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


CONTENTS
1. “Shadow” Inventory Increases
2. FREE Data Security Toolkit Available Now!
3. 2011 GRI Schedule Is Online
4. HOT LINE: Advertising Properties on Facebook?
5. HOT LINE Advisory: Lease-Purchase Agreements
6. Upcoming Events and Courses
7. Rates on the Rise
8. Useful Web Links
9. HAPPY THANKSGIVING!

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

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

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1. “Shadow” Inventory Increases

The shadow inventory of homes will continue to exacerbate the weak demand for housing that is threatening further price depreciation in the housing market, warns CoreLogic chief economist Mark Fleming. The number of homes not yet on the market hit 2.1 million units in August, up from 1.9 million a year earlier – or a gain to eight months from five. The total supply of unsold homes, including those actually on the market, was 23 months. The shadow supply will hold down prices in some markets and apply more downward pressure in others, says Fleming.

The full story can be seen (Inman News membership may be required to view entire article) by CLICKING HERE.

[SOURCES: Information, Inc.; Inman News]


2. FREE Data Security Toolkit Available Now!

NAR has created a new 37-page Data Security and Privacy Toolkit to educate members on the need for data security and privacy and to help you comply with your legal responsibilities. It also provides information about state laws and pending federal regulations regarding data security and privacy protection that may affect your business.

Every REALTOR should become much better informed about data security – especially your responsibilities to protect your customers’ and clients’ sensitive information! To download your own FREE copy (in PDF format), CLICK HERE.

[SOURCE: NAR]


3. 2011 GRI Schedule Is Online

The 2011 schedule of both Classroom and E-Class GRI courses is now online!

To see it, go to: http://tnrealtors.com/main/education/gri_courses/

Online registration for 2011 courses will be available later this week.

NOTE: Due to its content and emphasis on the use of Internet tools, our GRI 5: Systems for Success course will only be offered in E-class format in 2011 and beyond. GRI 5 remains a requirement for the GRI designation.

How do E-Classes work? These are NOT “online” courses in the way that most people think of online courses. These are instructor-coached courses, featuring weekly interaction with both your Instructor-Coach and your fellow students. For a more complete explanation, CLICK HERE.

Why should you earn your GRI? The GRI designation remains the ONE nationally-recognized designation you don’t have to pay annual dues to keep! It also offers a more complete post-licensing education than any other designation, and we are constantly updating courses to make them both timely and more valuable to you!


4. HOT LINE: Advertising Properties on Facebook?

QUESTION: Is there a law/rule that addresses advertising your listings on FaceBook and/or similar web sites?

ANSWER: Advertising properties on Facebook would be under the same requirements as advertising in any other medium. There are no exceptions for Facebook or other social media sites.

You must comply with all advertising rules and regulations. At a minimum, all advertising must contain the firm name AND firm telephone number. The Real Estate Commission’s Rule 1260-2-.12 covers the complete requirements for advertising.

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


5. HOT LINE Advisory: Lease-Purchase Agreements

The TAR Hot Line continues to receive inquiries about lease purchase agreements, asking why one is no longer available as one of the TAR Forms.

As we have told everyone, Form F57 was discontinued by the Forms Committee and is no longer available for use by members.

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. It has become 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 extremely difficult to draft a “one-size fits all” form to address such different, complex situations.  Therefore, 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.

Another option could be to have the sellers agree to lease their property (F58) and then enter into a regular purchase and sale agreement (F9) 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]


6. Upcoming Courses and Events

Dec. 7: TAR Executive Committee Planning Session – TAR Office, Nashville.

Dec. 8: Leadership Session for Local Association Presidents and Presidents-elect – TAR Office, Nashville.

Dec. 9: RPAC/Government Affairs Training Session – TAR Office, Nashville.

Dec. 10: Homeownership Options Course (6 hrs. CE) – Murfreesboro. For more information or to register, CLICK HERE.

The complete 2011 schedule of GRI Courses (both Classroom and E-Class) is now posted HERE.

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


7. Rates on the Rise

Rates for 30-year fixed mortgages rose to 4.39 percent this past week from 4.17 percent a week earlier, and average interest on 15-year loans moved to 3.76 percent from 3.57 percent, said Freddie Mac. Interest for five-year adjustable-rate mortgages jumped to 3.4 percent from 3.25 percent, meanwhile, and one-year ARMs held at 3.26 percent. Rates have climbed along with long-term Treasury yields as traders unloaded Treasurys purchased before the Federal Reserve announced a $600 billion bond purchase program.

[SOURCES: Freddie Mac; Information, Inc.]


8. Useful Internet Links

Click on any of the following to access:

Back Issues of the TAR DIGEST
Tennessee Assn. of REALTORS
TAR Education
Online Risk Reduction Resources
Online Resources for Association Leaders
Tennessee Real Estate Commission


9. HAPPY THANKSGIVING!

We have so much to be thankful for! The TAR staff and leadership are very grateful for our wonderful REALTOR members in Tennessee, and our state continues to be a great place to live and work!

Please enjoy yourselves and your families on Thanksgiving Day, and take a moment to give thanks for those who are no longer with us but who enriched our lives while they were here.