News

Real Estate Commission Report23 Jul

SUBMITTED BY DAVID SOMERS

The AREC met in Anchorage on June 11. If you have an interest in attending future meetings the schedule is published on the AREC website. There are four regular meetings each year and usually occur in March, June, September and December. The meetings take place at the Atwood Building in Anchorage. The entire meeting is open to the public, but your input can only take place during public comment early in the agenda.

During this meeting’s public comment period the main two topics were payment of commissions to legal entities and how teams are handled by the AREC. One member of the public is pushing for a regulation project the states that all licensees can operate as legal entities. This approach broadens the discussion beyond the payment of commission to legal entities and still leaves open the payment of commissions to legal entities that are not solely made up of licensees, a position that AAR is opposed to.  While this topic is worthy of discussion, we asked that the AREC look at that as a separate discussion and move ahead with the easy fix for the vast majority of licensees by simply stating that brokers may pay a commission to a legal entity as long as the legal entity is made up solely of licensees. We believe that approach for a narrow regulation project complies with the intent of statutes and would survive legal review. A wider approach that allows licensees to operate as legal entities and for commissions to be paid to legal entities, regardless of how many unlicensed people are in the legal entity, would require a statute change. Statute currently states that only a natural person may have a real estate license and further mandates that a commission can only be paid to a licensee. We were disappointed that the AREC did not take action on this at the June meeting, but we are told that they will take action in the September meeting.

On how teams operate, it is becoming apparent that the AREC needs to either accept the fact that teams work differently from the rest of us and new regulations need to be addressed or they need to state very clearly that all licensees need to comply with current law regardless of how they prefer to operate. As teams desire to operate as a separate entity but do not want to open their own brokerage, perhaps making them open a branch office would work. Statute and regs are already in place to cover this approach.  This will also be on the AREC’s September meeting agenda with recommendations coming from Chairman Bates and Investigator Wiriwan. AAR has not taken a position on this issue but I am sure that Industry Issues will be taking this up after reviewing the AREC actions.

Some areas on this issue to watch for:

  • People are confused as to what brokerage the team members are under. It was suggested that Alaska adopt statutes that other states have that mandate that in any advertising the brokerage name as listed with the real estate commission be the most predominant on the sign, ad, etc. The area of forms used for listings, etc. would be covered here, also.
  • How are consumer pamphlets handled? Do all team members have to be on the form and have to be in the same relationship?
  • Is there sufficient broker oversight? It was reported that some licensees were unaware of who their actual broker was and were putting their team leader on license renewal forms as their broker.

The process has taken so long that many of you have probably forgotten about the mandatory Errors and Omissions Insurance. Earlier this year we were finally at the point for the AREC to go out for RFPs but then hit another snag. The new holdup is a concern within the division that the statute on E&O is not aligned with the state procurement code. They hoped to have a final opinion of this within a few weeks but at this writing it has been 4 weeks and no news. It’s only been 6 years or so, so what’s the hurry?

Sara Chambers, who took over for Dan Habeger as the Director of the Division, spoke at length. I was impressed with her apparent concern over fixing the budgetary issues and transparency issues that have plaguing both the Commission and the Division for years, now. Ms. Chambers testified recently at a Legislative Budget and Audit meeting on these issues and Industry Issues will be reviewing her testimony.

It was reported that the Recovery Fund is at or near the legislative cap of $500,000.00. Recent activity will certainly bring it down but it will stay at healthy levels.

In reviewing the minutes from the December 2013 meeting, I saw a report from Investigator Wirawan regarding the lack of the ability of the AREC to take action against an individual who violates an order of the Commission. This has been a long standing problem and I was glad to see her addressing the issue.

She gave the Commissioners a proposed change to AS 08.88.071 that would fix the problem. In the past AAR has taken on these projects that need to go through the legislative process, as we can handle it more efficiently. There are many cases, such as this, where our concerns are similar and we are able to help the Commission along with it’s goal of the protection of the public and get the job done faster. At the request of Commissioner Burke it was decided that it was not appropriate to work with AAR on these projects. I am sure that I can state on the behalf of Industry Issues Chair Errol Champion that AAR remains open to aiding in moving legislation that benefits AAR, AREC and the public. Sometimes it just makes sense to work together.

