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

April 16, 2008, 10:30 a.m.

Highlights from the meeting:

Carpio and Tyler appointed Commissioners

Progress of 2008 legislation

Current license count is 55,263

Guaranty Fund balance reaches $2, 128,592.55

$11,200 received to date for CE audit penalties

PRESENT:

Commissioner Nancy R. Simpers, Chair (Industry)

Commissioner Stephen F. Kupres, Vice Chair (Consumer)

Commissioner Abraham Fernando Carpio (Consumer)

Commissioner Anne S. Cooke (Industry)

Commissioner J. Nicholas D’Ambrosia (Industry)

Commissioner Surina Jordan (Consumer)

Commissioner Sydney L. Machat (Industry)

Commissioner Georgiana S. Tyler (Industry)

Commissioner Colette P. Youngblood (Consumer)

Harry Loleas, Deputy Commissioner, O P

Susan Cherry, Assistant Attorney General

Katherine F. Connelly, Executive Director

Steve Long, Assistant Executive Director

Patricia Hannon, Education Administrator, Session Recorder

ABSENT:

Elizabeth Trimble, AAG, Counsel

PUBLIC IN ATTENDANCE:

Robert Johnston, AACAR

Mark Feinroth, MAR

Donald White, MREEA & PC Comm Coll

Rhonda Hottle, Carruthers Academy of Real Estate

Carolyn Cook, GBBR

CALL TO ORDER:

Nancy R. Simpers, Chair, called the meeting to order at 10:40 a.m. Ms. Simpers welcomed and introduced two new Commissioners: Georgiana S. Tyler, Industry Member representing Baltimore City, and Abraham Fernando Carpio, Consumer Member residing in Prince George’s County.

APPROVAL OF MINUTES:

Motion (made by Colette P. Youngblood, seconded by J. Nicholas D’Ambrosia) To approve the minutes of the March 19, 2008 business meeting. Unanimous approval.

REPORT OF COMPLAINTS/ADMINISTRATIVE DISMISSALS:

Motion (made by J. Nicholas D’Ambrosia, seconded by Colette P. Youngblood) To approve the Administrative Dismissals for the month of April 2008. Motion carried.

COMMITTEE REPORTS:

  1. Education – J. Nicholas D’Ambrosia, Education Chair – In March 2008, 560 salesperson and 52 broker exams were administered by PSI, the testing contractor. Commissioner D’Ambrosia requested Maryland Higher Education Commission’s FY2007 annual report on private career schools. Ms. Hannon will contact MHEC for a copy.
  2. Legislative – Anne S. Cooke, Legislative Chair, and Harry Loleas, Deputy Commissioner of O&P – the following bills passed and are awaiting the Governor’s signature:

·  HB566/SB132 allows distance learning instruction by various delivery methods for principles and practices for salespersons

·  HB626 does not alter 17-322 but increases fines in steps to $25,000 for a third offense; also adds agency disclosure to the list under 17-613.

·  HB1316/SB762 establishes five years for recordkeeping and specific criteria for electronic records.

·  HB1557/SB1008 creates a registration requirement/guaranty fund for homebuilder sales agents under the Attorney General’s Office/Homebuilder Registration Unit; and removes the responsibility from the Maryland Real Estate Brokers Act.

·  SB181 authorizes MREC to immediately suspend a license under 17-328 for a felony conviction, failure to disclose a felony conviction, or failure to disclose within 10 days of conviction or release from incarceration; misdemeanor language was removed from the bill. As emergency legislation, it will take effect immediately if signed by Governor O’Malley.

·  The May and June business meetings will be the time to discuss ideas to present to Secretary Perez for the 2009 legislative session.

