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


CONTENTS
1. National Flood Insurance Program Extended
2. Quick Tips on Energy Tax Credits
3. HOT LINE: Cannot Get Seller’s Rejection?
4. HOT LINE: Contingent Upon Finding New Home?
5. Upcoming Courses & Events
6. Correction to TREC Seminar Schedule
7. NAR Seeks Good Neighbor Nominations
8. Thankfully, Rates Drop

To ask a TAR Legal and Ethics Hot Line question, CLICK HERE.

For other questions about this newsletter, please use the “CONTACT” form HERE.

Follow TAR on Twitter!


1. National Flood Insurance Program Extended

On April 15, 2010 Congress passed, and President Obama signed, legislation to renew the National Flood Insurance Program (NFIP) through May 31, 2010. Congress allowed the NFIP to expire on March 28, 2010. By law, flood insurance is required for the purchase of real estate in a 100-year floodplain. The lapse in flood insurance resulted in many delayed, and even canceled, transactions. During the lapse period NAR worked with Federal agencies, GSEs and bank regulators to clarify what lenders and insurers may and may not do to help work through the program’s expiration. NAR will work closely with our congressional allies to help ensure a lasting reauthorization and extension prior to the May 31 deadline.

[SOURCE: NAR’s Governmental Affairs Division]


2. Quick Tips on Energy Tax Credits

In a short (3 minute) well-done YouTube video, Chris Bird — a national speaker on tax-related issues (he has spoken before at our TAR Spring Conference) — addresses the Energy Tax Credits that will expire at the end of 2010. This is good information you may want to let your past clients and customers know about!

To view his video online, CLICK HERE.


3. HOT LINE: Cannot Get Seller’s Rejection?

QUESTION: I presented an offer to the listing agent on a property.  I received a response from  the agent that the owner would not accept the offer. Since that conversation my client has asked for a written acceptance, counter, or rejection to his offer. The listing agent has not returned any phone calls or communication since that time. Do I as the agent for the potential buyer have the right to contact the owner in this case? My client just wants to verify that we have no chance of reviving this offer.

ANSWER: Under TREC Rules, a seller’s agent is to request that the seller note a rejection on an offer.  “In the event that an offer is rejected, the broker or affiliate broker shall request the seller to note the rejection on the offer and return the same to the offeror or the offeror’s agent.” — TREC Rule 1260-2-.08.  HOWEVER, an agent cannot force their seller to do this.  They only have to request that they do so.  If you cannot get this information, simply make a note of it in your file for audit purposes.

You are NOT permitted to speak with the seller directly under the NAR Code of Ethics. Pursuant to Standard of Practice 16-12:

“All dealings concerning property exclusively listed, or with buyer/tenants who are subject to an exclusive agreement shall be carried on with the client’s representative or broker, and not with the client, except with the consent of the client’s representative or broker or except where such dealings are initiated by the client.”

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


4. HOT LINE: Contingent Upon Finding New Home?

QUESTION: We have received an offer on the purchase of my seller’s home, but he does not have anywhere to go. How can I write a contingency for my seller that will allow him 90 days to secure a new home? We will need for the new home to be under contract.

ANSWER: TAR provides commonly used special stipulations language on Form F33, Special Stipulations.  Lines 110-112 apply to your situation.  They state: “This contract is expressly conditional upon Sellers entering into a written contract to buy a replacement house on or before ___________________, ________.”

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


5. Upcoming Courses & Events

April 20: TransactionDesk Basic Course (3 hrs. CE) – TAR Office, Nashville.

April 20: Forms 101 Course (4 hrs. CE) – TAR Office, Nashville.

April 20: GRI 6, Sticky Situations (16 hrs. CE) – Northeast TN.

April 21: Workshop for Agency Instructors (4 hrs. CE) – TAR Office, Nashville.

April 21: 2009-2010 Core CE Course (4 hrs. CE) – Paris, TN. For more information, contact the Tennessee Valley Assn. of REALTORS at 731-336-7844.

April 22: GRI 4, From Offer to Contract to Closing (16 hrs. CE) – Murfreesboro.

April 28-29: Leadership TAR Retreat, “Authentic Leadership!” – Montgomery Bell State Park.

April 28: Homeownership Options for Tennessee’s Workforce (6 hrs. CE) – Chattanooga. For more information, contact the Chattanooga Assn. of REALTORS at 423-698-8001.

April 29 – June 2: E-Class GRI 6, Sticky Situations (16 hrs. CE).

The complete 2010 schedule of Classroom and E-Class GRI Courses is online!

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


6. Correction to TREC Seminar Schedule

Last week, we announced TREC’s schedule of FREE CE seminars being held around the state, beginning this summer.

One change has been made to that schedule, published in the April 13 edition of the DIGEST.  The seminar scheduled in Lewisburg will take place at 9AM on THURSDAY, JUNE 24, at the Lewisburg campus of Columbia State Community College.  You can see the corrected scheduled by CLICKING HERE and scrolling down to news item #5.

[SOURCE: TREC]


7. NAR Seeks Good Neighbor Nominations

Win $10,000 for your favorite charity or cause!

The National Association of REALTORS Good Neighbor Awards recognize REALTORS who’ve made an extraordinary commitment to improving the quality of life in their communities through volunteer work. Five winners each year receive $10,000 grants for their cause! The application deadline for the 2010 awards is May 21, 2010.

For details, or an Entry Form, CLICK HERE.

[SOURCE: NAR]


8. Thankfully, Rates Drop

The first decline in five weeks drove mortgage interest to near historically low levels once again as the 30-year fixed rate averaged 5.07 percent for the week ended April 15, down from 5.21 percent a week earlier. Freddie Mac also reports that the 15-year fixed rate averaged 4.40 percent, down from 4.52 percent; one-year adjustable-rate mortgages averaged 4.13 percent, down from 4.14 percent; and interest on the five-year ARM came in at an average of 4.08 percent compared to 4.25 percent.

[SOURCES: Information, Inc.; Freddie Mac]


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

Members receive the TAR DIGEST automatically, through their email address in NRDS. Non-members (such as Office Managers) may subscribe at: http://www.tardigest.com

Back issues of the DIGEST may be viewed and searched at: http://www.tardigest.com