Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN
Eon. Tom L. Senuohaap
Seoratary of State
Awtin, Texas
Attention: 'dr. Frank D. Xear
/A\ Dear Sir:
Oplnlon Ao. O-1673 Rer Ehetiier th ir, a
rporaion, *real oatate ealar- on9 the ‘Real r 6, 1939, re~ueet- t as whether or not the 3care 1 Farm Loan Asrools- estate 8alesaan~ tlon is a l ma
t la the gReal at8 46th Legis- letter ar r0imf88 al Land Bank and the Faderal Palm atioa, under the ~rorblons of tha make loam throughout the .:t&e 0r tiy th6s8 10~8 r8suit in r00rs- he deed of trust liens soouting we6 and are rold at Trusteo’a ralo by an agent and/or attorney la faot appointed by owner and holdor oi the lndebto&wa at whloh in many instanaol), the Fedoral Land bnnk tlw tha iedsral tan81 Eortg8ge Ccmporation beoossr the puro!mrser at rueh sale. After suah a #alo
urohaase by the Fodrral Land Bank bdoral % am Eortgagr Corporation, much land8 are orrered for rale ?rderal Bank or Fedoral *2 Xoa. Tom L. Beauohamp, PaSO 2. Mortgage Corporation through SearetaPy-
Treasurrr of the Natlonel Farm Loan Assoalatlon through mhloh the loan ra8 flnanood. A aomml88loa 18 pal& to ruoh Seoretary-Treasurer for the handllng and.sals of such laad8.
Wnder the raots 8tnted above is the Sooretary- Treawrm oi Batloaal Pam Iaan Arroolatlon, by reason of handling the sale above rafrrred to In behalf of aueh aorporatlon8, a real estnto doal- er 8alesman under the prorl8ions of Act required to obtoln a llaense iron the administrator of the Seourltloe Dlr1810aPS
In order to he.?re all the root8 before ua, we hnve oalled the 100~1 offloe of the Xatlonal Farm Loan Asaoolatlon and t-lked with the aotlne; Secretary-Treaaurx, Er, Ike 0. Y;llllain8. Aocordlw to Mr. k'llll&ns, the aeore- tary-treasurers sell land for the FederaJ Bank and the Feberal Pane Mortgage Corporation on a oommlseion basis, and retaln the aomlsslon as tt&lr personal funds. iuttiog it In Xr. ivllllanwl own words, they aot a8 any other real eetete salesman would act ln the sale of property rot a client, aotl they act In their lndlrldual oapaaltles and not tn their :fflolal oapaolty a8 secretary-treasurer of an assoolatlon.
The statutory authorization ior the organization ot Xatlonal Faxn Loan aswalatlonr, gmerally, 18 oontalned In motion8 911 to 961, lnaluelre, Title U, United States Code Annotkted. The pumers and dutle8 of the reorstary- treaourer are outlined in 8eotlon 714, and the powers of the assoolatlon are outlined In seotlo?l 761. 27owherr la the statutory prorislons hare we found whore the rearstary- treasurer, in hi8 oapaalty a8 ruoh, 1s authorized to 8011 land elthw for the Federal Lend Bank, the Federal Farm Eortgage Corporation, or any other pcr8on or oorporatlon. iB there fmy power be found whereby a 8atlonal
Hsitlmr ram Loan assoolatlon oan~ sell land tor any of t$o organlza- tlons or person8 enumerntod. For there additional reasons, It appear8 that when the reoretary-trumurar ot a National Farm Loan 88oolatlon sell8 land an outllnad above, he muat.aat in his lndlrldual oapaolty, and not In hi8 repro- rentatlre oapaalty.
NO quote applicable provision8 ot the "Real Eatate Daalrrr License Aot* a8 iollowrt
. -
Xon. Tom L. Boauahasp, Faga 3.
