nebraska real estate commission commission … real estate commission commission comment winter 2004...

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Nebraska Real Estate Commission COMMISSION COMMENT Winter 2004 Governor Appoints Wesley W. Grady to the Commission Governor Mike Johanns appointed Wesley W. Grady to a six- year term on the Real Estate Com- mission beginning September 2004. Wes makes his home in North Platte. Wes went to High School in Gothen- berg and graduated with a Bachelor of Science Degree from the Univer- sity of Nebraska, Lincoln. He is the Broker and a co-owner of Gateway Realty of North Platte. Wes has more than forty years of experience in the real estate field, receiving his real estate salesperson’s license in January, 1964. He received his broker’s license in June, 1965. Wes has earned the CRB and CRS designations from the National Asso- ciation of Realtors ® , his GRI from the Nebraska Realtors® Association, and the RMM from GMAC Real Estate Service. He was inducted into the GMAC Real Estate Service Broker Hall of Fame in 2001. Wes has served the real estate industry by being an active member of the National, State and Local Realtors® Association, holding On The Inside: Holiday Message . . . . . . . . . . .Page 2 Disciplinary Actions . . . . . . . .Page 3 FAQ’s Concerning the Criminal Background Check . . . . . . . . . . . . . . . . .Page 4 Commission Meeting Schedule January 12-13 . . . . . . .Lincoln February 15-16 . . . . . .Lincoln 1 various offices including 3 terms as his Board’s President. He received his Board’s Realtor of the Year recognition in 1997. On the state level he has served on various com- mittees including the MLS Gover- nance Committee, the Nominating Committee, and the Broker/Manager Work Group. Wes serves his community as a member of the First United Methodist Church Foundation Board, as Director and Officer of the North Platte Area Development Corpora- tion, and as a member of the North Platte Chamber of Commerce. At various times, past and present, Wes has served with a number of organi- zations including as a member of the Board of Directors for the Great Plains Regional Medical Center and as a member of the Board of Coun- selors for the University of Nebraska Medical Center. He has served as a Scoutmaster of the Boy Scouts of America, a Tri Trails District council member and received the Silver Beaver. He is a past member of the North Platte Public School Founda- tion and the North Platte Planning Commission. He is a member of the Rotary club and is a Paul Harris Fellow recipient. Wes has also proven to be a valu- able asset to his community through participating in and/or leading fund drives for the United Way, the Great Plains Regional Medical Center’s Callahan Cancer Center, and for local food pantries and homeless shelters. Wes and his wife, JoAnne, enjoy living in North Platte where you may find Wes puttering in his yard, garage or shop. He also likes to hunt, ski, golf, fish and travel. Commissioner Grady (R) takes the Oath of Office from Chairperson Gale (L) while JoAnne Grady (C) looks on. The Real Estate Commission Members (Left to Right): Larry Shepard, Harold Johnson, Mike Poskochil, Wesley Grady, Chairperson John Gale, Robert Moline, Jim Strand

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Page 1: Nebraska Real Estate Commission COMMISSION … Real Estate Commission COMMISSION COMMENT Winter 2004 Governor Appoints Wesley W. Grady to the Commission Governor Mike Johanns appointed

Nebraska Real Estate Commission

COMMISSION COMMENT Winter 2004

Governor Appoints Wesley W. Grady to the Commission

Governor Mike Johannsappointed Wesley W. Grady to a six-year term on the Real Estate Com-mission beginning September 2004.Wes makes his home in North Platte.Wes went to High School in Gothen-berg and graduated with a Bachelorof Science Degree from the Univer-sity of Nebraska, Lincoln. He is theBroker and a co-owner of GatewayRealty of North Platte.

Wes has more than forty years ofexperience in the real estate field,receiving his real estate salesperson’slicense in January, 1964. He receivedhis broker’s license in June, 1965.Wes has earned the CRB and CRSdesignations from the National Asso-ciation of Realtors ® , his GRI fromthe Nebraska Realtors® Association,and the RMM from GMAC RealEstate Service. He was inducted intothe GMAC Real Estate ServiceBroker Hall of Fame in 2001.

Wes has served the real estateindustry by being an active memberof the National, State and LocalRealtors® Association, holding

On The Inside:Holiday Message . . . . . . . . . . .Page 2Disciplinary Actions . . . . . . . .Page 3FAQ’s Concerning the

Criminal Background C h e c k . . . . . . . . . . . . . . . . .Page 4

Commission MeetingSchedule

January 12-13 . . . . . . .LincolnFebruary 15-16 . . . . . .Lincoln

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various offices including 3 terms ashis Board’s President. He receivedhis Board’s Realtor of the Ye a rrecognition in 1997. On the statelevel he has served on various com-mittees including the MLS Gover-nance Committee, the NominatingCommittee, and the Broker/ManagerWork Group.

