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September 23, 2026 Meeting Minutes - Real Estate Commission (MREC)

DATE: September 23, 2026

TIME:10:30 A.M.

LOCATION:100 S. Charles Street
Tower 1
Baltimore, MD 21201
(Teleconference via Google Meet)

MEMBERS PRESENT: Demetria Scott, Commissioner, Chair
Joe Wilson, Commissioner, Vice-Chair
Jacqueline Alexander, Commissioner
Sandy Olson, Commissioner
Kambon Williams, Commissioner

MEMBERS ABSENT:Nea Maloo, Commissioner
Roxanne Alston, Commissioner

STAFF PRESENT:Scott Lederer, Executive Director
Octavia Shorter, Executive Assistant
Allison Simpson, Education Assistant
Andrew Friel, Director of Government Affairs
Robert Pambianco, Assistant Attorney General
Aajah Harris, Policy Director

OTHERS PRESENT: JC Hooker
Dyana Quinzi
Christine Olfus
Marie Lagos
Trisha James
Brenda Kasuva - MREEA
Christa McGee
Bill Standiford
Dave Stromberg
Kathie Connelly
Jenifer League
Katelyn Taylor
Stephanie Gones - The CE Shop
Hope Mims (Former Commissioner/GNHBC Trustees)

Roll Call/Quorum Announced and Meeting Called to Order

  • Chair Scott called the meeting to order at 10:32 AM.
  • Prior to calling the roll, Executive Director Lederer formally announced that Commissioner Hope Mims had submitted her resignation from the Commission on September 22, 2026, due to a residency change. Executive Director Lederer expressed the Commission’s gratitude for her service.
  • Executive Director Lederer conducted a roll call, confirming that a quorum was present.

Approval of Report of Complaints/Administrative Dismissals for September

  • Chair Scott called for a motion to approve the administrative dismissals as presented, with the exception of Case No. 403-RE-2026, which was removed from the list for separate consideration.
  • Motion made by Commissioner Wilson, seconded by Commissioner Alexander, to approve the administrative dismissals for September 2026, with the exception of Case No. 403-RE-2026. No discussion. Motion carried unanimously.
  • Chair Scott directed Executive Director Lederer to forward Case No. 403-RE-2026 to Panel 2 for consideration at the October meeting.

Approval of August 19, 2026 Business Meeting Minutes

Motion made by Commissioner Olson, seconded by Commissioner Wilson, to approve the August 19, 2026, Business Meeting minutes. No discussion. Motion carried.

Committee Reports

Education Committee Report:

  • Chair Scott deferred the Education Committee report for the current month due to leadership transitions following the resignation of Commissioner Mims. A complete report will be presented at the October meeting
    • .

Legislative Committee – Commissioner Alexander, Co-Chair

The committee met on August 24, 2026. Key updates included:

  • Code of Ethics Review: Evaluating upcoming legislative priorities, with an emphasis on reviewing and updating the Maryland Real Estate Code of Ethics to account for technological advancements and artifi cial intelligence (AI) applications.
  • 2026–2027 Regulatory Priorities: Continuing the review of proposed licensing requirements for property management companies, potential implementation of fi ngerprint-based background checks, and refi nements to customer feedback, survey tools, and complaint submission processes.
  • Listening Sessions: Co-Chairs Alexander and Wilson will coordinate action plans and host listening sessions regarding proposed Code of Ethics revisions, with dates to be announced.
  • Next Meeting: Rescheduled to Monday, October 5, 2026, to accommodate travel to the ARELLO Annual Conference and attendance at the Maryland REALTORS Annual Conference.

Application Committee - Commissioner Williams, Co-Chair

Application Reviews: The committee reviewed 2 applications – one was approved and one was denied.

Legal Advisory: Counsel Robert Pambianco reminded the Committee and Commissioners to maintain statutory confi dentiality and avoid detailing specific licensee or applicant backgrounds during open public meetings.

Comments from Executive Director - Scott Lederer

  • License Statistics (as of August 31, 2026):
    • Brokers: 3, 831
    • Associate Brokers: 2,953
    • Salespersons: 36,588
    • Total License Count: 44,662 (including reciprocal licenses). Executive Director Lederer noted this total is slightly higher than the August 2025 count, though monthly totals over the past six months have tracked a steady ~2% month-over-month decline.
  • Open Complaints: Currently stands at 290, consistent with the upper-200 range maintained over the past year.
  • Guaranty Fund Balance: Balance report deferred while the accounting department fi nalizes fi scal year-end closeout procedures; June, July and August fi gures will be presented at the October meeting.
  • Out-of-State Applications: 77 out-of-state licensing applications were processed during August 2026.
  • MREC Outreach: Executive Director Lederer, Chair Scott, and Vice-Chair Wilson attended an introductory meeting with Bo Patten, newly appointed CEO of Maryland REALTORS, on August 31, 2026.

