Washington Real Estate Commission - dol.wa.gov
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
WASHINGTON STATE DEPARTMENT OF LICENSING
Washington
Real Estate Commission
Meeting Packet
March 25, 2015
Tumwater, Washington
dol.wa.gov
STATE OF WASHINGTON
DEPARTMENT OF LICENSING
PO Box 9021, Olympia, Washington 98507-9021
REAL ESTATE COMMISSION MEETING
AGENDA
DATE: March 25, 2015
PLACE: Capital Event Center Manager
Educational Service District 113
6005 Tyee Drive SW
Tumwater, WA 98512
CONTACT
PERSON: Jerry McDonald, Administrator
(360) 664-6525
Email: jmcdonald@dol.wa.gov
ORDER OF AGENDA: OPEN SESSION
CALL TO ORDER: Kathleen Drew, Assistant Director/Chair 9:00 a.m.
A. Attendance
B. Approval of Agenda
C. Approval of Minutes – December 2, 2014 Commission Meeting
D. Reconsider December 2, 2015 Commission Date
E. Annual Reports
F. Update on Expanding On-line Services
G. Education Subcommittee Update
H. Survey Results – Fingerprinting and Core
I. Electronic Submission of Courses (Box)
J. Changing Business Practices Update
K. Legislative Updates
a. Houseboats Work
b. Earnest Money
c. WCRER
d. Other
L. Update on Rule Approval - Code Reviser filings
M. State Managing Broker Exam converting to a Simulation Exam
We are committed to providing equal access to our services. If you need special accommodation, please call
(360) 664-6526 or TTY (360) 664-0116.
N. WCRER
a. Update on Contracts
i. Continuing Education
ii. Green Buildings
iii. Parking
O. Real Estate & Marijuana
P. Briefing on Budget
Q. Metal Detection at Exam Sites
R. Open Forum/New Business
S. Review of Action Items
T. Adjourn
We are committed to providing equal access to our services. If you need special accommodation, please call
(360) 664-6526 or TTY (360) 664-0116.
STATE OF WASHINGTON
DEPARTMENT OF LICENSING
PO Box 9021, Olympia, Washington 98507-9021
REAL ESTATE COMMISSION
MINUTES
DATE: December 2, 2014
PLACE: SeaTac Double Tree Hotel
18740 International Blvd
SeaTac, WA 98188
CONTACT
PERSON: Jerry McDonald, Administrator
(360) 664-6525
Email: jmcdonald@dol.wa.gov
ORDER OF AGENDA: OPEN SESSION
CALL TO ORDER: Kathleen Drew, Assistant Director/Chair 9:00 a.m.
A. Attendance
• Members present: Kathleen Drew, Assistant Director/Chair, Kyoko Wright, Jess Salazar, and
Jeff Thompson
• Via conference call: Catherine Moye and Dave Azose
• Excused: George Pilant
• Staff present: Jerry McDonald, Dolly Casitas, and Karen Jarvis
B. Approval of Agenda – the agenda was approved as presented
C. Approval of September Meeting Minutes – the minutes were approved as presented
D. Vote on Vice-chair – George Pilant was unanimously elected Vice Chair for 2015.
E. Vote on Education & Changing Business Practices Subcommittee Chairs and Members
• Cate Moye was elected the 2015 chair for the Changing Business Practices Sub Committee as
well as Kyoko Wright and Dave Azose as members
• George Pilant was elected the 2015 chair for the Education Subcommittee as well as Jeff
Thompson and Jess Salazar as members.
F. Vote on 2015 meeting dates – the schedule for the 2015 Commission meetings are as follows:
• March 25, 2015 in Olympia
• June 17, 2015 in Port Angeles
• September 15, 2015 in Wenatchee
• December 2, 2015 in SeaTac
G. Education Sub-committee Report – Jeff Thompson reported on the suggestions presented to the
Education Subcommittee regarding the addition of Risk Management to the Core. Jeff asked Dolly
Casitas to report on the survey that was conducted regarding the Core. Dolly reported on the
results from the survey conducted through SurveyGizmo from October 29 to November 29, 2014.
