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					                                 STATE OF WASHINGTON
                               DEPARTMENT OF LICENSING
                        PO Box 9020, Olympia, Washington 98507-9020
                         REAL ESTATE PLANNING SESSION
                                   MINUTES

DATE:       March 26, 2008

TIME:       9:00 a.m.

PLACE:      Bremerton Inn & Suites
            4303 Kitsap Way
            Bremerton, WA 98312

MEMBERS
PRESENT: Paul Chiles, Commissioner/Vice-Chair
         Robert A. Spain Jr., Commissioner
         George Pilant, Commissioner
         Catherine Moye’, Commissioner
         Dan Murphy, Commissioner
         Suki Bazan, Commissioner

MEMBERS
NOT
PRESENT: Liz Luce, Director/Chair

STAFF
PRESENT: Lee Malott, Program Administrator
         Jerry McDonald, Program Assistant Administrator
         Karen Jarvis, Regulatory Investigations Manager
         Dolores Casitas, Education Manager
         Deb Wright, Licensing Manager
         Art Abrahamson, Audits Manager
         Gale Mitchell, Administrative Assistant
         Joan Robinson, Appraiser Professional Licensing Manager

CALL TO ORDER:            Paul Chiles, Commission/Vice-Chair
9:02:42 AM

ORDER OF AGENDA:          PLANNING SESSION (S)                  9:00 a.m.

   A.    Commissioner Chiles welcomed and introduced the Mayor of Bremerton, Cary Bozman.
Mayor Bozman discussed the history surrounding Bremerton’s roots and re-development plan.
Currently, there are many retirees with lower income and renters which has allowed housing
costs to stabilize at lower costs.

Mayor Bozman stated there is currently a plan in place to revitalize the City of Bremerton.
Construction for a waterfront park is underway. There is a package to build a 34 million dollar
tunnel for the ferry traffic. In addition, there will be a new marina, conference center, a new
hotel and new city hall. He also stated they have just received confirmation from the Navy that
Bremerton’s Museum is one of thirteen in the United States that will be fully funded by the
Navy.

Mayor Bozman was appreciated by the Real Estate Commission.

B.     Roll Call
          Robert A. Spain Jr., Commissioner
          Suki Bazan, Commissioner
          Paul Chiles, Commissioner/Vice-Chair
          George Pilant, Commissioner
          Catherine Moye’, Commissioner
          Dan Murphy, Commissioner

9:11:30 AM Liz Luce, Director/Chair-Absent

10:02:07 AM
C.     18.85 Re-Write – Where do we go from here?
        I. Discussion of Implications
            • Education Concerns – New Courses and New Core
            • Licensing Concerns
            • Investigation/Audit Concerns
            • Review of WACs

Jerry McDonald proposed the draft rules be reviewed by staff and sub- committees then submit
to the Commission at the September or December meeting for final approval. Jerry indicated
the WAC rule changes should be minimal, but there will be changes with the emphasis on the
parent-child relationships and with designated broker responsibilities. In addition, there will
be some changes to reflect that a designated broker can be a designated broker for more than
one firm. The section regarding advertising was left up to the Commission for rule
implementation. Jerry McDonald stated we are going to need input from the Commission,
staff, and licensees.

Jerry asked the Commissioners for input on how to approach these matters.

Paul Chiles stated that it is important to review other jurisdictions’ positions on processes such
as regulating the advertising. Once there is a conclusion on how other states are handling
these issues, then the ideas and drafts must be forwarded to the Commission for review instead
of “reinventing the wheel”.
Paul Chiles requested a guideline indicating when these rules will be presented to the
Commission for review. Jerry McDonald confirmed that it will be presented to the Commission
for consideration and approval at the next Commission meeting in June.

Commissioner Pilant asked if there will be a transition course implemented and in place before
the law goes into effect on July 1, 2010. Bob Mitchell indicated there will not be a transitional
class available before the law goes into effect.

9:12:30 AM
             •   Fingerprinting (Presentation from Mary Haglund)

Jerry McDonald invited Mary Haglund to present an in depth process of fingerprinting. There
was a long discussion whether the Commission should adopt fingerprinting the licensees every
four years vs. every six years. An appeal process for licensees that are denied a license based
upon their criminal history was also discussed.

Commissioner Chiles suggested that a survey be done on what the other jurisdictions are doing
regarding fingerprinting.

