Show 1 TES NOW HAVE lEAL ESTA TE FRAUD LA a dI REALTORS fAl mRS BEGIN CAMPAIGN UPON ILLEGAL PRACTICE I If f I I Seek to Have Licenses Required of Salesmen Throughout U. U S. S I I i A man who sells the land on impossible Jm- Jm possible promises or false q I Is regarded as a a. criminal al 1 i y the law Jaw In two twenty states tates In Inti inthis ti this country S Silver tongued salesmen who part Widows and orphans or anyone else from theIr mone money for real estate deals tainted WIth fraud wildcat projects or land under Water can be put putout out or of business In near nearly half or of the states In the union The forced dishonest real estate men in en n states to refund re- re fund Sund nearl nearly to their vie vie- says sas the National Association C Real Estate Boards that has hns dl- dl I. I the campaign to oust un- un and Ignorant dealers from f this 1 profession u FO FOP real estate license laws mosta most r a at f them patterned on the model law lawI I Prepared by the assocIation are I row ow In effect In two twenty states f and one Canadian province pro as a are are- result re- re stIlt sult or of the efforts or of the association nd d these laws Jaws that require real es- es tote t men to have licenses In the Mime way as doctors are required tc is have ha licenses provide pro reg regulation laUon f fir r the dispensation of 01 houses and hots 1 ts In tho tha same wa way as the law 3 Ides lo regulation for the dispensation of pills pUIs and powders In most Plates the real estate licenses are sued sued only after aCter the applicant h has s shown his ability f to engage In thereal the thereal real estate business oreo Moreover these laws see to It that holders bolders of 01 licenses continue their upright ht ways was for tor not only must the tho certificates to do businesS businesS' be re- re eer year ear but they rc should the principles of 01 the law be violated be-violated at any time REALTOR TOR LIKE PHYSICiAN neal estate organizations that h have e fought the re regulations Jm- Jm by the license laws and brought their cases to the high courts have pled that the laws ws interfered In- In with the rIght of 01 IndIvidual freedom provIded for Cor In the federal d constitution But the right ot of the c commonwealth to worry about peo peo- Ole caught In fraudulent business deals has been beert upheld in Several se of 01 the highest state courts and twIce in Inthe the United States supreme court courton on the theory theory- that this Is a matter ot of public welfare The opinion or of the courts in upholding the lIce license se laws aws Js is based on the theory theor that th t the ther thereal r real al estate operator by reason reason of oC 1115 calling acts In as serIous a ca- ca In parting a client from hIs ravings as a doctor In parting a patIent patient pa- pa tIent from his app appendix Behind the license laws are strict standards that set forth what Is ethical and what is unethical In the conduct of 01 the real estate business and the effect ot of these laws lans Is twofold twofold two two- fold E By requiring applicants for licenses to to show proof or of their ability abil- abil ity Hy to eng engage ge In the real estate field laws aws bar ignorant people Who often orten with the best of IntentIons intentions do much harm as ulous people Then by providing commissions commissions' to whIch defrauded 4 c can n bring their complaints the laws provide pro constant policing of 01 holders ot of licenses who have e gone wron wrong And some states go even farther end do not walt waft for complaints from the public In one state the of officials l- l dais in charge of 01 enforcing enforcing- the real estate license laws Jaws go out In Ih the field and Inspect tracts acts of land about to he sold and ascertain whether or not the sales sales talk checks wIth what Js is being sold Another state bans advertising literature literature lit lit- that colors the tr truth th and still another wages a fIght against mIsleading newspaper advertising SPONSORED LAWS These laws jaws were not enacted as asa asa a result of 01 public demand The real estate Interests recognized the need conceived the laws Jaws worked to have I them passed and have fought to I have them sustained and enforced In order to o protect the public So the spectacle ot of the real estate man dragging hIs errIng brother to the courts of oC justice emblazonIng emblazonIng- his standards In the laws lans and nd discouraging discouraging aging no one knows how m many n unscrupulous unscrupulous un- un scrupulous or uninformed people from enterIng his business should reassure property property- owners throughout through through- out the UnIted States says the theReal theReal Real Estate associatIon In two twenty states and in British Brit Brit- ish Columbia to operate as a real estate dealer without securing a license Is a criminal offense This the gereral welfare say officials b by preventing thousands of DC Incompetent persons from holdIng holdIng- themselves out to the as qualified to advise lse on real estate problems and to negotiate real estate estate es- es tate transactions Repute Commissioner loner Shaw of 01 the California state stat real estate department department de- de reported In Inra May ra 1926 that applicants a took the writ writ- te ten examination for real estate licenses li- li censes censes 3 passed and 1 1589 89 failed This means that more than 1500 incompetent nt persons were prevented from enterIng