April 4, 2005 Linda Schmuck at (410) 841-3200

KREBS/FELDMAN BILL TO FUND REAL ESTATE COMMISSION PASSES HOUSE

Booming real estate market spurs need for better policing of brokers/agents

Legislation to help the State keep up with the dramatic increase in real estate agents, transactions and complaints has passed with bipartisan support in the House of Delegates. The bill introduced by Delegate Susan Krebs and Delegate Brian Feldman will change the funding mechanism so that fees collected from brokers and agents will go into a special fund dedicated to covering the costs of the State Real Estate Commission. Previously, the money went into the State's General Fund.

With a dedicated funding source, the Commission can fund the additional staff and resources needed to address the growing backlog of cases needing investigation. Between 2001 and 2005, budget cuts reduced the Commission's staff while the number of real estate licenses grew 63 percent. During the same period, there was a 50 percent increase in consumer complaints.

"Everyone wins with this legislation," Krebs said. "Consumers get faster action on complaints about real estate transactions. Realtors get better service for licensing and continuing education. All of this without an increase in license fees."

"Buying real estate is the largest financial transaction people make in their lifetime," Feldman said. "With the tremendous boom in the number of agents and transactions, it is critical for the State to have the resources to protect its citizens."

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