The 2-26-13 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


HOT LINES IN THIS ISSUE:
1. HOT LINE: Short Sale Commission Reduced?
2. HOT LINE: Days to Secure Pre-Qualification Letter?

IN OTHER NEWS:
3. 2013 Spring Conference DEADLINES!
4. TAR President’s Message to Members
5. No Mobile, No Business
6. Celebrate Homownership!
7. Are You Helping or Hurting Yourself?
8. TAR Family Business: Major Awards, Deaths, Etc.
9. Kudos to GNAR!
10. GOOD LINKS TO KNOW ABOUT…

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: Short Sale Commission Reduced?

QUESTION: I have a short sale offer on the table and now the lender has come back is trying to get me to reduce my commission since I represent both sides. Can they do this?

ANSWER: Both Fannie Mae and Freddie Mac have published guidelines concerning short sale commissions. However, if the loan in question is not a Fannie Mae or Freddie Mac loan, then the commission can be in jeopardy. Banks often require that a commission be reduced before they will approve a short sale. Unless the request is completely unreasonable, it is likely to stand.

Please see the following articles from the National Association of Realtors for more information:

http://www.realtor.org/sites/default/files/handouts-and-brochures/2009/fannie-mae-confirms-short-sales-commissions-policy-2009-02.pdf

http://www.realtor.org/sites/default/files/handouts-and-brochures/2009/freddie-mac-issues-written-short-sales-commission-policy-2009-08.pdf

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


2. HOT LINE: Days to Secure Pre-Qualification Letter?

QUESTION: After a contract is signed, how long does the buyer have to produce a letter stating there are pre-qualified for a mortgage? Is it the buyer’s agent’s responsibility to get the buyer to produce the letter for the seller? If there is a limitation on number of days to produce said letter, is the contract voidable?

ANSWER: This will depend upon the language contained in the contract. The 2013 Purchase and Sale Agreement does not require that the buyer produce a letter from the lender. This is because many times in the past, the conditional commitment letters were either not provided by the lender, or they had so many disclaimers that they were useless.

In the 2013 PSA, the committee decided to require the buyer to produce items which were within the buyer’s control and would demonstrate to the seller that they were taking steps toward closing, such as notices that they have made any required Lender deposits and a notice that they have available funds to close. See lines 107-117 of the Purchase and Sale Agreement.

Agents are welcome to include special stipulations which can require a pre-qualifications letter and specify when it must be presented.

If such a letter is required by the contract, it is the buyer’s responsibility to provide it. Best practices would have the agent remind the buyer of this due date, but it would still be the obligation of the buyer.

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


3. 2013 Spring Conference DEADLINES!

March 1 (THIS FRIDAY): Deadline for Hotel Rooms in the TAR block at the Spring Conference!

March 8: Deadline for registrations at the Early-Bird rate of $75! Registration goes up by $50 between March 9 and March 19, and there is NO ONSITE REGISTRATION.

Our 2013 TAR Spring Conference (March 25-26, at the Cool Springs Marriott in Franklin, TN) is typically our best-attended event of the year, and a SUPER educational bargain! Once again, we feature several national speakers and an assortment of VERY timely topics. 10 hours of education in all …and an opportunity to mix and mingle with Realtors from across the state!

Remember, you must sign up ahead of time! You can get more info & register for this one NOW at: http://tnrealtors.com/meetings-and-events/spring-conference/


4. TAR President’s Message to Members

Your 2013 TAR President, Randy Thomas, recently delivered a short, 3-minute video message that all TAR members need to hear, regarding the upcoming TAR Spring Conference and other issues!

To view it online, go to: http://www.youtube.com/watch?v=99xKl-jB9ms


5. No Mobile, No Business

A new RISMedia article by Seth Kaplan caught our attention. It addresses an issue that should now be obvious to anyone who has walked through an airport or mall lately …and witnessed everybody with their heads down, reading or texting with their smartphones!

*** BEGIN QUOTE ***
Last week, a conversation with colleagues became heated when someone challenged the well-known quote from Google’s executive chairman, “If you don’t have a mobile strategy, you don’t have a future strategy,” as outdated. According to my colleague, “If you don’t have a mobile strategy, you won’t have a business.” While it’s a bold assertion, there is a ton of evidence to support this theory.

… To see how your website performs on a mobile device visit: www.testmysitenow.com
*** END QUOTE ***

To read more: http://rismedia.com/2013-02-24/monday-morning-mobile-no-mobile-no-business/?

[SOURCE: RISMedia]


6. Celebrate Homownership!

Do you have your REALTOR license plate yet!

Take pride in your profession and Celebrate Homeownership in Tennessee! For $35, you can put an attractive license plate on your car that tells everyone you help make the American dream a reality for Tennesseans. REALTOR license plates only cost $35 for a standard plate and $70 for a personalized vanity plate with 5 characters. When you renew your tags, make sure to order the REALTOR specialty plate:

plate-mock

Part of the proceeds from every REALTOR plate purchased or renewed goes to support your own nonprofit REALTOR education foundation, TREEF!


7. Are You Helping or Hurting Yourself?

Another RISMedia article, posted this past week, features a lengthy interview with author Joseph Callaway who with his wife recently authored a New York Times bestseller: Clients First: The Two Word Miracle.

The article (“10 Sneaky Bad Habits That Hurt Client Relationships”) covers 10 different ways in which you may be sabotaging your own business. You may disagree with some of what he’s written – for example, never writing off difficult clients – but the advice is generally very good!

To read it in its entirety: http://rismedia.com/2013-02-21/10-sneaky-bad-habits-that-hurt-client-relationships/

[SOURCE: RISMedia]


8. TAR Family Business: Major Awards, Deaths, Etc.

Some time ago, we set up a separate email list (), where members and AEs could post important happenings across the state that others in the Realtor family might like to know about. Emails from that list are ONLY sent to members or staff who request a (free) subscription to that list …and ONLY subscribers can send “family news” items to that list!

It has been a while since we sent out a reminder about this service. IF YOU WOULD LIKE TO BE ADDED to the Family News email list, subscribe at: http://lists.tarnet.com/mailman/listinfo/familynews


9. Kudos to GNAR!

The Greater Nashville Association of Realtors recently announced an initiative that other local associations could do well to copy!

*** BEGIN QUOTE ***
The Greater Nashville Association of Realtors recently announced its sponsorship and support of the NashvilleNext speaker series, a key part of initiating the process of developing a plan for Nashville to move forward over the next 25 years. The speaker series will feature nationally known experts addressing a number of important issues including regionalism, smart growth and environment. Sessions will take place at various locations around the Greater Nashville area and are scheduled to begin Feb. 25.
*** END QUOTE ***

This seems like a wonderful way to participate and invest in the future of the association’s community! Well done…


10. GOOD LINKS TO KNOW ABOUT…

To access past TAR DIGESTS: http://www.tardigest.com

Follow TAR on Twitter at: http://twitter.com/tnaor

TAR’s LinkedIn page: http://www.linkedin.com/groups?gid=852077&trk=hb_side_g

TAR’s page on Facebook: http://www.facebook.com/pages/Nashville-TN/Tennessee-Association-of-RealtorsR/15041383689

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

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/

Online Risk Reduction Resources: http://riskreduction.wikispaces.com/

Online Resources for Association Leaders: http://leadingeffectively.wikispaces.com/

Tennessee Real Estate Commission: http://tn.gov/regboards/trec/

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

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