MARYLAND REAL ESTATE COMMISSION



MARYLAND REAL ESTATE COMMISSION

500 North Calvert Street

Baltimore, MD 21202

Mission: Protecting the health, safety, and welfare of the public

through examination, licensing, and regulatory activities regarding real estate

BUSINESS MEETING MINUTES

September 15, 2004, 10:30 a.m.

Highlights from the meeting:

Education requirements change on 10/1/04

Proposed regulation - form of advertising - published for comment

Proposed regulation - trade name in advertising - fails to be adopted

PRESENT:

Commissioner Steven VanGrack, Chair (Consumer)

Commissioner Sydney L. Machat, Vice Chair (Industry)

Commissioner Anne S. Cooke (Industry)

Commissioner Thomas E. Earnest (Industry)

Commissioner Stephen F. Kupres (Consumer)

Commissioner Kim A. Nunnally (Industry)

Commissioner Nancy R. Simpers (Industry)

Harry Loleas, Deputy Commissioner, O&P

Elizabeth Trimble, AAG, Counsel

Elizabeth A. Beggs, Executive Director

Jack L. Mull, Investigator

Steve Long, Investigator

John West, Complaint Administrator

Melissa Grissom, Clerical Assistant

Charlene Faison, Licensing

Patricia Hannon, Asst Director/Session Recorder

ABSENT:

Commissioner Tara Harrison (Consumer)

Commissioner Arthur M. Eisenstein (Consumer)

PUBLIC IN ATTENDANCE:

Mark Feinroth, MAR

Donald White, PG Comm College/MREEA

Robert Johnston, AACAR

Carolyn Cook, GBBR

CALL TO ORDER:

Chairman Steven VanGrack called the meeting to order at 10:35 a.m.

APPROVAL OF MINUTES:

Motion (made by Nancy R. Simpers, seconded by Thomas E. Earnest) To approve the minutes of the August 18, 2004 business meeting. Unanimous approval.

REPORT OF COMPLAINTS/ADMINISTRATIVE DISMISSALS:

Motion (made by Nancy R. Simpers, seconded by Anne S. Cooke) To approve the Administrative Dismissals for the month of September 2004. Motion carried.

COMMITTEE REPORTS:

1. Education – Education Chair Nancy R. Simpers reported

• Exam statistics for the month of August 2004. Commissioners received a copy of the exam report.

• The MAR/MREC subcommittee met on August 20, 2004. Notes from the meeting were distributed.

• The application form to submit distance education courses was finalized and will be mailed to approved providers of Maryland continuing education.

• MREC website clarifies new ethics continuing education requirement.

• Maryland approved prelicensing education providers will be notified to adjust their curriculum for salesperson and broker students to include mandated 3 clock hours of real estate ethics effective October 1, 2004.

2. Legislative - Harry Loleas reported that a notice was posted on MREC’s website about the proposed regulation on form of advertisement which was published September 3, 2004 in the Maryland Register. To increase communication, e-mails were sent to approximately 17,500 licensees who registered an e-mail address with MREC upon renewal or initial licensure. Information was also mailed to the local boards of the Maryland Association of Realtors. Commissioner Earnest asked if the Department could contact news agencies for a public service announcement or news article. Mr. Loleas will pursue Mr. Earnest’s request with the Department’s public information officer. Comments on the proposed regulation can be mailed to MREC’s office at 500 N Calvert Street, Baltimore 21202, faxed to 410-333-0023, or e-mailed to mrecregcomments@dllr.state.md.us. The deadline for comments is 5:00 p.m. on October 8, 2004.

3. Communications - Vice Chair Sydney Machat reported

• ARELLO’s distance education certification program will hold a seminar and workshop for education providers from October 1-2, 2004 in Pittsburgh, Pennsylvania. ARELLO certification is one way to verify delivery method of a distance education offering. To register or obtain information, go to .

• ARELLO’s Annual Conference is scheduled for October 2-5, 2004 in Pittsburgh.

REPORT OF EXECUTIVE DIRECTOR: Elizabeth A. Beggs

• Five new staff members were introduced: Jack Mull, investigator; Steve Long, investigator; Melissa Grissom, education and licensing; John West, complaint administrator; and Charlene Faison, licensing. Interviews for the auditor vacancy are completed; a selection will be made soon. Another investigator is still needed. Ms. Beggs expressed thanks to Secretary Fielder and Commissioner Safko for granting exceptions during the hiring freeze so that vacancies could be filled.