the real estate business business busi- busi ness in In Inthe the state o of CalIfornia In one year rear as a result of 01 the license law i Moreover er the supreme court oc California has held that the state has a right under its its' constitution to require that all persons performing perform perform- Ing acts of real estate brokerage Including those performing such su h acts In Isolated or OI single must first procure a license thereby extending the laws law's protection tion to every real estate transaction In addition some states require that all applIcants for real estate licenses must tile file a satisfactory bond with the commissioner to the people of 01 the state duly dul executed by a sufficient surety surely for the faithful faith falth- tul ful performance of 01 any business undertaken IS as a real estate op- op In the states requiring such bond the amount varies arles from for e each ch thousand people In the parish where the applicant proposes proposes pro pro- poses to do business In Louisiana to 2500 2500 in Arizona other states requiring such bonds are re California Call Call- fornia Idaho Montana J Ohio Oregon Oregon Ore Ore- gon Utah Washington Wyoming and BrItish ColumbIa The model real real estate license law referred d' to toab ab recommends e a a. bond ond ot 1000 I PASSED FIRST LAW The state or of California passed the first real estate license law In 1919 Last year Jear the California real estate department In charge ot of enforcing enforcing en- en forcing the law stopped the sale fale of 01 over o acres aCles of land advertised as likely or of enhancement in value alue when the Boulder dam project Is completed The department investigating this development on behalf or of the public found the lard to DC be actually several hundred feet above the highest point that might might-be might be reached by y the Colorado river ri so that the construction of the dam could never benefit this a area ea In nine states those en enforcing the license law have ruled against so- so called tree free lot schemes that purport pur- pur port ort to give give away lots but actually make the lucky winners pa pay more than the value of what they won In such states licenses are refused firms engaged in such practices and If they have ha licenses and deal in free lots the lIcenses are revoked These states Include Ohio California Cali- Cali I fornia Illinois is New York New Jerse Jersey Michigan Florida FlorIda Flor- Flor Ida and North Carolina In the state of 01 Michigan the law has been evoked to stop the sale or of lots on unrecorded corded plats to obtain obtain ob- ob tain adjustments on contracts guaranteeing guaranteeing guar guar- certain Improvements where the ImProvements were not put In to stop the sale of large amounts of worthless land and to eliminate a great volume ot of blind and misleading newspaper adver- adver In the last month the state of 01 Florida set a precedent In legal annals annals an- an nals b by using an injunction to permanently per pr- force out of oC business two corporations that were were operating contrary to the stand standards set up In Inthe inthe the real leal estate licenSe law Judge Harry C. C Taylor Talor of the circuit court of 01 Polk count county Florida Issued a perpetual Injunction against two corporations operating as real estate estate es- es tate brokers The Florida real estate estate es- es tate commission prosecuted the case And the Ohio board of 01 real estate examiners who have In hand the enforcement of 01 the Ohio teal real estate license law recently Issued a warn warn- brokers who misrepresent the sale prices ot of land on Items given to the newspapers The rhe board poInted out that the evident purpose purpose pur- pur pose of thIs practice Is to deceive and lead the public Into believing believing- that the value of the property sold ana of C other nearby property is In Inex ex excess ess of its real worth and the board declares it will take action against brokers who make such misrepresentations In the future How LAWIS ENFORCED In state where the law has been most successful Its enforcement Is placed In the hands of a teal real estate estate es- es tate commission or a commissioner The law nearly always specifies specifics that these men have wide experience experience ence in real estate matters hearings hear Ilear- Ings are held bEfore the commissioners commissioners commis- commis at regular sessions the complaining ln person being gIven the opportunity of it personally presenting present present- i ing his Case himself lC with I or coun- coun I sel The broker or salesman is Is' Is given due notice of of the charges preferred against him and also given ghen the opportunity of being heard Unless the complainant wishes to engage an attorney there is no expense Involved and the dela delays de- de la lays s 's of court litigation are avoIded The rhe following states have license laws Alabama Arizona California Colorado Delaware FlorIda Georgia Geor- Geor Sla gia Idaho Illinois LouIsiana Michigan Mich- Mich Igan Montana New New Jersey New NewYork ew York North C Carolina Ohi Ohio Oregon Utah Virginia Washington n. n Wisconsin Wis- Wis S 'S I Proposed laws compelling real estate brok brokers rs to be by the state In which 1 the they practice are 1110 before before be- be fore the legislatures of 01 Kansas Iowa Rho Rhode e Island Maryland Connecticut Connecticut Con Con- Mississippi New Hampshire Hampshire Hamp- Hamp shire and Arkansas |