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

JULY 21, 2010, 10:30 a.m.

Highlights from the meeting:

License count 44,276

GF balance $2,296,500.90

Total GF payout $153,388.08

Team/group issues addressed

Panel and committee re-appointments

PRESENT:

Commissioner J. Nicholas D’Ambrosia, Vice Chair (Industry)

Commissioner Marla S. Johnson (Industry)

Commissioner Juan Munoz (Consumer)

Commissioner Robin L. Pirtle (Consumer)

Commissioner Nancy R. Simpers (Industry)

Commissioner Jeff Thaler (Consumer)

Commissioner Colette P. Youngblood (Consumer)

Harry Loleas, Deputy Commissioner, O & P

Elizabeth Trimble, AAG, Counsel

Katherine F. Connelly, Executive Director

J. Steven Long, Assistant Executive Director

Patricia Hannon, Education Administrator, Session Recorder

ABSENT:

Commissioner Anne S. Cooke, Chair (Industry)

Commissioner Georgiana S. Tyler (Industry)

PUBLIC IN ATTENDANCE:

Donald White, Pr. Geo’s Comm Coll & MREEA

Joe DeLuca, Carroll County Assn Realtors

Mark Feinroth, MAR

Bob Johnston, AACAR

Lindsay Eastwood, DLS

CALL TO ORDER:

Vice Chair J. Nicholas D’Ambrosia called the meeting to order at 10:30 a.m. Anne S. Cooke, Chair, was absent today due of illness.

APPROVAL OF MINUTES:

Motion (made by Nancy R. Simpers, seconded by Colette P. Youngblood) To approve the minutes of the June 16, 2010 business meeting. Unanimous approval.

REPORT OF COMPLAINTS/ADMINISTRATIVE DISMISSALS:

Motion (made by Nancy R. Simpers, seconded by Marla S. Johnson) To approve the Administrative Dismissals for the month of July 2010. Motion carried.

COMMITTEE REPORTS:

1. Education – In the absence of Georgiana S. Tyler, Education Chair, the education report was read by Vice Chair D’Ambrosia. For the month of June 2010, PSI administered 498 salesperson and 41 broker exams.

• At last month’s meeting, Commissioners asked for a review of pass rates on the state portion of the salesperson exam because the pass rate for that portion has dropped since March 2010. The pass rates for the national portions of both the broker and salesperson exam have not dropped. No change in pass rate for out-of-state licensees taking Maryland’s salesperson state portion, so further study will look at Maryland students and the salesperson exam.

• An in-house confidential report was distributed to Commissioners with salesperson pass rates compiled from records of the Maryland Higher Education Commission for the period July 1, 2008 to June 30, 2009. The report listed each real estate career school, its number of graduates, the percent of students passing the state portion on the first attempt, and the percent passing the national portion.

2. Legislative – In the absence of Anne S. Cooke, Ms. Connelly relayed the Chair’s appointment of Commissioner D’Ambrosia and Commissioner Johnson as Co-chairs for the next year. Both accepted their appointment.

COMMENTS FROM EXECUTIVE DIRECTOR: Katherine F. Connelly

1. Current license count totals 44,276, of which 4,779 are brokers, 3,139 are associate brokers, 35,589 are salespersons, 550 branch offices, 5 timeshares, 61 reciprocal brokers, 14 reciprocal associate brokers, and 139 reciprocal salespersons. Of the total count, 4,393 are inactive.

2. Two Guaranty Fund balances were reported. On May 31, 2010 the balance was $2,414,534.66, and on June 30, 2010 the balance was $2,296,500.90. Total payout from real estate cases for the period July 1, 2009 to June 30, 2010 (FY 2010) was $153,388.08.

3. Meetings of the Task Force to Develop an Agency Course are scheduled for August 3 and 24 and September 7 at 2:00 p.m. in the second floor conference room at 500 North Calvert Street, Baltimore. Meetings are open to the public to follow the discussion from the audience.

