The Weekly Membership Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


CONTENTS
1. The Changing Face of Real Estate Franchise Brands?
2. TN’s Unemployment Rate Hits 10.8%
3. HOT LINE: Owned by Agent But Listed By Someone Else?
4. HOT LINE: Lease-Purchase Form?
5. The Ethics of Claiming a Sale
6. Upcoming TAR Courses & Events!
7. Rates Drop Again
8. License Plate Update

For comments or questions, please use the “CONTACT” form at http://www.tardigest.com


1. The Changing Face of Real Estate Franchise Brands?

Trends guru Stefan Swanepoel has a new article posted on RealBlogging.com. In this recent post, “The Changing Face of Real Estate Franchise Brands?”, Stefan examines what’s happened to real estate franchise brands over the past 20 years.

After looking at the top 10 real estate franchises in 1989 compared to the top 10 in 2009, twenty years later, he concludes “that even in the ‘big picture’ of large national brands the world is ever changing and that anything can happen.”

To read his article, go HERE.

REMEMBER: Stefan Swanepoel is just one of several outstanding speakers lined up for the 2009 TAR Annual Convention this year! ONLY ONE WEEK REMAINS to register for the Early-Bird rate of $195. The registration fee goes up by $80 on July 28!!! See “Upcoming Courses & Events” below for more information.

[SOURCE: RealBlogging.com]


2. TN’s Unemployment Rate Hits 10.8%

From the Nashville Business Journal this past Thursday:

*** BEGIN QUOTE ***
Tennessee’s unemployment rate for June rose to 10.8 percent, up 0.1 percentage point from the May rate, the state Department of Labor & Workforce Development announced Thursday.

The rate hasn’t been that high since November 1983.

…That rate is up from 6.4 percent a year ago.

Nationally, the unemployment rate was 9.5 percent in June, up one point from the May level of 9.4 percent.
*** END QUOTE ***

To read the full article, go HERE.

[SOURCE: Nashville Business Journal]

______________________________________________________
3. HOT LINE: Owned by Agent But Listed By Someone Else?

QUESTION: I am an agent and I own several properties that are in my name only. If I decide to sell them with another agent as the listing agent, am I required by law to list them as owner/agent on the MLS? My husband is the agent who would be listing them. However, he is not on the deed as owner. Therefore, he is not the owner/agent. We did sign a Personal Interest Disclosure.

ANSWER: If the person who is the owner of the house is a real estate agent, then it MUST be advertised as owner/agent even if it is listed by another agent. You would also be required to do the personal interest disclosure.

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


4. HOT LINE: Lease-Purchase Form?

QUESTION: Is there a residential lease purchase form available on the TAR website? If not, what is suggested to be used for same?

ANSWER: The TAR forms committee took a long, in-depth look at the Lease Purchase Agreement in light of today’s economic climate. Lease purchase agreements have become more popular, but they have also become more complicated in many ways. Many sellers are desperate for purchasers for their property to avoid foreclosure. One option many of them are considering is a lease purchase agreement. However, it has gotten very difficult to protect both the buyers and the sellers in these harsh economic times when assisting them with a lease purchase. Therefore, TAR has elected to remove the form from their library of forms.

If your clients definitely desire a lease-purchase agreement, we would recommend that they consult with their own attorney who can assist them in drafting a lease-purchase agreement which will meet their individual needs. This will ensure that they have the best possible form for their particular situation. It has become increasingly difficult to draft a “one-size fits all” form to address such different, complex situations. The best plan is to have the buyer and seller consult their own attorney for a specialized form to meet their needs. This will protect not only the buyers and sellers, but also the agents assisting them.

However, another option could be to have the sellers agree to lease their property and then enter into a regular purchase and sale agreement closer to the time that the lease would end. This may alleviate one of the main problems in a lease purchase agreement – i.e., that the property does not close. By entering into a lease agreement, the sellers have income coming in which will assist in covering the mortgage and the buyers will have an opportunity to get their finances in order. However, you will need to be very careful about the inspection section once the Purchase and Sale Agreement is actually completed. There will need to be some changes made so that the Seller is not required to fix damages done to the home by the buyers. If you are contemplating this, then we would recommend having an attorney assist in drafting language for the special stipulations section of the Purchase and Sale Agreement to protect the sellers. You will need to make sure that the sellers are not being held responsible for repairs that were not required under the lease.