       10:48:39 AM
D.     Sub-Committee Assignment/Concerns
       • Education
           Commissioner Pilant reviewed the status of sub-committee meetings over the last
           few months. Two questions were brought before the committee on February 21,
           2008.
           • The first one – Should ARELLO course content certification be required of all
               courses?
           • Second- Should the ARELLO course content certification be separate from the
               distance education certification? Should that be automatically approved for
               Washington State continuing education clock hours?

             After brief discussion, it was a unanimous decision by the sub-committee that it
             should not be required for all courses. After much debate, it was unanimously
             decided that any courses that have ARELLO course content certification would be
             automatically approved without Commission review for Washington State
             continuing education clock hours. There would be no fee reduction. The process
             would merely be expedited.

             This recommendation has no rule requirement that needs to be changed.

                 Motion: Any course that is submitted to the Washington State Department of
                 Licensing for continuing education clock hours that has the ARELLO course
                 content certification be automatically approved.
                 Suki Bazan: Seconds Motion
                 Motion Amended and unanimously carried forward to the Commission
                 Meeting at 1:00 PM.
                Commissioner Chiles suggested that if the staff finds inconsistencies with the
                courses that this is brought before Commission for approval. Commissioner
                Spain recalled that state specifics were not addressed.

                Commissioner Moye asked a procedural question: Is it appropriate to make a
                motion during a “planning session” or should the motion be carried over and
                forwarded in the “Commission Meeting”? Cate Moye asked that the amended
                motion be brought before the Commission for review.

                Susan Davis addressed her issues of concern in section 22 of the new proposed
                law. Distance education powers could be limited if the Director decides to adopt
                laws for the number of hours for distance education. The Commission did not
                move to carry this item any further.

             11:42:23 AM
             • Changing Business Practices
             Cate Moye’ reviewed the committee’s meeting in February. The topic of discussion
             surrounded a letter brought forward by Annie Fitzsimmons. The issue was dealing
             with agent discretion regarding the amount of commission. This was essentially an
             open discussion. There is not a statewide form that is uniformly used for purchase
             and sale agreements at this time.

             11:46:39 AM
             • Mortgage
             Commissioner Bazan stated that during the last Commission meeting she inquired
             about the amount of real estate licensees who are also brokers. The topic of the sub-
             committee meeting was on predatory lending. The following are statistics on the
             numbers or active licensees:
                   o Active Brokers is 302
                   o Inactive pending exams brokers is 60
                   o Active sales is 1204.

             Commissioner Bazan questioned that it is a conflict of interest to hold dual
             licenses.
             11:55:32 AM
             • Newsletter
             Commissioner Spain stated that the January meeting focused mainly on the
             funding for the newsletter and the first edition. The Commission commend Glenn
             Crellin, students, and staff for the newsletter. Commissioner Spain informed the
             group that the newsletter should be produced quarterly if resources exist.

E.      Use of Outreach Funds – Ideas (This agenda item was completed at the regular
     Commission session at 1:00 pm)
     Jerry McDonald stressed that the Commission requested additional funds for licensees and
     those funds have been approved. We need to implement a plan on how to utilize them for
     educating the citizens of Washington State. Any suggestions or ideas are welcome. An
     open discussion surrounding fund utilization was held. It was suggested that staff present
     ideas to Commission.
     MOTION:
     To discuss further outreach tools.
     Motion seconded
     MOTION CARRIED

     1:21:08 PM
     Paul Chiles:
     MOTION: To form a Consumer Education Outreach Subcommittee
     Motion seconded
     MOTION CARRIED

F.       Brainstorming for New Ideas (This agenda item was completed at the regular
     Commission session at 1:00 pm)
     Bob Mitchell indicated that he met with L&I staff regarding audit compliance that is
     relative to real estate brokerage companies taking care of their worker’s compensation.
     There is speculation as to why they are not in compliance. The plan is to get information
     out to the brokerage agencies so the non-compliance rate will drop. The compliance in
     audits in real the estate industry rate is high. Bob Mitchell stated that currently they are
     trying to reach a conclusion why they are not in compliance with audit.

G.      Issues from Audience – Open Forum
     Commissioner Chiles suggested an open discussion on 18.85 rewrite. Lee Malott
     recommended that updates be posted to the ListServe so that the public can be aware of the
     updates.

12:05:05 PM
Commissioner Chiles adjourned the planning session.




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