OFFICE OF THE ATTORNEY QENERAL OF l-E=
AUSTIN
Honorable Wallace Soott
Seourltle~ Conulllsslonar
Secretary of State*e Office
Austin, Taxer
Dear sir:
lers* Lioenae Act?
requ,mting en opia-
ea 18 herein otetaa
har been reoe
tar ea r0110ws;
this office requested
ment as to whether
Hanaook hwxil =a
n No,. o-19e5, rtetea:
prorlfalons or the above man-
t a0 not apply to, ana the
eal F$statc Dealer” and “Reel
Estate Saleman= as above aetinea by
the statute, a0 not inelude any person
or co5pwly who,a8 owner or lessor,
perfonrj. any of the act8 eet out in Seo-
tion 2, Subdivision {a) with reference
Honorable Wall800 SOott, Page 2
to property owned or leaoed by them,
or to the regular elz;loyees thereof
with r+ierenoe to the property owned
or leaoed by such person or coqmy
where such acts am performd in the
regular course of, or as imident to,
the manage;;ent of such property and
the investment therein, unless such
perecn or ooclpany is engaged in the
bual>.ess of buyfng, selling, exchang-
ing, leasing, or rent.lng ar r,ropTrty
and holding hlmaelt or itself out as
a full or pert-tLne deal.er in ma1
estate. Ws believe ?hat the buying,
selllrg, exchanging, leasing, or xent-
lng or property obtained under fore-
olosure proceedings by the oo.r,paniea
above named or Like oompanles would be
acts performed In the regular course
of, or as lnoident to, the managePrent
or suoh property anb the lnvestaient
therein.
~Therefore , you are respectfully
advised that it in the oplnlon of thie
department that the John Eancocrk Eutucll
Insurance aoqany and the Jerferron
Standard Life, Health and AaoiCent In-
surance Coffipany and like oo&panles when
engaged in the above luentlxed acts would
not be subject to the Real Zstate Deal-
ers Lioense Aat.*
“This depertmnt would now appreolete your
opinion as to whether or not the execlptlon fn sub-
dfvistsn (a) of Saatlon 2 with referenoe to prop-
erty owned or leased by thes or to the regular effi-
plcyees thereof with reference to property owned
or leased by such pemoc or ompany where such
aots are prformd in the regular oourse oi or aa
pertaining to the management of such property and
investment therein extend3 to the negotiation of
loans by suah company. You state in your opinion
aa Quoted abeve that suoh oonpaniea would not be
subject to the Act when en&aged in buying, eell-
ing, exchaiiglng, leaalng or renting of property
ot~:mined under Ioraoloaura prooeedln~:s by such oom-
Qany .
Honorable Wallace Soott, Page 3
%ueh ooliipanias in ad&ition to the act:vi
ties referred to in your opinion quoted above
are also engage6 in the solicltatlon of loans,
the mney lent being lltoney of such cozr+aoies.
"he would,
therefore, appreolate your aa-
vice now BY to
whether by negotlatisn of loans
of their own eoney, they become subjeot to the
Real E&ate Dealers' Lioenne Act?"
The applicable portlohs OS Howe Bill No. 17,
aa passed by the Forty-sixth Legislature, aol;z~only known
and cited as "The Real.Estate Dealers' License Act" are
quoted In our opinion No. O-1925. Vie are enclosing a copy
of this opinion and will not quote the applicable portions
thereor above referred to.
Gpinion No. O-1925, su~ra, holde ~that the buying,
aelllng, exchanging, leaslhg, or renting of property ob-
tained under foreolosure prooeedlhgs by the companies above
named or like oor;panles would be aots performed in the regn-
lar course, or a6 inoiaent to, the management of suoh prop-
erty and the investment therein and that the John Henoook
Mutual Insurance Company and the Jelferson Standard Life,
Health and AcOibnt Insurance Company and like companies
when engaged in the above mentioned eats would not be aub-
jeot to the Real Estate Dealers1 License Aot.
IF. the request we now have uoder oonslderation,
we have a question alfferent fro&i the question presented
in the original inquiry in Opinion ?;o. O-1925 and one that
was not passed upon in that opinion.
Subtilvlsisn (a) of Section 2 of House Rlll No. 17,
as passed by the Forty-sixth Legislature, aupra, among other
things spaoifioully provides that:
"The tern *Zeal Estate Dealer' shall ln-
elude every person or ooppany, other than a
salesz.an, and licensed and registered attor-
nws. who for another or others for oortipensa-
tion or other vai%able consideration, . . .
negotiates, or offera, or attempts, or agrees
to negotiate a loan, secured or to be scoured
by rrortgage or other ineubrance u9on the
trszafer of raslestate: . . ."
Ronorable Wallace Scott, Page 4
It will be noted under the above quoted pro-
Vision of Aoxse Bill 1~0. 17, Acts of the Forty-sixth Legls-
lature, supra, that the term "Real Estate Dealer" inoludes
every person or oompsny, other than a salesman, and licensed
and registered attorneys, who for another or others for com-
pensation or other valuable OOnSiderati~m, negotiates, or
offers, or attempts, or agrees to negotiate a loan, secured
or to be seaured by mortgage or other inoumbranoe upon the
real estate are lnoluded within the definition of the term
"Real Estnte Dealer". We are of the opinion that sub -division
(a) of Section 2 of House Bill No. 17, supra, olearly doe8
not by its terms Inolude a person or company who negotiates
loans of their own money.
Therefore, your, question is respectfully answered
In the negative.
Trusting that the foregoing fully answers your in-
quiry, we are
Yours very truly
ATTORREYGENERAL OF TEXAS
ByeoA
Ardell Wllllame
Assistant
APPROVEDJUN 7, 1940
Ul3---+/
ATTORNEYGENERALOr' TEXAS
COMMITTEE