The Weekly Membership Newsletter of the Tennessee Assn. of REALTORS


CONTENTS
1. The Recession Question …and Answer
2. FHA Waives 90-Day Rule
3. TAR Committee Requests for 2009!
4. HOT LINE: Transferring Listings & Contracts
5. HOT LINE: Agent Advertising
6. EMAIL PRIVACY POLICY!
7. Rates Hit 8-Month High


1. The Recession Question …and Answer

In a new 4-1/2 minute podcast posted online this past week, NAR’s Managing Director of Quantitative Research Jed Smith outlines what a recession is, what it means, and whether or not our economy is headed for one.

To listen with your computer, simply go HERE on REALTOR.ORG …and click on “Listen now”

A key quote: “What we have is a slowdown in growth, not a recession.”

NOTE: Podcasts are becoming more common on the Internet, as a way of sharing news, interviews, etc.  Some folks mistakenly believe that you need an iPod or a similar device to listen to a podcast. Not true! Almost any podcast can be listened to through your computer (assuming you have speakers attached) by clicking on it in your web browser.

[SOURCE: NAR]


2. FHA Waives 90-Day Rule

The Federal Housing Administration plans to lift a 90-day waiting period on resales of homes financed by FHA-guaranteed loans for one year in an attempt to prevent communities from being saddled with foreclosed and abandoned properties.

“The action we take today will allow home buyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes in neighborhoods across the country,” according to FHA Commissioner Brian Montgomery. The move also helps lenders get the properties of their books quickly–although they will have to repair any distressed homes and bring them up to FHA standards before doing so. The FHA implemented the waiting period in 2003 in an effort to crack down on predatory lending and house flipping.

To read more, go HERE.

[SOURCES: Inman News; Information, Inc.]


3. TAR Committee Requests for 2009!

The 2009 TAR Committee Request Form is now ONLINE for you to download!  If you would like to be considered for appointment to a committee (or task force, etc.) of the Tennessee Association of REALTORS in 2009, please download and submit the form linked below.

The deadline for 2009 committee requests is AUGUST 15!

You may download the Committee Request Form — it’s a PDF — by clicking HERE.

If you lose this link, you can also access the form in the “What’s New” and “TAR & NAR Applications” sections of the TAR website.

The deadline for TAR Officer and TREEF Trustee nominations is JULY 7.


4. HOT LINE: Transferring Listings & Contracts

QUESTION: We have two agents transferring from another agency. What are the rules to transferring agents with regard to their former clients? How do we handle transactions in process?

ANSWER: All contracts, listing agreements and buyer’s representation agreements belong to the firm and not to the individual agent. When an agent leaves one firm to go to another, he/she cannot take those contracts with them when they leave UNLESS they have the express permission of their principal broker to take the contracts. If that happens, then the principal broker should write a letter on the company letterhead to the MLS stating that the listing/contract has been transferred to another agency.

If there is not a contract in place, then the first company will have to release the buyer or seller from their listing or buyer’s representation agreement (TAR form F82 can be used for this), and the new company will sign new agreements with them.  If there is a contract in place, then an amendment to the contract will be made in which it indicates the name of the new company.  A new listing or buyer’s rep will also have to be done, as well as terminating the original.

If the contracts stay with the original company, then the independent contractor’s agreement should indicate whether and in what amount the agent will be compensated.

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


5. HOT LINE: Agent Advertising

QUESTION: I have an agent who contends that he does not have to put the company phone number (listed with the Real Estate Commission) on his advertising. I have requested that he bring all advertising into compliance with TREC Rule 1260-2-.12, and he has refused. What is my liability as Principal Broker if he continues to refuse to advertise the company phone number in his personal ads (newspaper, magazines, business cards, moving trucks, personal vehicles, etc.)?

ANSWER: You ultimately have responsibility for the actions of the licensees in your office, under your duty to supervise them properly.  Indeed, the Tennessee Real Estate Commission CAN hold you responsible for the actions of your agent.

Unless the property is owned BY the agent and is not listed, the licensee MUST abide by TREC Rule 1260-2-.12(2)(b):

*** BEGIN QUOTE ***
All licensees shall advertise under the firm name offers to purchase, sell, rent, or lease any property. All advertising shall be under the direct supervision of the principal broker and shall list the firm name and telephone number.
*** END QUOTE ***

Reiterating this policy in your sales meetings would probably be useful. We would also recommend reviewing your independent contractor’s agreements with your agents, to ensure that your expectations for compliance with TREC rules have been communicated and agreed to.

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


6. EMAIL PRIVACY POLICY!

Recently, some TAR members have received increased numbers of (UNWANTED) emails from other TAR members, as well as from businesses affiliated with the real estate industry. HOW are these people getting your email address?

NOT from TAR!

Our policy as regards member email addresses — including the addresses of any subscribers to TAR newsletters — has not changed for many years:

“We do not give, sell, or release the email addresses of our members to anyone else (including other members), for any reason!”

This policy ALSO means that we do not give email addresses out to affiliate members, vendors, exhibitors, or others who may wish them.

TAR does not have any jurisdiction over your local or national associations, although we encourage all parts of the REALTOR organization to adopt a similar, protective policy against email address sale or release.


7. Rates Hit 8-Month High

Speculation that the central bank could reverse its rate-cutting campaign later this year as a way to keep inflation in check drove up mortgage borrowing costs during the past week, according to Freddie Mac.

Interest on 30-year loans settled at 6.32 percent in the latest survey, climbing from 6.09 percent the previous week to the highest level seen in eight months. Rates on 15-year fixed loans moved up to 5.93 percent from 5.65 percent for the week; while one-year adjustable-rate mortgages drifted up to 5.09 percent from 5.06 percent and five-year ARMs floated up to 5.70 percent from 5.51 percent.

[SOURCES: Freddie Mac; Information, Inc.]


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TAR’s Home Page: http://tnrealtors.com