re minutes 9-16-2004

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.

CLOSED SESSION

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.

CASE REVIEW

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 unanimously.

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.

MEETING SCHEDULE

Future IREC meetings are scheduled as follows:

Commission Meetings: Investigative Committee Meetings:

Thursday, October 28, 2004      Wednesday, October 27, 2004
                                                          (Daniels and Hughes)
Thursday, December 9, 2004     Wednesday, December 8, 2004
                                                         (Hughes and Marple)
Thursday, January 13, 2005       Wednesday, January 12, 2005
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

COMMISSION REPORTS

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.

STAFF REPORTS

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.

PUBLIC COMMENT

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 legislation.

MEETING ADJOURNED

Motion made by Marple, second Daniels, to adjourn. Motion carried unanimously. Meeting adjourned at 12:05 p.m.

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