~900. 2. The fOllOWlIig tOXm.8 shall, WI1088 the aontart OthOlUi8O indioat88, hsro the iOliOW- lng raanlngflr
lnolu;a!ia~lI. ;hent~Po;m; fs~;t:rDaalor* ehall OaY h than a
YW salo8Ma, and lloonsad and rogi8t8rad attorneys, who for enothar or others tor aomansatlon or other valuable oon8ldaration, or who with the intention or in the 8xpaotatioo or upon the pro- ml80 0r raoolrlng or oollootln~ oompensatlon or other valuable oonalderatlon, llsta ror 8al0, 80118~ l sohango8, buys, rants, or Or rOrS, aftenptr, or agrees to wgotinto a eala, exohange, purohaae, JI rsntal 0r an estate or lnterast in real 8tat0, or oollaots, or 0rrar8, or attempts, or a-se8 to 00110ct rent for the us8 or real ast*ta, or nogotletes, or uffere, or atteqts, to ne&otiate a loan, 8aourad or to be or agrees secured by ,mortgge or other lnousbrnnos upon or trnn8ror 0r real astfkte; or auotlons, or OrrOrSl or atta31pt8, or agrees to auotlon any raal a8tnta; cr appralsaa, or OfiOrS, or attouqts, or agrees to appraise any real estcto; or uho mivertlsea, or holds itself, hlrself, or themselves out aa engaGed ln business of selling, erahang- lng, buying, ranting, or leasing rocl ostcta, or 86616t8 or directs in the prcourlng of proapeats, or tha nagotlatlon or oloslng 0r any tren8aotlon whioh does or is aaloulatad to rasult In the olos- in6 of any transaotlon which doar or 18 Oeloulat- ad ro8ult in the sale, oxohenge, laasing, or renting 0r any re?l est*to, or who buy8 or offers to buy, solla or orrars to sell, or othemlsa deals in options on 1~31 estate or in lmprora- ments thereon. . . .
"SdO. 9. The provlBlonB thle Aot shall not apply to, and tts terms ‘Iieal Eetata Paalar* sod 'Iiaal E8tata Salasaan,' as abave bailned, shall not lnoludot
“(a). Any parson or ddapqny yho, aa owner or 1OSSGr, she11 porrorm any 0r cots set out in Section 2, SUbdlvl8lOn (81 with rerOr4na4 to property owned or lOaBed them, to the rorr;u.ler 05rrloyoes thereor with r8~arOnaO to the property ownad laa8od by rush person or oompany
-76 Ron. Tom L. Bear;abasp, Pnga 4.
whore ruoh aots art por~ormsd in the ragulnr oLoursa of, or as lnoidant to, #a management ot SUOh Droxmrty and the investsent therein, unless suoh parson or oomww Is engaged in the bualnoaa of baying, salllng~ aiohangln$~ laaslng, or ranting of proparty and holdin& hla~olf or lt- BOir out as a full part-time dealer in real Ohdar8aorlng bum. I o8tato.~ You art roapaotd9lly advised that In the oplnlon 0r this department, a 8eorot~~ry-traasurar 0r a liatlonal Fara Loan a88ooiatlon is a mronl eBtat0 danlar,g as that tom; is daflnod in Sootlon 2 (al (11, quoted above alnoo' suo3 parson is a peroon who for mother or others 1 ror the Faderel Land Beak and the i'aderal Xortgnge Corpora- tlon),,nith the axpeotatlon of reaolrln~ a rslwblo con- sideration (for a ao.m.iasionl, sells or orrers or agrees to negotiate a sale 0r an estate or i ntaroat In real aatata, and that such a sooretery-treasurer is not a ra.\ilar en>loyaa of a person or oompziny s;~.g*god in tha nvo8 3T--Ek- axid menagezont ot its owa property, desorlbad la Seotlon 3 (al 0r acrid Aot. It follow& that suoh n aeorotary- treasurer must obtnin a real estrta daelarls license.
Trusting that this cl.tas you the desired lnfonaa- tiOu, we Brt
Tours vary truly ATTO~~ GE’-ZXL OF TEUS AsSistant J??xpbp