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


CONTENTS
1. ADVISORY: Closings May Be Delayed…
2. New Customer Satisfaction Survey Results
3. The Fed’s Tips for Mortgage Shopping
4. HOT LINE: Rules on Advertising Others’ Listings?
5. HOT LINE: Still Owner/Agent If License Expired?
6. Upcoming TAR Courses & Events!
7. Rates Rise

For questions about this newsletter, please use the “CONTACT” form at http://www.tardigest.com/?page_id=4


1. ADVISORY: Closings May Be Delayed…

Many of you may be aware of new regulations for appraisers and lenders. They will impact your customers/clients and may even delay your closings!

Some changes just took effect this past Thursday, July 30. REALTORS should be aware of changes to timelines which could impact real estate transactions and your closings. If these timelines are not followed and closely watched, your closing may be delayed or worse yet, never happen! Please read the White Paper (linked below) for more valuable information on the new changes included in the Home Valuation Code of Conduct (“HVCC”), the Truth in Lending Act (“TILA”), the Home Ownership and Equity Protection Act (“HOEPA”) and Regulation Z.

A 6-page White Paper on these new rules and rule changes, authored by the TAR Legal & Ethics Hot Line Attorneys can be downloaded HERE.

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


2. New Customer Satisfaction Survey Results

This past week, Inman News reported the results of the 2009 Home Buyer/Seller Study, conducted by J. D. Power and Associates,in which 2,801 people who bought or sold a home between April 2007 and June 2008 were surveyed as to their satisfaction with a variety of factors.

Forty-seven percent (47%) of homebuyers ranked agent performance the most important factor. For buyers, the office (28%) was the second most important factor, and the package of additional services came in third at 25%.

For sellers, agent performance and marketing tied for first place in importance (34% for each), with the office coming in at 17%. Fifteen percent (15%) ranked the package of additional services as the most important factor.

The J. D. Power survey also gauged satisfaction with various real estate franchises.

For those with an Inman News subscription, the complete article may be accessed HERE.

[SOURCE: Inman News]


3. The Fed’s Tips for Mortgage Shopping

Here’s something you can pass along to your buyer-clients! On July 29, 2009, the Federal Reserve Board issued a new one-page publication, “5 Tips for Shopping for a Mortgage,” to help consumers find the mortgage that is best for them. The five tips, each of which includes more detailed advice and helpful links, are:

  1. Know what you can afford.
  2. Shop around – compare loans from lenders and brokers.
  3. Understand loan prices and fees.
  4. Know the risks and benefits of loan options.
  5. Get advice from trusted sources.

To download the Fed’s new resource, “5 Tips for Shopping for a Mortgage” in PDF format, click HERE.

[SOURCES: NAR; Federal Reserve]

______________________________________________________
4. HOT LINE: Rules on Advertising Others’ Listings?

QUESTION: What are the rules and regulations with regard to agents advertising other agent’s listings?

ANSWER: You can advertise other’s listings, but only under certain conditions. In order to do this, you will need to make sure that you have the permission of the listing agent (in writing). You also need to ask the listing agent for the owner’s permission as well. Then, you will need to make sure that the advertisement contains the listing firm as well as your own. It is critical that it is obvious from your advertisement that this listing is not yours. Otherwise, the advertisement will be misleading in violation of the Broker’s Act and the Code of Ethics. In addition, the firm name and telephone number for both you and the listing agent is required on the advertisement.

If you feel that someone is violating this, you can file a complaint with the local board and/or TREC. For TREC, it would probably be a violation of Tenn. Code Ann. 62-13-312(b)(4). If you want to file a complaint with TREC, you can look for guidance on their website at http://tn.gov/commerce/boards/trec/complaint.shtml. If you are filing a complaint with the local board, it would likely be a violation of Article 12 of the Code of Ethics. We would recommend contacting your local association. They can provide you with the necessary documents to file the complaint.

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


5. HOT LINE: Still Owner/Agent If License Expired?

QUESTION: With regard to disclosing if you are an owner/agent, does this include a real estate agent whose license has “expired” and is not just in retirement?

ANSWER: As long as the agent’s license has been expired for more than a year, the agent does not have to make the owner/agent disclosure. This is because the agent no longer has a license and it would be difficult to have it reinstated. However, if the agent’s license is simply inactive or retired, then the disclosure would be required.

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


6. Upcoming TAR Courses & Events!

GRI 3: Financing the Successful Transaction — Aug. 5-6 (Cool Springs area), 16 hrs. CE. For more information about this course, go HERE.

DEADLINE for submitting a request to serve on a TAR Committee – Aug. 14! To submit a request, login to the member section of the TAR website at http://tnrealtors.com, and look for “Office & Committee Forms” in the menu.

GRI 2: Smart Marketing — Aug. 20 to Sept. 23 (E-Class distance learning course), 16 hrs. CE. For more information about this course, go HERE.

RESPA Really Matters! — Aug. 20 (Nashville, TAR Office), 4 hrs. CE. For more information about this course, go HERE.

Instructor-Training Workshop — Aug. 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! — Sept. 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 to: http://tnrealtors.com/main/conferences_and_conventions/

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


7. Rates Rise

Signs of economic improvement pushed Treasury yields up, which in turn boosted long-term mortgage rates. Interest on 30-year fixed loans rose to 5.25 percent, according to Freddie Mac, from a record low of 4.78 percent in early April. The higher borrowing costs do not bode well for the residential property market, which has been showing promise of stabilization.

[SOURCES: Freddie Mac; Information, Inc.]


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

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