Public No. 356, 75th Cong., Approved, Aug. 25, 1937- Public No. 295, 68th Cong., Approved, Dec. 13, 1924_ Public No. 481, 68th Cong., Approved, Feb. 26, 1925. Public No. 275, 69th Cong., Approved, May 22, 1926. Public No. 542, 69th Cong., Approved, Jan. 13, 1927. Public No. 801, 69th Cong., Approved, Mar. 4, 1927. Public No. 776, 69th Cong., Approved, Mar. 3, 1927. Public No. 833, 70th Cong., Approved, Feb. 27, 1929. Public No. 873, 70th Cong., Approved, Mar. 1, 1929- Public No. 144, 71st Cong., Approved, Apr. 18, 1930. Public No. 298, 69th Cong., Approved May 26, 1926- Public No. 1016, 70th Cong., Approved, Mar. 4, 1929. Public No. 392, 71st Cong., Approved, June 19, 1930- Public No. 440, 71st Cong., Approved, June 26, 1930- Public No. 532, 71st Cong., Approved, July 3, 1930- Public No. 732, 71st Cong., Approved, Feb. 25, 1931. Public No. 212, 72d Cong. (Extract), Approved, June 30, 1932. Public No. 53, 75th Cong., Approved, Apr. 27, 1937-- Public No. 428, 72d Cong. (Extract), Approved, Mar. 3, 1933. Public No. 442, 72d Cong. (Extract), Approved, Mar. 4, 1933. Public No. 405, 72d Cong., Approved, Mar. 1, 1933. Public No. 272, 73d Cong., Approved, June 4, 1934. Public No. 284, 73d Cong., Approved, June 4, 1934. Public No. 307, 73d Cong., Approved, June 12, 1934. Public No. 335, 73d Cong., Approved, June 13, 1934. Public No. 359, 73d Cong., Approved, June 15, 1934. Public No. 642, 75th Cong., Approved, June 16, 1938. Public No. 363, 73d Cong., Approved, June 16, 1934- Public No. 465, 73d Cong., Approved, June 25, 1934. Public Res. No. 49, 73d Cong., Approved, June 26, 1934_ Public No. 635, 74th Cong., Approved, June 3, 1936. Public No. 18, 74th Cong., Approved, Mar. 4, 1935. Public No. 24, 74th Cong., Approved, Apr. 5, 1935- Public No. 51, 74th Cong., Approved, May 6, 1935. Public No. 169, 74th Cong., Approved, June 27, 1935. Public No. 292, 74th Cong., Approved, Aug. 21, 1935. Public No. 259, 74th Cong., Approved, Aug. 9, 1935. Public No. 589, 75th Cong., Approved, June 11, 1938. Public Law 55. 77th Cong., Approved, May 9, 1941. Public Law 265, 77th Cong., Approved, Oct. 8, 1941. Public No. 268, 75th Cong., Approved, Aug. 12, 1937. Public No. 611, 75th Cong., Approved, June 15, 1938- Public Res. No. 14, 75th Cong., Approved, Mar. 24, 1937. Public Res. No. 95, 75th Cong., Approved, May 17, 1933- Public Res. No. 124, 75th Cong., Approved, June 22, 1938. Public Res. No. 107, 76th Cong., Approved, Oct. 22, 1940. Public Res. No. 9, 76th Cong., Approved, Apr. 13, 1939. Public Res. No. 91, 76th Cong., Approved, July 1, 1940. Public No. 148, 76th Cong., Approved, June 21, 1939- Public No. 377, 76th Cong., Approved, Aug. 10, 1939. Public No. 480, 76th Cong., Approved, Apr. 22, 1940- Public No. 681, 76th Cong., Approved, June 29, 1940- Public No. 741, 76th Cong., Approved, July 11, 1940- Public Law 64, 77th Cong., Approved, May 12, 1941. Public No. 65, 77th Cong., Approved, May 12, 1941. Public No. 264, 77th Cong., Approved, Sept. 26, 1941. Public No. 290, 77th Cong., Approved, Nov. 7, 1941. Public Law 521, 77th Cong., Approved, April 8, 1942. Public No. 707, 77th Cong., Approved, Sept. 3, 1942- Public No. 838, 77th Cong., Approved, Dec. 24, 1942. Public No. 846, 77th Cong., Approved, Dec. 24, 1942. Public No. 32, 78th Cong., Approved, Apr. 10, 1943- Public No. 648, 79th Cong., Approved, Aug. 7, 1946- Public No. 33, 80th Cong., Approved, Apr. 15, 1947. Public No. 533, 80th Cong., Approved, May 18, 1948- Public No. 760, 80th Cong., Approved, June 24, 1948. Public No. 10, 81st Cong., Approved, Feb. 25, 1949- Public No. 377, 81st Cong., Approved, Oct. 25, 1949. Public No. 408, 81st Cong., Approved, Oct. 26, 1949. Public No. 424, 81st Cong., Approved, Oct. 28, 1949- Page [CHAPTER 760-1ST SESSION] [H. R. 6563] AN ACT To define, regulate, and license real-estate brokers, business chance brokers, and real-estate salesmen; to create a Real Estate Commission in the District of Columbia; to protect the public against fraud in real-estate transactions; and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, ENACTMENT AND PROHIBITION CLAUSE SECTION 1. That on and after ninety days from the date of enactment of this Act it shall be unlawful in the District of Columbia for any person, firm, partnership, copartnership, association, or