NEBRASKA REAL ESTATE COMMISSION

November 16, 2005

Ramada Limited South                     Goldenrod Room                     Lincoln, NE


Opening

Chairperson Gale convened a meeting of the Nebraska Real Estate Commission at 9:04 a.m. on November 16, 2005, in the Goldenrod Room of the Ramada Limited South, located at 1511 Centerpark Road in Lincoln, Nebraska. All of the members of the Real Estate Commission were present. Also present were Director Les Tyrrell, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Monica Wade. Jim Titus, Special Assistant Attorney General and Counsel to the Commission, was present for the Presentation of a Stipulation and Consent Order.

Notice of Meeting (Adopt Agenda)

Director Tyrrell presented a public notice and proofs of publication thereof relating to this meeting, all of which are attached to and made a part of these minutes. Chairperson Gale reported that all Commissioners had been notified of the meeting simultaneously, in writing, and that a proposed tentative agenda accompanied the notification.

Chairperson Gale pointed out to those in attendance that a public copy of the materials being used during the meeting was available to the public on the counsel table in the meeting room, and that the procedures followed were in accordance with the Open Meetings Law. Chairperson Gale asked that guests sign the guest list.

Director Tyrrell noted that agenda items 17a and 17b had been added since the tentative agenda was mailed to the Commissioners.

After review of the final agenda, a motion was made by Poskochil and seconded by Grady to adopt the final agenda as presented. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Minutes of October 13, 2005

The minutes of the Commission meeting held on October 13, 2005, were considered.

After review, a motion was made by Griess and seconded by Shepard to approve the minutes as presented. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard and Gale voting aye.

Receipts and Expenditures Report

Director Tyrrell presented the Receipts and Expenditures Report for October. A copy of said report is attached to and made a part of these minutes. Director Tyrrell noted that the explanation page which was included on the report and had been revised since the mailing and that a new page was included in the meeting packet received that morning and in the minute book exhibit.

Director Tyrrell noted that there was nothing unusual to report other than those items set forth on the explanation page.

Chairperson Gale noted that the Examination and Application receipts were below budget for the current month and the year-to-date. Director Tyrrell confirmed that and indicated that October examinations were light also.

The cash fund balance as of October 31, 2005, was $821,335.97, which compared to a cash fund balance of $761,965.92 on October 31, 2004.

After discussion, a motion was made by Johnson and seconded by Poskochil to file the October Receipts and Expenditures Reports for audit. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard and Gale voting aye.

Deficit Budget Request

Director Tyrrell presented the Deficit Budget Request. Copy of said request is attached to and made a part of these minutes.

Commissioner Poskochil asked if the amount would be adjusted if the estimated examinations were not administered. Director Tyrrell indicated the requested amount could be adjusted at least until the hearing on the request and possibly later.

No action was necessary on this report.

Renewal Report

Director Tyrrell presented the Renewal Report. Copy of said report is attached to and made a part of these minutes.

No action was necessary on this report.

Specialized Registrations - none

Non-Resident Licenses and Resident Licenses Issued to Persons Holding Licenses in Other Jurisdictions Report

Director Tyrrell presented for ratification the Non-Resident Licenses and Resident Licenses Issued to Persons Holding Licenses in Other Jurisdictions Report, a copy of which is attached to and made a part of these minutes.

After review, a motion was made by Grady and seconded by Johnson to ratify issuance of the licenses as set forth in the report. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard and Gale voting aye.

Examination Report - October

Director Tyrrell presented for ratification the October Examination Report, a copy of which is attached to and made a part of these minutes.

After review, a motion was made by Grady and seconded by Shepard to ratify the October Examination Report for the purpose of issuing licenses. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard and Gale voting aye.

Real Estate Education Matters

Continuing Education Activity Approval

Director Tyrrell presented for ratification the Continuing Education Activity Approval Report, a copy of which is attached to and made a part of these minutes. Director Tyrrell pointed out a spelling error which he indicated would be corrected on the exhibit copy in the minute book.

After review, a motion was made by Poskochil and seconded by Johnson to ratify this report. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard and Gale voting aye.

Pending Sworn Complaints and Investigative Matters

Director Tyrrell presented a summary report of the pending complaints, which included a list of licensees presently under disciplinary action or on appeal. A copy of said report is attached to and made a part of these minutes.

No action was necessary on this report.

The following sworn complaints and investigative matters were presented to the Commission:

Item A Complaint # 2005-038 - Michael A Davis vs. Philip & Christine Rosfeld

Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and discussion, a motion was made by Poskochil and seconded by Griess that the complaint be dismissed without prejudice. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard and Gale voting aye.

