The Weekly Membership Newsletter of the Tennessee Assn. of REALTORS


CONTENTS
1. Spectacular Marketing
2. Agency & RESPA Remain Hot Issues!
3. HOT LINE: Once a FSBO, Now Listed
4. HOT LINE: The Statute of Limitations
5. Instructor Training – May 7-8!
6. Rates Jump Higher


1. Spectacular Marketing

“Spectacular” is one of those words we just don’t see that much anymore. Author Denise Lones uses it to describe marketing campaigns that truly stand out from the crowd. Her recent Realty Times article – “Spectacular Marketing Campaign” – includes several tips and a lot of common sense, that we all know is not common enough these days!

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I define a spectacular campaign by not only considering how pretty it is or how well-written it is, but what kind of results did it get? Today I’d like to discuss what makes a spectacular campaign — one that gets results…
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To read her entire article, click HERE.

[SOURCE: realty Times]


2. Agency & RESPA Remain Hot Issues!

From the 2007 NAR Legal Scan that surveys REALTORS nationally as to the hottest legal issues prompting lawsuits, legal actions, and related problems for the industry:

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Two Major Topics, Agency and RESPA, are particularly significant right now. Agency issues are paramount. Approximately 32% of all survey respondents indicated that Agency issues were a significant source of current disputes, and 35% or more of the respondents thought four of the eleven Agency issues were particularly significant:

Breach of Fiduciary Duty (52%),
Dual Agency (47%),
Agency Disclosure (40%), and
Minimum Service Agreements (36%).

…Comments from the survey respondents help pinpoint where the problems are.

* Breach of Fiduciary Duty: Either the agents do not understand what it means to be a fiduciary, or they “just want to close deals.” “They seem to forget and say anything they think will put the deal together, thinking the end justifies the means.” Another respondent commented that her state’s licensing standards are limited and not enough licensees understand what is expected from a professional.
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To read more from the Legal Scan:
After accessing NAR’s REALTOR.ORG (user ID and password required), click HERE.

[SOURCE: NAR]


3. HOT LINE: Once a FSBO, Now Listed

QUESTION: I am the agent for a buyer. We looked at some 15 properties without a decision, settled possibly on one property being marketed as a FSBO, who was thinking about listing his property. We told the seller to go ahead and list until we decided. He did and named my buyer-client as exempt. Now two weeks later, my buyer wants to make an offer. Do we consider it a FSBO and contact the seller directly or do we go through the seller’s agent?

ANSWER: We recommend contacting the agent representing the seller and asking them whether this particular buyer is indeed exempt from his listing. If so, then deal directly with the seller. If not, then deal with the agent.

[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]


4. HOT LINE: The Statute of Limitations

QUESTION: How long after you have sold a house can a person come back and say you misrepresented yourself? I sold a house to a lady almost 4 years ago and she is now saying that I never gave her a copy of the home inspection and that she never saw it because, if she had, she would not have bought the house.

ANSWER: The statute of limitations for negligent misrepresentation, intentional misrepresentation, negligent nondisclosure, and/or concealment regarding the condition of property is three years from the “date of discovery”. With these causes of action, a buyer has three years from the date he discovers a problem with the property to file a lawsuit.

Let’s say that a closing occurs on December 31, 2004. In June of 2005, cracks start to appear on the buyer’s walls. A structural engineer hired by the buyer informs him that the house has structural damage and that it will cost him $15,000 to remedy the problems. The buyer has the problems fixed. Several years later, he talks to a neighbor who experienced the same problems. The neighbor just won a lawsuit against the seller of his property and the seller’s agent because of their failure to disclose structural problems of which they were aware. Inspired by the neighbor, the buyer files a lawsuit against the seller and the seller’s agent on May 31, 2008. Since he did not discover the structural problems until June of 2005, his lawsuit is filed within the applicable statute of limitations.

[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]


5. Instructor Training – May 7-8!

Our popular instructor-training workshop – “The Learning-Centered Instructor” – is only a few days away! If you want to improve as an instructor, trainer, or speaker, this is YOUR opportunity, so register SOON!

This two-day instructor-training program is sponsored by TAR and TREEF AND is now accepting registrations! The workshop will be held May 7-8 in Nashville.

Recent attendees have included company trainers, local association instructors, pre-licensing instructors and others …ANYONE who wants to polish their teaching and/or speaking skills.

For more information, or to register, click HERE!


6. Rates Jump Higher

Freddie Mac reports a jump in the 30-year fixed mortgage rate to 6.03 percent during the week ended April 24 from 5.88 percent the prior week, marking the first time in six weeks that mortgage rates rose above 6 percent. The 15-year fixed mortgage rate climbed during the same period, edging up to 5.62 percent from 5.40 percent. The five-year adjustable mortgage rate increased to 5.68 percent from 5.48 percent, while the one-year adjustable rate shot up to 5.28 percent from 5.10 percent. Freddie Mac chief economist Frank Nothaft attributes the gains to heightened inflationary concerns.

[SOURCES: Freddie Mac; Information, Inc.]


For information on using the TAR Legal & Ethics Hot Line, look under
“More TAR Services” at the TAR website:
http://tnrealtors.com