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 21, 2011, 10:30 a.m.

A few highlights from the meeting:
Current license count 40,944
GF balance as of 7/31/11 $2,097,686.92
Ms. Lanteon welcomed back
Supervision by eMeetings?
CE by Skype?
Agency and builder-broker
And more…

     Commissioner J. Nicholas D’Ambrosia, Chair (Industry)
     Commissioner Anne S. Cooke, 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)
     Commissioner Colette P. Youngblood (Consumer)
     Elizabeth Trimble, AAG, Counsel
     Katherine F. Connelly, Executive Director
     J. Steven Long, Assistant Executive Director
     Patricia Hannon, Education Administrator, Session Recorder

     Donald White, P G Comm Coll
     Robert Johnston, AACAR
     Jeanne L. Turnock, GBBR
     Mark Feinroth, MAR

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

       Motion (made by Nancy R. Simpers, seconded by Marla S. Johnson) To approve the minutes of
the July 20, 2011 business meeting. Unanimous approval. There was no meeting in August.
1. Motion (made by Nancy R. Simpers, seconded by Marla S. Johnson) To approve the
   Administrative Dismissals for the month of August 2011. Motion carried.
2. Motion (made by Jeff Thaler, seconded by Nancy R. Simpers) To approve the Administrative
   Dismissals for the month of September 2011. Motion carried.

 Education – Georgiana S. Tyler, Education Chair, read two education reports.
   For the month of July 2011, PSI administered 378 salesperson and 35 broker exams, compared to
     July 2010, when 449 salesperson and 44 broker exams were administered.
   For the month of August 2011, PSI administered 438 salesperson and 31 broker exams, compared
     to 456 sales and 27 broker exams in August 2010.
 Legislative – Marla Johnson, Legislative Co-Chair, is still gathering information on the property
  manager licensing issue and will report at a later meeting.

1. On August 15, 2011, the license count was 41,131, of which 4,679 were brokers, 3,099 associate
    brokers, 32,631 salespersons, 514 branch offices, 7 time share developers, 60 reciprocal brokers, 15
    reciprocal associate brokers, and 126 reciprocal salespersons. Of the total count, 3,765 were inactive.
2. Current license count totals 40,944, of which 4,684 are brokers, 3,086 are associate brokers, 32,448
    salespersons, 518 branch offices, 7 time share developers, 59 reciprocal brokers, 16 reciprocal
    associate brokers, and 126 reciprocal salespersons. Of the total count, 3,717 are inactive.
3. The Guaranty Fund balance as of July 31, 2011 was $2,097,686.92.
4. The Guaranty Fund balance for August is not yet available and will be reported next month.
5. The FY 2011 Annual Report (7/1/2010 – 6/30/2011) of the Maryland Real Estate Commission is
    completed; copy provided to Commissioners today.
6. Commissioners received the Greater Baltimore Board of Realtors’ publication “Common Ground.”
7. In response to the email to brokers requesting a list of their teams/groups and branch managers/branch
    offices, a few brokers designated themselves as team leaders. These brokers have since been
    contacted to comply with the law.
8. MD REC investigators traveled to Seattle, Washington to attend ARELLO training. All reported the
    training was well worth the travel, especially the session on body language.
9. Approval is granted for six Commissioners to attend the ARELLO Annual Conference in Baltimore
    from September 28-October 1.
10. As directed at the July business meeting, an investigator has been assigned to the case where a broker
    is charging a buyer to winterize/dewinterize a bank-owned property.
11. Of the 79 brokers who failed to respond to a request for an email addresses, some did have an email
    under MRIS, which was then added to MD REC’s data base. Only a few remain who apparently are
    not connected to email.
12. So far, 22 claimants have filed Guaranty Fund claims against one broker.
13. Agency-Commercial training is completed, and continuing education providers are submitting
    requests for classes.
14. The Real Estate Council of British Columbia issued guidelines for team names. The Canadian
    guidelines are very similar to Maryland’s. Commissioners received a copy of the article.
15. Industry Outreach since the last meeting include trips to the Eastern Shore, Carroll County,
    Annapolis, Prince George’s County, and Ocean City for various sales meetings, installations, board
    meetings, and teaching continuing education, as well as the upcoming ARELLO Annual Conference.
16. Darchelle Lanteon, assigned to licensing, has returned from extended medical leave. We are glad to
    have her back.

