The 8-30-11 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


CONTENTS
1. Short Sales Up, Permits Down
2. Middle TN Makes Hot Spots List!
3. DEADLINE for Convention Registrations
4. HOT LINE: Financial Penalties for Failure to Disclose?
5. HOT LINE: Can Licensees Belong to Multiple Offices?
6. Upcoming GRI & Other Courses
7. Rates Rise, But…
8. Useful Web Links

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

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


1. Short Sales Up, Permits Down

RealtyTrac reports that short sales made up 12 percent of U.S. home transactions in the April-through-June period, up from 10 percent during the same three months of 2010. The increases were sharper in such states as California, Michigan, and Nevada. Short sales sold for 21 percent less than non-distressed properties, according to RealtyTrac, while bank-owned homes commanded a 40 percent discount.

To read the entire USA TODAY article, CLICK HERE.

Of course, short sale fraud is also in the rise! CLICK HERE to read more!

Meanwhile, in an article this past week (“How bad has the housing market been in Tennessee? A sobering view”), the Nashville Business Journal reports that permits for housing construction took a major hit in our state over the past six years:

*** BEGIN QUOTE ***
According to an analysis by On Numbers, a Nashville Business Journal affiliate, permits were issued for 16,654 units in the Nashville area in 2005. Last year, that number had dropped to 5,092 — a precipitous decline of 69.4 percent.

Nashville was not the hardest hit city in Tennessee. Memphis saw a decline of 77 percent, followed by Chattanooga’s 71 percent. Knoxville saw a decline of 60 percent, and Clarksville saw a decline of 30 percent, making it the 7th most resilient city in On Numbers’ analysis.
*** END QUOTE ***

To read more, CLICK HERE.

[SOURCES: USA TODAY; Housing Wire; Nashville Business Journal; Information, Inc.]


2. Middle TN Makes Hot Spots List!

Inman News identifies 10 markets where real estate agents are faring well despite the economic and housing downturn, based on total sales, median price, and license and Realtor group membership data.

The 10 markets are:
Seattle-Bellevue-Everett, Wash.
Fort Worth-Arlington, Texas
Denver-Aurora-Broomfield, Colo.
Salt Lake City, Utah
San Antonio-New Braunfels, Texas
Pittsburgh, PA
Dallas-Plano-Irving, Texas
Kansas City Mo.-Kan.
Austin-Round Rock-San Marcos, Texas
Nashville-Davidson–Murfreesboro–Franklin, Tenn.

Average sales volume in these markets ranges from $599,171 (Nashville) to $1.54 million (Seattle) and sales per Realtor ranging from 3.2 (Austin) to 8.3 (Fort Worth). The median sales price edged up in seven of the markets in May from the prior year, and the three markets where prices did not rise managed to escape double-digit declines. From June 2010 to May 2011, the median sales prices ranged from $107,250 (Pittsburgh) to $302,000 (Seattle). These markets all have populations topping 1 million and unemployment rates that are generally better than the national rate.

[SOURCES: Inman News; Information, Inc.]


3. DEADLINE for Convention Registrations

TUESDAY, AUGUST 30, is the DEADLINE for advance registrations for the TAR Annual Convention! After this date, attendees must wait and register on-site in Savannah, and the rate for members goes up by $130 after the 30th …from $250 to $380!

For more information or to register online, go to:
http://tnrealtors.com/meetings/convention/schedule.php


4. HOT LINE: Financial Penalties for Failure to Disclose?

QUESTION: As a facilitator for a buyer and seller on a transaction that did not close, if an agent does not disclosure personal interest, are there any monetary repercussions on such a transaction?

ANSWER: There could be a monetary fine imposed by TREC and/or the local board if you are found to have violated the statute, rule or Article. TREC would impose their fine in relation to a violation of TREC Rules or the Broker’s Act. It could be a fine of up to $1,000 pursuant to TREC Rule 1260-2-.32.

If you are found to have violated a provision of the Code of Ethics (a decision made by the local association of REALTORS under Article Four), there are several different types of punishment. These include letters of warning, letters of reprimand, requirement of ethics training, a fine of up to $5,000, probation, expulsion, termination or suspension of MLS rights, etc.

In addition to both of the above, of course, you could also be sued for unspecified amounts by a disgruntled buyer and/or a disgruntled seller.

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


5. HOT LINE: Can Licensees Belong to Multiple Offices?

QUESTION: I know that a principal broker can be manager of two firms in one location. I am thinking about making our property management company a separate entity. Can an affiliate broker have his/her license at the real estate firm and the property management firm too?

ANSWER: Unfortunately, this exception only applies to the principal broker. A broker can be the principal broker for two companies at the same location, but all other agents will have to choose one firm with which to be affiliated.

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


6. Upcoming GRI & Other Courses

Aug. 31: Quadrennial Ethics Course (3 hrs. CE) – RCAR Office, Cleveland. For more information or to register, call 423-476-5912.

Aug. 31: Agency in Tennessee (4 hrs. CE) – RCAR Office, Cleveland. For more information or to register, call 423-476-5912.

Sept. 1: 2011-2012 Residential Core Course (6 hrs. CE) – GNAR Office, Nashville. For more information or to register, call 615-254-7516.

Sept. 9: TransactionDesk Advanced (3 hrs. CE) – MAAR Office, Memphis. For more information or to register, call 901-818-2421.

Sept. 13-17: 2011 TAR Annual Convention (10 hrs. CE) – Savannah, GA. For more information or to register online, go to: http://tnrealtors.com/meetings/convention/schedule.php

The complete 2011 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, But…

Freddie Mac reports that the 30-year fixed mortgage rate rose to 4.22 percent this past week, up from 4.15 percent a week earlier; while interest on 15-year fixed loans jumped to 3.44 percent from 3.36 percent. The gains follow the movement of Treasury bond yields as reports showed improvements in the housing market, including higher U.S. home prices and lower mortgage delinquencies. Long-term mortgage rates remain below year-earlier levels, however, and near historic lows.

[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
TAR on LinkedIn
TAR on Facebook
Follow TAR on Twitter
Online Risk Reduction Resources
Online Resources for Association Leaders
Tennessee Real Estate Commission

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