The 10-11-11 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


CONTENTS
1. Pent-Up Demand for Housing?
2. NOTICE: TAR’s Residential Lease Agreement (F58) Revised
3. HOT LINE ADVISORY: Unearned Referral Fees
4. HOT LINE: Retrieving Outdated Flyers?
5. HOT LINE: Attaching the MLS Sheet?
6. Instructor Training Scheduled at TAR!
7. Upcoming GRI & Other Courses
8. Rates & Home Ownership At Historic Lows
9. 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. Pent-Up Demand for Housing?

Beneath the cloud of national news, we found this silver lining:

*** BEGIN QUOTE ***
Despite the recession and declines in home prices, Americans still view homeownership as being important to the economy and the American family, according to the “Housing 360 Survey” conducted among more than 3,005 homeowners and renters across the U.S.

“We thought people would be soured after watching home values fall but instead we found the typical American still places high value on homeownership,” said Frank Anton, CEO of Hanley Wood, LLC, the nation’s premier media and data research company serving the housing and construction industries. “We found this holds across all demographic groups and across the country, even in hard-hit places like Nevada and Arizona where there have been 50 percent or more declines in value. The increase in the rise of rental rates in many markets is one factor driving people to consider buying.”

The survey found that despite the recession and housing crisis, homeownership is still very important—that both renters and homeowners feel it is a good time to buy a home and 19 percent of homeowners and 29 percent of renters are considering buying a home in the next two years. In fact, the survey findings support that up to two million potential home buying consumers are waiting to jump into the market when the time is right…. 72 percent of owners and 59 percent of renters think now is a good or very good time to buy.
*** END QUOTE ***

To read more about this survey, CLICK HERE.

[SOURCE: Hanley Wood]


2. NOTICE: TAR’s Residential Lease Agreement (F58) Revised

The Tennessee Landlord and Tenant Act (LLTA) was recently revised. Because of this mandate, TAR form “F58 – Residential Leas Agreement for Single Family Dwelling” has been modified and is available both in “TransactionDesk” and “Forms on the Fly” of the TAR web site.

At http://tinyurl.com/3b8tv6f, you can download the MEMO that contains a summary of the changes which have been made to the Residential Lease Agreement effective October 1, 2011.

[SOURCE: TAR’s Buzz Steele]


3. HOT LINE ADVISORY: Unearned Referral Fees

We recently had an inquiry about unearned (or “after-the-fact”) referral fees. As this is not a topic we’ve addressed in a long time, we include the following advisory. The following sections of the Broker’s Act in Tennessee (included as a result of TAR’s advocacy several years ago) are pretty clear:

62-13-602. Reasonable cause to solicit referral fee. — Reasonable cause does not exist unless the party seeking the referral fee actually introduced the business to the real estate licensee from whom the referral fee is sought and at least one (1) of the following other conditions exists as between the party seeking the referral fee and the real estate licensee from whom the referral fee is sought:
(1) Sub-agency relationship;
(2) Contractual referral fee relationship; or
(3) Contractual cooperative brokerage relationship. [Acts 1999, ch. 160, S.3.]

62-13-603. Unlawful referral solicitation — Unlawful retribution for existence of agency relationship. — (a) It is unlawful for any person or entity to:
(1) Solicit or request a referral fee from a real estate licensee without reasonable cause; or
(2) Threaten to reduce or withhold employee relocation benefits or to take other action adverse to the interests of a client of a real estate licensee because of an agency relationship.
(b) Reasonable cause allows a real estate licensee to solicit or request a referral fee but does not necessarily mean that the licensee has a legal right to be paid a referral fee. [Acts 1999, ch. 160, S.4.]


4. HOT LINE: Retrieving Outdated Flyers?

QUESTION: If I have a flyer printed up to place at area businesses with several listings I currently have, and over time, one or more of these listings expire, do I have to remove any flyers I may still have in circulation?

ANSWERS: YES. If any of the listings have sold, then to continue advertising them for sale could constitute misrepresentation or failure to present a true picture in their advertising under both the Broker’s Act and the NAR Code of Ethics. We would recommend reviewing your advertising periodically and purging properties which you no longer have listed.

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


5. HOT LINE: Attaching the MLS Sheet?

QUESTION: Can agents “attach” a MLS sheet to a contract when making an offer? Agents will write in, “All items listed in MLS # — to remain” and then they attach it to a contract. I understand that the MLS sheets are deemed “reliable but not guaranteed”, so how can something that is not guaranteed be part of an actual contract?

