December 5, 2007
Comments on: File No. S7-26-07 (11/16/07 Federal Register 64688-64694[E7-22425]): Notice of Application of the National Association of Realtors for Exemptive Relief under Sections 15 and 36 of the Exchange Act and Request for Comment
Nancy M. Morris Secretary Securities and Exchange Commission 100 F St. NE Washington, DC 20549-1090
Dear Ms. Morris:
As one of over 70,000 commercial members of the National Association of REALTORS (NAR), I am writing in response to the SEC's request for comments on NAR's exemption request referenced above.
As a real estate professional engaged in commercial real estate transactions, I understand how important it is for clients to receive real estate services as they consider commercial property purchases. The commercial real estate professional is obligated to serve the best interest of the client and is generally only compensated when a real estate transaction is closed. Clients often ask that we analyze a number of properties of varying asset classes, markets, size and price before they make a purchase offer or decision. With the growth in the Tenant-in-Common ("TIC") segment of the real estate market in recent years, clients increasingly have asked for an analysis of property subject to TIC ownership structure. The proposed exemption would enable commercial real estate professionals, under certain circumstances, to provide real estate services on those TIC properties that are considered to be a security and to compensation for providing those services.
The Substantial Experience Definition is Adequate:
I feel strongly that the definition of substantial commercial real estate experience will ensure that consumers receive thorough real estate analysis as they consider TIC securities. Commercial real estate transactions, by their nature, require commercial real estate professionals to analyze the income generating potential of the property compared to its asking price, as well as numerous other important characteristics of the property, within the context of the local real estate market. Because the underlying asset of a TIC security is real estate, consumers would benefit from that same analysis.
Dear Ms. Morris:
I am utilizing this method of communication with the hope that it won't get lost in the bolier plate trash can.
I have been assisting clients for over 20 years in the sale and purchase of investment real estate. I hold a J.D. but do not practice law.
My main concern is that this recommendation by the NAR is much too vague in how a Comercial/Investment broker is defined. It appears to me that the lack of very specific qualifications will allow the majority of NAR residential Members to figure out a way to qualify to collect an advisory fee, when in fact they know little if anything about investment real estate.
The Real Estate profession IS in fact specialized, unfortunately millions of residential agents nationwide think because they got a license the can do everything.
NOT TRUE but thet is what they will tell their clients (especially in the current housing market) to make a commission.
I urge the SEC to ONLY approve NAR's exemption request AS LONG AS THEIR IS A SPECIFIC DEFINITION OF WHAT CONSTITUTES A COMMERCIAL BROKER, and that this definition is STRICTLY monitored and enforced.
Thank you for the opportunity to comment.
Sincerely, Frank Marino