Washington Estate Planning News

Washington Real Estate Commission Began The Planning Session With The Reviewing Of The Goals For 2004 And Setting Goals For 2005

Vice Chair Alan Barnard began the planning session with the reviewing of the goals for 2004 and setting goals for 2005. For the past 17 months the Task Force has been working on the revision/rewrite of RCW 18.85 and is now at the point of hiring a scribe to write the proposed draft.

The goal has been accomplished with a rule change to WAC 308.124C 030 for the accuracy and accessibility of record storage.  The change was adopted and went into effect on April 23, 2004, which allows for records over a year old to be maintained in a different site and also allows for alternative storage methods.

Criminal background checks and fingerprinting remain on the list.

The development of an electronic newsletter or paper newsletter was not accomplished; however consideration is still being given to the idea.

Staff has worked towards the goal of updating pre-license and post-licensing curricula.

The department is working on the Internet licensing renewal and by the end of March should have transitioned to the SOLAR licensing renewal system.

The over site and quality control of school by the education section has not had any significant changes in this regard.

Core curriculum was accomplished for 2005 and now curriculum for the 2006-07 will need to be considered.

Process improvements in the course approval process (approval of seminar type classes - dates that needed immediate attention)

Other possible items for consideration for this planning session that were not addressed in the previous planning session:
Document management review (revenue) 
Consumer brochures on education (kinds of brochures relating to education or brochures that include stakeholder work
Possible standardization of forms 
MOORE participation in licensing forms and stakeholder outreach
Earnest money rule resolution
Consumer protection issues (brochures & surveys)
Reciprocity

Commission members had a discussion regarding standardization of forms in the residential industry.  It was suggested that the various groups spend time reviewing the differences. Commission Carollo felt that the licensees have a need for an explanation as to the difference in forms. Other states have standardized forms. The protection for consumers is if everyone had the same form.

Linda Moran noted that the authority for this suggestion would only extend to licensees who would use the forms, and it could not be mandated that everyone use specific forms. Bob Mitchell suggested that the four groups be brought together with a disinterested facilitator to share ideas and review the form. Commissioner White suggested that possibly an attorney looking at the forms could suggest what has merit and what does not.

Jana Jones noted, with the agreement of the commissioners, the department would contact the four entities to ascertain if there is resistance to the suggestion of bringing the groups together to discuss forms and make then a preliminary overview report to be share at the next commission meeting. Bob Spain, Commissioner, noted that most realtors do not read their own forms and most times just fill in the blanks.  Bob Spain suggested that if the form is your own or someone else’s then it should be taken it to your broker or an attorney for advice.

B. Washington Center for Real Estate Research

Real Estate Research Account

Noting the efforts of the Washington Association of Realtors, Glen Crellin, Director of the WCRER indicated that during the current session legislation renewing the surcharge on the real estate licensing fee was dropped during the first week of session.  A hearing was conducted the third week of session, and the legislation ultimately passed through committee. The legislation was approved 96-0. Glenn Crellin indicated the Center has received an allocation of $298,000 from the Real Estate Research Account to provide basic funding for the center’s activities.  This amount is close to the revenue generated by the fee.  However, Glenn indicated it is important to recognize that expenses continue to rise and he is proposing a modest increase in the contract amount to $315,000 for the 2005-2007. Jana Jones, Administrator, stated she had spoken with the Business & Professions budget person regarding Glenn’s proposal. This request for an increase in allotment must be accomplished by writing a supplemental decision package in late summer of 2005. At this time the agency can ask for a maintenance request and include it in the supplemental decision package.  The maintenance request won’t affect the first year of the biennium but will affect the second year.  Jana Jones recommended that the request from the center be approved and a supplemental package be prepared. Linda Moran made a suggestion that the Real Estate Program work with the Center and bring the proposal back to the commission in June.  The supplemental package will be submitted in August 2005 and that will allow time for adjustments and any anticipate issues.  Then at this time the commission can make its formal recommendation. 

Real Estate Education Account

Glen Crellin noted the second part of the Center’s proposal with regard to expenditures out of the Real Estate Education Account.  Three items were presented for discussion: 1. Funding for the 18.85 Task Force Website.  Under the current proposal this funding ends June 30, 2005 and as a result the decision to continue with this activity lies with the commission.
2. The center has conducted two licensing profiles for the real estate commission, one in 1994 and the other in 1998.  The profile of licensees has changed significantly.  In light of revising the real estate licensing law and changes in the industry it is clear a new profile is needed. 3. The third recommendation from Glen Crellin indicated is that the Department of Licensing had contracted with Clover Park Technical College to prepare a Competency Based Task Assessment.  Now in the 21st Century the tools and skills of the industry have changed dramatically with technology and the industry is considering massive revisions to educational requirements as a component of the overall license law revisions.  The time is right for a comprehensive update of the skills and competencies required by licensees at all levels.  WCRER recommends that the commission prepare a request for proposals (RFP) to allow all education providers an equal opportunity to prepare this important project.

After considerable discussion by the commission members on the potential expenditure topics out of the education account Jana Jones summarized the discussion as to whether the timing is right for another licensing profile study.  The question asked is what benefits were generated from the first study.  Jana noted the desire of Business and Professions Department to utilize funds available for surveying customers and stakeholders determining the needs of each group and are the needs being met?  Members of the commission were not in agreement as to the best use of these funds. 

Bob Mitchell indicated that today’s industry is truly a different industry in terms of the make up of the licensing profile of the industry not just within the real estate licensing community but third party providers and the consumer.  With the curriculum review and curriculum modification there is a preliminary value as we move forward in the process of rewriting RCW18.85.

Jana noted that it did not appear from the comments of the commission that it felt a licensing profile study was the best utilization of our funds at this time. However, it did appear that the time was right for the Competency Based Task Assessment. 

Regarding the discussion of the Task Force Website, Glenn Crellin commented that any time a Real Estate Commissioner receives email correspondence that would be appropriate to forward this correspondence to the Center for posting on the website.

After considerable discussion on the items presented by Glenn Crellin, Commissioner/Vice Chair Alan Barnard summarized that the commission is thinking of keeping the website in operation for a while longer.  The commission is inclined to put off the licensing profile study, taking a second look at it after completion of 18.85.  The same suggestion is made for the Competency Based Task Assessment. 

Commissioner Carollo offered additional comments on the visibility of the WCRER website noting that activity would increase when 18.85 reaches the second phase in disseminating information to stakeholders.  In terms of the commission, Jim noted the real estate licensing profile would provide interesting information but what policy decisions could be made.  Also would this profile afford the best use of the program’s money?  Commissioner Carollo suggested:

· Improve the DOL website
· Create a newsletter for licensees.  The center might do some research on newsletters of the other state and how those states communicate to their licensees. 
· Conduct a study on the growth management act.
· Survey of educational delivery methods to licensees, such as taped classes or use of the Internet.
· Error and omissions insurance companies, what are their lawsuits, what are the complaints from consumers.
· Survey people who have made complaints to the department.

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