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
JULY 18, 2007, 10:30 a.m.
Highlights from the meeting:
55,880 current license count
FAQs for homebuilders now on web
CE audit final results
Stanley J. Botts appointed O&P Commissioner
Leonard Howie becomes DLLR Deputy Secretary
Commissioner Nancy R. Simpers, Chair (Industry)
Commissioner Stephen F. Kupres, Vice Chair (Consumer)
Commissioner Anne S. Cooke (Industry)
Commissioner J. Nicholas D’Ambrosia (Industry)
Commissioner Arthur E. Davis, III (Industry)
Commissioner Arthur M. Eisenstein (Consumer)
Commissioner Surina Jordan (Consumer)
Commissioner Sydney L. Machat (Industry)
Commissioner Colette P. Youngblood (Consumer)
Harry Loleas, Deputy Commissioner, O & P
Elizabeth Trimble, AAG, Counsel
Katherine F. Connelly, Executive Director
Patricia Hannon, Education Administrator, Session Recorder
PUBLIC IN ATTENDANCE:
Mark Feinroth, MAR, and daughter Ann
Bob Johnston, AACAR
CALL TO ORDER:
Stephen F. Kupres, Vice Chair, called the meeting to order at 10:40 a.m.
APPROVAL OF MINUTES:
Motion (made by Colette P. Youngblood, seconded by Arthur E. Davis) To approve the minutes
of the June 20, 2007 business meeting. Unanimous approval.
REPORT OF COMPLAINTS/ADMINISTRATIVE DISMISSALS:
Motion (made by Arthur E. Davis, seconded by Colette P. Youngblood) To approve the
Administrative Dismissals for the month of July 2007. Motion carried.
1. Education – J. Nicholas D’Ambrosia, Chair, read the PSI exam statistics for the month of June 2007.
He reported that 1,024 salesperson and 64 broker exams were administered.
2. Legislative – Anne S. Cooke, Chair – No report today
COMMENTS FROM EXECUTIVE DIRECTOR: Katherine F. Connelly
1. Current licensee count is 55,880, of which 4,856 are brokers, 3,210 are associate brokers, 47,125 are
salespersons, 672 branch offices, 7 reciprocal brokers, 1 associate broker, and 9 reciprocal
2. The Guaranty Fund balance as of May 31, 2007 is $1,994,037.69.
3. Frequently Asked Questions (FAQs) about licensing of homebuilders’ sales agents are now posted on
MREC’s homepage. The law takes effect October 1, 2007 and will be enforced.
4. The Executive Director continues to meet with industry members, most recently with 150 real estate
agents to give updates and respond to questions.
5. Ms. Connelly met with Mr. Mark Feinroth of the Maryland Association of Realtors to discuss MREC
staff response to consumer inquiries and complaints about mediation clauses in contracts. MAR will
provide fact sheets to assist MREC staff in responding to consumers.
6. Hearing dates for a second panel per month, if needed, will be September 27, October 30, and
November 13. Panel members and legal counsel will reserve these dates for possible hearings.
Advance notice will be given if cases are assigned.
7. Recent ARELLOgrams are in each Commissioner’s folder.
8. Interviews of applicants for the paralegal vacancy will begin soon. Approval to replace the licensing
supervisor vacancy has not yet been granted. This leaves one remaining staff person in the Licensing
Unit, and she will go on maternity leave before the next business meeting. The request to replace two
office service clerks was denied by the Department of Budget & Management. Approval has been
granted for compensatory time to MREC employees who are staying late or arriving early to handle
the additional duties.
9. A workshop on the ARELLO certification program will be held following the September ARELLO
conference in New York. Patricia Hannon, Education Administrator, will attend the workshop and
give a report at the October business meeting. Commissioners may also attend; there is no fee to
participate but registration is suggested.
10. The Executive Director will give the year end report and plans for 2008 at next month’s meeting.
COMMENTS FROM COUNSEL: Elizabeth Trimble
A letter from the Maryland State Builders Association requests a delay in implementation of the
new licensing law and a change in the salesperson prelicensing curriculum. After discussion, it was
decided that no action would be taken by the Maryland Real Estate Commissioners to change either the
October 1, 2007 effective date or the topics of study for salesperson exam candidates. Counsel will
respond directly to the Builders Association.
COMMENTS FROM CHAIR: Nancy R. Simpers
1. No changes to panel members at this time.
2. Working committees are not to have industry members that constitute a quorum; committee changes
3. Guests wishing to comment during a public business meeting must indicate by raising a hand and
waiting to be recognized by the Chair at her discretion.
4. Questions about selling of mobile homes not on deeded property will be discussed with Counsel.
Chair may have a report on this topic by the next meeting.
1. Discussion of the proposed fee schedule is deferred until the close out of fiscal year 2007, the
preliminary balance of special funding, and a report to the Commissioners planned for next month’s
Page 2 of 3 7-18-07
2. The audit of continuing education hours for 2005 license re-issuance has concluded. For the 1%
sampling, 167 licenses were audited – 80 were brokers, 53 associate brokers, and 34 salespersons.
Eight notices were returned as undeliverable. An investigator will make a site visit to these locations.
14 licensees received audit letters but ignored them completely. Of the licensees who did respond,
41.2% of the brokers, 51% of associate brokers, and 59% of the salespersons failed their audit.
Based on this random sampling, a large percentage of licensees may not meet a basic requirement to
hold a real estate license. Law and regulation permit filing charges based on failure to notify change
of location, failure to respond, lying on official documents, practicing with a license not qualified to
hold. Disciplinary actions include late fees, fines, consent agreements, ethics education, and hearings
in addition to completing the hours which should have been completed.
After discussion, Motion (made by J. Nicholas D’Ambrosia, seconded by Arthur E. Davis) To
issue Consent Agreements with terms to include completion of the missing continuing
education hours within 30 days, $100 late fee, fines of $500 to $1,000, and suspension if terms
not met; other action may be taken and may include a hearing. All in favor; Motion passed.
The Executive Director will prepare a sample consent agreement and, after Counsel review, will e-
mail the form to Commissioners.
On further discussion, Motion (made by Arthur E. Eisenstein, seconded by J. Nicholas
D’Ambrosia) To charge all licensees who failed to respond to the audit request (broker,
associate broker, or salesperson) with up to a $5,000 fine. All in favor; Motion passed.
Decisions will be made on how to publicize the results of the audit. Commissioners may consider
regulations to require broker supervision of continuing education hours.
3. Stanley J. Botts has been appointed Commissioner, Division of Occupational and Professional
Licensing. Mr. Botts has over 20 years of professional experience with telecommunications and
government regulations. He replaces Leonard Howie, who was appointed Deputy Secretary of the
Commissioner Machat attended a meeting of Canadian real estate regulators in Winnipeg,
Manitoba, Canada from June 6-8, 2007. Canadian regulators reported on their court cases (including a
$15M commercial fraud case), consent order process, electronic records management, forensic
accounting, home inspector regulations, all issues of interest to US regulators.
There being no further business, the meeting adjourned at 12:05 p.m. The next monthly business
meeting is Wednesday, August 15, 2007.
APPROVED AS PRESENTED ____________________________________________________
Nancy R. Simpers, Chairperson
APPROVED AS AMENDED ______________________________________________________
Nancy R. Simpers, Chairperson
Page 3 of 3 7-18-07