Item B Complaint # 2005-042

Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and discussion, a motion was made by Grady and seconded by Johnson that the complaint be dismissed without prejudice. Motion failed with Grady voting aye and Griess, Johnson, Poskochil, Shepard and Gale voting nay.

After further discussion, the Commission determined, by consensus, that additional information was needed and the complaint should undergo further investigation.

Presentation of Stipulation and Consent Orders

Complaint 2005-017,
Commission vs. Roberta Springer

Jim Titus, Counsel for the Commission, presented a stipulation and consent order in the matter of Complaint 2005-017, Commission vs. Roberta Springer. A copy of said order is attached to and made a part of these minutes.

Counsel Titus reviewed the circumstances involved and noted the provisions of the order, which had been signed by Ms. Springer. The order specified a permanent surrender of the real estate broker=s license. It also set out that Ms. Springer shall not, at anytime, apply for or receive any license authorized under the Nebraska Real Estate License Act.

After discussion, a motion was made by Poskochil and seconded by Shepard to enter into the order as presented. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Complaint 2005-022,
Kathi Ward vs. Bruce Daniel Abraham

Deputy Director Mayrose presented a stipulation and consent order in the matter of Complaint 2005-022, Kathi Ward vs. Bruce Daniel Abraham. A copy of said order is attached to and made a part of these minutes.

Deputy Director Mayrose reviewed the circumstances involved and noted the provisions of the order, which had been signed by Mr. Abraham. The order specified a two year suspension all served on probation plus nine hours of additional continuing education with three hours being in the area of agency, three hours in the area of license law, and three hours in the area of ethics, to be completed within 120 days.

After discussion, a motion was made by Poskochil and seconded by Griess to enter into the order as presented. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Complaint 2005-030,
Michael Inzauro vs. Russell Alan Craig

Deputy Director Mayrose presented a stipulation and consent order in the matter of Complaint 2005-030, Michael Inzauro vs. Russell Alan Craig. A copy of said order is attached to and made a part of these minutes.

Deputy Director Mayrose reviewed the circumstances involved and noted the provisions of the order, which had been signed by Mr. Craig. The order specified a censure plus six additional hours of additional continuing education with three hours being in the area of license law and three hours in the area of agency, to be completed within 90 days.

Discussion centered on the delivery of the inspection report and to amend the Order to indicated the inspection report was delivered to the Complainant for the first time at closing.

After discussion, a motion was made by Griess and seconded by Shepard to amend the order as discussed and that if the Respondent agrees and signs the amended order, the Commission approves the order and it can be signed by the Chairperson accordingly. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye and Johnson not participating or voting, having recused himself, thereby nullifying any potential conflict of interest.

Complaint 2005-047,
Commission vs. Nada Resnik-McNenny

Deputy Director Mayrose presented a stipulation and consent order in the matter of Complaint 2005-047, Commission vs. Nada Resnik-McNenny. A copy of said order is attached to and made a part of these minutes.

Deputy Director Mayrose reviewed the circumstances involved and noted the provisions of the order, which had been signed by Ms. Resnik-McNenny. The order specified a censure plus six hours of additional continuing education with three hours being in the area of agency and three hours in the area of license law, to be completed within 90 days.

After discussion, a motion was made by Johnson and seconded by Grady to enter into the order as presented. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Deputy Director Mayrose noted that Complaint 2005-011 had been held in abeyance, pending the outcome of the Commission=s Complaint 2005-047. Since the stipulation and consent in 2005-047 was agreed to, he recommended that Complaint 2005-011 be dismissed. A motion was made by Grady and seconded by Griess to dismiss Complaint 2005-011. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard and Gale voting aye.

Hearings - none

Informal Special Appearances

James Patrick Fabian, Salesperson Applicant

Director Tyrrell presented exhibits which included correspondence regarding Mr. Fabian=s special appearance, Mr. Fabian=s salesperson application and information regarding Mr. Fabian=s criminal history. A copy of said exhibit is attached to and made a part of these minutes. Mr. Fabian was present.

Chairperson Gale reviewed the procedure for informal special appearances.

Mr. Fabian explained to the Commission his family history along with his occupational background in the hospitality industry. He also explained the felony which appeared on the criminal history report received by the Commission was a crime that was committed when he was eighteen and the original plea stated that it was to be removed from his record. He was unaware that it was still in his criminal history until receiving the telephone call from the Commission. Mr. Fabian admitted guilt and took full responsibility for his actions. Chairperson Gale suggested he file the appropriate paperwork with the Pardons Board to get the conviction removed from his record. Commissioner Johnson inquired as to whether Mr. Fabian had contacted any real estate firms. Mr. Fabian indicated if he had interviewed with about five firms and had selected a company.

