The 5-7-13 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. HOT LINE: Seller to Sign Temporary Occupancy?
3. HOT LINE: Buyer Notification of Lender Approval?
4. HOT LINE: Agents Selling Personal Property?
5. IN OTHER NEWS…
6. No DIGEST Next Week
7. USEFUL LINKS


1. Upcoming COURSES & EVENTS

May 8-10: GRI Express! Sign up for GRI 401, 403, and 405 to be held in Memphis as a three-day package and save $55! To do so, go to: https://www.123signup.com/event?id=btxms …OR you can register for any of the three individually by using the links that follow….

May 8: GRI 401, Doing the Right Thing (8 hrs. CE) – MAAR Office, Memphis. For more information or to register: https://www.123signup.com/event?id=btffq

May 9: GRI 403, Working More Effectively With Buyers (8 hrs. CE) – MAAR Office, Memphis. For more information or to register: https://www.123signup.com/event?id=btffp

May 10: GRI 405, Mastering Forms & Contracts (8 hrs. CE) – MAAR Office, Memphis. For more information or to register: https://www.123signup.com/event?id=btfty

May 16 – June 5: GRI 405, Mastering Forms & Contracts (8 hrs. CE) – An E-Class distance-learning course. For more information or to register: https://www.123signup.com/event?id=bzmyv


2. HOT LINE: Seller to Sign Temporary Occupancy?

QUESTION: I have a question about the Temporary Occupancy Agreement for Seller After Closing, TAR Form F32. I represent the Buyer on a piece of property that the Sellers want to occupy for 4 days after closing. I realize that there are some insurance issues, etc., concerning this transaction. If my Buyer agrees to the Temporary Occupancy Agreement for Seller After Closing, is it imperative that this form be signed by the Sellers? I am in the process of filling out the form and having my Buyer sign it, but the Sellers’ agent seems reluctant (although the conditions are very reasonable) to have her Sellers sign this form.

ANSWER: In order for the buyer to receive the protections from the Temporary Occupancy Agreement for Seller After Closing, the seller will need to sign this document. This is because, in order to enforce it against the seller, the seller must have signed it.

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


3. HOT LINE: Buyer Notification of Lender Approval?

QUESTION: With regard to a buyer getting information to a seller on lender approval, how much time do the buyers have to get this information to the seller? Can we send a letter to the buyer’s agent stating the buyer has X number of days to get lender approval to the seller?

ANSWER: We can only provide you with the Forms Committee’s intent, using the TAR form. The TAR Purchase and Sale Agreement provides for a financial contingency. Sections 1-6 of the Loan Obligations paragraph provide for steps in the contract. This will provide the buyer and seller with deadlines and keep them on track to closing. However, the financial contingency stays in place until either the parties remove it or closing.

Section 2 of this paragraph requires that the buyer demonstrate that they are doing what they need to do to move toward closing. They are required to demonstrate that they have (1) paid any required lender deposits (appraisal costs, credit reports, etc.), and (2) that they have the available funds to close according to their lender’s estimates. Keep in mind that not all lenders require that appraisals and credit reports be paid for up front. Therefore, these may not be required on that particular transaction.

If the buyer misses these deadlines, the seller can “pull the trigger” to force the issue. The seller can provide written notice to comply and if the buyer does not comply within two days, the deal is over.

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


4. HOT LINE: Agents Selling Personal Property?

QUESTION: Can I require that all of my agents’ real estate transactions go through our agency and preclude them from listing any properties as “For Sale By Owner”?

ANSWER: An agent is legally allowed to advertise a property for sale outside the company IF that agent owns the property (as long as he abides by company policy). If the agent does not run the transaction through the company, then it is unlikely that the company would have any liability. One key thing to remember is that the agent should NOT use any company resources (forms, escrow accounts, etc.) so as to give the public the impression that it is going through the company. Then, the agent would need to disclose that he is an owner/agent and that he has a personal interest in the transaction. However, he would not have to include the firm information in his advertising.

A company can set a policy which states that an agent must buy and/or sell property through a particular company. HOWEVER, we would not recommend that you require this for their own personal residence. You could run into constitutional issues by doing so.

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


5. IN OTHER NEWS…

We Have a New DVP! Our sincere congratulations to the Eastern Middle TN Association’s Margaret Dixon, who was recently appointed by TAR President Randy Thomas to fill a vacancy on the TAR Executive Committee! Margaret Dixon becomes the newest TAR Division Vice President, representing the Middle Tennessee Grand Division, and will serve in that position through 2014.

Wind & Hail Damage Account for Most Claims! According to 2012 data from State Farm, Tennessee ranks SIXTH in the nation for the greatest number of claims (24,000) due to wind and hail damage, with an average cost in TN of $10,086 per claim.

Memphis, Nashville Among the Most “Flippable”! RealtyTrac recently evaluated more than 600 metro areas to find where flipping single-family homes offers some of the highest returns based on the investor’s gross profit. Memphis ranked FIFTH in the nation, with an average gross profit of 42% on flipped houses, while Nashville took EIGHTH spot on the list with an average gross profit of 35%! For more details, go to: http://www.housingwire.com/fastnews/2013/05/02/best-markets-flipping-homes

Nashville Tops In Job Growth! Nashville also made the national news in a different way this past week! As reported by the Nashville Business Journal: “The Nashville metro area is leading the nation in job growth, according to a revised report from the U.S. Bureau of Labor and Statistics highlighted by the Nashville Area Chamber of Commerce. According to the report, Nashville’s total job numbers increased 3.9 percent in 2012 over 2011, the highest among the nation’s metro areas with more than 1 million people.

Attending the NAR Meetings in DC? NAR’s Midyear Meeting is just around the corner and it promises to be another great experience and opportunity to help us advance the Realtor Party’s legislative agenda. A key component of these meetings will be our annual Realtor Day on the Hill meetings with our Congressmen. Once again, our meetings will be held Wednesday of that week – May 15th. Please visit this link to sign up for the individual meetings with your elected officials. Unfortunately, some of the meetings are still being finalized but you can sign up for them now and you will be notified of the scheduled meeting time once it is confirmed. Once signed up you will be able to download a schedule, map and Hill visit talking points, as well as register for the May 7th virtual town hall/briefing and view other information about the Midyear meetings. — Chris Sexton, TAR Director of Government Affairs

Kids, Don’t Try This at Home! In the “Weird News of the Week” department, the CEO of New York City brokerage Rapid Realty NYC offers his agents an extra 15% in commission for sporting a tattoo of the company logo! About 40 company agents have reportedly done so in the past two years! To read more, go HERE.

We Have Two Winners This Month! In our campaign to encourage EVERYONE to get their specialty Realtor license plate, we have two gift card winners in the drawing for this month: Wesley Knowles (Knoxville, TN) and Karen Bertram (Fairfield Glade, TN)! Isn’t it time that YOU secured your own Realtor license plate and entered for a chance at $500!?! For details: http://goo.gl/qXt1j

SUN, SAND, SELL!!! Register now for the 2013 TAR Annual Convention in Destin, Florida, and enjoy great education, a beautiful beach, wonderful events, area golf, and a chance to network with other Realtors across Tennessee! With the revival of a healthy real estate market in so many areas, this whould be the PERFECT WAY to reward your own hard work this year! For more information or to register, go to: http://tnrealtors.com/meetings-and-events/convention/


6. No DIGEST Next Week

Because of staff travel to the National Association of Realtors meetings next week in DC, the TAR DIGEST will not be published then. The DIGEST will return with the 5-21-13 Edition!


7. USEFUL LINKS

To access current and 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/

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

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