Page 18 - Letter to NAR LT

• The public, your constituents and the clients we serve deserve an opportunity to comment on this legislation affecting a regulatory body charged with their protection.
• Most importantly, it allows an alleged violator to escape the well-trained eye of five (5) Real Estate Commissioners who collectively have 154 years of experience and must hold the industry's highest professional license, that of BROKER.
Other administrative considerations:
• Number of administrative hearings will increase dramatically with added expense to the licensee and the Errors and Omissions Insurance Carrier. E&O will cover only
$2500.00 of an estimated average hearing cost of $3,369.00 when hearing occurs.
• Actuarially, the increase associated with the hearings is going to increase the cost of E&O (mandated by state law) to the licensees.
• Passage of SB2624 poses an unrealistic timeline for implementation.
• According to MREC records, currently there are 91 open investigations based on complaints from the consumer public. Most involve 2 licensees and if only 25% go to a hearing, the additional cost to licensees’ insurance carrier is over a $100,000.00. This added expense will raise premiums for ALL licensees, (Not just those who use their policies).
• NO real estate licensee has ever been the subject of a disciplinary action without actually violating state statute or Administrative rule.
• No licensee has ever been denied the right to a hearing before the Commissioners and their right to appeal before Circuit Court in the county in which they reside.