H. Electronic Submission of Courses (Cloud) – Dolly Casitas reported on the project, a result of a
Lean Project. The Education unit working closely with the IT department has received approval
for this project. The storage vendor will be BOX. Once implemented, this will eliminate the need
for paper copies of courses. Several providers in the room asked to participate in the trials.
I. Update on Houseboats- Bob Mitchell reported that the Washington Realtors will be submitting a
request for legislation adding the sale of houseboats/floating on water residence to the real estate
licensing law.
J. Update on Escrow – Earnest Money Funds – Bob Mitchell also reported that the Washington
Realtors will be seeking sponsors for introducing legislation regarding the way earnest money
disputes are handled.
K. ARELLO Report – Karen Jarvis reported on issues discussed at the ARELLO meeting in
September including the question of whether Zillow should be required to have a broker’s license.
There were committee reports regarding actions taken by different states against various
violations. The ARELLO Fair Housing committee is close to making their database available.
L. State Managing Broker Simulation Exam – Jerry McDonald reported that a contract has been `into
the state exam by January 2016. The department is looking to recruit10 to 15 subject matter
experts to assist.
M. Proposed WAC changes Jerry McDonald identified three administrative codes (WAC 308-124A,
WAC 308-124C & WAC 308-124H)
• WAC 308-124A -Fingerprints – Looking to partner with outside vendors to switch to
electronic fingerprinting which will be sent directly to the state patrol,
• WAC 308-124C – the administrative rules are out of date and need to be updated.
• WAC 308-124H - Course submission. The new LEAN process for real estate education is
almost complete with the last item as the ability to upload courses to a cloud. WAC 308-124H
needs to be changed to allow the new method of submission.
It was moved seconded and passed to proceed with filing a 101s for each of the above
administrative codes.
N. Expanding Online Services – Agency is moving forward with improving and expanding online
services for our customers pending spending approval of $1,000,000 from the governor for the
additional spending authority from the real estate commission account.
O. WCRER Report – Steve O’Connor presented his report regarding availability and affordability of
housing in the state. Steve O’Connor was working with stakeholders on having the WCRER
legislation renewed as it expires in September 2015.
P. Budget – Jerry McDonald presented and explained the budget.
Open Forum –
• Ann Hartman requested that subcommittee meetings be scheduled farther advanced to allow
education providers more time to arrange their schedule to attend.
• Kyoko Wright brought up the question of whether the form 17 (seller disclosure form) should
include marijuana.
• The question was raised about the process regarding multiple offers. Catherine Moye
suggested contacting Annie Fitzsimons who may already have written a paper on the subject.
Q. Summary of Action Items –
• Education Subcommittee will meet in January to review the core, multiple offers and safety.
• Changing Business Sub Committee will schedule a meeting to discuss Zillow, and the
fingerprint survey including the 6 year cycle
• Jerry McDonald will move forward with filing the CR 101 on three areas of proposed rules
R. Adjourned – 11:15 AM
Real Estate Commission
Meeting
Annual Reports – Terry Rodgers
March 25, 2015
Brokers & Managing Brokers
Brokers & Managing Brokers
Delinquent 2014 Year-End Statistics
Mg Brokers
61 Branch
Offices
Inactive 316
Mg Brokers Firms
1,264 3,817
Active
Managing
Brokers
8,082 Active
Brokers
23,639
Delinquent
Brokers
415 Inactive
Brokers
Current License Totals for...