Comments are closed.

2016 NAR Committee Recommendation Process is Underway!

Are you or someone you know interested in serving on an NAR committee in 2016?   

The online Committee Recommendation Form on REALTOR.org is now open and accepting recommendations!  Please read the following important information regarding the Committee Recommendation Process:

Re-appointment to Committees & Continuing Terms

Committee members are NOT automatically considered for reappointmentA member currently serving on a committee, whose term expires in 2015 MUST submit a recommendation via the Online Committee Recommendation Form if he/she would like to be considered for service in 2016. 

Members who have a continuing term that expires in 2016 or 2017 do not need to submit a recommendation to remain on the committee; they will remain until the term expires.

Process for 2016 Committee Recommendation Process

The deadline for submitting committee recommendations is May 22, 2015.  All recommendations must be submitted via the online form.

Using the form, you can recommend yourself or another suitable candidate.   When submitting a recommendation you are required to include relevant comments that highlight the candidate’s skills and qualifications for the position.  All comments are confidential.

We encourage you to seek recommendations from colleagues with whom you have worked closely, in particular members of state and national leadership.

Follow these steps to access the Committee Recommendation Home Page:

1. Log-on to REALTOR.org
2. Click the “About NAR” tab at the top of the page
3. Click “Governance” in the right hand side of the page
4. Click “Committees” in the right hand side of the page
5. Click “Committee Selection Process” in the right hand side of the page
6. Click “Enter and view your committee recommendations” in the center of the page

The link below may also be used to access the recommendation form directly on REALTOR.org. http://gms.realtor.org/comrecords.nsf/comselMbrhome?readform

Things to Consider when Submitting Recommendations

Please review the committee structure, which lists each committee’s purpose statement, composition (how many members), length of term, and specific qualifications for consideration to see what committee you would best serve.  Please note that if appointed to a committee you will be expected to attend all of its meetings and serve the full length of the term.  Furthermore, please note that forums are open to all members; so recommendations need not be submitted for forums unless you are seeking the position of chair or vice chair.

The committee structure* can be found by clicking “View Committee Information” on the committee recommendation homepage (link provided above).

*Note: The content is from the current (2015) committee structure.  The 2016 committee structure will be approved at the REALTORS® Legislative Meetings & Trade Expo in May, 2015.

Expertise Profiles

NAR’s Expertise Profile Database was designed to provide all levels of the REALTOR® family (including the Local, State and National Associations) with key information about you and your professional experience. The information that you will provide in this profile will be used as a resource in a variety of ways, including identification of members with certain expertise to serve on committees, working groups, presidential advisory groups; also, to respond to surveys about association issues, products, services etc.  

Individuals interested in serving on NAR’s committees are encouraged to create and/or update their expertise profiles.  However, they are not required. Please note:  Completing an expertise profile is NOT the same as submitting a recommendation for yourself!  If you wish to serve on a committee you still must submit a recommendation via the online Committee Recommendation Form on REALTOR.org.

To access the Expertise Profile page*:
Click “Enter Your Expertise Profile” on the committee recommendations homepage (http://gms.realtor.org/comrecords.nsf/comselMbrhome?readform)

Turn to REALTOR.org for the Latest Information

Use of electronic mail and the NAR Governance page on REALTOR.org serves as the vehicle for promoting and publicizing information related to the Committee Recommendation/Selection process.  Therefore it is imperative that you adjust your email spam filter settings so that you receive important emails from NAR.

NAR Governance Home Page*:

http://www.realtor.org/user/login?destination=/governance

Committees Home Page*:

http://www.realtor.org/governance/committees

*Members need to have a REALTOR.org login and password to access these pages.  Contact Information Central at (800) 874-6500; InfoCentral@realtors.org for login and password assistance.

 

Contact Information

Alaska Association of REALTORS®
4205 Minnesota Drive
Anchorage, Alaska 99503

Phone (907) 563-7133
FAX (907) 561-1779
Toll-Free (800) 478-3763

joinus@alaskarealtors.com