Iowa Real Estate Commission
1920 SE Hulsizer Road
Ankeny, IA 50021
September 14, 2006
Present: James Hughes, Chair; Dan Berry, Laurie Dawley, Patty Daniels and Donald
Others Present: Roger Hansen, Executive Officer; John Lundquist, Assistant Attorney
General; Dave Batts, Compliance Officer; Jeff Evans, Auditor; Sandy Malek, Administrative
Assistant; Susan Griffel, Education Director and Shari Fett, Bureau Chief
Public: Paul McLaughlin (Iowa Association of Realtors).
The meeting was called to order at 9:00 a.m.
Hansen introduced Shari Fett, Bureau Chief, to the Commission. Fett provided her
background and stated she was excited to be a part of Professional Licensing.
REQUEST FOR WAIVER
Theodore J. Oswald appeared before the Commission with his attorney, William Serengi.
Oswald requested waiver or variance from rule, or substitution of previous salesperson
experience to qualify for broker. After much discussion Berry moved, seconded by Marple,
to substitute previous experience as provided by 543B.15(8) and grant Oswald a broker
license conditioned upon 1. Activities limited to property management only for the first
year, and 2. At the end of one year Oswald must submit documentation to confirm he stayed
within the limits of property management, and the Commission may require him to personally
appear to explain activities. Motion carried unanimously.
Motion made by Marples, seconded by Dawley, to approve the July 13, 2006, minutes.
Motion carried unanimously.
Future IREC meetings are scheduled as follows:
Commission Meetings: Investigative Committee Meetings:
Thursday, November 2, 2006 Wednesday, November 1, 2006
Thursday, December 7, 2006 (Dawley, Berry and Hughes)
Wednesday, December 6, 2006
Thursday, January 11, 2007 Wednesday, January 10, 2007
Thursday, February 22, 2007 Wednesday, February 21, 2007
Thursday, April 12, 2007 Wednesday, April 11, 2007
Thursday, May 24, 2007 Wednesday, May 23, 2007
Thursday, July 12, 2007 Wednesday, July 11, 2007
Thursday, September 13, 2007 Wednesday, September 12, 2007
Thursday, November 1, 2007 Wednesday, October 31, 2007
Thursday, December 6, 2007 Wednesday, December 5, 2007
Discussion was held concerning possibly changing procedure for acceptance of signed
consent orders. The Commission decided not to make changes at this time.
Marple reported on the upcoming IAR State convention.
Daniels distributed copies of an article she found interesting relating to decision
making and sanctions.
Hughes reported receiving the most recent ARELLOgram which indicated Texas is pursuing
a law that would prevent persons on the sex offender registry from obtaining a real estate
Malek reported that over 2,000 background requests have been received since the law
went into effect. Additionally, she will continue to do audits for E & O insurance and
for continuing education compliance on a monthly basis.
Evans reported that he has been traveling extensively performing audits. He will also
be attending the IAR Board of Directors Meeting next week to provide an update on
Commission activities. He has also been invited to serve on the PSI Exam Review Advisory
Committee that is meeting in Nevada next month.
Batts reported 183 complaint cases have been opened this year compared to 187 for the
calendar year of 2005.
Hansen reported that due to the efforts of Bill Schroeder over the past 18 months, the
office remodeling project has been completed and he gave the Commissioners a tour.
Griffel reported that the RFP for examination services will be mailed out next week to
five providers. She also reported that an advisory committee has been created to review
post-license requirements for first time salesperson renewals and will give
recommendations to the Commission. Hughes and Daniels volunteered to participate on the
committee which will meet October 25, 2006.
ASSISTANT ATTORNEY GENERAL'S REPORT
Lundquist instructed the Commissioners and staff to refer any phone calls regarding
Leonard Fazio to either himself or Hansen.
ERRORS AND OMISSIONS INSURANCE
Hansen reported that the current contract for E & O insurance with Rice Insurance
Services is in the third year of the three year contract. The contract provides for two
optional one year extensions. The insurance provider, CNA, has agreed to renew the
contract for 2007 with a $10.00 a year rate increase. Dawley moved, seconded by Berry, to
extend the Rice contract for one year. Motion carried unanimously.
McLaughlin spoke of the IAR state convention to be held next week in Illinois. The IAR
continues to work on legislative issues.
Motion made by Marple, seconded by Daniels, to enter into closed session pursuant to
Iowa Code 21.5(1)(a) and 543B.52(1) for real estate applications and 21.5(1)(d) and
21.5(1)(f) to discuss informal settlements, consent agreements/orders, finding of fact,
decision and order and open cases. Roll call vote as follows: Hughes, aye; Marple, aye;
Dawley, aye; Daniels, aye and Berry, aye. Commission entered into closed session at 10:15
a.m. and returned to open session at 11:26 a.m.
Marple moved, seconded by Daniels, to return to open session. Motion carried
Hughes moved, seconded by Marple to find probable cause on the following cases: 06-066,
06-106, 06-082, 06-124, 06-125, 06-127, 06-130, 06-048, 06-113, 06-118, 06-119, 06-141,
06-153, 06-161, A06-013, A06-014, A06-015, A06-016, A06-017, A06-019, A06-020 and 06-103.
Motion carried unanimously.
Dawley moved, seconded by Berry, to close the following cases: 06-068, A06-010, 06-028,
06-120, 06-138, 06-147, 06-154, 06-163, 06-163, 06-158, 06-159, 06-110, 06-111, 06-117,
06-122, 06-123, 06-142, 06-143, 06-148 and 06-108. Motion carried unanimously.
Marple moved, seconded by Berry, to accept signed consents orders for the following
cases: 06-045, 06-080, 06-086, 06-107, 06-061, 06-114, 06-088, 06-103, 06-087, 06-089,
06-093, 06-112, A06-009, 06-092, 06-121, 06-099 and 06-040. Motion carried unanimously.
Dawley moved, seconded by Daniels, to extend the deadline to pay the civil penalty in
case 06-029. Motion carried unanimously.
HEARING, CASE A05-009
Respondent appeared with attorney. Respondent's attorney requested a closed hearing.
Motion by Dawley, seconded by Marple to go into closed session pursuant to Iowa Code
21.5(1)(a) to conduct the hearing in Case A05-009. Roll call vote as follows: Hughes, aye;
Marple, aye; Dawley, aye; Berry aye: and Daniels, aye. Motion carried unanimously. The
Commission entered into closed session at 1:35 p.m.
Administrative Law Judge Margaret LaMarche conducted the hearing and was recorded by
Peterson Court Reporting Service. The hearing ended at 2:40 p.m and the meeting returned
to open session.
Motion made by Berry, second Marple, to enter into closed session pursuant to Iowa Code
21.5(1)(d) and 21.5(1)(f) to deliberate. Roll call vote as follows: Hughes, aye; Dawley,
aye; Marple, aye; Daniels, aye and Berry, aye. Motion carried unanimously. Commission
entered into closed session at 2:45 p.m. and returned to open session at 3:05 p.m.
Motion made by Dawley, second Marple, to instruct the administrative law judge to draft
Findings of Fact, Conclusions of Law, Decision and Order, in conformance with their
deliberations. Motion carried unanimously.
Motion made by Berry, second Marple, to adjourn. Motion carried unanimously. Meeting
adjourned at 3:06 p.m.
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