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 18, 2007, 10:30 a.m.
Highlights from the meeting:
Howie heads O & P Division
2007 legislation passed/failed
Licensee count reaches 55,803
2008 legislation planned
Commissioner Nancy R. Simpers, Chair (Industry)
Commissioner Anne S. Cooke (Industry)
Commissioner J. Nicholas D’Ambrosia (Industry)
Commissioner Arthur E. Davis, III (Industry)
Commissioner Surina Jordan (Consumer)
Commissioner Sydney L. Machat (Industry)
Harry Loleas, Deputy Commissioner, O & P
Elizabeth Trimble, AAG, Counsel
Katherine F. Connelly, Executive Director
Steven Long, Assistant Executive Director
John West, Complaint Administrator
Patricia Hannon, Education Administrator, Session Recorder
Commissioner Stephen F. Kupres, Vice Chair (Consumer)
Commissioner Arthur M. Eisenstein (Consumer)
Commissioner Colette P. Youngblood (Consumer)
PUBLIC IN ATTENDANCE:
Rafael Regales, DLLR Office of the Secretary
Mark Feinroth , Maryland Association of Realtors
Elisabeth Sachs, DLLR Office of the Secretary
Donald White, Pr. Geo’s Comm Coll; MREEA
Robert Johnston, AACAR
CALL TO ORDER:
Nancy R. Simpers, Chair, called the meeting to order at 10:40 a.m. Newly appointed
Commissioner of the Division of Occupational and Professional Licensing, Leonard J. Howie, III, was
introduced and welcomed, as well as Ms. Elisabeth Sachs, Director of Policy Development/Special
Assistant to the Secretary, and Mr. Rafael Regales, Deputy Director of the Secretary’s Communications
APPROVAL OF MINUTES:
Motion (made by J. Nicholas D’Ambrosia, seconded by Arthur E. Davis, III) To approve the
minutes of the March 21, 2007 business meeting. Unanimous approval.
REPORT OF COMPLAINTS/ADMINISTRATIVE DISMISSALS:
Motion (made by Anne S. Cooke, seconded by J. Nicholas D’Ambrosia) To approve the
Administrative Dismissals for the month of April 2007. Motion carried.
1. Education – J. Nicholas D’Ambrosia, Chair, read the PSI exam statistics report. For the month of
March 2007, 1,206 sales exams and 78 broker exams were administered. The numbers are up from
the previous month.
2. Legislative – Anne S. Cooke, Legislative Chair, and Harry Loleas, Deputy Commissioner
HB 1288 (Sales Agents for Home Builders-Licensure) passed with amendments. The bill alters
the definition of providing real estate services to include selling any real estate as a sales agent for
a home builder. This legislation does not interfere with the registration required of new
homebuilders by the Attorney General’s Office/Consumer Protection Division. Consumer
Protection will send mailings to inform homebuilders of the new licensing requirement. The bill
is awaiting the Governor’s signature and will be effective October 1, 2007.
HB 1183 (Residential Real Property-Mold) did not pass and was amended to establish a task force
COMMENTS FROM EXECUTIVE DIRECTOR: Katherine F. Connelly
1. Current licensee count is 55,803, of which 4,817 are brokers, 3,192 are associate brokers, 47,116
salespersons, and 678 branch offices.
2. The Guaranty Fund balance as of February 28, 2007 is $1,935,265.75.
3. The out-of-state travel form was e-mailed to all Commissioners; it is to be completed and returned by
Commissioners planning to attend the ARELLO Conference in New York City in September. After
approval, Commissioners will be able to contact the official State travel agency for train and air travel.
Hotel reservations can be made directly by Commissioners and receipts submitted for reimbursement
upon return. Rooms will fill quickly because of the favorable rate, so Commissioners are encouraged
to call the hotel before June 30.
4. The Regulation Advisory Subcommittee met on April 6, 2007 to consider changes to regulations. Ms.
Connelly will prepare the changes and submit to Counsel.
5. The Maryland-Pennsylvania reciprocal agreement has generated over 60 calls, 30 e-mails, and 5
applications. One applicant has completed the process and is awaiting issuance of a reciprocal
license. Virginia and West Virginia initially expressed interest, but nothing definite yet. Oklahoma
called for a copy of the agreement to review.
