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 Fall 2014  

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MESSAGE FROM THE EXECUTIVE DIRECTOR

Kathie Connelly

Katherine Connelly

Greetings, and welcome to the Fall 2014 edition of The Commission Check. The Maryland Real Estate Commission (MREC) and its staff has been especially busy this past quarter----   we went through a complete staff makeover during the same time we scheduled and conducted our series of town hall brokers' meetings across the State. Plus, we saw an increase in our day-to-day workload due to the rebounding real estate market. We have enjoyed all of the activity, and we hope your summer was a productive one, as well.


From April through June, we hosted 15 meetings for over 4,000 real estate brokers throughout Maryland. We believe the meetings were a great success, judging from the numerous emails we received applauding our efforts, and the responses we received to our subsequent email survey. Eighty-four percent of responders thought the information provided was useful, and 96% thought the Commissioners and staff were well prepared. A copy of the instructional slides we used for our presentations was sent via email to all brokers for a review of the material we covered. We would like to thank all of the brokers who helped make the series successful, and we will let you know when the Commissioners decide to hold the meetings again, be it annually or biennially.


The Commission held its annual elections in June, and voted unanimously to re-elect John Nicholas D'Ambrosia as Chair and Anne S. Cooke as Vice Chair. We would like to thank them for continuing to serve in leadership positions on the Commission.
 

We continue to see growth in the number of real estate exam-takers as compared to the same time last year. In July 2014, there were 765 people who took the Maryland Salesperson's Exam. Sixty-two people took the Maryland Broker's Exam in July 2014, while only 47 took it in July 2013. We are hopeful that the numbers will continue trending upward, and that the industry fully recovers from the impact of the recession.


Hopefully, you were able to take some time off with your family and friends this past summer, or you plan to do so in the near future. Enjoy the fall weather!

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MAINTAINING SAFETY IN A SOLITARY PROFESSION

house-for-sale.jpg "Because she was just a woman who worked alone ---
a  
rich broker."


-- Arron Michael Lewis, in a statement he made to reporters about his motive for targeting Arkansas real estate agent Beverly Carter for kidnapping. Lewis was arrested and charged with her murder, and is currently being held by the Arkansas Department of Correction.

Real estate professionals around the country are still understandably shaken by the tragic loss of Beverly Carter while she was performing her job on September 25, 2014. The circumstances that led to her death are all too familiar to agents who routinely meet new clients in unoccupied homes for sale. Carter agreed to meet a potential cash buyer in a foreclosed home, and never returned home to her family. Even though she told her husband where she was going, it was not enough of a safety measure to save her life.

The key to making sure you are safe while working alone is to have more than one method of self-defense at your disposal. The following list is a sample of what other agents have found to be successful deterrents to crime. Please take a moment to read it, and to assess your own level of safety while meeting with unfamiliar people in the course of performing your job.

When you advertise:
  • Always use your office address and telephone number or your cell phone number for contact information.
  • If you are hosting an open house, include a disclosure to potential attendees that their identification will be checked and recorded upon arrival. If you or the seller is equipped with a video surveillance device, make sure the public knows it will be in use.
Before you show a property:
  • If possible, arrange to meet new clients at your main office first. Get a copy of their driver's licenses and introduce them to someone on staff so that there is at least one other person that can identify them.
  • Arrange to either bring someone with you to showings, or make sure your emergency contacts know where you are at all times. Ask them to call or text you while you are with a new client so that it is apparent that someone else knows where you are.
  • Set up a special code word or phrase to use with your coworkers if you need to make an emergency call for help.
  • If you use SentriLock or another lockbox system, be sure to update the location the box is being used. Lockbox services cannot collect entry data if the box is still assigned to a previous address.
  • Download and utilize one of the various smartphone apps that are designed to automatically deliver GPS information on your exact location and other identifying details to your emergency contacts or to emergency responders.
  • Check your phone's signal strength at the address you plan to show. Carry an extra battery with you.