COMMENTS FROM EXECUTIVE DIRECTOR: Katherine F. Connelly

  1. Current license count is 55,263. There are presently 5,010 brokers (an increase), 3,264 associate brokers, 46,059 salespersons, 752 branch offices, 37 reciprocal brokers, 13 reciprocal associate brokers, and 128 reciprocal salespersons. Inactive license base is 4,639.
  2. The Guaranty Fund balance as of February 29, 2008 is $2,138,592.55.
  3. 2006 Continuing Education Audit – all consent agreements have been mailed. So far, 5 have been returned signed and terms met; 7 have verbally agreed to sign and pay; and 5 were able to prove compliance. The deadline for responses is April 17, 2008. After that date, charges will be filed and hearings scheduled. Fines and penalties collected so far total $11,200.00.
  4. The consent orders to licensees who failed the 2005 continuing education audit will go out soon.
  5. The ARELLO mid-year meeting will be held April 24-26, 2008 in Pasadena, California. Executive Director Connelly and Commissioners Jordan, Cooke, and D’Ambrosia will represent MREC. Commissioner Machat attends as President of ARELLO.
  6. Two ARELLOGRAMS are in each Commissioner’s folder.
  7. Industry Outreach – Ms. Connelly attended the 150th anniversary celebration of the Greater Baltimore Board of Realtors, the first real estate board in the nation; joint meeting of brokers and agents in Anne Arundel County; the Rookie Real Estate Conference with Commissioners Cooke and D’Ambrosia.

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  1. Future industry outreach will include the Maryland Association of Realtors’ brokerage outreach in May and various regional brokerage meetings.
  2. Other Outreach – Ms. Connelly testified in Annapolis on HB181; met with members of Maryland Real Estate Educators’ Association at their April 4, 2008 meeting to answer questions presented in advance about real estate education, complaints, auditing, and legislation; Ms. Hannon also participated.
  3. Ms. Connelly contacted the Virginia Real Estate Board, was advised the draft of the Maryland-Virginia reciprocal agreement is under review by their counsel, and will await a response.
  4. After many months and lots of work by the Department’s IT Unit, the program for a complaint management system utilizing the Department’s AS400 will not operate on everyone’s computer (equipment incompatibility).

COMMENTS FROM COUNSEL: - no report today in Ms. Trimble’s absence.

COMMENTS FROM CHAIR: Nancy R. Simpers

  1. For newly appointed Commissioners Carpio and Tyler, who learned today about an on-going continuing education audit, Ms. Simpers summarized the process that staff is following under the guidance of Commissioners and Counsel.
  2. Cecil County Association of Realtors’ convention will be May 1, 2008. Continuing education programs will be offered and are approved for credit hours toward renewal.

UNFINISHED BUSINESS:

  1. Commissioner D’Ambrosia advised that Commissioners Tyler and Cooke and Brokers Michael Yerman and Alexander Karavasilis have agreed to serve on the Teams & Groups Task Force.
  2. Commissioner Cooke asked how long continuing education certificates should be kept. It was decided a five-year retention would be consistent with recently passed legislation.
  3. Deputy Commissioner Loleas announced that, within the next year, he expects to have a program in operation which will randomly select a licensee, upon completion of a renewal, for audit and hold the renewal in pending until compliance is validated.

NEW BUSINESS:

  1. While attending the upcoming ARELLO meeting in Pasadena, Commissioner D’Ambrosia will query other state regulators and ARELLO staff about distance learning programs for principles and practices for salespersons. Distributed today were Maryland Higher Education Commission’s regulations on distance learning for career training. Distance learning discussion will be placed on the agenda for the May business meeting.
  2. Commissioner Kupres’ term as a Consumer Member will end on May 31, 2008. Because he will be out of town for the May meeting, he thanked everyone for their help during his almost five years on the Commission. In turn, Commissioners, staff, and visitors offered good wishes and appreciation for his dedicated, voluntary service.

ADJOURNMENT:

There being no further business, the meeting adjourned at 11:30 a.m. The next monthly business meeting is Wednesday, May 21, 2008.

APPROVED AS PRESENTED ______

Nancy R. Simpers, Chairperson

APPROVED AS AMENDED ______

Nancy R. Simpers, Chairperson

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