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 29, 2010, 10:30 a.m.

Highlights from the meeting:

Current license count 43,668

Guaranty Fund balance now $2,281,214.79

Disciplinary actions 2009 to present posted online

Affiliates terminate when broker fails to renew

PRESENT:

Commissioner Anne S. Cooke, Chair (Industry)

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 Georgiana S. Tyler (Industry)

Elizabeth Trimble, AAG, Counsel

Katherine F. Connelly, Executive Director

J. Steven Long, Assistant Executive Director

Patricia Hannon, Education Administrator, Session Recorder

ABSENT:

Commissioner Colette P. Youngblood (Consumer)

PUBLIC IN ATTENDANCE:

Mark Feinroth, MAR

Donald White, MREEA and Pr. Geo Comm Coll

Bob Johnston, AACAR

CALL TO ORDER:

Anne S. Cooke, Chair, called the meeting to order at 10:30 a.m.

APPROVAL OF MINUTES:

Motion (made by Nancy R. Simpers, seconded by J. Nicholas D’Ambrosia) To approve the minutes of the August 18, 2010 business meeting. Unanimous approval.

REPORT OF COMPLAINTS/ADMINISTRATIVE DISMISSALS:

Motion (made by Nancy R. Simpers , seconded by Jeff Thaler) To approve the Administrative Dismissals for the month of September 2010. Motion carried.

COMMITTEE REPORTS:

1. Education – Georgiana S. Tyler, Education Chair, read the education report. For the month of August 2010, PSI administered 456 salesperson and 27 broker exams. The comparison to August 2009 was 434 salespersons and 37 broker exams.

2. Legislative – J. Nicholas D’Ambrosia, Co-chair, asked if Commissioners would consider withdrawing, for now, the proposal to license property managers. More time is needed for gathering facts. After discussion, Motion (made by Marla S. Johnson, seconded by J. Nicholas D’Ambrosia) To withdraw the proposal from the legislative list for 2011 and continue to pursue the process to 2012. Amendment (made by Georgiana S. Tyler, seconded by J. Nicholas D’Ambrosia) And a Task Force formally assigned. All in favor; Motion passed with Amendment. Commissioners Johnson, Thaler, Youngblood, and Tyler will serve on the Task Force on Licensing of Property Managers. Executive Director Connelly asked Commissioners to email her any concerns or knowledge of property management situations in their areas and she will forward them on to the task force. Staff will begin collecting statistics from property management complaints.

COMMENTS FROM EXECUTIVE DIRECTOR: Katherine F. Connelly

1. Current license count totals 43,668, of which 4,759 are brokers, 3,135 are associate brokers, 35,006 salespersons, 545 branch offices, 6 time shares, 63 reciprocal brokers, 15 reciprocal associate brokers, and 139 reciprocal salespersons. Of the total license count, 4,254 are inactive licenses.

2. The Guaranty Fund balance as of July 31, 2010 was $2,276,954.79.

3. The Guaranty Fund balance as of August 31, 2010 was $2,281,214.79.

4. The Do’s & Don’ts for Teams and Groups was modified to include a definition of advertising and re-posted. Copy of the new posting was in Commissioners’ folders. Time was spent discussing how to determine when individuals are a team or group, even if they may not consider themselves to be one under the new law. A question was raised whether expanding the new definition of teams and groups is needed. Counsel recommended working with the new law, tracking concerns, and then revisiting in the future.

5. The Task Force to Develop an Agency Course has met twice, and the third meeting is October 15. The plan is to finalize the curriculum by November so that instructor training can be held in December.

6. The Task Force to Develop a Supervision Course held its first meeting on September 24. There are two other meetings planned. Many of these members also are serving on the Agency Task Force. Training of instructions is planned to begin in January.

7. The 2010 audit for continuing education hours has a 94 percent pass rate to date. Licensees are randomly selected when renewing and notified electronically to submit certificates.

8. Commissioners are reminded to complete the financial disclosure form and return it to the State Ethics Commission as required by law.

9. Outreach this month included visits to the Pen Mar region, a meeting with 50 managers in Timonium, to the ARELLO 2010 Annual Conference in Alaska, several sales offices, and the Harford County board. Future visits are planned for Cecil County and to the Keller Williams regional meeting of office managers. Ms. Connelly will also teach two upcoming continuing education classes.