Comments from Counsel Robert Pambianco

  • Counsel Pambianco reported that he had no formal legal matters to present in the open session.

Comments from Chair Demetria Scott

  • Lockbox Security, Showing Codes, & Professional Standards:
    • Chair Scott issued a compliance reminder to all licensees utilizing electronic lockbox systems: brokers and agents should verify the active Maryland real estate license of any individual requesting a one-day access code prior to issuing the code.
    • Prompted by security alerts from the Greater Baltimore Board of REALTORS regarding unauthorized access code requests, Chair Scott reiterated that client properties must only be accessed by licensees or individuals directly escorted by a licensee during a showing.
  • ARELLO Annual Conference & National Broker Supervision Guidelines:
    • Approval of Broker Supervision Requirements: Chair Scott reported on her attendance at the ARELLO Law and Regulation Committee meeting, noting that the committee formally approved an updated series of broker supervision requirements containing specifi c guidance on broker oversight of artifi cial intelligence applications within real estate brokerages.
    • Request for Broker Policy Manual Working Group: Chair Scott noted that the Commission currently hosts an ARELLO Broker Policy Manual Template on the MREC website that has not been revised since 2012. In light of industry developments over the past 14 years, she formally petitioned ARELLO to establish a national working group to draft an updated model manual that effectively addresses modern broker supervision and technology. The Law and Regulation Committee took the request under advisement and will consider standing up the working group.
  • Observations on Artificial Intelligence and Broker Supervision: Chair Scott offerred observations on artifi cial intelligence and broker supervision into the record, based on proceedings at the ARELLO Annual Conference:
    • Regulatory Context & Disclaimer: Chair Scott stated that her comments were not intended to announce a new Commission rule or issue a legal opinion, but rather to serve as a reminder that emerging technology does not suspend or alter existing duties owed to the public under Maryland law. Brokers and licensees should not expect comprehensive real-estate-specifi c AI legislation or administrative tool-by-tool rulebooks from licensing commissions. Existing statutory mandates, including fair housing, advertising standards, consumer protection, agency relationships, confi dentiality, and reasonable broker supervision, already govern AI deployment.
    • Broker Supervisory Standard of Inquiry: While brokers and branch offi ce managers are not required to be computer programmers, statutory supervision requires that brokers actively understand:
    1. Which AI tools affiliated licensees are utilizing.
    2. The specifi c tasks those tools are assigned to perform.
    3. What information and data are being entered into them.
    4. What outputs the tools produce.
    5. Whether the tools possess the capability to communicate or execute actions autonomously without additional human approval.
  • Classification of AI Systems & Supervisory Risks:
      ○ Task-Specific AI Tools: Applications performing discrete tasks under direct human instruction (e.g., drafting listing descriptions, summarizing documents, organizing transaction dates, drafting emails, conducting general research). Primary supervisory risks include inaccurate or outdated information, hallucinations/fabricated answers, undisclosed bias, misleading representations, and copyright or confi dentiality breaches. 5 ○ Agentic and Autonomous AI Systems: Advanced systems capable of independently planning and executing connected, multi-step workfl ows (e.g., autonomous lead responses via chat, automated marketing campaigns, communicating with consumers, reviewing transaction documents). These systems present elevated regulatory risks by potentially straying into areas reserved strictly for licensed real estate professionals.
  • Confidentiality & Data Protection Prohibitions: Licensees are strictly cautioned against inputting non-public client or transaction data into AI platforms without verifi ed security and storage safeguards. Prohibited inputs include client names, fi nancial records, client motivations, offer and negotiation strategies, identifi cation documents, property access codes, and completed contracts.
  • Mandatory Elements of a Brokerage AI Policy: Chair Scott stated that brokerages cannot satisfy supervision duties by merely instructing agents to "use AI responsibly," but must defi ne what responsible use entails. A compliant brokerage AI policy must establish:
    1. Approved and prohibited AI tools and use cases.
    2. Categories of proprietary or confi dential information that may never be entered into AI systems.
    3. Specifi c AI-generated content requiring broker or manager review and approval.
    4. Rules governing AI-generated advertising, photography, audio, and video.
    5. Verifi cation protocols for facts, fi nancial calculations, contract summaries, and legal disclosures.
    6. Record-retention requirements for AI-generated materials that become part of brokerage records.
    7. Clear restrictions and boundaries on automated client communications and autonomous transaction decisions.
    8. Internal reporting procedures for inaccurate, discriminatory, deceptive, or unauthorized AI actions.
  • Irreplaceability of Professional Judgment & Consumer Value: Chair Scott emphasized that AI cannot assume statutory obligations, be held accountable to a client, or replace the reasonable care, diligence, and judgment of a licensee. While AI can draft text, organize data, and summarize documents, it cannot identify specifi c transactional risks, evaluate neighborhood nuances, gauge party motivations, or provide strategic negotiating counsel. While AI will perform basic, undifferentiated real estate tasks, it elevates the value that consumers place on licensed professionals who provide sound judgment, careful verifi cation, risk assessment, and fi duciary accountability.
  • Recognition of Commissioner Hope Mims:
    • Chair Scott recognized departing Commissioner Hope Mims for her 1.5 years of service, commending her leadership as Education Committee Chair, her contributions to updating the state PSI exam question pool, and her collaborative work with Commissioner Alston in revising the Commission Advertising Checklist.
  • Annual In-Person Meeting Planning:
    • Chair Scott proposed holding the Commission’s required annual in-person meeting in March, April or May 2027 in Anne Arundel County. Commissioners were asked to consider dates and locations for a formal decision at the October meeting.

