Real Estate Auctioneers

33 Pa. D. & C. 435
CourtPennsylvania Department of Justice
DecidedSeptember 16, 1938
StatusPublished

This text of 33 Pa. D. & C. 435 (Real Estate Auctioneers) is published on Counsel Stack Legal Research, covering Pennsylvania Department of Justice primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Real Estate Auctioneers, 33 Pa. D. & C. 435 (Pa. 1938).

Opinion

Bard, Attorney General,

— I have before me your request to be advised as to whether auctioneers who pay a county license tax must obtain a State real estate broker’s license to engage in, or carry on the business, or act in the capacity of real estate auctioneer.

You have submitted for my attention a clipping from the “New Era”, a newspaper published at Lancaster, Pa., which is captioned “Autocratic Government”, and consists of a letter sent by an H. Frank Eshleman to the editor of that paper. The clipping states, in part, as follows:

“Our country auctioneers who have been selling real estate in settlement of estates or generally, must have a real estate broker’s license or a real estate salesman’s license. An auctioneer’s license will not do. Formerly it was held by Deputy Attorney General Schnader that this act did not include auctioneers. See 13 D. & C. 439. He held they could auction real estate without license other than auctioneer’s license.”

You also attach to your request a letter from H. Frank Eshleman, attorney at law, Lancaster, Pa., dated July 7, 1938. I quote the entire first paragraph of Mr. Eshleman’s letter.

“A considerable heat and excitement has been created here among attorneys for executors and administrators, etc., in the settlement of estates by reason of the department refusing auctioneers the right to call auctions of real estate unless they have a real estate salesman’s license under the Act of 1929, P. L. 1216. There surely must be a distinction between a real estate salesman and an ordinary auctioneer.”

You also enclose a letter from Albert E. Enck, Hope-land, Pa., dated August 17, 1938. I quote in part from Mr. Enck’s letter.

“My business is an auctioneer, and I am licensed as an auctioneer in Lancaster County where I do auctioneering only; therefore according to the act that you [437]*437send me I do not need to register in your Bureau under section B. 2-C. I am only hired by the owner of the property to sell in public only to the highest bidder. Under this exception in the act I do not see that I need another license to auctioneer in addition to the one I now have.”

You also enclose a letter from Mr. Amos K. Waser, Manheim, Pa., dated August 11, 1938. I quote in part from Mr. Waser’s letter.

“Why were not the auctioneers advised of the law and the exemption period Sep. 30, 1937? I doubt very much if one out of a hundred rural auctioneers know of this act which is now claimed to involve them.

“Do you mean to say that no free holder can offer his property at public auction unless he employs a real estate broker, who in turn employs an auctioneer to sell the property for the property owner?”

You also enclosed a letter from A. W. Reese, attorney at law, Lancaster, Pa., dated July 18, 1938. Mr. Reese asks advice about the Act of July 2, 1937, P. L. 2811. I quote in part from his letter.

“Most real estate sales are public sales of real estate sold under order of the orphans’ court in the settlement of estates. . . .”

You also enclosed a letter from Hon. Samuel E. Bertolet, attorney at law, Reading, Pa., dated August 3,1938. I quote in part from Mr. Bertolet’s letter.

“He is one of the old style country auctioneers who cries public sales of farm stocks and farms, when requested.
“Mr. Goodhart takes out a license as auctioneer every year, paying the legal fee therefor. This is under the Act of June 26, 1873, P. L. (1874) 332, sec. 1; and the Act of May 5, 1921, P. L. 406, sec. 1.
“Now comes the Act of July 2, 1937, P. L. 2811 (Act No. 590), amending section 2 of the Act of May 1, 1929, P. L. 1216, in which the term ‘real estate broker’ is defined [438]*438to include ‘all real estate auctioneers, and real estate appraisers’.”

As stated in the letters above referred to this question involves an interpretation of the amendment made by the Act of July 2, 1937, P. L. 2811, sec. 1, amending section 2(a) of the Real Estate Brokers License Act of 1929, supra, in which the term “real estate broker” is defined to include real estate auctioneers. I quote more fully that part of the section with which we are concerned.

“The term ‘real estate broker’ shall also include . . . all real estate auctioneers.”

Reference is made in the letters to the sale of real estate in the orphans’ court by the order of that court. Section 2(c) of the act provides as follows:

“Neither of the said terms ‘real estate broker’ or ‘real estate salesman’ shall be held to include within the meaning of this act . . . in any way, attorneys at law and justices of the peace, nor shall they be held to include any receiver, trustee in bankruptcy, administrator or executor, or any other person or corporation acting under the appointment or order of any court, or as trustee under the authority of a will or deed of trust where only the transactions pertaining thereto are involved.”

The Act of June 26, 1873, supra, referred to in the letters provides in part as follows:

“. . . auctioneers shall be rated with merchandise brokers, and in lieu of all commissions heretofore directed to be paid by them, shall pay, in the same manner as brokers, a license tax similar to that paid by said brokers, and no other”.

The Act of 1873 was amended May 5, 1921, P. L. 406, sec. 1, by inserting the following proviso:

“. . . nothing in this act contained shall be construed to require the licensing of or the payment of a license tax by any auctioneer for selling live stock or farm implements.”

[439]*439The clipping from the “New Era” makes reference to the case of Real Estate Brokers’ Licenses, 13 D. & C. 439, an opinion by Special Deputy Attorney General Schnader, under date of January 2,1930. We quote that part of the opinion which is pertinent to this discussion.

“1. Does an auctioneer who occasionally sells real estate, as an auctioneer, require a broker’s license?
“Auctioneers must be licensed under the Act of May 5,1921, P. L. 406. Having been thus licensed, they may, in our opinion, sell at auction property of any character without any further license. This includes real estate as well as personal property.
“The Real Estate Brokers’ License Act does not specifically mention auctioneers, and, in our judgment, they do not come within the definition of ‘real estate brokers’ contained in section 2(a) of the act, if their transactions in connection with real estate are confined to sales at auction. If, however, they sell real estate or offer it for sale otherwise than at auction, they come within the purview of the act.”

The exemption referred to in one of the letters concerns section 6 of the Act of 1937, which provides as follows:

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Bluebook (online)
33 Pa. D. & C. 435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/real-estate-auctioneers-padeptjust-1938.