ANSWER: We’ve answered this one before, but it’s worth repeating our advice. This practice is permissible, but STRONGLY discouraged. By doing this, the agent is making that MLS sheet part of the contract and indicating that everything on there is now guaranteed. Therefore, at the VERY least if an agent receives an offer like this, have the seller review that MLS sheet VERY carefully to make sure that everything on it is accurate!

The better practice would be to do a counter offer and rewrite those items on the MLS sheet such as things that will be included with the home. We strongly recommend against attaching the MLS sheet because it contains much more than what is included with the home.

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


6. Instructor Training Scheduled at TAR!

Another offering of The Learning-Centered Instructor (LCI) Workshop — TAR’s 2-day instructor-training program — will be held October 20-21, 2011, in Nashville, TN.

This workshop is recommended for anyone handling in-house training for their company, teaching Local Association Orientation, teaching CE classes for their Local Association, OR teaching prelicensing classes. This course is also required for any instructor wishing to be approved to teach one of TREEF’s courses for a local association. [This 16-hour class meets the TN Real Estate Commission’s training requirement for prelicensing instructors AND offers 16 hours of Continuing Education (CE) credit!]

Since its development several years ago, this program has been used successfully by the Tennessee, Arizona, and Missouri State Associations to train real estate instructors for greater impact in the classroom! For more information, or to register, CLICK HERE.


7. Upcoming GRI & Other Courses

Oct. 11-12: GRI 1, Professionalism in Real Estate (16 hrs. CE) – KAAR Office, Knoxville. For more information or to register online, CLICK HERE.

Oct. 11-12: 2-day ABR Course (16 hrs. CE) – CAR Office, Clarksville. For more information or to register, call 931-552-3567.

Oct. 13: TransactionDesk Basic (3 hrs. CE) – MAAR Office, Memphis. For more information or to register, call 901-818-2421.

Oct. 13 – Nov. 16: GRI 5, Systems for Success (16 hrs. CE) – An E-Class distance-learning course. For more information or to register online, CLICK HERE.

Oct. 13-14: Seniors (SRES) Course (14 hrs. CE) – Sumner Assn. Office, Hendersonville. For more information or to register, call 615-824-6629.

Oct. 13-14: Seniors (SRES) Course (14 hrs. CE) – CAR Office, Clarksville. For more information or to register, call 931-552-3567.

Oct. 17: 2011-2012 Residential Core Course (6 hrs. CE) – MAAR Office, Memphis. For more information or to register, go to: http://www.maar.org

Oct. 20-21: GRI 6, Sticky Situations (16 hrs. CE) – WCAR Office, Brentwood. For more information or to register, CLICK HERE.

Oct. 24: GRI 407, Homeownership Options for Tennessee’s Workforce (6 hrs. CE) – GNAR Office, Nashville. For more information or to register, call 615-254-7516.

Oct. 25: TransactionDesk Basic (3 hrs. CE) – TAR Office, Nashville. For more information or to register, CLICK HERE.

Oct 25: Contracts 101 (4 hrs. CE) – TAR Office, Nashville. For more information or to register, CLICK HERE.

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

The complete 2011 schedule of GRI courses (both Classroom and E-Class) is online HERE.

For information on the NEW 2012 GRI Program, go to: http://tnrealtors.com/main/education/gri_in_2012/

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


8. Rates & Home Ownership At Historic Lows

Freddie Mac’s Primary Mortgage Market Survey showed the average rate for the conventional 30-year fixed mortgage dropping below 4 percent for the first time in history amid increasing global economic concerns. The 30-year fixed-rate mortgage (FRM) averaged 3.94 percent with an average 0.8 point for the week ending October 6, 2011, down from the prior week when it averaged 4.01 percent. Last year at this time, the 30-year FRM averaged 4.27 percent.

According to Frank Nothaft, vice president and chief economist for Freddie Mac, “Average 30-year conventional fixed mortgage rates fell below 4 percent for the first time in history this week following a sharp drop in 10-year Treasuries early in the week as concerns over a global recession grew. Average 15-year fixed rates fell to a record low [3.26] …as well.”

Meanwhile, census figures show that the national homeownership rate slipped in 2010 to 65.1 percent, the biggest decline since the Great Depression, but remains the second-highest decennial rate. Analysts believe homeownership is unlikely to return to the nearly 70 percent level reached at the peak of the housing boom in the middle of the decade. Unemployed young adults have delayed first-time purchases and are least likely to own a home, and homeownership among adults ages 35 to 64 has fallen to the lowest level in decades as many have faced foreclosure or bankruptcy.

[SOURCES: Freddie Mac; Washington Post; Information, Inc.]


9. 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

____________________________________________