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

FEBRUARY 16, 2011, 10:30 a.m.

Highlights from the meeting:

Proposed legislation

Current license count now 42,596

GF balance $2,246,028.95; $27,795 claims paid

Task Force to develop Agency-Commercial

Final Action on CE regulations March 16

NAEBA asks for changes to new agency form

E-blast on agency disclosure at open house

PRESENT:

Commissioner Anne S. Cooke, Chair (Industry)

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

Commissioner Marla S. Johnson (Industry)

Commissioner Robin L. Pirtle (Consumer)

Commissioner Nancy R. Simpers (Industry)

Commissioner Georgiana S. Tyler (Industry)

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 Juan Munoz (Consumer)

Commissioner Jeff Thaler (Consumer)

PUBLIC IN ATTENDANCE:

Robert Johnston, AACAR

Donald White, P G Comm Coll, MREEA

Mark Feinroth, MAR

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 Robin L. Pirtle) To approve the minutes of the January 19, 2011 business meeting. Unanimous approval.

REPORT OF COMPLAINTS/ADMINISTRATIVE DISMISSALS:

Motion (made by Nancy R. Simpers, seconded by Georgiana S. Tyler) To approve the Administrative Dismissals for the month of February 2011. Motion carried.

COMMITTEE REPORTS:

1. Education – Georgiana S. Tyler, Education Chair, read the education report. For the month of January 2011, PSI administered 297 salesperson and 24 broker exams, compared to 342 sales and 39 broker exams in January 2010.

2. Legislative – J. Nicholas D’Ambrosia/Marla Johnson, Legislative Co-Chairs

• SB 285 “State Real Estate Commission-Reinstatement of Licenses and Inactive Status” alters the time period to 3 years within which a licensee must reinstate or reactivate. MAR reports its position is to propose that an inactive licensee complete continuing education in order to renew inactive but to allow 4 years. Motion (made by Georgiana S. Tyler, seconded by J. Nicholas D’Ambrosia) To leave as is and 3 years for both. All in favor; Motion passed. A hearing is scheduled for February 17 at 1 p.m. before the Senate Education, Health & Environmental Affairs Committee.

• HB 1049 “Real Estate Brokers-Intracompany Agents” authorizes a designee of a real estate broker to designate two members of a team as intracompany agents, provided the broker’s designee is not a member of the team. Discussion, and then Motion (made by Georgiana S. Tyler and seconded by Colette P. Youngblood) To clarify that the designee cannot be a member of the team. All agreed. Motion passed. The hearing is scheduled for March 15 at 1 p.m. before the House Economic Matters Committee.

• SB 210 “Real Estate Settlements-Paying or Receiving Consideration-Penalties” amends the Real Property Article to allow for disciplinary actions by the appropriate licensing authority. The hearing was held yesterday before the Senate Finance Committee.

• SB 234/HB 357 “State Real Estate Commission-Sunset Extension and Program Evaluation” extends the law to 2022 and includes raising the amount recoverable for any claim to $50,000. MAR reports its position is to keep the current $25,000 limit. Discussion and then Motion (made by Georgiana S. Tyler and seconded by Marla S. Johnson) To support $50,000 and correct the typo on the $5 fee. All in favor. Motion passed. The Senate bill is scheduled for hearing on February 17; the House bill on February 22.

COMMENTS FROM EXECUTIVE DIRECTOR: Katherine F. Connelly

• Current license count totals 42,596, of which 4,736 are brokers, 3,100 are associate brokers, 33,903 salespersons, 633 branch offices, 7 time share developers, 64 reciprocal brokers, 15 reciprocal associate brokers, and 138 reciprocal salespersons. Of the total count, 4,180 are inactive.

• Guaranty Fund balance as of January 31, 2011 was $2,246,028.95 after paying claims of $27,795.00

• Two Supervision training courses were rescheduled because of snow. The last session is February 18. The list of trained instructors and the final curriculum will be sent to Maryland schools and boards. Classes are expected to start March 1.

• At least 15 submissions for MREC Agency-Residential classes have been approved so far and more requests are expected. The feedback on this Agency training project has been positive and should bring about improved understanding and practice.

