The Oklahoma Real Estate Commission held its regular meeting on December 14, 2022, and there is a lot to report! One of the best ways to learn how to stay compliant with licensing law in Oklahoma is to follow the Oklahoma Real Estate Commission meetings. Lucky for you, R Pro Academy brings you a recap of all the OREC meetings so you can learn what you need to know quickly and on your time. Here's what you need to know:

Public Comment

A retired military General addressed the Commission. Was involved in a transaction where as a 100% disabled veteran he is entitled to a waiver of property taxes. He was not informed that he had to file with the County Assessor to transfer the property tax exemption. He received a $6,800 property tax bill because the exemption was not filed. Raised the issue to try to raise awareness that if there is a disabled veteran in a transaction they can transfer that exemption, but they must file for the exemption correctly with the County Assessor. 

Applicant Appeals

Two people appealed a decision denying them a license due to a criminal background history. The Commission can deny a license due to a criminal conviction or pending criminal case that relates to the practice of real estate. In one case, an applicant was denied a license due to a domestic abuse charge roughly six years ago. This person was licensed in another state, and the other state did not revoke their license after the conviction. Nevertheless, the Commission upheld the denial preventing them from practicing in Oklahoma. 

Investigation Case Results

Here are some highlights of things people were sanctioned for:

Case 1: Hearing examiner recommended $2,500 fine and license revocation due to misrepresentation or false promises, bad faith or incompetency, and providing false or misleading information to the Commission during the investigation. 

•  The Respondent objected to the penalty and disputed some of the underlying facts that were the basis for the decision.

• The Commission upheld the recommendation.

Case 2: Hearing examiner recommended revocation and fines as a default judgment against some Respondents because they did not respond to the case or appear at the hearing. 

• Some issues include failing to maintain trust account documents for the required time, assigned a purchase contract that was unassignable without approval of both parties, and failed to respond to a complaint.

• The Commission upheld the recommendation.

Consent Orders (Settlements)

The Commission settles a lot of cases without a hearing, and there is a LOT to learn from seeing the cases that are settled. Here is a quick overview of violations that were settled:

• Self reported a guilty plea to conspiracy, fraud, and embezzlement. Required to self report, and he did. Agreed to voluntarily surrender his license.

• Misrepresented the year the property was built by a substantial margin. Took responsibility and agreed to a fine of $1,000.

• Broker stepped in to purchase property through an entity they own. Complainant stated this was not disclosed. Broker said they did disclose it verbally. Voluntarily agreed to pay a fine for a failure to disclose. 

• Left a key available for the purchaser that led to the buyer starting to move in prior to closing, which led to complaint from the seller. Good intentions gone wrong. Agreed to a fine to resolve it.

• Failed to disclose the purchaser was a licensee in a transaction for themselves. Agreed to $500 fine.

• Failed to register a team name, which led to a small fine. A couple of these cases.

• Advertised a property having no covenants or restrictions. Property did have restrictions and was on a reservation. Administrative fine for inaccurate advertising.

• Paid advertising was resulting in a search of a particular licensee redirecting to ads for a different agent. Unclear on any intent and was quickly resolved.

General Commission Business

Service Recognitions

• Dr. Chapman recognized for his service as Chair and his leadership on the Commission.

• Commissioner Erker recognized for his previous service as the Chair during a difficult transitional period for the Commission.

• Staff member David Hall, investigator for the Commission, recognized for 5 years of service with the Commission.

• Staff member Darlene Alexander, Executive Assistant, recognized for 15 years of service with the Commission. 

• Commissioner Mary Terry was recognized for selection as Vice Chair of an ARELLO Committee. 

• Executive Director Grant Cody was also selected as a committee Vice Chair.

Contract Forms Updates for 2023

• Commission approved contract form changes for 2023. 

• Contract Change Guide will be circulated to all licensees and associations. 

Commission Strategic Planning Discussion for 2023

• Commission will host a variety of meetings through the year as “Coffee with Commissioners” to get feedback and interact with licensees.

• Commission will be looking at developing a mobile app for licensees.

• Considering a new exam vendor for licensing exams.

Commission Legislation Proposals

• Modify the definition of Broker to increase transparency and where the line is between licensable and unlicensable activities.

• Modify definition of Transaction so there is a separate definition for enforcement that is broad to protect public and a more limited definition that is used for the purpose of obtaining a broker license. 

• Add authority for the Commission to use Cease & Desist orders for unlicensed activity. 

• Add authority to issue citations for minor infractions, which could still be appealed. 

• Propose a restriction prohibiting a real estate licensee from putting a lien on property unless they have a judicial judgment lien. 

• Make it clear that certain disclosures should be in writing.

• Increase penalties for intentional unlicensed activity.

• Add definition for “failure to supervise” for brokers responsibility to supervise associates.

• Wholesaling disclosure requirements on top of current license requirements.