« ForrigeFortsett »
MAY 12 1917
Received through the
Bureau for Municipal Research
THE BUREAU OF DEPARTMENT REPORTS has begun its
PERSONAL REQUESTS for information relating to various
REAL ESTATE BROKERS
House Bill No. 1073-Providing for Requiring Licenses to Conduct Business in Cities and Towns of Over 5000 Inhabitants. Referred to Committee on Mercantile Affairs; Hearing Scheduled for Feb. 17.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
Sec. 1. The secretary of the commonwealth shall establish a department or bureau which shall be maintained under the direction of the insurance commissioner; and for the purposes of this act the said insurance commissioner shall also be constituted and known as the commissioner of brokers' licenses.
Sec. 2. The commissioner may, with the approval of the Governor and council, appoint, and with their consent remove a deputy who shall receive an annual salary, to be fixed by the commissioner, but not to exceed $2500, who shall perform the duties of the bureau, subject to the direction and authority of the said insurance commissioner.
Sec. 3. It shall be unlawful for any person, firm or corporation engage with the public in the business of buying, selling, renting, leasing or mortgaging real estate or soliciting for the purpose of buying, selling, renting, leasing or mortgaging of real estate, as an agent or representative for any other person, firm or corporation, whereby he shall receive any compensation, commission or consideration for such negotiation or agency, nor shall any person, firm or corporation advertise or set himself, themselves or itself forth to the public for the conducting of such business; nor shall any perSon, firm or corporation engage in the business of buying, selling or renting of established business chances or enterprises, including lodging houses, as an agent for any other person, firm or corporation whereby he shall receive any compensation, commission or consideration for such negotiation or agency; nor shall any person, firm or corporation advertise or set himself or themselves forth for the conducting of such business without first obtaining from the commissioner a license so to do, which license shall state that all the requirements of the laws of this state relative to real estate brokers cr agents have been complied with, and authorizing him or it to do
business as a real estate broker or agent. This certificate of authority shall also give the city or town, together with the street and number, if any, of the principal place of business of the person, firm, company or corporation to whom it is issued.
Sec. 4. Any person, firm, company or corporation desiring to do business under the provisions of this act shall present an application for authority therefor to the secretary of state, which application shall give the name of the applicant, postoffice address, the name and place of the city, together with the street and number thereof, if any, which application shall be indorsed by at least 10 reputable citizens and taxpayers of the county wherein such applicant shal! desire to have his or its principal place of business. Said indorsement shall state that the applicant has been known to each and every such signer for a period of not less than one year, and that they believe such applicant to be of good reputation and a proper person to transact business as a real estate broker or agent. Such applicant must also pledge that he will maintain an office for the transaction of his business. Such licenses to be granted for a term of one year.
Sec. 5. Any person, firm, company or corporation receiving a certificate of authority to do business under the provisions of this act shall be responsible for the acts of any and all of his or its employes while acting as his or its agents.
There shall be paid to the secretary of state for the issuing of the certificate of authority provided for in this act, and the filing of the necessary papers in connection with the issuance of such certificate, a fee of $15, which shall be paid by the applicant at the time of presenting his application and indorsement, and there shall be a further license fee of $5 per annum for each person, firm, company or corporation receiving a certificate of authority under this act.
There shall also be filed at the time of presenting an application and indorsement for a certificate of authority under the provisions of this act a good and sufficient surety bond running to the people of the state of Massachusetts for the sum of $1000, which bond shall be conditioned upon the faithful observance of all the laws and statutes relative to real estate brokers and agents. Said bond shall remain in the office of the secretary of state, in his custody, and shall be open to the inspection of any one during office hours.
The certificate of authority and license granted hereunder to any person, firm, company or corporation shall permit the conduct
of business by not more than three individuals under one license, except that the secretary of state may issue licenses for salesmen on payment of $5 per annum for each license, which shall be granted only upon the application of any person, firm, company or corporation authorized to do business under this act, which license shall continue during the fiscal year in which it is issued or unless revoked sooner for cause, or upon the application of the person, firm, company or corporation upon whose application said salesman's license was issued.
Sec. 6. The secretary of state is hereby given power to revoke any certificate of authority granted under this act whenever any person, firm, company or corporation shall be found to be irresponsible or shall violate any of the provisions of this act, or for any other cause which shall be found to justify the revocation of said certificate, provided that the secretary of state shall, upon application, give all parties interested a hearing before him before any certificate shall be revoked, which hearing must be heard not more than 30 days from the time the secretary of state shall have notice of any cause for the revocation of any such certificate of authority, and provided, further, that the person or persons presenting such charges shall give a good and sufficient bond to cover costs of said hearing in the amount of $500, providing the charges are not sustained.
See. 7. Provided, further. that all persons, firms, companies or corporations doing business in the state at the time of passage of this act shall have 90 days in which to comply with its provisions, after which time no license shall be granted within less than 30 days from the date of application for same. All licenses shall be issued or applications rejected within 60 days from the time they are received by the insurance commissioner; any person who is refused a license shall have the right to a public hearing before said commissioner, and shall be allowed to examine matters relative to his case.
Sec. 8. Any person, firm, company or corporation, or any member, employe, officer or director thereof who shall do or attempt to do any business of real estate agent or broker within this state without first having received the certificate of authority provided for in this act shall be deemed guilty of a misdemeanor and shall be fined in any sum not exceeding $500, or committed to the county jail for not more than 90 days, or both such fine and imprisonment, and any person convicted of the violation of the provisions of this act shall have, and is hereby given, the right of appeal as provided in other cases of misdemeanor.
Sec. 9. All fees received by the commissioner for such licenses
shall be applied to the maintenance of such extra assistance or bureau as the secretary may employ or create to carry out the purposes and intents of this act, and the balance, if any, to be paid into the treasury of the commonwealth.
Sec. 10. Whoever for compensation, not being the owner of the property involved, acts or aids in any manner in negotiating the sale, transfer, renting, leasing or trading or the making or procuring loans on any property for any person other than himself shall be considered a real estate broker or agent under the provisions of this act, and no person shall act as such broker or agent unless licensed and bonded as herein provided.
Sec. 11. This act shall not be construed to apply to lawyers, trustees, guardians, executors or administrators or their employes in the specific fulfillment of their duties as such.
Sec. 12. This act shall apply only to cities or towns of 5000 or more inhabitants, and shall take effect on Sept. 1, 1916.