• Commissioner Earnest proposed ARELLO training for investigators and the complaint administrator. Ms. Beggs agreed but could not assure funds will be available. Ms. Trimble can arrange with the staff attorneys to give training.

COMMENTS FROM COUNSEL: Elizabeth Trimble

Ms. Trimble’s article on incentives and rebates was distributed to all Commissioners prior to posting on MREC’s website.

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COMMENTS FROM CHAIR: Steven VanGrack

The Chairman distributed a letter dated September 1, 2004 from Mary C. Antoun, Chief Executive Officer of the Maryland Association of Realtors regarding the proposed regulations on form of advertisements (meaningful/conspicuous and size of names). MAR will comment on the pending regulation during the public comment period, but the letter was submitted in advance to inform the Commission of the Association’s positions. No action was taken today on the issues raised in MAR’s letter. However, Commissioners shared opinions and concerns. Final action on the proposal is scheduled for the October 20, 2004 business meeting. Commissioners may decide to adopt as proposed, make non-substantive amendments and adopt, re-propose with substantive changes, withdraw, or defer a vote. In response to Mr. VanGrack’s questions, Counsel advised that change in size is a substantive change while effective date is not. The Attorney General’s Office is required to certify whether or not a change is substantive as part of the promulgation process. A re-proposal is not a problem or onerous. As the deadline for comments is October 8, 2004, the Chair asked for a summary of the comments to be sent to all Commissioners as soon as possible after October 8.

UNFINISHED BUSINESS:

Final Action on Trade Name in Advertising, which was published in the October 31, 2003 issue of the Maryland Register, was to amend .19 and add .24 under COMAR 09.11.01 and to amend .01 and .02 under COMAR 09.11.02. Final Action was not taken at the December 17, 2003 meeting as scheduled. The vote was deferred until today’s meeting. After review of the proposed language and consideration of alternate language, the October 31, 2003 proposed regulation failed to be adopted. In three instances outlined as follows, the Commission voted to substitute alternative language. The alternatives will be published as a re-proposed regulation which will be subject to a new public comment period.

• COMAR 09.11.01.19 was not adopted; 6 opposed, 1 abstained (Kupres) House Bill 701 (2004 General Assembly) clarified the use of “designated name” under 17-527.2.

• COMAR 09.11.01.24 on use of photographs was not adopted; 1 opposed (VanGrack), 2 in favor (Earnest, Cooke), 3 abstained (Kupres, Machat, Simpers). Alternative language proposed by Motion (made by Thomas E. Earnest, seconded by Anne S. Cooke) To approve language that in advertising a group or team, a licensee may not include the name or photograph of a group or team member if that person is unlicensed or is a licensee affiliated with another broker. Upon vote, 5 in favor, 2 abstained (VanGrack, Earnest). Motion passed.

• COMAR 09.11.01.01 on signing of documents was not adopted. Alternative language proposed by Motion (made by Thomas E. Earnest, seconded by Nancy R. Simpers) That all real estate documents shall be signed by a licensee in that person’s own name and may not be signed in the name of a group or team. Upon vote, all in favor; motion passed

• COMAR 09.11.01.02 on group/team disclosure was not adopted. Alternative language proposed by Motion (made by Thomas E. Earnest, seconded by Sydney Machat) That a licensee who provides real estate brokerage services in a group or team shall have the same disclosure requirements with regard to unlicensed members of the group or team as the licensee has with regard to members of the licensee’s firm. Upon vote, all in favor; motion passed.

Ms. Trimble will prepare the re-proposal.

NEW BUSINESS:

1. Commissioner Machat is a candidate for position as ARELLO’s Treasurer. Motion (made by Nancy R. Simpers, seconded by Kim A. Nunnally) that a letter of support be sent on behalf of Mr. Machat. All voted in favor. Motion passed.

2. Chairman VanGrack encouraged all Commissioners to attend the annual conference of the Maryland Association of Realtors in Ocean City, Maryland from September 20-22, 2004.

Page 3 of 4 9-15-04

ADJOURNMENT:

There being no further business, the meeting adjourned at 11:50 a.m. The next monthly business meeting is Wednesday, October 20, 2004.

APPROVED AS PRESENTED ____________________________________________________

Steven VanGrack, Chairman

APPROVED AS AMENDED ______________________________________________________

Steven VanGrack, Chairman

Page 4 of 4 9-15-04

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