The 1-15-13 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


HOT LINES IN THIS ISSUE:
1. HOT LINE: When is Seller’s Property Update Done?
2. HOT LINE: Guidance on Multiple Offers?
3. HOT LINE ADVISORY: Items to Remain With Property?

IN OTHER NEWS:
4. 2013 Residential Forms Changes Now Online
5. More Signs of a Housing Recovery!
6. 2013 GRI Schedule is Online
7. Protecting Your Online Reputation!
8. Persuasion Lessons from a 4-Year-Old
9. Keeping an Approved Loan Approved
10. USEFUL LINKS

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!


1. HOT LINE: When is Seller’s Property Update Done?

QUESTION: At what point is the form “Seller’s Property Update” (F16a) supposed to be filled out? I always thought it was done at closing, but someone told me it was to be done when an offer comes in, or when seller enters into a purchase agreement.

ANSWER: Form 16A used to be a part of form F16. However, it is not required to be completed until closing. Tenn. Code Ann. 66-3-205 states:

“If information disclosed in accordance with this part is subsequently rendered or discovered to be inaccurate as a result of any act, occurrence, information received, circumstance or agreement subsequent to the delivery of the required disclosures, the inaccuracy resulting therefrom does not constitute a violation of this part; provided however, that at or before closing, the owner shall be required to disclose any material change in the physical condition of the property or certify to the purchaser at closing that the condition of the property is substantially the same as it was when the disclosure form was provided.

Therefore, it is required at or before closing on ALL transactions.

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


2. HOT LINE: Guidance on Multiple Offers?

QUESTION: I represent the buyer in a transaction, and it has gone to a multiple offer situation. What are the rules regarding disclosure to the buyers in such a situation?

ANSWER: TREC Rules (1260-2-.08) require:

“A broker or affiliate broker promptly shall tender every written offer to purchase or sell obtained on a property until a contract is signed by all parties. Upon obtaining a proper acceptance of an offer to purchase, or any counteroffer, a broker or affiliate broker promptly shall deliver true executed copies of same, signed by the seller, to both the purchaser and the seller. Brokers and affiliate brokers shall make certain that all of the terms and conditions of the real estate transaction are included in the contract to purchase. In the event an offer is rejected, the broker or affiliate broker shall request the seller to note the rejection on the offer and return the same to the offeror or the offeror’s agent.”

If the agent is a Realtor, then the Code of Ethics also applies. Pursuant to Standard of Practice 1-15:

Realtors, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, disclose the existence of offers on the property. Where disclosure is authorized, Realtors shall also disclose, if asked, whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker.

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


3. HOT LINE ADVISORY: Items to Remain With Property?

The TAR Hot Line has received several questions lately asking what to do when a seller removes an appliance or similar item from a property, when the buyers expected that it would remain. The TAR Hot Line cannot advise buyers and sellers as to who is entitled to any such item, as this would constitute legal advice to the clients as well as an interpretation of a contract. If the parties have questions, they should consult with their own attorneys.

NEVERTHELESS, we DO recommend that items such as these be specifically mentioned in the contract itself. [For a variety of reasons, we continue to recommend that a MLS page or listing NOT be included or attached to a contract as part of that contract.] If the seller is planning on taking the appliance, they should so state. If the buyer is expecting that he is purchasing the appliance, they should so state. Also, if an appliance is NOT staying with the house and has been mentioned in the MLS, then we strongly recommend that it be specifically excluded from the contract. This will avoid any problems in the future on this issue. Both parties should be as specific as possible and assume nothing.

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


4. 2013 Residential Forms Changes Now Online

The changes to TAR’s 2013 Residential Forms are explained in a document now available in the FORMS ON THE FLY section of the TAR website (under Members Only):
http://tnrealtors.com/members-only/forms-on-the-fly/


5. More Signs of a Housing Recovery!

In the latest sign of a burgeoning recovery in U.S. housing markets, the number of metropolitan areas on the National Association of Home Builders/First American Improving Markets Index (IMI) rose for a fifth consecutive month to 242 in January. This is up from 201 markets listed as improving in December, and includes entrants from 48 states and the District of Columbia.

The IMI identifies metro areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. A total of 47 new metros were added to the list and six were dropped from it this month. Newly added markets include Nashville and Chattanooga, joining three other Tennessee markets already on the list: Clarksville, Knoxville, and Memphis!

[SOURCE: NAHB]


6. 2013 GRI Schedule is Online

Our 2013 Schedule of both Classroom and E-Class (distance-learning) GRI courses is now posted online at: http://tnrealtors.com/education/gri/

Along with the new schedule of courses – both classroom and E-Class courses – we’ve posted some exciting news about new options for GRI Elective Credit with which you can earn your GRI designation! To see the complete range of options, go to: http://tnrealtors.com/education/gri/#content_tab2


7. Protecting Your Online Reputation!

This past week, Stacey Moncrieff, Managing Editor of NAR’s publications, posted an important advisory for members, “Don’t Let Your Reputation – or Your Wallet – Fall Prey to Scam Complaint Site”.

In it, she references an apparent scam involving a website that collected complaints about Realtors but offered Realtors the ability (for a fee) to have the complaint and their name removed from the site. The site in question seems to have been deactivated quite recently, probably in response to correspondence from NAR’s attorneys. Stacey’s article, nevertheless, contains some useful advice about monitoring your personal name and reputation online. To read her entire post, CLICK HERE.

[SOURCE: NAR’s Speaking of Real Estate Blog]


8. Persuasion Lessons from a 4-Year-Old

An interesting online article was posted with some pertinent advice for ANYONE in the business of persuasionand aren’t we all?

The article by Jarom Adair, “9 Persuasion Lessons from a 4-Year-Old,” was written with copywriters and content developers in mind, but the lessons are definitely applicable to your work with clients! To read it: http://www.copyblogger.com/9-persuasion-lessons/

[SOURCE: Copyblogger.com]


9. Keeping an Approved Loan Approved

This is old news to some, but a useful reminder for everyone …especially in these days when mortgage loans are harder to come by than they were pre-Recession!

A new RealtyTimes article by Broderick Perkins reviews the steps that your prospective buyers should (and should not) take between the time they get approval for a mortgage and the time they actually close …in order to keep the deal on track. It’s a good summary of advice that should be useful for your clients. To read it, CLICK HERE.

[SOURCE: RealtyTimes]


10. USEFUL LINKS

For CE classroom courses around the state, go to:
http://tnrealtors.com/education/realtor-courses/

For online CE courses, go to:
http://tnrealtors.com/education/online-courses/

To check your CE credits on file with TREC, go to:
http://verify.tn.gov

To ask a TAR Legal and Ethics Hot Line question:
http://tnrealtors.com/services-support/legal-ethics-hotline/

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

To see THDA rates and programs, go to:
http://tn-tennesseehda.civicplus.com/index.aspx?NID=8