6,187 Brokers: 29,826
Managing Brokers: 9,346
First Licenses & Exam Candidates
Real Estate First Licenses & Exam Candidates
6842
3572 5426
2693
366 961
285 780 2014
2013
Active Licensee Population: Trends
Active Real Estate Licensee
Populations: Trends
33,990
32,351 31,721 Totals
29,587 29,171 29,805
8,527 8,082 Managing
8,603
8,177 7,934 Brokers
8,118
25,463
23,748 23,639 Brokers
21,410 21,053 21,871
2009 2010 2011 2012 2013 2014
Compliance Statistics
Real Estate Programs
Compliance Statistics
104
48
44 21 30
28
26 2
1
Statement of 1
Charges Final Order
Agreed Order
Dismissal SOC
Cease & Desist
2013 2014Regulatory & Compliance
Regulatory & Compliance Statistics
637
800 733 668
700
600
500 275 323
400
404 335
300
335 267
200 9
3
100
10
0 14
11
Complaints 1
Received Complaints
Closed by Complaints
Referred to Complaints
Program
Investigations Referred to Complaints
Audits Referred to
Compliance
2014 2013 2012Fingerprinting Statistics
Real Estate Fingerprinting Statistics
598
2014
7164
1394
2013
8266
587
2012
6565
0 1000 2000 3000 4000 5000 6000 7000 8000 9000
Rejected Fingerprint Cards Fingerprint Cards ReceivedReal Estate Audits Statistics
1042 1029
Real Estate Audits Report
894
416
318 306 330 337
223 236 228 221
190
94 114 113 133
5 9 14
Earnest Money Total Audits No Violations Technical Property Mgmt Record Keeping Unlicensed
(late deposit) Assistance Trust Account
Violations
2012 2013 2014
Total Audits 1,042
10 1029 894Real Estate Education Report
Renewals
assistance
Continuing
Education Audits
Schools Approved
Courses Approved
Instructors
Approvedwww.dol.wa.gov/business/realestate
Please subscribe to the Real Estate
ListServ at
www.listserv.wa.govCurrent Issues in WA Residential Real Estate
A 3-Hour Mandated Curriculum and Learning
Objectives for 2016-2017
Draft 1/28/2015
Legislative/Legal Updates
Upon completion of this section, the student will be able to:
1. Recognize that language in 18.86 RCW was updated in the statute to reflect the
Licensing Law (18.85 RCW) revisions that occurred in 2010.
2.1. Demonstrate how to create a dual agency relationship by separately entering an
agency agreement with both the seller and with the buyer in addition to complying with
statutory requirements for disclosure. (differing opinions on dual agency, clarify with
legal)
3.2. Explain that brokers are required to perform all agency duties established by the
Agency Law but brokers are not required to perform fiduciary duties. (expand to talk
about breach, disclosures, etc., highlight distinction between statutory vs. fiduciary
duties)
4.3. Recognize that Washington Courts seem to be in flux as to the status of seller
disclosure versus caveat emptor and that it is more important than ever for buyers to be
advised to conduct thorough inspections prior to purchasing. (emphasize the
importance; add As Is clauses)
a. Douglas v. Visser, 295 P.3d 800 (2013) and other published opinions.
b. Agency Law duty for brokers to disclose material facts actually known by broker; no
duty to investigate; reasonable reliance.
5.4. Demonstrate the proper way to make referrals to third party vendors, both
pursuant to RCW 18.86 and RCW 18.235.130 and to minimize risk at the same time as
providing competent referrals. (add vicarious liability)
a. Recognize the importance of making referrals when a subject matter exceeds the
scope of a broker's license, that it is okay for a broker to not have all the answers.
5. Recognize what constitutes proof of signatory authority for clients such as guardians,
power of attorney, personal representatives, corporations, LLC’s, and trustees.
6. Add current court cases and law – federal and stateDistressed Properties, Short Sales, and REO Sales
Upon completion of this section, the student will be able to:
1. Explain that not all licensees are equipped with the proper training and experience to
handle distressed properties, short sales, REO, and properties in receivership or
bankruptcy. Sometimes the most appropriate service a licensee can give such a
property owner is to refer them to legal counsel and/or to another licensee who has the
training and experience to handle such property.