Old Business

  • ARELLO Annual Conference Report: Commissioner Alexander provided a report on the ARELLO Annual Conference attended by Commissioners Scott, Mims, and Alexander:
    • Commissioner College 101: Commissioners Alexander and Mims attended Commissioner College 101, which focused on regulatory rules, jurisdictional responsibilities, fi ngerprint-based background checks, and artifi cial intelligence (AI) oversight.
    • Conference Presentations: The event featured guest speaker Lenore Trammell on AI applications and included presentations from various industry vendors, including TX60.
    • Board of Directors Meeting: Attendees participated in the ARELLO Board meeting covering membership development, board recruitment, and education policies.
    • Conference Overview & Jurisdictional Trends: Over 230 attendees representing 38 states participated. Discussions highlighted common regulatory challenges across jurisdictions, particularly complaints and disciplinary investigations stemming from agents substituting automated AI applications in place of direct personal involvement.
  • AI Adoption & Supervision Gaps: Chair Scott noted that the industry is in a mid-stream phase of AI adoption, where approximately 81% of professionals have begun using AI in their work, yet supervisory frameworks across all sectors continue to lag. She added that hundreds of companies are actively developing AI products designed to integrate directly into what agents do on a day-to-day basis, noting the Commission will need to monitor how the market evolves to see which tools become the most popular and widely adopted by licensees.

New Business

  • Carroll County REALTORS Installation: Executive Director Lederer will attend the Carroll County REALTORS installation luncheon on September 24, 2026, to offi ciate the installation of incoming President Sandy Jenkins Blackburn.
  • Maryland REALTORS Annual Conference Booth: MREC will host an interactive regulatory booth at the Maryland REALTORS Annual
    • Conference from September 28 through October 1, 2026. The booth will provide real-time CE compliance audits and trivia activities, staffed by Executive Director Lederer, Chair Scott, Vice-Chair Wilson, and Licensing Specialist Tia Wright.
  • ARELLO Investigators Conference: All four MREC staff investigators are scheduled to attend the ARELLO Investigators Conference in Colorado from October 26–28, 2026.

Public Comment

  • Brenda Kasuva, Maryland Real Estate Educators Association (MREEA):
    • Expressed gratitude to Commissioner Mims for her contributions to real estate education and confi rmed MREC’s participation in the upcoming MREEA meeting on Friday, September 25, 2026.
    • Website Licensing Pass Rates: Requested that the Commission resume updates to the PSI exam pass rates by school, which have not been refreshed since 2024. Executive Director Lederer clarifi ed that data compilation from PSI is active and updates were delayed due to departmental medical leave.
    • Showami Platform Concerns: Raised concerns regarding non-affi liated licensees conducting property showings via third-party platforms such as Showami. Executive Director Lederer reiterated that property showings conducted by licensees not affi liated with the listing or representing brokerage violate Maryland law.
    • Wholesaling via Licensee-Owned LLCs: Inquired about licensees executing wholesaling transactions under separate personal LLCs to bypass real estate licensing oversight. Chair Scott took the issue under advisement for consultation with Advice Counsel and the Executive Director.
  • Christa McGee: (Maryland Realtors):
    • Echoed appreciation for Commissioner Mims’s dedicated service.
    • Reported that Maryland REALTORS conference registration stood at 342 attendees (inclusive of vendors), with additional on-site registrations anticipated.
  • Hope Mims (Former Commissioner/ GNHBC Trustees):
    • Expressed sincere gratitude to the Commissioners, Commission staff, and stakeholders for the opportunity to serve on the Maryland Real Estate Commission.

Adjournment

A motion to adjourn was made by Commissioner Wilson, seconded by Commissioner Alexander, and approved unanimously. The meeting adjourned at 11:23 AM.
The next monthly business meeting is on Wednesday, October 21, 2026 at 10:30 AM via Google Meet.