Iowa Real Estate Commission
1920 SE Hulsizer Road
Ankeny, IA 50021
September 16, 2004
Present: James Hughes, Chair; Patty Daniels, and Donald Marple
Absent: Laurie Dawley and James O'Neill
Others Present: Roger Hansen, Executive Officer; Pam Griebel, Assistant Attorney
General; Susan Griffel, Education Director; Sylvia King, Staff and Jeff Evans, Staff.
Public: Paul McLaughlin (Iowa Association of Realtors) and Lynn Steele (Coldwell Banker
Mid-America Group, Realtors)
The meeting was called to order at 9:10 a.m.
Motion made by Daniels, second Marple, to enter into closed session pursuant to Iowa
Code 21.5(1)(d) and 21.5 (1)(f). Roll call vote as follows: Daniels, aye; Marple, aye and
Hughes, aye. Commission entered into closed session at 9:22 a.m. and returned to open
session at 10:34 a.m.
Motion made by Daniels, second Marple, to approve salesperson application on Case
04-082. Motion carried unanimously.
Motion made by Daniels, second Marple, to accept the signed informal settlements in the
following complaint cases: 04-049, 03-110, 03-152, 04-012, and A04-054. Motion carried
Motion made by Daniels, second Marple, to close Cases 04-043, 04-009, 03-106, 04-080,
03-149, 04-052, 04-084, 04-106, 04-093, 04-076, 04-081, 04-112, 04-113, 04-077, 04-073,
A04-114 and A04-116. Motion carried unanimously.
Motion made by Marple, second Daniels, to find probable cause on Cases
04-051, A04-039, 03-141, 04-092, 03-147, 04-078, A04-089, A04-101, A04-121 and A04-129.
Motion carried unanimously.
Future IREC meetings are scheduled as follows:
Commission Meetings: Investigative Committee Meetings:
Thursday, October 28, 2004 Wednesday, October 27, 2004
Thursday, December 9, 2004 Wednesday, December 8, 2004
(Hughes and Marple)
Thursday, January 13, 2005 Wednesday, January
Thursday, February 24, 2005 Wednesday, February 23, 2005
Thursday, April 14, 2005
Wednesday, April 13, 2005
Thursday, May 26, 2005
Wednesday, May 25, 2005
Thursday, July 14, 2005
Wednesday, July 13, 2005
Thursday, September 15,2005 Wednesday, September 14, 2005
Thursday, November 3, 2005 Wednesday, November 2, 2005
Thursday, December 8, 2005 Wednesday, December 7, 2005
Marple reported he will attend the Quad City Board of Realtors meeting on October 21,
2004. Chair Hughes and Jeff Evans, Trust Account Auditor are on the program to discuss
real estate issues and trust account audits.
Hansen reported on a proposed E&O premium rate increase proposed by Rice Insurance
Services from $123 to $134 annually for the state group insurance coverage. Hansen feels
the premium is not unreasonable and recommends the Commission approve the increase and
continue with the current contract. The Chair and Commission members present concurred.
Marple moved, second Daniels, to approve the premium rate. Motion carried unanimously.
Evans distributed an information sheet to all in attendance summarizing trust account
audits conducted from mid-March 2004 through today's date showing 144 trust account audits
in 37 counties. Of the 144 audits, 87 had no deficiencies and 57 had deficiencies of
varying degrees. Of the 57 audits with problems, 19 have been brought to the Commission
for discussion and possible action.
Griffel reported the UNI Advisory Council would convene October 13, 2004. Since she is
unable to attend, she asks that Commission members check their schedules and attend in her
absence, if possible.
Griffel then distributed a PSI Analysis Report prepared by the contractor. Some
significant shifts were seen in test questions from 1998 to 2004, and professionals in the
field may adjust training/emphasis to reflect the shifts. Prospective licensees taking the
exam will not see a difference in the immediate term.
Hansen reported the Division's database conversion continues, with online license
renewal for real estate professionals available this year. Iowa Interactive
representatives are available upon request to give informational presentations to local
boards on the online renewal process.
Hansen reported he continues to serve on several ARELLO committees and the Information
Services Council and will attend the ARELLO Annual Conference in October 2004.
Hansen mentioned the E-mail sent to Commission members that contained an article that
appeared in the Real Estate Commission of British Columbia's recent newsletter. The
document provides excellent and practical information on managing offers, counter-offers,
and multiple offers. The information could serve as a valuable tool for licensees,
instructors, and the public.
ATTORNEY GENERAL'S REPORT
Griebel discussed a petition for declaratory order by Lynn Steele on behalf of Coldwell
Banker Mid-America Group, Realtors, dated September 3, 2004, which requests clarification
of the legality of certain practices related to referral fees. The program in question has
been in effect since September 2002. Since the petition is asking for a legal position on
an actual practice and not a hypothetical circumstance, Griebel recommended the Commission
issue an order declining to issue a declaratory order, as prescribed by Iowa Code.
After discussion, Commission members agreed they couldn't issue a declaratory order.
However, other options are available, including a response to the petitioner that they can
use any declaratory orders previously issued by the Commission as guidance.
Daniels, underscoring the importance of ensuring the protection of the public, asked if
more time was available to research the issue and speak with those Commission members not
present to determine their views in lieu of making a determination at today's meeting.
Motion made by Marples to decline to issue the order as recommended by Griebel. Motion
failed due to lack of a second.
Griebel requested an extension to the 30-day time period for the Commission to respond,
October 3, 2004 deadline, until the next meeting, scheduled for October 28, 2004. Steele
agreed to the extension.
McLaughlin invited Commission members to the IAR convention in Cedar Rapids, Iowa, from
October 11-14, 2004. Presentations will include key topics in real estate and proposed
Motion made by Marple, second Daniels, to adjourn. Motion carried unanimously. Meeting
adjourned at 12:05 p.m.
Map to our Office
Comments/Report Bad Links