When you arrive at a property:
  • Park in an area where your car cannot be blocked in by another vehicle. Always drive separately from your clients.
  • If the property is a foreclosed or vacant home, inspect the structure for any signs of prior entry. If you see open windows or doors, do not enter the home. Instead, call the police.
  • Be sure that all of the seller's valuables and prescription drugs are out of sight. Lock your own valuables in your car or other safe place.
  • When a new client drives to meet you at the property, take a picture of his or her license plate.
  • When showing the property, avoid entering rooms before your client enters them. Explain the features of the property while remaining in open doorways, if possible.

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ATTORNEY GENERAL'S OFFICE DELIVERS OPINION ON "COMING SOON" LISTINGS IN MARYLAND

COMING SOON, WHISPER, AND POCKET LISTINGS

If you are considering recommending to one of your clients that their property be designated as "coming soon" to market instead of being entered into the multiple list system as soon as the listing is signed, there are a number of issues that you need to think about. First, Maryland law requires that you have a signed listing agreement before you market or offer the property for sale or lease (COMAR 09.11.01.12). That agreement should set forth the marketing plan that the seller has consented to, especially where the plan includes a "coming soon" designation or some other form of restricted marketing.

Second, it is the seller's decision alone as to how, when, and where the property will be marketed. Because you as a licensee have the obligation to protect and promote the interests of your client, you must be sure that they fully understand their options. You should obtain a written acknowledgment from the seller that they have discussed the pros and cons of a "coming soon" (or "whisper" or "pocket") listing with you prior to using these forms of marketing. Please note that this acknowledgment is in addition to, and not a substitute for, the listing agreement.

Third, you need to make your client aware of the benefits and risks of delaying full marketing of the property. The pool of buyers aware of the "coming soon" listing will be restricted, and thus the seller may not attract offers at as high a price as would be the case when more potential buyers are aware of the property. The terms of the purchase could also be less favorable to the seller than they would be if there was more competition for the property.

Fourth, you must consider the reasons why you are recommending the "coming soon" approach, which in effect limits the exposure of the property. Is the property being marketed as "coming soon" because the seller has not completed preparation of the property for sale? That would be a legitimate use of this marketing method. On the other hand, if the motivation is to restrict the buyers to those known to you or other licensees affiliated with your brokerage, with the result of keeping both sides of the transaction in house, you could be in violation of the Code of Ethics provision requiring you to act in the best interest of your client (COMAR 09.11.02.02A).

Finally, you should consult with your broker or branch office manager about possible legal issues rising from limited marketing, including whether the approach could violate State or Federal Fair Housing or Anti-Trust Laws

Over the past year, the Real Estate Commission has received a number of inquiries and complaints regarding licensees who advertise properties as "coming soon" to the market or otherwise restrict access to the listing. The common complaint is that these listings are not made known to outside agents, and that once the property is entered into the multiple list service, becomes available for showing, or is otherwise given full market exposure, it is already under contract. The Maryland Commission has not yet received complaints from owners claiming that the price or the terms of the sale were affected by restricted marketing, but that has occurred elsewhere, and has been the subject of numerous educational, industry and media discussions.

While the Maryland Real Estate Commission cannot dictate how a property is marketed, in reviewing a complaint it will consider whether the owner was properly advised as to the possible effects of restricted marketing, whether there is written documentation of this advice, and any evidence that a licensee encouraged a "coming soon", "whisper" or "pocket" listing as a marketing choice for the benefit of the licensee, the licensee's brokerage, or another select group of licensees.

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PROCEED WITH CAUTION: MREC ISSUES FINAL WARNING TO LICENSEES ABOUT ADVERTISING
  
In case you missed the last issue of The Commission Check, the MREC announced a change in our policy for correcting unlawful real estate advertising in our State. At the June 2014 Commission meeting, Commissioners adopted a "three-strikes" method of handling persistent offenders beginning on July 1, 2014.

Please be advised of the following steps you can expect the MREC to take to enforce Maryland law regarding real estate advertising:
  1. If we see a first-time violation ourselves, or if we are notified by telephone or email about a violation, we will start a log and contact you and your broker about making the necessary changes to your advertising materials/signage.
     
  2. If the violation continues, or if a second offense occurs, the MREC will issue you a written warning advising you that charges may be filed against you.
     