2. Explain the distinctions between providing real estate services and engaging in the
unauthorized practice of law. The student must be aware of the advantages and
disadvantages of involving “short sale negotiators,” lawyers and other professionals,
particularly if the persons involved lack the experience or license to provide the services.
The student should recognize the risk of referring unlicensed individuals and the risks of
promising compensation to “short sale negotiators.”
3.1. Identify the risks and recall limitations on licensee’s authority to complete blanks
in forms that are not standardized for licensee’s use, including forms mandated by REO
sellers, short sale negotiators and others. Have a working knowledge of the Heritage
House case in relationship to the unauthorized practice of law in short sale, REO, and
foreclosure situations. (move to Others)
4.2. Explain how REO sales continue to present some difficulties simply because
some REO sellers do not seem to believe they have to comply with Washington State
real estate law. As a consequence, REO sales are often handled orally with buyers left
in a vulnerable position for weeks. (move to Others)
5.3. Explain that it is important that licensees document all requests made to the REO
seller for Seller’s Disclosures, Legal, and other locally required forms or addenda that
may not be provided by the REO seller. Licensees should explain to the buyer their
options with regards to locally required forms or addenda (i.e. Legal Description, Seller
Disclosures, Law of Agency), and explain that buyer may seek legal advice when locally
required forms or addenda are not provided by the REO seller. (move to Others)
The instructor is encouraged to use current forms and addenda such as short sale
addenda, for general discussion as applicable to the practice area of the audience.
Assistants-Unlicensed Guidelines
Upon completion of this section, the student will be able to:
1. Identify the requirements for licensure under RCW 18.85.011
a. Identify how this applies to using licensed and/or unlicensed assistants for brokers
and property managers, and be able to explain the limitations on what an unlicensed
assistant can and cannot do (refer to Department of Licensing Guidelines).Advertising and Social Media Guidelines
Upon completion of this section, the student will be able to:
1. Explain “One Click Away”
2. Explain the Licensing Law requirements for all advertising, with a special emphasis on
advertising in Social Media. This component cannot be used to explain or demonstrate
how to utilize social media or how to incorporate social media into a marketing plan.
3. Identify the issues and licensee responsibilities when using 3rd party websites (anything
not directly controlled by MLS or a firm). Inform students that licensees must keep the
information up to date and ensure the accuracy of the data. Students should be
reminded of the requirement to identify their license status on all internet websites or
advertising forums.
3.4. add Deceptive Trade Practices
(link to Social Media & Internet Guidelines for Real Estate Professionals text and
video)
Fair Housing Issues (Federal Fair Housing Act & WA Law on
Discrimination RCW 49.60)
Upon completion of this section, the student will be able to:
1. Explain that under Federal, State, and Local laws, a real estate broker, a property
manager, a landlord, or a seller cannot discriminate, show a preference or limitation
toward a buyer based on a protected class. (Instructors to provide examples)
2. Describe the Federal and Washington State protected classes and local Fair Housing
protected classes where applicable.
3. Explain why introductory letter from a buyer or a broker to the seller that includes
references to “protected classes” potentially places the brokers and seller at risk for
violating federal, state, and local Fair Housing and Discrimination laws. (Instructors are
encouraged to use examples.)
4. Describe what disciplinary action could be taken by the Washington State Department of
Licensing if Fair Housing Laws are violated under Washington State License Law (RCW
18.85.361)
Multiple Offers
In situations where multiple offers are anticipated and/or presented on a property, the student
will be able to:
1. Explain to buyers and sellers how to prepare and evaluate offers based on a buyer’s
ability to close on terms acceptable to seller, and how not to prepare or evaluate offers
based on discriminatory information or protected classes.2. Explain how to use Escalation Clauses/Addendums, Evidence of Funds documents and
other firm approved forms when preparing or presenting multiple offers.
3. Explain how the seller can counter any offer and accept offers in “first and backup”
positions, but that care must be taken so sellers do not accept multiple offers in “first
position”.