After discussion, a motion was made by Shepard and seconded by Poskochil to allow Mr. Fabian to sit for the salesperson examination after making proper application and to have a license issued upon passing. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Discussion of Neb. Rev. Stat. '81-885.24(19) regarding leaving of a copy of the listing agreement with the seller-

Director Tyrrell presented an exhibit of Neb. Rev. Stat. '81-885.24(19) highlighting the section to be the subject of this discussion. A copy of said exhibit is attached to and made a part of these minutes.

Commissioner Griess felt that the importance of leaving a copy of the listing agreement was not emphasized currently. Commissioner Griess felt that the Commission needed to explain to the licensees why they should leave copies of documents. Commissioner Poskochil pointed out that on some occasions the spouses are in separate locations, therefore, it would be more difficult to leave a copy with each spouse. Doug Ruge, Attorney for CBSHOME Real Estate Company, noted that using carbon copies or NCR paper is not cost effective, and it is inconvenient, and that major brokers in Omaha are not leaving a copy of the listing agreement. Director Tyrrell noted that if the listing agreements were done on a computer and the blanks were filled out on the computer then the licensee could just print the agreement twice. Commissioner Gale expressed the importance of leaving a copy of the agreement so that blanks could not be filled in later. Mr. Ruge indicated that there was not enough distinction between listing and purchase agreements to have such a difference in how the law was written. Commissioner Shepard indicated that using carbon copies are an inconvenience, however, the law was written this way to protect the public, and just because a portion of the licensees do not leave a copy does not make it right. Chairperson Gale explained that Neb. Rev. Stat. '81-885.19 carries an extremely high standard and that the Commission expects licensees to get it right.

It was consensus of the Commission to have an article published in the Commission Comment on this issue.

Preliminary Discussion Rule Amendment - Title 299, Chapter 5-003.11 - Exemption Builder/Developer - Estimated Closing Costs

Director Tyrrell presented an exhibit setting out, in legislative style, the proposed changes to Title 299, Chapter 5-003.11. A copy of said exhibit is attached to and made a part of these minutes.

Discussion of this exemption led to a discussion of other possible exemptions, e.g. Asset Management Companies.

After discussion, it was a consensus of the Commission to review exemption language in Title 299, Chapter 5-003.10 & .003.11 and bring this issue back to the Commission.

Proposed Statutory Change - Neb. Rev. Stat. '81-885.20 - Eliminating Pocket Card Return in a Transfer

Director Tyrrell presented a copy of draft legislation proposing to amend '81-885.20. A copy of said exhibit is attached to and made a part of these minutes.

A motion was made by Grady and seconded by Johnson to have the legislation introduced into the upcoming Legislative session. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Draft Article - Pitfalls of Being a Dual Agent/Principal

Director Tyrrell presented a draft of an article requested by the Commission to give guidance to licensees who find themselves in circumstances of being a dual agent and a principal in a transaction. A copy of said article is attached to and made a part of these minutes.

After discussion it was consensus of the Commission to publish the article in the Commission Comment.

Information Matters

Trust Account Examination Evaluation - Third Quarter 2005.

Director Tyrrell presented the Third Quarter 2005 Trust Account Examination Evaluation for review. A copy of the report attached to and made part of these minutes.

No action was necessary on this report.

Audit Completed - Exit interview to be conducted on November 17.

Director Tyrrell noted that the Audit had been completed and that the Exit interview would take place on November 17. He indicated he would bring the Audit Report and any proposed response thereto to the January meeting.

No action was necessary on this report.

Future Meeting Dates

January 18-19, 2006 - Staybridge Suites, Lincoln
February 23, 2006 - Staybridge Suites, Lincoln
March 23-24, 2006 - Staybridge Suites, Lincoln
May 3-4, 2006 - Ramada Limited South, Lincoln
June 14-15, 2006 - Ramada Limited South, Lincoln
August 24-25, 2006 - Staybridge Suites, Lincoln
October 5-6, 2006 - Ramada Limited South, Lincoln

Recesses and Adjournment

At 10:15 a.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 10:25 a.m.

At 11:59 a.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 12:15 p.m.

At 1:04 p.m., there being no further business to come before the Commission, a motion was made by Johnson and seconded by Shepard that the meeting adjourn. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

I, Les Tyrrell, Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing minutes of the November 16, 2005, meeting of the Nebraska Real Estate Commission were available for inspection on November 17, 2005, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director

Guests Signing the Guest List

Perre Neilan, Nebraska REALTORS7 Association, Lincoln
Bonnie Woods, CBSHOME Real Estate Company
Doug Ruge, CBSHOME Real Estate Company