A Stake in the Land

by Peter A. Speek

PUBLIC REGULATION OF LAND DEALING

In the field investigation, the main questions of immigrants desiring to settle on land seemed to be where to find land of the "right kind," and how, in acquiring it, to avoid being cheated by private land sellers. The questions as to whether there was land available and what its price was were of minor importance. In many cases the immigrants had been employed in war industries and had saved money enough to buy a farm, but they were unable to decide where to settle and what kind of land to buy because they feared land sellers. Their experience with these agents had awakened an almost universal fear of private land dealers.

To facilitate the access to land, the private land-dealing trade must be put upon a higher level. There must be Federal legislation regulating land dealers doing business in two or more states, state legislation for dealers doing business within one state only, and municipal legislation for the land dealers doing business within the city limits only. Through co-operation of these governments uniformity of such legislation can be secured and maintained so far as various local conditions and peculiarities allow.

Such regulative legislation should aim at doing away with misrepresentation and frauds in land dealing. As an effective assistance in the enforcement of the laws all private land dealers should be licensed, interstate dealers by the Federal, state dealers by the state, and city dealers by the city governments. By refusing or recalling licenses a considerable number of land sharks—get-rich-quick charlatans in the real-estate business—can be sifted out of the trade and the necessary confidence on the part of land seekers can be secured.

According to a report made in 1916 by the Committee on State Legislation of the National Association of Real Estate Boards, a sentiment was then growing in most parts of the country favoring the enactment of laws for the regulation of real-estate brokerages under state authority. This sentiment is still growing, and the secretary of the association says that realtors in several states continue to introduce bills in their legislatures with the belief that it will be possible to pass them.

In only one state has such a law passed. The state of Wisconsin enacted a law in 1919 [18] which provides for the establishment of a state real-estate brokers' board consisting of three members, at least two of whom are real-estate brokers in the state, appointed by the Governor. The Director of Immigration, Department of Agriculture, acts as secretary to the board. The latter issues licenses to the real-estate brokers and salesmen doing business in the state. An annual license fee of ten dollars from a broker and five dollars from a salesman is required. License may be refused or revoked by the board for misstatement in application, for fraud or fraudulent practices, for untrustworthiness or incompetence in real-estate business.

The board receives complaints against any real-estate broker or salesman. It may conduct hearings and investigations, subpœna and compel the attendance and testimony of witnesses and production of documents, books and papers. The board shall, from time to time, publish the names of licensed real-estate brokers and salesmen, with information as to when each license expires. The publication shall include the names of those real-estate brokers and salesmen whose licenses have been revoked at any time within one year prior to the time of the issue of publication.

This Wisconsin Real Estate Licensing law has been in operation a year. Mr. B. G. Packer, Director of Immigration, and secretary to the Real Estate Brokers' Board, gave to the writer the following information in regard to the results of the operation of the law so far.

This law requires registration of all real-estate brokers and salesmen doing business in the state. In the past there was no way to tell who they were or where located. The license is good for one year, and thereupon a new application must be made. This gives the board a check on the dealer's operations the preceding year. The board requires him to cite all legal actions arising out of his real-estate business whether he was plaintiff or defendant.

It is a common practice with some dealers to take a judgment note for commission which can be entered up without process and execution levied against the property of the defendants. The defendant can open up the judgment and put in a defense if he can show misrepresentation and fraud. This year, when several applicants applied for new licenses, the board found this condition and the licenses were refused.