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


5. The Ethics of Claiming a Sale

In a recent Realty Times article, REALTOR Bob Hunt covered an interesting new Case Interpretation (12-7) of the REALTOR Code of Ethics — a case that was just approved in May at meetings of the National Association of REALTORS.

His article (“Ethics Rules Yield Odd Results When it Comes to Claiming a Sale”) deals with a set of facts that’s probably not uncommon.

*** BEGIN QUOTE ***
Joe worked for Razzle Dazzle for years. During that time he sold many homes and his advertising reflected that. Indeed, his website carried the headline, “I sold these – and I can help you buy or sell, too!”. Under the headline was a list of numerous properties in which Joe had represented either the buyer or the seller.

Some time later, Joe left Razzle Dazzle and joined Hot Shot Agents, Inc. As soon as he affiliated with Hot Shot Agents, he changed all his cards and advertising to reflect that fact. However, his website still carried the headline, “I sold these … etc.” along with the list of properties.

Joe’s former broker protested. His argument was that only the broker (company) can claim to have sold a property, either as listing or selling agent. For Joe to say “I sold these”, while now operating under the banner of Hot Shot Agents, is misleading because it makes it appear that Hot Shot Agents, Inc. was one of the participating brokers in the transactions.
*** END QUOTE ***

As for the ultimate decision in this Case Interpretation, Joe was found to be at fault and in violation of Article 12. Mr. Hunt points out, “Not everyone is going to agree with this interpretation.”

To read the entire article, go HERE.

[SOURCE: Realty Times]


6. Upcoming TAR Courses & Events!

TAR Forms 101July 27 (Nashville, TAR Office), 4 hours CE. For more information, go HERE.

TransactionDesk Basic CourseJuly 27 (Nashville, TAR Office), 3 hours CE. For more information, go HERE.

Educators Conference 2009July 28-29 (Nashville, TAR Office). This annual event, hosted by TREEF, features education sessions and workshops for association staff & Instructors. For more information, go HERE.

Instructor-Training WorkshopAugust 27-28 (Nashville, TAR Office), 16 hours CE. This is another offering of our popular two-day instructor-training workshop, “The Learning-Centered Instructor”, at the TAR Office in Nashville. For more information, go HERE.

TAR’s 2009 Annual Convention!September 15-18 (Point Clear, AL), 12 hours CE. TAR will be hosting the 2009 TAR Annual Convention in Clear Point, Alabama, at the Grand Hotel Marriott Resort, Golf Club, & Spa. National speakers include real estate guru Stefan Swanepoel, Karel Murray, Internet-savvy Randy Eagar, and productivity wizard Merlin Mann! For more information about the Convention program or our hotel in Point Clear, go HERE.

PLEASE NOTE: SAVE $80!!! Early-bird registration deadline for the TAR Convention is July 28! Register by July 28 for $195 …the fee jumps to $275 after that date!

Watch each week’s TAR DIGEST for schedule changes and additions!


7. Rates Drop Again

Freddie Mac reports that rates on 30-year fixed mortgages fell to 5.14 percent for the week ended July 16, down from 5.20 percent a week before and 6.26 percent a year earlier. Interest on fixed home loans has fallen in four of the past five weeks, and Freddie Mac economist Frank Nothaft says rate activity during that time has lowered the monthly payment on a $200,000 loan by $56. Freddie Mac also reports that 15-year fixed loans fell to 4.63 percent from 4.69 percent, and one-year adjustable-rate mortgages fell to 4.76 percent from 4.82 percent; but five-year hybrid ARMs bumped up a notch to 4.83 percent from 4.82 percent.

[SOURCES: Freddie Mac; Information, Inc.]


8. License Plate Update

As of Monday, July 20, 865 Specialty REALTOR License Plates have been ordered! That means we are only 135 plates shy of the 1,000 that must be ordered before the State of Tennessee will put them into production!

An attractive  specialty plate only costs $35 and the proceeds fund your educational foundation, TREEF! Take pride in your profession… visit the Newsroom section of the TAR website and scroll down for more information.


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

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