Maryland Real Estate Commission s2

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

May 20, 2009, 10:30 a.m.

Highlights from the meeting:

Current license count 49,925

Guaranty Fund balance $2,312,579.52

The Commission Check newsletter now posted

Technology upgrades planned in 2010

Discussion begins on 2010 legislative proposals

PRESENT:

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

Commissioner Nancy R. Simpers, Vice Chair (Industry)

Commissioner Anne S. Cooke (Industry)

Commissioner Surina Jordan (Consumer)

Commissioner Georgiana S. Tyler (Industry)

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 Robin L. Pirtle (Consumer)

Commissioner Colette P. Youngblood (Consumer)

PUBLIC IN ATTENDANCE:

Bob Johnston, AACAR

Donald White, MREEA & Pr Geo’s Comm Coll

Mark Feinroth, MAR

CALL TO ORDER:

J. Nicholas D’Ambrosia, Chair, called the meeting to order at 10:40 a.m.

APPROVAL OF MINUTES:

Motion (made by Nancy R. Simpers, seconded by Anne S. Cooke) To approve the minutes of the April 15, 2009 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 May 2009. Motion carried.

COMMITTEE REPORTS:

  1. Education – Georgiana S. Tyler, Education Chair

·  For the month of April 2009, 407 salesperson and 48 broker exams were administered by PSI, the testing vendor.

·  The Education Committee met on May 5, 2009 to add to continuing education regulations. A written report will be submitted at a future business meeting.

  1. Legislative – Anne S. Cooke, Legislative Chair – No report today

COMMENTS FROM EXECUTIVE DIRECTOR: Katherine F. Connelly

  1. Current license count totals 49,925, of which 4,959 are brokers, 3,241 are associate brokers, 40,668 salespersons, 780 branch offices, 3 timeshares, 58 reciprocal brokers, 18 reciprocal associate brokers, and 198 reciprocal salespersons. Of the total, 5,075 are inactive.
  2. The Guaranty Fund balance as of March 31, 2009 is $2,312,579.52.
  3. Responses to the Request for Proposals on the new exam contract are being reviewed by the evaluation committee. Oral presentations by bidders are planned for later this week. We are moving through this lengthy and time consuming project on schedule.
  4. The deadline to submit mileage and travel expenses is July 1.
  5. The quarterly newsletter was completed, posted, and e-notifications sent to licensees; lots of positive feedback. Thanks to Shannon Davis for its successful completion in less than 60 days from her arrival as Division outreach coordinator.
  6. Nothing received yet from New York on entering into a reciprocal agreement with Maryland. Many states are re-thinking reciprocal agreements and replacing them with at least the state portion of the exam.
  7. Recent travel/outreach – Ms. Connelly attended a Prince George’s County event in Lanham; taught a segment of a pre-licensing broker program; attended an ARELLO presentation at NAR’s conference in DC; and joined with Commissioners D’Ambrosia and Cooke at the ARELLO Mid-Year Meeting in Asheville NC. Ms. Connelly and Mr. Long visited a technology show at BWI looking at the latest products and equipment to enhance MREC’s complaint system.
  8. Mr. Long reported on a more secure way to transmit case files to Commissioners. In the past, case files were transmitted by paper, then disks, then flash drives. Now Mr. Long is working with the Department’s IT Unit for a secure file server. Documents will be downloaded to the secure server by staff and Commissioners will access using a secure pass code to log in. After review, the documents will delete. This newest program will be further explained at the June business meeting. It too is temporary until a new complaint system is in place.
  9. Looking ahead to use real estate’s IT funds in 2010, Ms. Connelly and Deputy Commissioner Harry Loleas met to identify MREC’s technology needs and wants. Programming is needed so more functions can be completed electronically rather than paper process, i.e., brokers want to e-terminate agents, apply for a branch office license, search of licensees by company name, electronic reciprocal applications, etc., all of which require IBM involvement and fees. Other technology requests are specific to the Department’s AS400 system.
  10. In response to a vote last month on the DC GRI, the Greater Capital Area Association of Realtors was advised of the Commissioners’ decision. GCAAR responded by asking to meet with the Education Committee. A meeting will be arranged.
  11. Commissioners were given a copy of the DLLR’s 2009 End of Session report, a synopsis of legislative issues important to the Department.

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  1. A May 19, 2009 article from Baltimoresun.com reported on the Baltimore City Council’s action of requiring more accurate disclosure of property taxes in real estate advertisements. A printout of the article was provided to the Commissioners.

COMMENTS FROM COUNSEL: Elizabeth Trimble

Counsel asked about the private designation Certified Distressed Property Experts, a designation owned by a Florida entity. Individuals completing this company’s training then promote themselves as “experts”. There may be possible violations of Maryland real estate laws or mortgage foreclosure/foreclosure rescues under PHIFA; there may also be advertising violations. After discussion, it was decided to develop Do’s and Don’ts for property foreclosure to give consumer and licensees guidance on activities and Maryland law. Counsel will confer with her staff attorneys as well as Commissioners to prepare a posting on MREC’s website and an article in the next newsletter.

COMMENTS FROM CHAIR: J. Nicholas D’Ambrosia

  1. The Chair thanked Shannon Davis for her good work on the second newsletter.
  2. The use of the term ECObroker has been reviewed and turned down by other states.
  3. The Washington DC Association of Realtors filed a lawsuit against the District of Columbia and the DC Real Estate Board for using the DC guaranty fund to cover a budget shortfall and then charging a $50 fee to licensees to replenish the fund.
  4. A decision is pending in the Supreme Court about federal bank exemption from state laws. This case was discussed at the ARELLO Asheville meeting. Counsel is tracking and will keep Commissioners advised of the outcome.

UNFINISHED BUSINESS:

There were numerous discussions at ARELLO about Virtual Office Websites (VOWs) and the many aspects of it – agent identity, website advertising, scams, hijacking property listings, money wired out of country, Craigslist postings, etc. ARELLO states are taking different approaches to regulation. To keep consumers and licensees informed, an article is planned for the next newsletter. When Commission staff receive complaints or anonymous mailings of websites, it is standard routine to contact brokers to bring the website into compliance. Repeat offenses result in a formal case against the licensee and broker.

NEW BUSINESS:

  1. Election of officers will be held at the June business meeting. The process is to either nominate a committee today to present a slate in June or to accept nominations from the floor in June. Commissioners agreed on nominations from the floor in June.
  2. Commissioners recommended re-proposing three pieces of legislation for the 2010 Legislative Session - teams; continuing education; and fees. It was decided to contact Senators to learn of their concerns, questions, or suggestions about these proposals which failed in the 2009 Session. Commissioners may submit other ideas for 2010 legislative proposals.

ADJOURNMENT:

There being no further business, the meeting adjourned at 12 noon on motion by Georgiana S. Tyler, seconded by Nancy R. Simpers. The next monthly business meeting is Wednesday, June 17, 2009.

APPROVED AS PRESENTED ______

J. Nicholas D’Ambrosia, Chairperson

APPROVED AS AMENDED ______

J. Nicholas D’Ambrosia, Chairperson

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