The 7-16-13 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. HOT LINE: Sending Inspection Reports?
3. HOT LINE: Options for Different Inspections?
4. TREC Clarifies Signage Rules
5. Improving Markets in TN
6. NAR’s Calls To Action
7. Let Them Know Who & What You Are!
8. Globalization At Work…
9. Destination: Destin!
10. USEFUL LINKS


1. Upcoming COURSES & EVENTS

Save time! Save money! Online CE Course Promotion for July: Enroll in any online CE Shop courses during the month of July and save 15%! Enter JULY15 at checkout to receive your discount. Enroll at: http://tarnet.theceshop.com/

GRI Courses start up again in August and September! To see the full year’s schedule, go to: http://tnrealtors.com/education/gri/


2. HOT LINE: Sending Inspection Reports?

QUESTION: Would you please address again the stipulation that buyer agents are NOT to automatically send/email/fax to the listing agent any inspection reports UNLESS REQUESTED by the seller or seller’s representative? If they would just read the TAR F4 form, it tells them exactly what to do and what to provide.

ANSWER: You are correct, the 2013 forms provide that the inspection report is only sent to the seller or seller’s agent upon request of the seller. This is true both in cases where the buyer is terminating the contract and when the buyer is requesting repairs. This is a change from previous years. Members should pay close attention to Lines 264 – 269 and Lines 274-276 of the F9.

The committee decided to make this change for a number of reasons. In the event that the listing agent receives the entire inspection report, he may then be deemed to have actual notice or knowledge of issues within the report which are considered to be adverse facts under state law. Pursuant to Tenn. Code Ann. 62-13-403(2), a real estate agent is required to “[d]isclose to each party to the transaction any adverse facts of which the licensee has actual notice or knowledge.”

Tennessee law defines an adverse fact as “conditions or occurrences generally recognized by competent licensees that have a negative impact on the value of the real estate, significantly reduce the structural integrity of improvements to real property or present a significant health risk to occupants of the property.” Tenn. Code Ann. 62-13-102(2). Therefore, if an agent has actual knowledge of an adverse fact, he must disclose it.

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


3. HOT LINE: Options for Different Inspections?

QUESTION: In the purchase and sale agreement under home inspections, the buyer is having a home inspection done. If a buyer has a mold inspection and mold is found, does this give the buyer the same options on the contract – three options under 8D of the current TAR form – since a home inspection is separate from a mold inspection?

ANSWER: All inspections (absent appraisals and surveys) fall under paragraph 8 as inspections. This is true for home inspections, mold inspections, radon inspections, termite inspections, etc. The results of any inspection give the buyer the right to the three options contained in paragraph 8. All of the inspections are placed within the same paragraph since they share so many issues in common. If the buyer wishes to have a termite inspection but nothing else, they do not have to check the waiver box. This gives them the option to do any inspection they wish until the end of the Inspection Period. The waiver is only for those instances in which NO inspections will be done.

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


4. TREC Clarifies Signage Rules

At its July 2013 meeting, the TN Real Estate Commission interpreted 62-13-310(b) – a section of the real estate licensing law that governs advertising – as follows: “An agent’s name cannot be larger than the smallest font in the company name on any sign which is on property (including billboards).”

Please take notice of this to avoid problems with your own signage!


5. Improving Markets in TN

The National Association of Home Builders (NAHB) recently released their July report of “Improving Markets” around the country. The index measures three sets of independent monthly data – employment growth, house price growth, and single-family housing growth – to identify the top improving markets. A number of Tennessee markets made the report: Chattanooga, Clarksville, Cleveland, Jackson, Kingsport, Knoxville, Memphis, and Nashville.

To read more: http://www.nahb.org/reference_list.aspx?sectionID=2223


6. NAR’s Calls To Action

NAR has launched a TIMELY Call For Action (CFA) that impacts MID and the Realtor position to DO NO HARM to housing. If you did not receive it or respond to it, PLEASE respond and talk to our Senators on this important issue at: http://www.RealtorActionCenter.com

We also want to share with you a few articles on tax reform from the last several days that reveal some priority federal issues. From the articles:

– “With hundreds of tax breaks jammed into the code, it’s clear that not every provision will survive an overhaul, and those that do may look dramatically different.”
http://www.politico.com/story/2013/07/5-tax-breaks-that-might-look-different-after-reform-93998.html

– “The proposal, unveiled by Financial Services Committee Chairman Jeb Hensarling (R-Texas) on Thursday, would eliminate most of the taxpayer support for the housing market and would likely result in higher mortgage costs for borrowers…”
http://www.politico.com/story/2013/07/jeb-hensarling-housing-reform-94063.html

– “The longer Fannie and Freddie stay in government hands, the more lawmakers will be tempted to use them for purposes unrelated to housing.”
http://www.washingtonpost.com/realestate/it-is-time-for-the-government-to-reduce-its-role-in-the-mortgage-business/2013/07/11/12cc1506-e285-11e2-80eb-3145e2994a55_story.html

— From Your TAR Governmental Affairs Department


7. Let Them Know Who & What You Are!

According to a recent Houston Association of Realtors survey of more than 6,600 buyers, sellers, homeowners, and renters, 80 percent of respondents did not know or were uncertain of the difference between a Realtor and a real estate agent!

Furthermore, fewer than a third of the 59 percent of respondents working with a real estate professional knew whether or not that person was a Realtor, and only 12 percent of those (who were asked whether they would prefer to work with a licensed agent or a Realtor) chose a Realtor!

As we continue to celebrate the 100th Anniversary of the first Realtor Code of Ethics, it’s important to remind those with whom you work …the first and most important difference between a Realtor and someone who is just a real estate licensee is the fact that Realtors pledge to work by a strong Code of Ethics! Take pride in the Code!


8. Globalization At Work…

From the Charlotte, NC, Business Journal:

*** BEGIN QUOTE ***
Bank of America Corp. (NYSE:BAC) has opened a unit in India to handle the work of reviewing home-valuation reports as the Charlotte-based bank tries to rebuild its share of the U.S. mortgage market at a lower cost, Bloomberg reports.

Workers in BofA’s new Bangalore, India, unit follow checklists to determine whether the appraisal paperwork – one of the biggest problems in the mortgage business, according to one independent banking consult – has been completed properly, according to the report.
*** END QUOTE ***

So many things COULD be said about this…

To read more: http://www.bizjournals.com/charlotte/blog/morning-edition/2013/07/bank-of-america-routing-property.html?surround=etf&ana=e_article


9. Destination: Destin!

Register for the 2013 TAR Annual Convention (Sept. 18-20) in Destin, Florida and enjoy GREAT education featuring a selection of national speakers, as well as a beautiful beach, wonderful events, area golf, and a chance to network with other Tennessee Realtors! Learn how to be more productive and successful in a beautiful setting!

With the revival of a healthy real estate market, 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/


10. 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