Property Management
Upon completion of this section, the student will be able to:
1. Explain why real estate licensees cannot perform property management without
approval from their designated broker unless it’s their own property (WAC or RCW?).
2. Explain that property management is a real estate activity and the designated broker has
responsibility for property management activities done by his or her licensees.
3. Describe the necessary agreements, record keeping, and funds management
procedures associated with property management as described by WAC 308-124D-215.
The student will indicate awareness of how funds are to be treated as trust funds where
appropriate.
4. Identify which Property Management functions can be authorized in the firm’s written
policy and written delegation agreements.
4. (Is a broker allowed to do FSBO?)
Others
Upon completion of this section, the student will be able to:
1. Explain why professional cooperation between real estate licensees is in the best
interests of licensees and consumers.
2. Explain how pocket listings can create liability for licensees and how pocket listings are
not in the best interests of licensees, firms, and consumers (lack of market exposure,
Fair Housing violations, etc.).
3. DOL Practices on
a. Social Media
b. Unlicensed assistants
c. property management
b. 4. Escrow Agents
5. Oso – refer people
6. Broker Safety – make good decisions
7. Research on update on Exhibit A (OIC) and check on updatesRevenue Data
500,000
Real Estate
450,000
400,000
Commission - 026
350,000
Actual data as of January 31, 2015
300,000
250,000
200,000 Budget Data
150,000 Actuals Biennial
100,000 to Date Estimates
50,000 Allotted $7,698,808 $9,885,000
- Expended 6,858,309 8,944,287
J A S O N D J F M AM J J A S O N D J F M AM J
Variance $840,499 $940,713
Actual Projected
Transaction Data
14,000 Fund Balance Data
12,000
Beginning Balance $6,201,338
10,000
Add: Collected to-date 6,674,024
8,000
Less: Expended to-date 6,858,309
6,000
Less: Legislative Sweep 1,700,000
4,000
Current Fund Balance $4,317,053
2,000
-
J A S O N D J F M AM J J A S O N D J F M AM J Established by RCW 18.85.220 – This account is the operating
or business account for real estate. All licensing fees paid to the
Actual Forecast department is placed into this account.
BPD Real Estate Program
March 2015 PresentationReal Estate
Revenue Data
25,000
20,000
Research – 06R
Actual data as of January 31, 2015
15,000
Budget Data
10,000
Actuals to Biennial
5,000
Date Estimates
Allotted $311,587 $415,000
- Expended 193,214 296,743
J A S O N D J F M A M J J A S O N D J F M A M J
Variance $118,373 $118,257
Actual Projected
Transaction Data
Fund Balance Data
2,500
Beginning Balance $936,226
2,000
Collected to-date 301,600
1,500 Expended to-date 193,214
Current Fund Balance $1,044,612
1,000
500 Established by RCW 18.85.461 – This account is for research
connected to the practice of real estate. Funding from this account
- comes from a $10.00 fee attached to each license renewal. The
J A S O N D J F M A M J J A S O N D J F M A M J department contracts with Washington Center for Real Estate
Research-Washington State University each biennium for their
Actual Forecast services.
BPD Real Estate Program
March 2015 PresentationRevenue Data
Real Estate
7,000 Education – 04F
6,000
Actual data as of January 31, 2015
5,000
4,000
Budget Data
3,000
2,000 Actuals to Biennial
Date Estimates
1,000
Allotted $172,014 $276,000
- Expended 47,068 151,288
J A S O N D J F M A M J J A S O N D J F M A M J J Variance $124,946 $124,712
Actual
Fund Balance Data
Established by RCW 18.85.317 – The purpose of this account is
to carry out the director’s education programs. Funds come from Beginning Balance $879,267
interest on trust accounts (25% to RE Education and 75% to
Collected to-date 43,515
Housing Trust Fund) and all fines collected from licensees.
Funds are used for training programs such as the distressed Expended to-date 61,660
property video. Current Fund Balance $861,122
BPD Real Estate Program
March 2015 PresentationYou can also read