6. Requests to fill two clerical vacancies were denied; the request to fill the paralegal vacancy was
approved, and the position will be advertised soon. Ms. Connelly continues to monitor the number of
calls to the Commission each day – 200 one day recently – so staffing issues need to be addressed.
7. Audits of continuing education hours have revealed licensees who did not complete the hours. In the
past, consent agreements were offered which required makeup of hours and payment of a fine and late
fee. Ms. Connelly asked the Commissioners for guidelines for current consent agreements. Lengthy
discussions centered on falsified applications, amount of fine based on hours missing, status of license
during period of noncompliance, lack of concern by some licensees, and practices of other O&P
boards. New regulations may be needed. Counsel will review. If so, Chair asked Counsel to draft
Page 2 of 4 4-18-07
8. Since the last meeting, Ms. Connelly met with licensees in Harford County and Baltimore City, met
with HUD on fraud cases involving licensees, attended a luncheon with Senator Cardin to talk about
the real estate industry, spoke to various boards and associations, and attended a preview of the movie
Judge Smartt produced by the Belair-Edison Neighborhoods, Inc. Future schedule includes the
Baltimore Housing Preservation Coalition, attending a Frederick county broker and manager meeting,
and visits to members of various associations. Consumer outreach includes a booth, which has been
reserved for MREC at the Senior Expo in October, and joining with the Maryland Insurance
Administration for outreach at other events. Commissioner Cooke received outstanding feedback
about Ms. Connelly’s positive and informative presentations and magazine articles.
9. Education providers asked Ms. Connelly for help with their challenges of students arriving late,
leaving early, reading newspapers, etc. To respond, Ms. Connelly will send a general information
letter to all providers.
10. Ms. Connelly handed out a set of advertisements from magazines and newspapers. Commissioners
noted the ads which failed to comply with law and regulation. The Complaint Administrator initially
calls the broker as an informal start to correction. It was decided that, for repeats or more serious
omissions, a complaint be set up for hearing before a panel of Commissioners. Commissioner Machat
noted that advertising by Pennsylvania licensees appears to have a standard, uniform format and
suggested staff contact the Pennsylvania Real Estate Commission for information.
11. The next meeting of the Budget Subcommittee is scheduled for April 27, 2007 at 9:30 a.m.
COMMENTS FROM COUNSEL: Elizabeth Trimble
Counsel received an e-mail from the Antitrust Division of the Attorney General’s Office inquiring
if a clause committing a future buyer to use a specific broker for a future sale has appeared in Maryland
real estate contracts. Ms. Trimble asked Industry Commissioners if they had encountered this type of
clause. None had. Counsel will respond directly.
COMMENTS FROM CHAIR: Nancy R. Simpers
1. Ms. Simpers enjoyed a recent continuing education class where the instructor was clear about
advertising violations. Licensees are being informed about advertising errors and fines which could
2. The Chair asked Counsel to draft legislation on prelicensing distance education for discussion at the
3. Further input is needed on grounds for summary suspension, which was a topic of discussion at the
March meeting. This item will be on the May agenda.
4. A vote is needed to re-propose legislation on disclosure of interest in certain companies. Motion
(made by J. Nicholas D’Ambrosia, seconded by Anne S. Cooke) To re-submit the changes to 17-
607, 17-322(b), and 17-524 to Secretary Perez for the 2008 Legislative Session. All in favor;
UNFINISHED BUSINESS: None
1. Commissioner D’Ambrosia asked Commissioners to look at the practice of real estate by teams and
groups. Chair asked Commissioners to bring their questions and concerns to the May meeting to start
Page 3 of 4 4-18-07
2. Commissioner D’Ambrosia reported on a request from a Florida broker to sit for Maryland’s exam.
The Florida broker, who will not move to Maryland, intends to act only as a buyer’s agent. Panel #1
considered the request and Mr. D’Ambrosia wanted input from the other Commissioners. After
discussion, it was decided that Counsel will review all materials submitted by the Florida broker.
There being no further business, the meeting adjourned at 12:10 p.m. The next monthly business
meeting is Tuesday, May 8, 2007.
APPROVED AS PRESENTED ____________________________________________________
Nancy R. Simpers, Chairperson
APPROVED AS AMENDED ______________________________________________________
Nancy R. Simpers, Chairperson
Page 4 of 4 4-18-07