Wes serves his community as amember of the First UnitedMethodist Church Foundation Board,as Director and Officer of the NorthPlatte Area Development Corpora-tion, and as a member of the NorthPlatte Chamber of Commerce. Atvarious times, past and present, Weshas served with a number of organi-zations including as a member of theBoard of Directors for the GreatPlains Regional Medical Center andas a member of the Board of Coun-selors for the University of Nebraska

Medical Center. He has served as aScoutmaster of the Boy Scouts ofAmerica, a Tri Trails District councilmember and received the SilverBeaver. He is a past member of theNorth Platte Public School Founda-tion and the North Platte PlanningCommission. He is a member of theRotary club and is a Paul HarrisFellow recipient.

Wes has also proven to be a valu-able asset to his community throughparticipating in and/or leading funddrives for the United Way, the GreatPlains Regional Medical Center’sCallahan Cancer Center, and forlocal food pantries and homelessshelters.

Wes and his wife, JoAnne, enjoyliving in North Platte where you mayfind Wes puttering in his yard,garage or shop. He also likes to hunt,ski, golf, fish and travel.

Commissioner Grady (R) takes theOath of Office from ChairpersonGale (L) while JoAnne Grady (C)looks on.

The Real Estate Commission Members(Left to Right): LarryShepard, HaroldJohnson, MikePoskochil, WesleyGrady, ChairpersonJohn Gale, RobertMoline, Jim Strand

Page 2: Nebraska Real Estate Commission COMMISSION … Real Estate Commission COMMISSION COMMENT Winter 2004 Governor Appoints Wesley W. Grady to the Commission Governor Mike Johanns appointed

Greetings:I extend a hearty season’s greetings to all of our

Nebraska real estate brokers, salespeople and theirdedicated staffs. On behalf of the NebraskaReal Estate Commission and the citizens ofNebraska, thank you for your hard work,integrity and professionalism during 2004.

The real estate industry enjoyed another solid year in 2004. Although interestrates rose slightly during the year, they still remain low. This produced brisksales and construction activity for the year. We hope the good fortune continuesin 2005.

Veteran member Janice Wiebusch of Kearney, a broker representative, retiredfrom the Commission in August. The Commission and the real estate industryhonored her at a dinner in Lincoln on August 17. She served the Commissionadmirably and was a helpful mentor to me regarding the practice and regulationof real estate. We wish her and her husband, Jack, the best in their real estatepractices.

Replacing Janice on the Commission is Wesley Grady of North Platte. Withhis wealth of real estate experience, Wes will be of great help in serving theneeds of the public and the real estate industry.

In my four years on the Commission, I’ve been very impressed by the highstandards exhibited by licensees in their business conduct. On a relative basis,the number of complaints the Commission receives is miniscule. There are some7,000 licensees in Nebraska, and the Commission receives about 50-70 com-plaints a year. That means that 1 percent or fewer licensees are subject to a com-plaint in any year. The figures become even more impressive when you considerthat a large share of the complaints are dismissed and do not result in discipli-nary action. Considering the high volume of real estate activity each year, onehas to be impressed with the industry’s professionalism.

The Commission operates strong programs in the areas of pre-license educa-tion, licensing examination, continuing education and licensing regulation.While this excellence reflects the high quality of oversight by Commission staff,it also is due to the active participation in the design of these programs bylicensees and licensee organizations. The Commission values such input andencourages licensees to contact the Commission with questions and commentsthat may improve the programs.

I think it is critically important to nurture a cooperative relationship betweenregulators and industry. Both the Commission and industry win if we worktogether to keep the focus of the industry on its duty to serve the public withintegrity. But most importantly the public benefits.

The Commission is committed to doing its best to help the real estate indus-try be the best it can be. That will go a long way in ensuring that the industry hasthe trust and confidence of the public.

I send my best wishes to you for a season of family celebrations and renewedbonds of friendship. I hope the new year will bring great opportunity to each ofyou in your personal and business lives.

