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

1. Tennessee & Nashville Poll Well!
2. Our Aging Industry
3. Real Estate Agents “Packing Heat”
4. HOT LINE: Purchase To Be Financed by Boyfriend?
5. HOT LINE: Deposit of Earnest Money for Backup Offer?
6. Upcoming Workshops and Courses
7. Rates Rise a Little, BUT…

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

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1. Tennessee & Nashville Poll Well!

Tennessee is the 11th most popular state, according to a Harris Interactive Poll that asked people which state they would most want to live in, other than the one where they already reside.

California was the most popular, followed by Hawaii, Florida, Colorado and Arizona.

Tennessee’s ranking was down a bit from last year, when it finished ninth.

The Harris survey turned up a generational divide: People over age 46 put Hawaii in the top spot, while younger groups preferred California.

To read more, CLICK HERE.

In a related Harris Poll, Nashville tied for 7th Place nationally as the city where “most would like to live in or near to”!  For more on that story, CLICK HERE.

[SOURCES: Harris Interactive; Nashville Business Journal]

2. Our Aging Industry

A new RISMedia report by Rich Bailey, summarizing an address by trend-watcher Stefan Swanepoel, is worth reading carefully. It outlines likely changes to the real estate business as a result of our changing demographics:

According to the National Association of Realtors, real estate agents in the United States in 2000 were pretty evenly split between those over and those under 40 years of age. In 2010, the number of agents over 40 outnumbers those under 40 nearly 2-1. This statistic has major implications to the entire industry…
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To read the entire article – which includes implications for both older and younger REALTORS, MLSes, Vendors, Consumers, and those considering an entry into real estateCLICK HERE.


3. Real Estate Agents “Packing Heat”

Although representing just a small sampling of its membership, the results of a poll put to readers on a National Association of REALTORS’ blog show that roughly a quarter of property agents carry handguns while working. Asked what “personal safety products” they kept handy while showing listings and conducting other business, another 20 percent cited pepper spray, 10 percent admitted to carrying knives, 2.5 percent said they kept scissors on them, and about 1 percent reported packing a stun gun.

[SOURCES: Chicago Tribune; Information, Inc.]

4. HOT LINE: Purchase To Be Financed by Boyfriend?

QUESTION: I have a client that has a contract on a property. The contract is contingent upon financing.  The client is not going to be able to secure financing; however, her boyfriend has agreed to purchase the house. What way would be best for transferring this contract? Addendum with new buyer’s name on original contract? New offer? Backup offer? Please advise.

ANSWER: There are several ways to handle this situation. The buyer could assign her rights to her boyfriend.  However, she would still be obligated to close if he does not (assuming all contingencies are met). Contracts for the sale of real property are assignable unless the contract states otherwise. Another option would be to have an amendment to the contract in which the parties agree to substitute the boyfriend as the buyer. However, the seller does not have to agree to this.

Regardless of which route you choose, we would strongly advise you to instruct your buyer to speak with her own attorney concerning her legal rights to the property. We would also advise doing this in writing to protect yourself from a claim by her if she and the boyfriend have a falling out and she loses all interest in the house.

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

5. HOT LINE: Deposit of Earnest Money for Backup Offer?

QUESTION: I represent a seller, and I have a fully executed contract contingent upon financing and inspection. I get a fully executed backup contract with earnest money, am I supposed to deposit it in escrow or give it to my broker to deposit in escrow?

ANSWER: TREC Rule 1260-2-.09(9) covers this issue. It states “Earnest money shall be deposited into an escrow or trustee account promptly upon acceptance of the offer, unless the offer contains a statement such as ‘Earnest money to be deposited by:’.” Therefore, if the backup contract does not specify a later date, the earnest money should be deposited upon acceptance. In cases like this, you may want to include in the contract a clause in special stipulations which states that the earnest money will be deposited within x business days of notification that the backup has become the Primary Agreement.

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

6. Upcoming Workshops and Courses

Oct. 27: At Home With Diversity (7 hrs. CE) – Clarksville. For more information or to register, call 931-552-3567.

Oct. 27-28: GRI 1, Professionalism in Real Estate (16 hrs. CE) – Knoxville. For more information or to register, CLICK HERE.

Oct. 27-28: TransactionDesk Train-the-Trainer 2010 (16 hrs. CE) – TAR Office, Nashville. This workshop is specifically designed for instructors and company trainers. For more information or to register, CLICK HERE.

Nov. 2-3: GRI 3, Financing the Successful Transaction (16 hrs. CE) – Chattanooga. For more information or to register, CLICK HERE.

Nov. 4 – Dec. 8: GRI 6, Sticky Situations (16 hrs. CE) – an E-Class distance-learning course. For more information or to register, CLICK HERE.

NEW! Nov. 10: Digital Flood Map Course (2 hrs. CE) – TAR Office, Nashville. This 2-hour course – presented by TN’s Office of Information Services – is focused on educating REALTORS on the status of FEMA’s Digital Flood Insurance Rate Map in conjunction with the Tennessee Base Map data. For more information or to register, CLICK HERE.

Nov. 17-18: GRI 2, Smart Marketing (16 hrs. CE) – TAR Office, Nashville. For more information or to register, CLICK HERE.

The complete 2010 schedule of GRI Courses (both Classroom and E-Class) is online HERE.

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

7. Rates Rise a Little, BUT…

...They remain at historic lows! Interest on the 30-year fixed mortgage averaged 4.21 percent this past week, up from a record low of 4.19 percent a week earlier, reports Freddie Mac. Rates for 15-year fixed loans also rose, climbing to 3.64 percent from 3.62 percent. However, the five-year adjustable-rate mortgage fell to a record low of 3.45 percent, after averaging 3.47 percent the previous week.

[SOURCES: Freddie Mac; Information, Inc.]


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Back Issues of the TAR DIGEST
Tennessee Assn. of REALTORS
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