The 7-30-13 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. HOT LINE: Is TAR Form F16A Required?
3. HOT LINE: An Explanation of F1B?
4. Registration DEADLINE THIS WEEK!
5. We Want YOU!
6. Giving Sellers the “Shock Treatment”
7. Where Are the First-Time Buyers?
8. Housing Inventory Still An Issue
9. USEFUL LINKS

NO DIGEST NEXT WEEK! Due to staff travel, the next TAR DIGEST will be the Aug. 13 Edition!


1. Upcoming COURSES & EVENTS

Aug. 8-28: GRI 401, Doing the Right Thing (8 hrs. CE) – an E-Class distance-learning course. For more information or to register, go to: https://www.123signup.com/event?id=bzmjr

Aug. 13: TWO Offerings of TransactionDesk Basic (3 hrs. CE) – TAR Office, Nashville. Morning Offering: https://www.123signup.com/event?id=bkfhf OR Afternoon Offering: https://www.123signup.com/event?id=bkfhq

Save money on CE in August! Online CE Course Promotion for August: Enroll in any online CE Shop courses during the month of August and save 20%! Enter AUG20 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: Is TAR Form F16A Required?

QUESTION: My question concerns the Tennessee Residential Property Condition Disclosure, TAR Form F16 and the Sellers Property Update, TAR Form F16A.

I have agents who do not believe the Sellers Property Update, TAR Form F16A, is a requirement, even though the Seller/Buyer did the Tennessee Residential Property Condition Disclosure, TAR Form F16. (I realize it’s not a requirement if they used the Exemption or Disclaimer forms.) Is this a State of Tennessee requirement or not?

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]


3. HOT LINE: An Explanation of F1B?

QUESTION: I need an explanation of F1B, Working with a Real Estate Professional. I was under the impression that when you have a contract signed and an agent representing each person, you would not need an unrepresented person’s signature.

ANSWER: Form F1C is the standard Confirmation of Agency Status form without the initial two information pages that used to accompany it.

Form F1A, the Notification of Change in Agency Status, is only used in the event that the agent changes agency status. If the agent never changes status, then it does not need to be used. You can also just do a new Confirmation of Agency Status form instead.

F1B, Working with a Real Estate Professional, contains the two information sheets which were previously part of F1. The Forms Committee decided to separate these forms since the listing agreements and buyer’s representation agreements contain the language in these two forms. Therefore, the only people who would need this information is someone who is UNrepresented. The signature line is there to demonstrate that this unrepresented individual received these information pages.

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


4. Registration DEADLINE THIS WEEK!

The Early-Bird Registration deadline for the TAR Annual Convention is THIS WEDNESDAY, JULY 31!

After Wednesday, the Registration Fee for members goes UP BY $55 – from $250 to $305!

At the 2013 TAR Annual Convention (Sept. 18-20) in Destin, Florida, you can enjoy GREAT education featuring a selection of national speakers, as well as a beautiful beach, wonderful events, area golf, business meetings of course, 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 is 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/


5. We Want YOU!

TAR’s 2014 Leadership will soon be appointing members to the state association’s 2014 committees!

2014 could be YOUR year to serve and make a difference in the future of your state association! To complete an easy online application and express YOUR interest in a 2014 committee appointment, log into the Members Only area of tnrealtors.com, and go to: http://tnrealtors.com/members-only/committee-request-application/

The deadline for committee requests is August 30, 2013.


6. Giving Sellers the “Shock Treatment”

In a recent Inman News article (“Give Unrealistic Sellers the ‘Shock Treatment'”), author and speaker Bernice Ross suggests shocking sellers whose properties are overpriced and not moving as rapidly as others.

Among other things, she suggests that a good rule of thumb for Realtors working in a strong seller’s market, where properties are moving within a matter of days, is to lower the price if the listing has not generated any offers after 10 showings or 10 days on the market. She also says that Realtors should include scheduled price reductions in the actual listing agreement, in order to avoid conflict with the sellers and prevent the listing from being stigmatized as overpriced.

To read more: http://www.inman.com/2013/07/22/give-unrealistic-sellers-the-shock-treatment/


7. Where Are the First-Time Buyers?

According to a Wall Street Journal article this past week, they are getting priced out of the market.

First-time home buyers have accounted for nearly 30 percent of home sales over the last year, which the National Association of Realtors (NAR) reports is down from an average of 40 percent of sales over the past three decades. Economists and housing professionals worry that the depressed level of first-time buyers could prove to be a drag on both the residential real estate rebound and broader economic recovery. First-time home buyers are widely viewed as the foundation of the housing sector, often snapping up older homes and spending money on renovations and furniture. Furthermore, most move to pricier homes once they have accumulated some equity. Steven Ricchiuto, chief economist with Mizuho Securities USA Inc., observes, “Without them, you just get stuck at a marginal recovery environment.”

NAR research shows that first-time buyers accounted for 29 percent of resale purchases last month versus 32 percent in June 2012.

To read more, go HERE.


8. Housing Inventory Still An Issue

The big challenge for the housing market today remains the lack of inventory, even though interest rates are rising, NAR Chief Economist Lawrence Yun said at his monthly press conference early last week, in which he released the latest existing-home sales data from the association.

The picture that Yun painted is of a market that continues to improve despite the latest dip in sales and that’s not yet feeling a pinch from rising interest rates but is continuing to feel a pinch from the lack of inventory, which is driving too-rapid a rate of price appreciation.


9. 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