corporation (foreign or domestic) to act as a real-estate broker, business chance broker, or real-estate salesman, or to advertise or assume to act as such, without a license issued by the Real Estate Commission of the District of Columbia. DEFINITIONS AND EXCEPTIONS SEC. 2. Whenever used in this Act "real-estate broker" means any person, firm, association, partnership, or corporation (foreign or domestic) who, for another and for a fee, commission, or other valuable consideration, or who, with the intention or in the expectation or upon the promise of receiving or collecting a fee, commission, or other valuable consideration, lists for sale, sells, exchanges, purchases, rents, or leases or offers or attempts or agrees to negotiate a sale, exchange, purchase, lease, or rental of an estate or interest in real estate, or collects or offers or attempts or agrees to collect rent or income for the use of real estate, or negotiates or offers or attempts or agrees to negotiate, a loan secured or to be secured by a mortgage, deed of trust, or other encumbrance upon or transfer of real estate: Provided, however, That this definition shall not apply to the sale of space for advertising of real estate in any newspaper, magazine, or other publication. A "business chance broker" within the meaning of this Act is any person, firm, partnership, association, copartnership, or corporation who for a compensation or valuable consideration sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others as a whole or partial vocation. "Real-estate salesman" means a person employed by a licensed real-estate broker to list for sale, sell, or offer for sale, to buy or offer to buy, or to negotiate the purchase or sale, or exchange of real estate, or to negotiate a loan on real estate, or to lease or rent or offer to lease, rent, or place for rent, any real estate, or collect or offer or attempt to collect rent or income for the use of real estate for or in behalf of such real-estate broker. Persons employed, by a licensed real-estate broker in a clerical capacity, as collectors, or in similar subordinate and administrative positions shall not be required to obtain licenses. One act for a compensation or valuable consideration of buying or selling real estate for or of another, or offering for another to buy, sell, or exchange real estate, or leasing, renting, or offering to lease or rent real estate, except as herein specifically excepted, shall constitute the person, firm, partnership, copartnership, association, or corporation performing, or offering or attempting to perform any of the acts enumerated herein, a real-estate broker or a real-estate salesman within the meaning of this Act. The provisions of this Act shall not apply to receivers, referees, administrators, executors, guardians, trustees, or other persons appointed or acting under the judgment or order of any court; or public officers while performing their official duty, or attorneys at law in the ordinary practice of their profession. CREATION OF COMMISSION SEC. 3. There is hereby created the Real Estate Commission of the District of Columbia. The Commissioners of the District of Columbia within thirty days after the enactment of this Act shall appoint two persons, not more than one of whom shall have been actively engaged in or closely connected with the business or vocation of real-estate broker or real-estate salesman within five years immediately prior to appointment, who shall serve as members of said Real Estate Commission of the District of Columbia. In addition thereto, the assessor of the District of Columbia shall serve, ex-officio, as a member of said Real Estate Commission but without added compensation for his services as such. One member of said Commission shall be appointed for a term of one year; one member shall be appointed for a term of two years, and until their successors are appointed and qualified; thereafter the term of the members of said Commission shall be for three years and until their successors are appointed and qualified. Members to fill vacancies shall be appointed for the unexpired term. The Commissioners of the District of Columbia may remove members of the Real Estate Commission at any time for cause. The