 Amendments, Asks
Prosecution of Hough
In the wake of the George H. vii.
liams bankruptcy over failure te
complete veterans housing, the Dis.
|trict Real Estate Commission today
Is moving on two fronts to protect
District property buyers and tenants
The commission, on the one hand
sent six proposed amendments te
the District Real Estate License Act
of 1887 to the Washington Rea
Estate Board for study.
At the same time, 1t asked Cor
poration Counsel Vernon West tx
begin prosecution of Stanley p
Hough on charges Of operating ir
the District without a license.
Hough was arrested on com.
plants Of three veterans charging
him with obtaining money under
false pretenses. The arrest came
Monday when he was addressing 9
veterans meeting.
Chairman Edward A. Dent of ths
commission said Hough did moi
have license to do real estate busi-
ness here and never had applied fol
one. He added, however, that the
commission felt 1t had enough evil
[dence to support charges that Hougt
had done business here without q
license.
Sets Experience Standards.
The proposed amendments to pu'
teeth into the real estate act are
/. Requiring that a salesman have
at least two years experience before
becoming broker. There is now
no experience qualification demand
ed for brokers.
2. Requiring that a salesman pass
a competency examination before
doing any business. He now can
be licensed without having to take
an examination for six months. Mr.
Dent said the idea behind the pres
ent provision is probably to give q
salesman some practical experience
before requiring him to prove
competency.
8. Changing the present language
to permit tougher examinations to
be given. Present law requires only
that salesman have a general and
fair" knowledge of the relationship
between agent and client. The
broker is required only to have an
elementary" knowledge of real
estate practices. Mr.. Dent said the
law does not now provide for exam
nations as such but requires deter
mination of competency which the
commission does by examination.
4. Requiring bigger bond of both
statesmen and brokers. Currently
the bond for statesmen is $1,000 anc
that for brokers $500.
5. Requiring maximum bond o1
the salesman or broker at all times
At present if a claim Is made against
an operator for less than the amount
of his bond and the surety company
pays of, the operatoras only covered
by the difference between thespaic
claim and the full amount Of the
bond
Requiring that ali' money re.
ceived by broker belonging to an
other person be placed in a sep
arate account and earmarked as 8
trust fund to be used solely for the
purpose for which it was given and
solely in the interest of the donor
This, Mr.. Dent explained, is de-
signed to protect a client making q
deposit against the use of the money
by the broker personally or for some
other project than that of the client
There is now nothing in the rea,
estate act protecting depositors, al.
though criminal action Is possible
against misuse in some cases, it was
explained.
Realty Boards to Report.
Mr.. Dent conferred with a com.
mittee of the Washington Real Es.
tate Board most of yesterday after.
noon on the suggested amendments
He said the committee, headed BY
William King, will report back te
the board for possible action.
Even without the proposed amend.
ments, Mr.. Dent told reporters, the
District now has a stronger real
estate licensing law than many
States. He praised the integrity Of
the profession here. pointing out
that of 1000 licenses, issued since
the act went into effect in 1887, only
20 claims have been made against
bonds.
While the commission chairman
said many of the amendments were
discussed last spring, he conceded
the Williams and Hough cases gave
impetus to consideration of thu
proposed changes. Williams wa.
declared bankrupt after being un.
able to deliver houses to veteran.
whose deposits he had accepted ane
failed to return. Hough also wa.
charged with failure to deliver
homes to veterans from whom HI
had taken deposits which he alleged.
ly had not returned.
In the meantime, MIR. Dent sale
he has invited Ernest Henry, di.
rector of the Home Builders Asso
citation, to meet with him at 1:3t
pm. Thursday on the proposed
amendments to the license law.
The District Real Estate Commits.
sion is the city government agency
for enforcing the license act.
School and Tru,
AT Lorton RefoI