The 4-10-12 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


THIS WEEK & NEXT AT TAR
April 11: GRI 405, Mastering Forms and Contracts (8 hrs. CE)
April 19-20: Leadership TAR Retreat #1
April 19 – May 23: GRI 412, Financing the Successful Transaction (16 hrs. CE) – An E-Class Course & GRI Elective

HOT LINES IN THIS ISSUE:
1. HOT LINE: Forms Needed for Offer on Condo?
2. HOT LINE: Binding Agreement Date for a Short Sale?
3. HOT LINE: Two Buyer-Clients Interested in Same Property?

IN OTHER NEWS:
4. Nationwide Open House Weekend, April 28-29!
5. FHA Fees Going Up …and Down
6. FHA Loans Harder to Get
7. Tablet Sales May Exceed PC Sales
8. Aging Population Creates Housing Challenges
9. Current Mortgage Rates
10. To Ask a Hot Line Question…

NOTE: If you are reading a hard-copy of this DIGEST, and want to access some of the links cited, simply go to http://www.tardigest.com to access the current issue with “live” links!

AND: To see a complete calendar of upcoming TAR courses around the state, go to: http://tnrealtors.com/calendar/index.php


1. HOT LINE: Forms Needed for Offer on Condo?

QUESTION: I am writing a contract on a condo or co-op and need to know if there are any forms in addition to the Purchase and Sale Agreement that I need to include in this transaction.

ANSWER: There are two additional TAR forms which may be of assistance in transactions involving condominiums. These are form F19, the Condominium Legal Exhibit. This is used in conjunction with the Purchase and Sale Agreement and is to identify the exact unit in the complex which is being purchased. Form F26 is the Request for Condominium Association Information. This is a disclosure form wherein the purchaser can request information about the condominium association.  This should be used prior to submission of an offer and/or you can make the contract contingent upon receipt of the information and approval by the buyer.

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


2. HOT LINE: Binding Agreement Date for a Short Sale?

QUESTION: What is the binding agreement date on a short sale? Would it be binding upon the buyer and seller signing the contract, or when the lender signs the contract?

ANSWER: Please keep in mind that the Short Sale Addendum is actually a contingency to the Purchase and Sale Agreement. Therefore, if there is a contract in place, the Binding Agreement Date would operate just as it would in a non-short sale situation. The Binding Agreement Date is the date from which most calculations of time are initiated on the TAR Purchase and Sale Agreement. The document defines Binding Agreement Date on lines 449-452: “Binding Agreement Date. This instrument shall become a “Binding Agreement” on the date (“Binding Agreement Date”) the last offeror, or licensee of the offeror, receives notice of offeree’s acceptance. Notice of acceptance of the final offer was provided on _______ day of ___________________________, _________ at __________ o’clock by _______________________________________.”

The date and time at which both Buyer and Seller have reached an agreement on the terms of the sale of real property is the Binding Agreement Date. This date and time shall be that point at which the last offeror, or agent of the offeror, received notice of the offeree’s acceptance.

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


3. HOT LINE: Two Buyer-Clients Interested in Same Property?

QUESTION: I have an agent that has 2 clients looking at the same property. Does the fact that both parties are clients of the same agent need to be disclosed to them?

ANSWER: This would obviously create a conflict of interest if both parties wish to make an offer on a property – a conflict that could not be rectified.  Therefore, if both parties are interested in making an offer, one of the buyers should be transferred to another agent.

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


4. Nationwide Open House Weekend, April 28-29!

For one weekend in April — April 28-29 — REALTORS will hold open houses in neighborhoods from coast to coast, bringing value to both buyers and sellers! The event also provides a tremendous opportunity to promote the benefits of home ownership and continue an open dialogue with consumers about the housing issues that matter most to them.

NAR’s 2010 Profile of Home Buyers and Sellers shows that 45% of all buyers used open houses as a source in their home search process. This figure suggests the value of open houses even in the Internet era. This event was both popular and successful last year, and this year’s Weekend can be just as successful…especially in an improving market!


5. FHA Fees Going Up …and Down

As of April 9, the Federal Housing Administration is increasing the upfront insurance premium charge on mortgage loans from 1 percent to 1.75 percent and is raising annual mortgage insurance premiums by 10 basis points. This move to replenish the FHA’s depleted reserves by more than $1 billion also includes raising the annual mortgage insurance premiums for jumbo loans an additional 25 basis points on June 1. However, starting on June 11, the FHA will lower its upfront insurance premium to just 0.1 percent and reduce its annual premium to .55 percent for borrowers who took out loans before or on May 31, 2009, who wish to refinance through the agency’s streamline program, and who have made all of their last 12 payments. To read more, CLICK HERE.

[SOURCE: Loanrateupdate.com]


6. FHA Loans Harder to Get

As if the above was not already enough to deal with…

Starting April 1, 2012 a new qualification rule could dramatically change the volume of buyers that qualify for FHA-backed loans, especially impacting first-time buyers. Now, any borrower with ongoing disputes with creditors over any debt above $1,000 may no longer qualify for FHA-insured loans, regardless of credit scores. Prior to April, lenders could decide whether debt disputes merited denial, but now the decision is not in their hands as they must justify the approval to the FHA along with documentation. The FHA is attempting to reduce its overall risk and increase capital as their reserve funds have fallen below what is legally mandated. To read more, CLICK HERE.

[SOURCE: AGBeat]


7. Tablet Sales May Exceed PC Sales

The growing popularity and importance of tablet devices is becoming more evident, with the “Future of Mobile Report,” from BI Intelligence, predicting that sales of tablets will eclipse PC sales within the next two years. A new survey by Imprev, meanwhile, reveals that 75 percent of attendees at the recent Leading Real Estate Companies of the World Annual Conference cited an iPad Presentation App as the marketing tool they most would like to have. To read more, CLICK HERE.

[SOURCE: RISMedia]


8. Aging Population Creates Housing Challenges

Sharp increases in the over-65 population during the next few decades are expected to bring housing affordability challenges, according to a new report from the Center for Housing Policy. The U.S. population of older adults is expected to increase by more than 120 percent by 2050, with Census data showing that one in five Americans will be older than 65. This aging group is expected to increase the share of the population enduring severe housing cost burdens. While about 16 percent of adults under 65 spend at least half their income on housing costs, the number jumps to 20 percent for the over-65 group. For those 85 and older, about 26 percent spend at least half their income on housing.

The report suggests the adoption of policies to help provide more housing choices for older adults, including zoning that allows accessory dwelling units (also known as “granny flats”), higher-density rental developments, assisted-living facilities, continuing care retirement communities, and co-housing communities. It further advocates using federal housing and other programs to help older adults stay in their own homes as they age. You can download the entire report HERE.

[SOURCE: Center for Housing Policy]


9. Current Mortgage Rates

To see current mortgage rates, go to: http://www.mortgagenewsdaily.com/mortgage_rates/


10. To Ask a Hot Line Question…

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