John Gale, Chairman

Official Publication of theNebraska Real Estate Commission

1200 “N” Street, Suite 402P.O. Box 94667

Lincoln, Nebraska 68509-4667(402) 471-2004

www.nrec.state.ne.usEDITOR: Teresa Hoffman

COMMISSION MEMBERS

CHAIRPERSONJohn Gale

Secretary of StateState Capitol

Lincoln, NE 68509(402) 471-2554

PUBLIC Member At LargeJim Strand

2149 Stone Creek Loop SouthLincoln, NE 68512

(402) 420-1010

SALESPERSON Member At LargeMike Poskochil

7141 A St.Lincoln, NE 68510

(402) 432-3089

BROKER MEMBERS

Robert Moline3355 Orwell St. Ste 102

Lincoln, NE 68516(402) 434-3700

Harold H. Johnson13915 Gold CircleOmaha, NE 68144

(402) 333-5008

Larry Shepard100 E 6th St.

Fremont, NE 68025(402) 721-9700

Wesley W. Grady810 S. Dewey St.

North Platte, NE 69103-0850(308) 532-1810

DIRECTOR

Les Tyrrell1200 “N” Street, Suite 402

Lincoln, NE 68508(402) 471-2004

[email protected]

The Nebraska Real Estate Commission grantspermission to reprint articles which appear in thisnewsletter on condition that recognition of theiroriginal publication in the Nebraska CommissionComment also appears with the article.

The Nebraska Real Estate Commission oftensolicits articles from outside experts or reprintsarticles with permission. While we feel that thesearticles may offer a broader perspective and will beof interest to the reader, it should be rememberedthat the views expressed are those of the author andnot necessarily those of the Commission.

COMMISSION COMMENT

Nebraska Real Estate Commission

Printed with soy ink on recycled paper

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Page 3: Nebraska Real Estate Commission COMMISSION … Real Estate Commission COMMISSION COMMENT Winter 2004 Governor Appoints Wesley W. Grady to the Commission Governor Mike Johanns appointed

MEET THE REAL ESTATECOMMISSION STAFF

The Real Estate Commission Staffis here to serve the public and thelicensee population. It is our goal tobe helpful and forthright in a courte-ous and professional manner. Wehope that when you contact ouroffice, you always receive useful,accurate information and/or arereferred to the proper authority.

Following is a communicationresource to assist you when contact-ing our office. If the indicated personis unavailable to take your call,please share the purpose for the calland your call will be routed tosomeone else who can help you.

We take pride in having a skilledstaff, if you have comments or sug-gestions as to how we may betterserve you, please contact our office.

COMMUNICATIONS GUIDEAsk for person indicated if you have questions inthe following areas.Commission Meeting Information . .Heidi Burklund

[email protected] Procedures . . . . . . . . . . . . Terry Mayrose

[email protected] Education History orInquiries . . . . . . . . . . . . . . . . . . . . . . . . Julie Schuur

[email protected] Design (Education &Instructor Approval) . . . . . . . . . . . . Teresa Hoffman

[email protected] and Omissions InsuranceInquiries . . . . . . . . . . . . . . . . . . . . . Teresa Hoffman

[email protected] Applications PacketRequests . . . . . . . . . . . . . . . . . . . . . . . General Staff

License Applications ProcessMelanie [email protected]

Licensing and Education Requirements . . . . . . . . . . . . . . . . . Teresa Hoffman

[email protected] Licenses in Process. . Melanie Patrick-Heather

[email protected] Registrations . . . . . . . . . . Monica Wade

[email protected] of License . . . . . . . . . . . . . Marilyn Masters

[email protected] Account Matters . . . . . . . . . . . . Terry Mayrose

[email protected] ClarkPatricia StehlyRon Pierson

WEBSITE: www.nrec.state.ne.usTELEPHONE NUMBER

(402) 471-2004

ADDRESS:Nebraska Real Estate Commission

P.O. Box 94667Lincoln, NE 68509-4667

We’ve Got Mail!!E-mail, that is. The Commission is focusing on technology. Our goal is to

enhance our accessibility and service to the Public and to our Licensee Population. With that in mind, let us call your attention to the addition of e-mail addresses in

the “Communications Guide” located on page 3. If you have any questions, please feel free to contactus by phone, mail, or e-mail, so that we may be of assistance.

We’ve Got Mail!!

