Jan. 15, 2010

This material is for discussion purposes only and has not been approved by the Transactions and Regulatory, Legislative, Strategic Planning and Finance, or Executive Committees, or the Board of Directors.

Issue:
What is the mission statement of the Transaction and Regulatory Committee and its three included issue areas?

Action:
Not required

Options:
Not applicable

Status / Summary:
In January 2009, the C.A.R. Board of Directors adopted the recommendations of the Reorganization Task Force that the Committee structure be reorganized into four policy committees and two levels of government committees that will handle the same issues formerly addressed by more than a dozen committees. This resulted in the establishment of the Transaction and Regulatory Committee with original jurisdiction over three issue areas: 1) Licensure; 2) Liability and Risk Management; and
3) Transactional.

Discussion
The Board of Directors adopted the recommendation of the Public Policy Reorganization Task Force in 2009 to create a more efficient policy and legislative body in C.A.R. The Task Force was created out of concern that a proliferation of C.A.R. policy committees impaired the efficient functioning of the policy-making process and was fostering an environment of committees that were duplicative and too narrowly focused. This structure seemed to invite too many task forces to be appointed to consider "big picture" issues and made it difficult to avoid multiple presentations of the same issue.

The Reorganization Task Force met extensively during 2008 and early 2009. The Task Force members reviewed and discussed existing policy formation committees and structures, and reviewed background materials from staff. These deliberations resulted in the recommendation that the Committee structure should be reorganized into four policy committees and two levels of government committees that will handle the same issues formerly addressed by more than a dozen committees. All issues covered by each Committee will be addressed by that committee as a whole. Issues Chairs, in the order designated by the Committee Chair, will take turns leading the discussions on issues within their respective areas.

These recommendations were ultimately adopted by the C.A.R. Board of Directors in January of 2009, resulting in creation of the Transaction and Regulatory Committee with the following mission statement:

Transaction and Regulatory Committee Mission Statement:
The Committee is a Policy committee. Its mission is to develop C.A.R.'s overall policy agenda as it relates to the practice of real estate. It has original jurisdiction to evaluate transactional issues, legislation and regulation in the following issue areas:
Licensure
Liability and Risk Management
Transactional

Issues Areas Mission Statements - Within the overall mission of the Committee, the issues covered by the Committee will be divided into three general issue areas:

1. Licensure
Licensure issues include policy decisions regarding the Department of Real Estate, including fees, regulations and discipline; license qualification (and disqualification) including pre-license education and experience, examinations, license structure and license specialization; and, broker practices as they involve regulation or government involvement.

2. Liability and Risk Management
Liability and risk management issues include policy decisions involve tort reform and related liability issues; errors and omissions insurance availability and coverage; use of disclosures to reduce liability exposure; disclosures to control civil liability exposure; agency issues, including fiduciary duty; and home inspectors and home inspections.

3. Transactional
Transactional issues include point of sale requirements; required forms and disclosures, including TDS, NHD and pest reports; cost issues not covered by Taxation and Government Finance Committee; title insurance and escrow; and other requirements that are occasioned by a sale or transfer.