  3. A third offense, or the continued use of the original improper materials, will warrant the filing of formal charges against you and your broker and/or manager. If charges are filed against you by the MREC, you may be subject to fines up to $5000 per violation, and suspension or revocation of your license(s).
The MREC has spent an ample amount of time on outreach efforts to educate licensees about misleading advertising. We have discussed it in past newsletters, in guest columns of other publications, at speaking engagements, and at the recent brokers' town hall meetings. We devoted our entire booth to advertising at last year's Maryland Association of Realtors� Conference. If you are still unclear about what your obligations are under State law, contact Executive Director Kathie Connelly for a review of your materials before you have them produced.

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WHO CAN "SIT" AT AN OPEN HOUSE?
open-house-sm.jpgOne of our Commissioners recently received an email from a company advertising an online "sitting service" for open houses. By registering with the service, agents can either post their availability to "sit" others' open houses, or post "sitter wanted" ads for their own listings. In Maryland, if the "sitter" and the listing agent are not licensed under the same brokerage, the practice can carry some severe legal consequences for everyone involved.

According to the Maryland Real Estate Brokers Act, a real estate salesperson or associate broker may only provide services through his or her own brokerage. So if an agent from another brokerage conducts the open house, that agent is considered unlicensed for the purposes of the Act. The legal ramifications are numerous and can be very detrimental:
  • The unlicensed agent who conducts the open house may be found guilty of a criminal misdemeanor under two provisions of the law, and if convicted, would face up to a year's imprisonment or a fine up to $5,000, or both. Those penalties are for a first offense and may be imposed for both areas of violation. For second and third offenses, the fines increase to $15,000 and $25,000, respectively.
     
  • The listing agent would be liable for violating the same provisions of the law and subject to the same disciplinary actions. Also, the payment of compensation to the unlicensed agent would constitute an additional violation and carry the same penalties.
     
  • The broker or branch office manager could also be charged with failure to provide reasonable and adequate supervision of the agents or associate brokers involved in the conduct of the open house.
     
  • In addition to criminal actions, there are also civil actions that can be taken by the Real Estate Commission against those involved. The Commission is authorized to suspend or revoke the real estate licenses of the parties, and can assess a civil penalty up to $5000 for each violation.
There are very specific duties that an unlicensed person can perform in connection with an open house. Please take a moment to download "Guidelines for the Use of Unlicensed Employees" for a list of those duties that may be performed, as well as a list of duties that are prohibited by Maryland law. If you do find that you need someone else to assume your open house duties for you, then please use licensed agents from your company only. Just because you both may be affiliated with the same franchise organization doesn't necessarily mean that you work for the same broker.

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CONGRATULATIONS, LICENSEES!

  

The Maryland Real Estate Commission recognizes the following individuals for successfully completing their continuing education requirements at the time of their most recent renewal. These licensees passed their CE audits between March 13 - October 6, 2014:

Wendell C. Albert
Jessica B. Alperstein
Edna F. Bittner
Stephen G. Cain
Debra L. Caldwel
Alice Y. Cheng
Michael Conover
Regina M. Dwyer
Judith Gill
Jody E. Greber
Norma L. Green
William Albert Griffin
Courtney Griffiths
James H. Jack
Joya O. Johnson
Donna S. Kuzemchak
Jennifer Langford
Virginia Hancock Malone
Paul O. Meyer
Amanda B. Mitchell
Delonte L. Moore
Kimberly A. Morgan
Nancy Ellis Neely
Seung K. Oh
Olukemi Olukoya
Mark P. Orsborn
Christina M. Redding
Patricia Rhyne-Kirsch
James H. Skelton
Andrew J. Somerville III
Antonia C. Spaith
Anne E. Tingle

Congratulations!

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MREC STAFF REORGANIZES

This summer brought big changes to the staff of the Maryland Real Estate Commission. After our long-time Education Administrator, Pat Hannon, retired to pursue her volunteer and charitable interests, we shifted positions around and made two new hires to become fully staffed again.


We are pleased to announce that Charlene Faison, our former Licensing Supervisor, has accepted the challenge of filling Pat's shoes as Education Administrator. Celestine Hall has moved from Receptionist/Education Assistant to strictly assisting Charlene with education as Education Administrative Assistant.
Lance Franklin
John West, our former Complaint Intake Administrator, has moved to fill Charlene's former position as Licensing Supervisor. Dawn Mazzaferro, our former Secretary, has accepted John's former position, and is our new Complaint Intake Administrator.