2004-025 – Commission vs. JohnRitums, Broker. Hearing held Sep-tember 15, 2004. License revoked.[ Violated Neb. Rev. Stat. § 81-885.24(29) by making a false state-ment of material fact on an applica-tion, specifically, not reportingR e s p o n d e n t ’s previous Nebraskalicense or the revocation of saidlicense.] September 23, 2004

2004-028 – Commission vs. LoriAnn Reed, Salesperson. Hearingheld September 16, 2004. Licensesuspended for two (2) years, with thelast year of said suspension stayedand served on probation, from Sep-tember 23, 2004, through September22, 2006; plus an additional six (6)hours of continuing education,including three (3) hours in the areaof ethics and three (3) hours in thearea of contracts, to be completed bySeptember 22, 2005. [Violated Neb.R e v. Stat. § 81-885.24(29) bydemonstrating negligence, incompe-tency or unworthiness, specifically,that the Respondent’s license hadpreviously been suspended by theState of Nebraska Department ofInsurance and the violation involvedmoney.] September 23, 2004

2004-032 – Jerome M. Meyer vs.Bonnie Lou Nemecek, Broker. Stipu-lation & Consent Order. License sus-pended for two (2) years fromOctober 18, 2004, through October17, 2006, with the entire periodstayed and served on probation; plus

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Disciplinary Actions Taken bythe Real Estate Commission

(Does Not Include Cases on Appeal)an additional nine (9) hours of con-tinuing education, including three (3)hours in the area of agency, three (3)hours in the area of contracts, andthree (3) hours in the area of ethics,to be completed by February 14,2005. [Violated Neb. Rev. Stat. § 81-885.24(25) by filing a listing contractor any document or instrument pur-porting to create a lien based on alisting contract for the purpose ofcasting a cloud upon the titled realestate when no valid claim under thelisting contract existed. Specifically,Respondent filed her Mechanic’sLien against one of the buyer’s townhomes in order to recover a commis-sion; 81-885.24(29) by demonstrat-ing negligence, incompetence, orunworthiness to act as a salesperson.]

October 18, 2004

Page 4: Nebraska Real Estate Commission COMMISSION … Real Estate Commission COMMISSION COMMENT Winter 2004 Governor Appoints Wesley W. Grady to the Commission Governor Mike Johanns appointed

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requirement.Why was this statute enacted?

The Real Estate Commission and theNebraska Association of REALTORSsupported this legislation. It was felt thatthe requirement to self-report criminalbackground on the application, whichremains a part of the process, should besupplemented by verification with lawenforcement records. The State Patroland the FBI’s databases are consideredthe most comprehensive source of theserecords. The fingerprint process is con-sidered the most secure form of verify-ing identity in practical use currently.How does the criminalbackground report process fitinto the overall licensingprocess?

The very first step in the licensingprocess is to contact the Commission forlicensing application materials, this hasalways been conveyed through the Com-mission office, real estate offices, andreal estate schools. The initiation of thecriminal background report has served tosupport and emphasize this existingpractice. Specific information on thecriminal background check and the needto initiate this process early is high-lighted on the website and in the appli-cation packets.

The second step–applicants for licen-sure are advised to pursue the finger-printing process at least six weeks priorto submitting their application. They arealso advised that they may wish to be incontact with the Commission office priorto submitting their application to ascer-tain that, indeed, their report has beencompleted. Commission staff, recruiters,and educators encourage applicants towork on other aspects of the applicationprocess while their Background Reportis being processed.

The t h i r d step–once an applicantknows the report has been completedthey have ninety days to submit their

Since 8/31/03 through 8/31/04 we haveaccepted 903 applications and returned 121because the criminal history report had notyet been received. All but a few of thereturned applications are resubmitted andbecome a part of the total accepted.

Where can the fingerprintcards be obtained?

Two cards for prints are necessary.The fingerprint cards must be obtainedfrom the Nebraska Real Estate Commis-sion office because these cards have aspecific control number printed on themthat authorizes the Commission’s receiptof the report based upon the Commis-sion’s statutory authority.Who can roll the fingerprints?

Applicants must utilize a law enforce-ment agency to have their prints rolledonto the cards so that they are readable.Applicants must present some form ofState or Federal issued personal identifi-cation and supply the cards obtainedfrom the Nebraska Real Estate Commis-sion office. Nebraska State Patrol siteswill roll fingerprints without a separatecharge. Some other law enforcementagencies may charge a separate fee forrolling fingerprints. Most offices requireappointments for rolling fingerprints. Alist of Nebraska State Patrol sites,addresses, and phone numbers isincluded with the fingerprint cards. Where should the fingerprintsbe sent for processing thereport?