• Commissioners are required by the State Ethics Law to file a financial disclosure statement prior to April 30, 2011. The statement covers Calendar Year 2010. The form is filed electronically at .

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• Ms. Connelly traveled to Arizona at the end of January to participate in PSI’s evaluation of the national portion of its real estate exam. Evaluators included industry members and state regulators. When agency questions were examined, if a question was too state specific, it was eliminated.

• PSI and MREC staff will meet tomorrow to discuss the statistics and pass rates for the Maryland portion of the salesperson exam.

• Ms. Connelly will attend the mid-year meeting of ARELLO in Destin, Florida, April 4-6, 2011.

• Ms. Connelly taught continuing education classes at the Mid-Shore Board, Women’s Council, and MREEA.

• Three committees have completed their work – Task Force to Review Agency Forms; Task Force to Develop a Supervision Course; and Task Force to Develop an Agency Course.

• A new task force is needed to develop an Agency-Commercial version. Commissioners Youngblood, Johnson, and Simpers agreed to serve on this new committee.

• Maryland Association of Realtors agreed to review advertisements before allowing for publication in their magazine.

• Assistant Director Long and Auditor Richardson met with one of the brokers about his supervision practices as advertised in the MAR magazine. The broker agreed to clarify his advertisement. The second broker was also contacted about supervision of affiliates in his advertising with MAR.

• A third broker was contacted and notified of the obvious real estate violations on a salesperson’s personal website Potomac Secret Agent. The broker was unaware of the website and will take appropriate action.

• New automatic email to current, inactive licensees gives 90 days advance notice that the 4-year inactive term is about to expire. The same notice is mailed.

• Amendments to the proposed continuing education regulations were published in the January 14, 2011 issue of the Maryland Register. Comments were due by February 14, 2011, and one education provider responded. Commissioners received a copy of these comments and a history of their past actions on the CE proposal since February 2010. Counsel will review and advise Commissioners in advance of the March 16, 2011 business meeting, when Final Action will be taken.

• The President of the National Association of Exclusive Buyer Agents asked for changes to the new agency disclosure form. The form is in compliance with current Maryland law and will remain as posted.

COMMENTS FROM COUNSEL: Elizabeth Trimble

Counsel relayed a question from a licensee about provisions of 17-322(b)(11) on “net” return. Situations where tiers of commission would not violate the law were considered. Counsel will respond to the caller and will prepare an article on this subject for posting.

COMMENTS FROM CHAIR: Anne S. Cooke – None at this time

UNFINISHED BUSINESS:

1. Status of Supervision training reported under Executive Director Connelly’s report.

2. Instructions for approval of Agency in Legislative Update and pre-licensing courses

• Agency in MD Legislative Update courses must be taught by a trained MREC Agency instructor;

• All other courses related to buyer or seller representation, buyer brokers, generic agency can be approved for professional enhancement, Topic (f) provided the information is not Maryland specific. Maryland specific requires a trained MREC Agency instructor; the education provider is held responsible for instruction which is not in compliance with Maryland agency law.

• Agency sessions of pre-licensing courses will be considered at a later meeting.

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3. Discussion of the West Virginia reciprocal agreement postponed until March.

4. Ms. Trimble reviewed the Washington Post article. MAR reported that their Legal Counsel Katsky has contacted the writer of the article.

5. Counsel will send to Commissioners a draft of changes to COMAR 09.11.02.02D for discussion at the March business meeting.

6. MD REC recently sent an e-mail blast to brokers about conduct under the agency disclosure law at an open house. Brokers were instructed to forward the e-notice to all affiliates. The notice generated calls and emails to Commissioner D’Ambrosia disagreeing with MREC’s notice. Mr. D’Ambrosia prepared written comments which the other Commissioners agreed was helpful and will be used should they also receive calls.

NEW BUSINESS: None

ADJOURNMENT:

There being no further business, the meeting adjourned at 12:15 p.m. on motion by Nancy R. Simpers, seconded by Colette S. Youngblood, and agreed by all. The next monthly business meeting is Wednesday, March 16, 2011.

APPROVED AS PRESENTED ____________________________________________________

Anne S. Cooke, Chairperson

APPROVED AS AMENDED ______________________________________________________

Anne S. Cooke, Chairperson

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