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Iowa Real Estate Commission
1920 SE Hulsizer Road
Ankeny, IA 50021
Meeting
September 8, 2005
MINUTES
Present: James Hughes, Chair; Laurie Dawley, James O'Neill; Patty Daniels; Lori Diehl,
E. Karl Reichert and Donald Marple.
Others Present: Roger Hansen, Executive Officer; John Lundquist, Assistant Attorney
General; Dave Batts, Compliance Officer; Jeff Evans, Auditor, Susan Griffel, Staff and
Sylvia King, Staff.
Public: Paul McLaughlin (Iowa Association of Realtors).
The meeting was called to order at 9:06 a.m.
INTRODUCTION OF NEW COMMISSIONERS
Commissioners Lori Diehl and E. Karl Reichert were introduced to Commission and Staff.
MINUTES
Motion made by Dawley, second Daniels, to approve July 14, 2005 minutes. Motion carried
unanimously.
MEETING SCHEDULE
Future IREC meetings are scheduled as follows:
Commission Meetings: Investigative Committee Meetings:
Thursday, November 3, 2005 Wednesday, November 2, 2005
((Hughes, Dawley and Reichert)
Thursday, December 8, 2005 Wednesday, December 7, 2005
(Hughes, O'Neill and Diehl)
ERRORS AND OMISSIONS INSURANCE
Hansen presented information provided by the current state group errors and omissions
insurance provider, RISC Insurance, including a requested premium increase from $134 to
$140 for the 2006-2007 policy period. Dawley moved, second Marple, to approve the increase
and continue the contract with RISC. Motion carried unanimously.
ADMINISTRATIVE RULES
Hansen presented proposed change to IAR 193E-7.4(543B) Prohibited Practices, by adding
new subrule 7.4(8) to clarify the prohibition provided in Iowa Code section 543B.60A.
Marple moved, second Reichert, to approve the proposed rule change with language
modification as discussed. Motion carried unanimously.
PUBLIC COMMENT
McLaughlin reported there appear to be no unexpected issues with the new fingerprinting
requirement, which appears to be proceeding smoothly.
He added the annual IAR convention is scheduled for this month and invited all
Commission members to attend.
CLOSED SESSION
Motion made by Daniels, second O'Neill, to enter into closed session pursuant to Iowa
Code 21.5(1)(d) and 21.5 (1)(f). Roll call vote as follows: Hughes, aye; O'Neill, aye;
Daniels, aye; Marple, aye; Diehl, aye; Reichert, aye and Dawley, aye. Motion carried
unanimously.
Commission entered into closed session at 9:33 am and returned to open session at 1:26 pm.
SALESPERSON APPLICATION
Motion made by Dawley, second Daniels, to approve salesperson applications on Case
05-086 and 05-109. Roll call vote as follows: Hughes, aye; O'Neill, aye; Marple, aye;
Dawley, aye, Diehl, aye; Reichert, aye and Daniels, aye. Motion carried unanimously.
Motion made by Dawley, second Marple, to deny salesperson application on Case 05-106
and 05-116. Roll call vote as follows: Hughes, aye; O'Neill, aye; Marple, aye; Dawley,
aye, Diehl, aye; Reichert, aye and Daniels, aye. Motion carried unanimously.
CASE REVIEW
Motion made by Dawley, second O'Neill, to close Cases A05-007, A05-005, 05-044, 05-074,
05-046, 05-050, 05-077, 05-073, 05-075, 05-085, 05-079, 05-081, 05-093, 04-062, 05-092,
A05-012, A05-013 and A05-014. Roll call vote as follows: Hughes, aye; O'Neill, aye;
Marple, aye; Dawley, aye, Diehl, aye; Reichert, aye and Daniels, aye. Motion carried
unanimously.
Motion made by Dawley, second O'Neill, to find probable cause on Cases
A05-006, 05-024, 05-037, 05-035, 04-055, 05-101, 05-103 04-147, A05-011, A05-015 and
A05-016.. Roll call vote as follows: Hughes, aye; O'Neill, aye; Marple, aye; Dawley, aye,
Diehl, aye; Reichert, aye and Daniels, aye. Motion carried unanimously.
Motion made by Dawley, second Daniels, to file Notice of Intent to Impose Civil Penalty
on Case 05-036. Roll call vote as follows: Hughes, aye; O'Neill, aye; Marple, aye; Dawley,
aye, Diehl, aye; Reichert, aye and Daniels, aye. Motion carried unanimously.
FINDINGS OF FACT, CONCLUSIONS OF LAW, DECISION AND ORDER
Motion made by Marple, second Reichert, to accept findings of fact, conclusions of law,
decision and order on Cases 03-141 and 04-092. Roll call vote as follows: O'Neill, aye;
Marple, aye; Dawley, aye, Diehl, aye; Reichert, aye and Daniels, aye. Hughes abstained
from roll call vote. Motion carried unanimously.
INFORMAL SETTLEMENT
Motion made by O'Neill, second Daniels, to accept informal settlement on Case A05-003.
Roll call vote as follows: Hughes, aye; O'Neill, aye; Marple, aye; Dawley, aye, Diehl,
aye; Reichert, aye and Daniels, aye. Motion carried unanimously.
REQUEST FOR WAIVER OR VARIANCE FROM ADMINISTRATIVE RULES
Hansen distributed two separate requests for waiver or variance from administrative
rules for two persons who are nearing statutory and regulatory deadlines for submission of
their applications. After some discussion, Commission members agreed to deny the requests
in lieu of statutory guidelines, which cannot be waived. Marple moved, second Diehl, to
deny the requests. Motion carried unanimously.
COMMISSION REPORTS
Daniels reported she's received a report of a lender who is introducing a marketing
approach catered toward the Hispanic population. She inquired about accrediting foreign
language classes in order to enable real estate professionals to benefit from learning a
second language and applying the course toward continuing education while serving a
segment of the population who is not English-speaking. After discussion, the Commission
agreed such courses are along the lines of personal development as proposed to
professional.
Reichert reported on rumors and problems concerning closing transactions in regards to
homeowner's insurance policies. He stated that after closing, some providers have demanded
additional insurance or cancelled policies because of individual credit scores. He asked
the Commission if they felt the issue should be raised as a public protection concern.
After discussion, the Commission agreed that the IAR or the local board of realtors could
raise the issues with the Banking or Insurance Divisions, since the question concerns the
regulation of those professions.
STAFF REPORTS
Griffel reminded Commission members of the upcoming newsletter and gave a short
briefing of her duties as education coordinator and editor of the newsletter.
Hansen reported staff continues to strive to meet the needs of the Commission while
covering other professions. He added efforts continue to renovate and relocate the
Division.
ASSISTANT ATTORNEY GENERAL'S REPORT
No report required.
MEETING ADJOURNED
Motion made by Dawley, second Marple, to adjourn. Motion carried unanimously. Meeting
adjourned at 2:00 pm.
If you require the assistance of auxiliary aids or services to participate in or attend
the meeting because of a disability, please call our ADA Coordinator at (515) 281-7468, if
you are hearing impaired, call Relay Iowa TTY at 1-800-735-2942.
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