The prints must be submitted to theNebraska State Patrol for processing asspecified in the statute: “...The applicantshall request that the Nebraska StatePatrol submit the fingerprints to theFederal Bureau of Investigation for anational criminal history record check....” Information included with the finger-print cards indicates how to submit theprints to the State Patrol. A criminalbackground report produced by someresource other than the Nebraska StatePatrol will not be accepted to meet the

This article is a look at the first 12months of the requirement cited inNeb.Rev.Stat. Sections 81-885.13 (5)and 81-885.17 (4) requiring criminalhistory background reports of applicantsfor original licensure. This article looksat statistics from August 31, 2003through August 31, 2004. Following arethe most frequently asked questionsregarding this requirement the RealEstate Commission staff has fieldedduring the past year.Who is affected?

All applicants for original licensureas a real estate salesperson or broker.This includes those applying for licen-sure through examination and thoseapplying based on the recognition oflicense from another jurisdiction. Since8/31/03 through 8/31/04 we havereceived and accepted 903 applications.What is required?

Applicants are required to acquire thefingerprint cards from the Commissionoffice which come with completeinstructions on how to proceed. Afterfilling out personal information on thecards and having their fingerprints rolledprofessionally, they submit the com-pleted cards with a $33 payment to theNebraska State Patrol. The State Patrolthen produces a criminal history reportwhich includes both State Patrol and FBIgathered history. The report is sent byinneroffice state government mail to theCommission office.

Since 8/31/03 through 8/31/04 we havereceived 1,106 criminal history reports.

When is the criminalbackground report required inthe process?

The statute specifies, “...The criminalhistory record information check shall becompleted within ninety days precedingthe date the original application for alicense is received in the commission’soffice, and if not, the application shall bereturned to the applicant.”

FREQUENTLY ASKED QUESTIONS

Concerning Incorporating the Required CriminalBackground Check into the Application Process

(A LOOK AT THE FIRST 12 MONTHS OF THE REQUIREMENT)

(Continued on page 5)

Page 5: Nebraska Real Estate Commission COMMISSION … Real Estate Commission COMMISSION COMMENT Winter 2004 Governor Appoints Wesley W. Grady to the Commission Governor Mike Johanns appointed

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application form for licensure. Theintention is to keep the report current tothe rest of the application materials.Please note: the 90-day time restric-tion is between the time the report iscompleted and the time the applica-tion is submitted to our office only.Clarification and follow-up in theapplication process and education doNOT have to be complete within this90 days. Application details and edu-cation may be completed beyond the90 days.

The fourth step–after the applicationmaterials are all complete, applicantspursuing examination are given direc-tions on how to proceed through exami-nation. Those pursuing license by recog-nition move on to licensing.

Finally, those who have successfullycompleted the examination or areseeking licensure through license recog-nition proceed with finalizing licensinginformation i.e. manner of doing busi-ness details, errors & omissions insur-ance, fees, etc. and are granted a license. Have there been manycomplaints about theprocess?

Considering that the process affectsevery applicant for original license thenumber of concerns to the Commissionoffice from applicants has been rela-tively small. Most of these inquiries areabout the process and sequence ofevents.

The Commission office has heardmore concern from employing brokersthan any other group.What have been the primaryconcerns with the CriminalBackground Report process?

The main concern has been with thetime it takes for the criminal backgroundreports to be produced. Another concernis that the process prolongs the timebetween completing education andtaking the examination resulting in poorperformance on the examination. Thereis also a concern that this process maynegatively impact the number of peoplebeing licensed.How long does it take for acriminal history report to beproduced?

Statistics for the months of January

through August, 2004, indicate that theaverage number of calendar days fromthe date the State Patrol receives the fin-gerprint cards until the day the criminalreport is completed is 33.Has this timeframe beenadjusted over the last year?

Yes, originally, when the State Patrolwas consulted in drafting this legislation,they indicated that a criminal historyreport could be produced in approxi-mately 2 weeks. However, due to signif-icantly increased statutory demand andincreasing use of the fingerprint datasystem by private industry the StatePatrol has had to adjust this expectation.How is the State Patroladdressing the increaseddemand?

The State Patrol has moved their fin-gerprinting facilities to larger officespace and increased its fingerprint pro-cessing staff to the maximum budgetaryallowance. Recently, the Department ofHealth and Human Services has fundedan additional position at the State Patrolfacility to address that Department’scriminal record demand. Therefore,when staffing is fully hired and trained,in approximately three months, Lt.Shelton expects a two to four-week turnaround time for processing criminalbackground reports.Why do the materialsrecommend that applicantssubmit their fingerprints atleast six weeks prior toapplication if the averagenumber of calendar days toproduce the criminalbackground report is 33?

