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

MARCH 15, 2006, 10:30 a.m.

Highlights from the meeting:

Nunnally resigns

52,428 current licensees

Legislation update

PRESENT:

Commissioner Nancy R. Simpers, Chair (Industry)

Commissioner Steven VanGrack, Vice Chair (Consumer)

Commissioner Anne S. Cooke (Industry)

Commissioner J. Nicholas D’Ambrosia (Industry)

Commissioner Arthur M. Eisenstein (Consumer)

Commissioner Kim A. Nunnally (Industry)

Commissioner Colette P. Youngblood (Consumer)

Elizabeth Trimble, AAG, Counsel

Patricia Hannon, Asst Director/Session Recorder

John West, Complaint Administrator

ABSENT:

Commissioner Stephen F. Kupres (Consumer)

Commissioner Sydney L. Machat (Industry)

Joseph Sliwka, Acting Commissioner, O & P

Harry Loleas, Deputy Commissioner, O & P

PUBLIC IN ATTENDANCE:

Robert Johnston, AACAR

Don White, MREEA & PG Comm College

Mark Feinroth, MAR

Stuart Rogal, Rogal Real Estate, Inc.

CALL TO ORDER:

Nancy R. Simpers, Chair, called the meeting to order at 10:35 a.m.

APPROVAL OF MINUTES:

Motion (made by Steven VanGrack, seconded by J. Nicholas D’Ambrosia) To approve the minutes of the February 15, 2006 business meeting. Unanimous approval.

REPORT OF COMPLAINTS/ADMINISTRATIVE DISMISSALS:

Motion (made by Steven VanGrack, seconded by Arthur M. Eisenstein) To approve the Administrative Dismissals for the month of March 2005. Motion carried.

COMMITTEE REPORTS:

  1. Education –

·  Education Chair Kim A. Nunnally read the PSI exam statistics for the month of February 2006; copy provided to each Commissioner.

·  Today is Ms. Nunnally’s final business meeting as Commissioner. Ms. Nunnally has resigned as she is moving from the area she represents. Commissioner Nunnally has actively served since January 2004 on various committees and as Education Chair.

  1. Legislative - Legislative Chair Anne S. Cooke reported that both the House and Senate bills on Real Estate Licenses-Reciprocity moved out of committees as favorable; also, both House and Senate bills on Branch Offices-Managers are moving forward. HB 830 (Residential Settlements-Prohibition and Disclosure) and HB 876 (Notice Requirements-Sexual Offenders) received unfavorable reports from their House committees.

COMMENTS FROM O & P DEPUTY COMMISSIONER: Report by Chairperson Simpers for Harry Loleas who was meeting in Annapolis today.

  1. Current licensee count: 4,583 brokers; 2,983 associate brokers; 44,261 salespersons; and 601 branch offices, for a total of 52,428.
  2. Guaranty Fund balance on January 31, 2006 was $1,640,560.89.
  3. Financial Disclosure Statement forms were provided to each Commissioner with instructions on filing by the May 1, 2006 deadline to the State Ethics Commission. Questions were raised about Schedules A and H. Counsel will research and e-mail all Commissioners.
  4. Two ARELLOgrams were included in Commissioner folders.

COMMENTS FROM COUNSEL: Elizabeth Trimble

A recent letter was received from an attorney for a broker whose credit report showed a federal tax lien. Under Maryland law, licensing boards cannot renew the license of someone with a state tax liability until the licensee has paid the tax or has arranged a payment plan. In this situation, because the lien was from a federal tax liability, the attorney questioned the Commission’s authority to hold the license. Counsel provided history of the law and regulation on the credit reporting requirement, including the check for personal background and moral character. Counsel asked if Commissioners desired to revisit the regulation. No decision made.

COMMENTS FROM CHAIR: Nancy R. Simpers

Chair asked if there is a pattern to types of consumer complaints and companies involved. After discussion, Commissioners asked for a report of complaints filed by company, including FY 2005 disciplinary actions, settlements, and consent orders. Counsel noted that this information is also set out in the report on disciplinary actions.

UNFINISHED BUSINESS:

Commissioner D’Ambrosia reported the situation of sellers of existing homes requiring buyers to use a certain title or mortgage company. In some cases, it appears the seller has no reason to insist on a certain company but is influenced to do so. Currently, 17-607 allows the seller to offer owner financing and prohibits a licensee from requiring a consumer to use a certain company. To clarify a licensee’s responsibilities, Counsel was asked to prepare suggested changes to 17-607 for next month’s meeting. The June business meeting is the deadline to recommend legislation to the Secretary for 2007.

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NEW BUSINESS:

  1. Commissioner D’Ambrosia recently spoke at a branch managers’ meeting. The managers asked if MD REC’s homepage could offer a query of a company name for the purpose of obtaining the name of the broker of record; also to offer a printout of the entire law and regulation, not section by section. Managers had questions about telephone numbers in advertising, and Commissioner D’Ambrosia asked the managers to send the advertisements to him.
  2. Commissioner VanGrack favors a Commission outreach program and requested this item for the April agenda.

ADJOURNMENT:

There being no further business, the meeting adjourned at 11:30 a.m. The next monthly business meeting is Wednesday, April 19, 2006.

APPROVED AS PRESENTED ______

Nancy R. Simpers, Chairperson

APPROVED AS AMENDED ______

Nancy R. Simpers, Chairperson

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