10. State offices are closed Monday, October 11 in observation of Columbus Day.

11. MD REC is now uploading its licensing data base to the ARELLO search site. Consumers can learn about current, inactive, and expired licensees in Maryland as well as other states.

12. PSI continues to provide data on certain test questions in the state portion of the salesperson exam. A full report may be available next month.

13. Disciplinary Actions for Fiscal Periods 2009, 2010, and to date for 2011 will be posted on MD REC’s website shortly. Final orders will be posted for all cases as opposed to a summary.

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COMMENTS FROM COUNSEL:    Elizabeth Trimble

1. Clarification of Property Disclosure/Disclaimer Form for Condos and Co-ops – MAR asked for the Commission’s position on whether the Seller of a condominium or cooperative is required under § 10-701 of the Real Property Article to fill out a seller disclosure/disclaimer form.  This section applies only to single family residential real property improved by four or fewer single family units.  The Commission has always considered a condo or coop as a single family residential unit and therefore required that the form be provided to potential purchasers.

2. Rebates to Buyers – A licensee offering rebates to buyers questioned the requirement set forth in the notice on Incentives and Rebates posted on the MREC website that financial payments by a licensee to a party should be disclosed to the other party to the transaction even if they are not required to be recorded on the HUD-1 form.  The Commissioners affirmed this position, stating that it is important that all parties know of the financial arrangements between parties and licensees.

COMMENTS FROM CHAIR: Anne S. Cooke

1. The ARELLO Annual Conference, as usual, was informative. Attendees are welcomed at any of the various committee meetings. Among the programs attended by Chairwoman Cooke were social medial, fair housing, real estate practices, and unlicensed entities. Some states have Facebook pages. Is this an option for MD REC, not as a chat or for responses, just an information page? Ms. Connelly will pursue with the Department to see if it will be allowed.

2. The 2011 ARELLO Annual Conference will be held in Baltimore starting on September 28, 2011. Commissioners were asked for suggestions of what special events or places to visit in Baltimore; send to Chair Cooke. ARELLO staff will pursue the ideas.

3. An article for the website is needed about agents paying finder fees to unlicensed individuals.

4. Commissioner Marla Johnson was recently named “Realtor of the Year.”

UNFINISHED BUSINESS:

1. The comment period on the published continuing education regulations closed on Monday, September 27, 2010. Three education providers emailed comments and over 200 emails were from licensees, the majority of those emails were between Saturday and Monday. The responses of the three providers were given to Commissioners today. The remaining comments will be tabulated and emailed to Commissioners later in preparation for discussion at the October 20, 2010 business meeting.

2. Last month Commissioners agreed that adding two new topic categories are needed for the now required agency and supervision courses. Counsel presented a draft of the change for discussion, adding (h) and (i) to 09.11.06B(6). As to (h), the language was correct and would include courses related to principles of commercial agency. It was decided to label (i) as “Supervision by Broker, Branch Office Manager, Team Leaders.” There being no further changes, Motion (made by J. Nicholas D’Ambrosia, seconded by Marla S. Johnson) To accept the draft as changed. Unanimous approval.

3. Proposed legislation recommending three-year deadlines to reactivate and reinstate has been forwarded to Secretary Sanchez’s office for review.

NEW BUSINESS:

1. A request was made to add licensees who are suspended or revoked to the License Search function on MD REC’s website. Ms. Connelly will ask the Department’s IT Unit to add this feature.

2. Letters are going out to brokers who have allowed their licenses to expire while there are affiliates under them. Affiliates are notified that the license terminated with the broker and to transfer to a current broker or place the license on inactive.

3. Lotteries, drawings, give-aways at an open house – is this permitted and under what rules? Counsel will give guidance at next month’s meeting.

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4. MD REC’s website will be updated, along with all other board and commission web pages, to make navigating easier and quicker.

ADJOURNMENT:

There being no further business, the meeting adjourned at 12:15 pm. on motion by Georgiana S. Tyler, seconded by Nancy R. Simpers, and agreed by all. The next monthly business meeting is Wednesday, October 20, 2010

APPROVED AS PRESENTED ____________________________________________________

Anne S. Cooke, Chairperson

APPROVED AS AMENDED ______________________________________________________

Anne S. Cooke, Chairperson

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