BONDS ‑- LICENSES ‑- REAL ESTATE BROKERS AND SALESMEN.

BONDS ‑- LICENSES ‑- REAL ESTATE BROKERS AND SALESMEN.

Senate Bill repealing RCW 18.85.120 (2) eliminates the requirement of a bond as a prerequisite to the issuance of a real estate broker's, associate real estate broker's, or salesman's license, since RCW 18.85.300 does not impliedly require such a bond.

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                                                                  March 27, 1953

Honorable Della Urquhart
Director of Licenses
Olympia, Washington                                                                                                             Cite as:  AGO 51-53 No. 505

  Dear Madam:

             We are in receipt of your letter of March 25, 1953, in which you request an opinion whether the repeal of subdivision (2) of RCW 18.85.120 eliminates the necessity of procuring bonds as provided therein, in view of the provisions of RCW 18.85.300.

             It is our conclusion that RCW 18.85.300 does not require that real estate brokers, associate real estate brokers or salesmen be bonded, and that repeal of subsection (2) of RCW 18.85.120 eliminates this requirement.

                                                                      ANALYSIS

             RCW 18.85.120 provides that any person desiring to be a real estate broker, associate real estate broker or salesman must, among other things:

             "(2) Deliver to the director a bond to the State of Washington * * * executed by a surety company authorized to do business in this state, and to be approved by the director, guaranteeing the faithful accounting of all funds entrusted to the applicant."

             RCW 18.85.300 provides:

              [[Orig. Op. Page 2]]

            "Every bond given under the provisions of this chapter, after approval by the director, shall be filed in his office.  Any person who may be damaged by the wrongful conversion of trust funds by any real estate broker, associate real estate broker, or real estate salesman, shall, in addition to other legal remedies, have a right of action on such bond for all damages not exceeding five thousand dollars against a broker or one thousand dollars against a salesman.  The aggregate liability of the surety upon the bond of any real estate broker, associate real estate broker, or real estate salesman for all claims which may arise thereunder shall not exceed the sum specified therein."  (Emphasis supplied).

             The second statute merely provides for the filing of bonds given "under the provisions of this chapter," and for the right of action upon "such bonds" by the person aggrieved.  Nothing in this statute could be construed as requiring bonds to be acquired or maintained as a prerequisite to the validity of a broker's or salesman's license.

             It is our opinion that repeal of subsection (2) of RCW 18.85.120 eliminates the requirement of a bond as a prerequisite to the issuance of a real estate broker's, associate real estate broker's or salesman's license.

 Very truly yours,
DON EASTVOLD
Attorney General 

WILLIAM C. HALLIN
Assistant Attorney General