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17. The Maryland Association of Realtors, in conjunction with the Maryland Real Estate Commission,
    prepared FAQs on the agency law at open houses for publication on its website. Ms. Connelly
    recommended it also be published on MD REC’s website. Counsel requested time for legal review
    before posting, and Commissioners agreed to postpone pending Ms. Trimble’s review.
18. Ms. Hannon, Education, created an education report from certain records of the Maryland Higher
    Education Commission. The report lists each real estate career school, its number of graduates, the
    percent of those students passing the state portion on the first attempt, and the percent passing the
    national portion. This in-house, confidential report is provided at the Commissioners’ request and
    covers the period July 1, 2009 to June 30, 2010 (FY 2010). The FY 2011 statistics are not yet
19. Holding regular meetings is one of the requirements of a broker to provide adequate supervision. But
    are eMeetings acceptable? The Commissioners discussed various venues. Electronic media may be
    used, provided the broker maintains records of attendance by electronic sign in/out, topics of
    discussion, etc. to support compliance.
20. Can a continuing education course be offered by Skype? That is, the instructor is off-site; all the
    students are in one classroom setting, with IT monitors at both locations. Education providers
    interested in this type of program may submit an application and include details of how the course is
    to be conducted. The Education Committee will then review to establish guidelines. Once permitted,
    all providers will be notified of the guidelines.
21. The DC Real Estate Commission requests automatic recognition of DC Board courses toward
    Maryland electives for the purpose of posting a notice on the DC REC website. DC REC may not be
    able to reciprocate for Maryland courses. Presently, all out-of-state courses are reviewed based on the
    Maryland licensee’s renewal period, status, and CE requirement. A blanket posting by another state
    may be misinterpreted by the Maryland licensee. It was decided not to grant automatic recognition at
    this time; further discussion is needed.
22. Ms. Hannon, Education, requests that all out-of-state courses which can be recognized be limited to
    1.5 elective hours. Counsel advised that setting an automatic limit on all out-of-state clock hours was
    not authorized. MD REC staff will continue to review other states’ certificates on a case-by-case
23. The “Dear Seller & Agent” packet of forms in use by an investment group will be referred to the
    Office of the Commissioner of Financial Regulations for PHIFA review and to the Maryland
    Insurance Administration for the title company’s role.
24. The packet “Modification of Terms…” was distributed to Commissioners for discussion at next
    month’s meeting.
25. Builder-Broker agent - When a licensee’s broker is also the builder of the model home which the
    licensee is showing, the licensee provides the agency disclosure in the same manner as for any “open
26. The Bennett Academy of Real Estate is the latest career school to be certified by the Maryland Higher
    Education Commission to offer 60 hours of classroom instruction in principles and practices for

1. A recent radio advertisement promoted a guaranteed sales program; that is, if the property is not sold
   within a certain number of days it is guaranteed to be purchased by the sales agent for a certain price.
   In the current market, this practice may not be in the best interest of the seller client. Who sets the
   default price, provides an independent and true appraisal, and assures that a higher, not lower, price is
   obtained? After discussion, it was decided to be proactive with an article in the next MD REC

                                             Page 3 of 4 9-21-11
2. Counsel prepared the needed changes to real estate regulation, Relations to the Public, to
   comply with State law on protected classes. Motion (made by Jeff Thaler, seconded by Marla S.
   Johnson) To approve the changes. All in favor. Motion passed. The regulation will move forward
   for publication in the Maryland Register
3. Discussion continued from the last meeting on re-draft of regulation, Disclosure
   Requirement. Commissioners will submit any further comments to Ms. Trimble so that a final version
   can be ready for the October meeting.

COMMENTS FROM CHAIR: J. Nicholas D’Ambrosia
      Chairman D’Ambrosia appreciated the Maryland Association of Realtors’ Annual Conference in
Ocean City, particularly the session on distressed property transactions.

1. Status of proposed 2012 legislation – the two legislative proposals for the 2012 Session [Minutes, 5-18-
   2011] have been submitted to the Governor’s Office.
2. In follow up to Broker Knoerlein’s suggestion to alter the Understanding Whom Real Estate Agents
   Represent form, Commissioner Marla S. Johnson did contact Ms. Knoerlein. After discussion, Broker
   Knoerlein agreed the current form best meets the terms of the law.

        Courses on a cruise ship – MD REC-approved continuing education credit hours may be offered
during a cruise, provided the setting is a classroom environment conducive to learning, with no
distractions or walk-throughs by other passengers, no meals, etc. and the course is conducted in
compliance with continuing education law and regulations.

       There being no further business, the meeting adjourned at 12:30 p.m. The next monthly business
meeting is Wednesday, October 19, 2011.

APPROVED AS PRESENTED ____________________________________________________
                                J. Nicholas D’Ambrosia, Chairperson

APPROVED AS AMENDED ______________________________________________________
                               J. Nicholas D’Ambrosia, Chairperson

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