4. The Task Force to Develop a Supervision Course could use additional members, and Commissioners were asked to make recommendations. This task force will meet on September 24, October 13, and November 10 at 2:00 p.m. in the second floor conference room of 500 North Calvert Street, Baltimore. Meetings are open to the public to follow the discussion from the audience.

5. A draft Do’s & Don’ts for Team and Groups was emailed to Commissioners for their comments. After discussion, a few edits were made. It will be posted on MD REC’s website and updated as needed. The term “realty” may not be part of a team name.

6. A disclosure form for teams and groups was prepared by Counsel. The purpose of the form is to notify a consumer who is represented by one team member that another member of the team is representing the other party in the transaction. Brokers have the responsibility to assure that buyers and sellers receive this notice, understand it, and give consent prior to the broker assigning intra-company agents from the team. For sellers, it is presented at the time of the listing; for buyers, before showing a property. This team notification form is in addition to the standard agency disclosure form used by a brokerage.

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7. The Commissioners reviewed advertisements from two teams. The first was a truck wrapped with advertising. It does not meet the new laws effective October 1, 2010, and the Executive Director will inform the licensee, who submitted the truck advertisement on behalf of the team, what needs to be changed. The second advertisement concerned the use of “real estate” in the team name and whether that could continue. All Commissioners agreed it is a problem and against the law on October 1.

8. As directed last month, Ms. Connelly contacted other states about the length of time their laws allow inactive or expired status and the requirements to return to active status. The responses were varied in number of years and in requirements to reactivate or reinstate. The Commissioners agreed with last month’s decision to propose legislation to change sections of Maryland real estate law from a 4-year limit to 3 years. Motion (made by Nancy R. Simpers, seconded by Robin L. Pirtle) To propose legislation changing the time to reactivate from 4 to 3 years and changing the time to reinstate from 4 to 3 years. All in favor; Motion passed.

9. Academy of Real Estate is the newest career school to be certified by the Maryland Higher Education Commission to offer 60 hours of classroom instruction in principles and practices for salespersons.

10. The September business meeting date is changed to September 29, 2010 to accommodate Industry Members who will attend the state conference.

11. A program was set up with PSI prior to 1998 that allowed pre-licensing schools to track statistics by location, resulting in multiple location codes for some schools. Under the new PSI exam contract, the multiple codes program has been discontinued and the schools involved have been notified of the return to one code per school.

12. The legislative auditors completed their 2-year review.

13. The Department of Legislative Services’ 10-year evaluation is continuing. Ms. Lindsay Eastwood is leading the evaluation.

14. Industry outreach this month – Ms. Connelly taught a continuing education course in Berlin, attended a general membership meeting of the Prince George’s County Board with Vice Chair D’Ambrosia, and met with regional managers in Baltimore City.

15. The Maryland Association of Realtors asked for clarification of digital signatures when there are no face-to-face meetings, all communication is electronic. Are digital signatures on Maryland forms legal or must the document be personally signed and faxed? After discussion, Counsel will research and advise at the August meeting.

16. Chairwoman Anne Cooke has re-appointed panels. Commissioners D’Ambrosia, Johnson, and Thaler are assigned to Panel #1. Commissioners Tyler, Pirtle, and Cooke will serve on Panel #2.

17. The Chair has appointed Commissioners D’Ambrosia and Johnson to serve as co-chairs of the Legislative Committee. The PHIFA Education Task Force has ended. All other committees remain the same.

COMMENTS FROM COUNSEL: Elizabeth Trimble

The continuing education regulations were sent to The Maryland Register for publication. No publication date yet, possibly in late August.

COMMENTS FROM CHAIR: Anne S. Cooke – previously relayed at today’s meeting by Executive Director in Chair’s absence

UNFINISHED BUSINESS: None

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NEW BUSINESS: None

ADJOURNMENT:

There being no further business, the meeting adjourned at 11:45 a.m on motion by Nancy R. Simpers, seconded by Jeff Thaler, and agreed by all. The next monthly business meeting is Wednesday, August 18, 2010.

APPROVED AS PRESENTED ____________________________________________________

Anne S. Cooke, Chairperson

APPROVED AS AMENDED ______________________________________________________

Anne S. Cooke, Chairperson

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