Our two new employees include Lance Franklin and Michelle Macer. Lance is currently working on his Master's degree in Psychology at the University of Phoenix, and joins us as our new Administrative Assistant. Michelle has been with the Department of Labor, Licensing and Regulation since 2012, working as an Investigator for the Design Boards and an Inspector for the boards of Cosmetology and Barbers. Michelle joins our team of existing Investigators----   Diane Carson, Jennifer Grimes, Bob Hall and Jack Mull. 
Michelle Macer


The other employees in our multi-talented team are still here, as well. Kathie Connelly and Steve Long remain as Executive Director and Assistant Executive Director. Darchelle Lanteon, Licensing Secretary, is here to help our licensees with obtaining and maintaining their licenses. Brenda Iman and Lucinda Rezek Sands continue to handle our administrative work and complaints as Administrative Officers. Last, but certainly not least, Pat Richardson remains the MREC's Auditor of Broker Escrow Accounts.

Suffice it to say, we had a busy summer here at the MREC. Now that we have settled into our new positions, we would like to thank Assistant Executive Director Steve Long for orchestrating all of the moves, the mountain of paperwork, and the month-long intensive training period for everyone who assumed new roles here. The transition period went very smoothly, and we look forward to continuing to assist our licensees and the citizens of Maryland with professionalism and commitment to service.

MREC staff from left: (back row) Jack Mull, Bob Hall and Steve Long
(middle row) Dawn Mazzaferro, Diane Carson, Brenda Iman, Jennifer Grimes and Darchelle Lanteon
(at counter) John West, Charlene Faison, Lucinda Rezek Sands, Pat Richardson and Celestine Hall
(in front) Kathie Connelly

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UPCOMING COMMISSION MEETINGS

The Maryland Real Estate Commission holds regular meetings that are open to the public. The meetings begin at 10:30 a.m. and are located at the offices of the Division of Occupational and Professional Licensing, Department of Labor, Licensing and Regulation. The address is 500 North Calvert Street, 3rd Floor Conference Room, Baltimore, Maryland 21202. Please contact the Division at 410-230-6200 or [email protected] for additional information.

 

 

Wednesday, October 15, 2014


Wednesday, November 19, 2014


Wednesday, December 17, 2014 

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DISCIPLINARY ACTIONS TAKEN BY THE MREC
To read a list of disciplinary actions taken by the Commission, please see the summary on our website. Actions are listed by fiscal year, ranging from FY 2000 up to and including FY 2014. Each entry contains the date the action was closed, the name of the respondent, a quick summary of the outcome, and the full text of the Order in PDF format.

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DIVISION PERSONNEL

Michael Vorgetts,
Acting Commissioner, Occupational and Professional Licensing

Janet Morgan,
Outreach Coordinator



COMMISSIONERS

John Nicholas D'Ambrosia,
Chair, Industry Member, Charles County

Anne S. Cooke,
Vice Chair, Industry Member, Howard County

 

Karen Baker,
Consumer Member, Frederick County

 

Marla S. Johnson,
Industry Member, Frederick County

 
William J. Neary, Jr.,
Industry Member, Talbot County  

Robin L. Pirtle,
Consumer Member, Montgomery County
 
Liliana Robeson,
Consumer Member, Washington County
  
Georgiana S. Tyler,
Industry Member, Baltimore City

MREC STAFF

Katherine F. Connelly,
Executive Director

Steven Long,
Assistant Executive Director 

Charlene Faison,
Education Administrator

Ray Barrett, Investigator

Diane Carson, Investigator


Lance Franklin, Administrative Assistant

Jennifer Grimes, Investigator

Celestine Hall, Education Administrative Assistant

Robert A. Hall, Investigator

Brenda Iman, Administrative Officer

Darchelle Lanteon, Licensing Secretary

Michelle Macer, Investigator

Dawn Mazzaferro, Complaint Intake Administrator

Jack Mull, Investigator

Patrick Richardson, Auditor

Lucinda Rezek Sands, Administrative Officer

John West, Licensing Supervisor

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Department of Labor, Licensing and Regulation / Maryland Real Estate Commission
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