assessor, ex-officio, shall be the chairman of said Real Estate Commission, which is hereby authorized and empowered to elect a treasurer of said Commission and to do all things necessary and convenient for carrying into effect the provisions of this Act and the rules and regulations promulgated from time to time by the Commissioners. The Commissioners of the District of Columbia shall employ and remove at their pleasure a secretary and such assistants as shall be deemed necessary to discharge the duties imposed by the provisions of this Act and shall prescribe their duties and fix their compensation in accordance with the provisions of the Classification Act of 1923, as amended. The Commissioners of the District of Columbia shall provide for the use of the Real Estate Commission such office space, furniture, stationery, fuel, light, and other proper conveniences as shall be reasonably necessary for carrying out the provisions of this Act. The Commission shall adopt a seal with such design as it may prescribe engraved thereon by which it shall authenticate its proceedings. Copies of all records and papers in the office of the Commission, duly certified and authenticated by the seal of said Commission, shall be received in evidence in all courts equally and with like effect as the original. The Commission shall keep a record of all its proceedings and a complete stenographic record of all hearings authorized under this Act. All records kept in the office of the Commission under authority of this Act shall be open to public inspection under reasonable rules and regulations to be prescribed by the Commission. Each member of the Commission, except the ex-officio member, shall receive an allowance at the rate of $10 for each day of seven hours such member is actually engaged in the performance of duties as a member of the Commission: Provided, however, That no member shall receive in any one year a sum greater than $2,000. The payment of such allowance shall be made from any unexpended balance in the treasury of said Commission remaining on June 30 of the year during which the services have been rendered, and if the unexpended balance is insufficient to meet the total amount of such allowance the rate of compensation shall be reduced to a rate which will permit payment from such unexpended balance. Such expenses shall in no event exceed the total receipts; and if at the close of each fiscal year any funds unexpended in excess of the sum of $1,000 shall be paid into the Treasury of the United States to the credit of the District of Columbia: Provided, That no expenses incurred under this Act shall be a charge against the funds of the United States or the District of Columbia. All fees and charges payable under the provisions of this Act shall be paid to the treasurer of the Commission. The Commission. is hereby authorized to refund any license fee or tax, or portion thereof, erroneously paid or collected under this Act. It shall be the duty of the auditor of the District of Columbia to audit the accounts of the Commission at the end of each fiscal year and make a report thereof in writing to the Commissioners of the District of Columbia. The said auditor shall have free access to all books of accounts, papers, and records of the said Commission. The Commissioners of the District of Columbia are hereby authorized and empowered to make and enforce, revise, or repeal whatever reasonable regulations may be necessary to carry out the provisions of this Act. QUALIFICATIONS FOR LICENSE SEC. 4. No license under the provisions of this Act shall be issued to any person who has not attained the age of twenty-one years, nor to any person who cannot read, write, and understand the English language; nor until the Commission has received satisfactory proof that the applicant is trustworthy and competent to transact the business of a real-estate broker or real-estate salesman in such a manner as to safeguard the interests of the public. In determining competency, the Commission shall require proof that the applicant for a broker's license has a fair understanding of the general purposes and effect of deeds, mortgages, land contracts of sale and leases, a general and fair understanding of the obligations 99812°-38--16 |