Thirty-three days is an average, notall reports are that timely. The Commis-sion office attempts to advise applicantsso that they may move through the appli-cation process as efficiently as possible.Allowing extra time for those processesout of the applicants’ control whileencouraging progress in those thingsthey can affect i.e. coursework, amass-ing application materials, etc. maximizesefficiency. The Commission keepsextensive statistics on this process. Theaverage is being computed and reviewedcontinually. If the average changes sig-nificantly, information from the Com-

mission and to the applicants will beadjusted accordingly.Why would someone’scriminal background reporttake longer than another’s?

While most applicants fall into the33-day average, unforeseen variablescan affect others’ experience. Someapplicants will have to have their finger-prints re-rolled because of physicalattributes or clarity for the scanners.While others’ processing may requireadditional verifications to ascertain thatthe information reported is accurate.

From 8/31/03 through 8/31/04, 136 setsout of 1,106 sets of fingerprints have beenunreadable and needed to be re-rolled.

Does the criminal backgroundreport necessarily delay theexamination?

No, it need not. A typical applicantwho must take the examination mustcomplete the criminal background reportprocess and at least two pre-licensecourses. Additional education may beneeded for broker applicants dependingon experience.

A survey of pre-license educationproviders reveals that the shortest timepossible for an applicant to complete twoclassroom courses is 5 weeks. Thesewould be the relatively rare occasionswhen both courses are taken at an accel-erated rate. More typically such course-work would take between 8-12 weeks.(It should be noted that correspondencecourses are not included in these statis-tics as they are too individualized andunderutilized to produce a reliableaverage. However, two weeks per classis about the minimum time in ourProviders’ experience, which wouldtotal the rare 4-week acquisition of pre-license coursework.)

Therefore, if applicants submittedtheir fingerprints prior to or when begin-ning their education, as all of the schoolsadvise them, their criminal backgroundreports would be completed before theireducation in most instances. Even allow-ing that the application must follow thecriminal background report, the criminalbackground report need not delay theexamination.Have there been cases wherethe criminal background

(Continued on page 6)

Page 6: Nebraska Real Estate Commission COMMISSION … Real Estate Commission COMMISSION COMMENT Winter 2004 Governor Appoints Wesley W. Grady to the Commission Governor Mike Johanns appointed

Nebraska Real Estate CommissionPO Box 94667Lincoln, NE 68509-4667Return Service Requested

report has delayed someonefrom taking the licensingexamination?

Yes, there have been such cases butthe reason for the delay can almostalways be traced back to when the appli-cant submitted the fingerprints, initiatingthe process.

We are working on emphasizingproper timing to applicants in a variety ofways. Our website notice and the onethat accompanies the fingerprint cardsare emphatic about starting the processearly. Our school administrators andindividual instructors have been cooper-ating in making announcements at timeof registration and on the first night ofclass. Some schools are requiring ashomework that students acquire the fin-gerprint cards and initiate the process orindicate they understand the ramifica-tions of delaying the process. An articlein the Winter 2003 CommissionComment explained the application andlicensing process including the criminal

background report process and enlistedthe aid of Brokers in explaining theprocess to potential applicants.

However, even with full knowledgethere will be those who simply pursuethe licensing process in a less than effi-cient manner. This may delay themsomewhere in the process and that canhappen between course completion andexamination.Has the implementation of thecriminal background reportprocess appeared to have anadverse impact on thelicensing examination?

Monthly examination statistics arereviewed by the Commission. There hasbeen no indication that the criminalbackground report has affected theexamination statistics. Examinationpassing statistics are consistent withthose statistics gathered for years. Ourapplicants generally perform well on theexaminations.

For the months of September 2002through August 2003 the passing percent -age for Broker examinations was 57% andthe passing percentage for Salesperson

examinations was 56%. The following year,with the inception of the criminal back -ground report, September 2003 throughAugust 2004; the passing percentage forBroker examinations was 58% and thepassing percentage for Salesperson exami -nations was 59%.

Has the implementation of thecriminal background reportprocess appeared to have anadverse impact on thenumbers of individuals beinglicensed?

No, the numbers of original licensesissued since the inception of the back-ground report process are comparable tothe same statistic for the same timeperiod the previous year when therequirement was not in place.

For the months of September 2002through August 31, 2003 there were 661new salesperson licenses issued and 122 newbroker licenses issued. For the same periodthe following year (September 2003 throughAugust 31, 2004) there were 665 new sales -person licenses issued and 106 new brokerlicenses issued.

(Continued from page 5)FAQs (Cont’d)