The 10-1-13 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. HOT LINE: Dual Agency in TN?
3. HOT LINE: A Cemetery on the Property?
4. HOT LINE: 3-Day Right of Rescission in TN?
5. Consumers Optimistic About Home Prices
6. FHA-Backed Mortgages Halted in a Shutdown
7. Online CE at 20% Discount!
8. FREE Consumer Brochures for TAR Members!
9. USEFUL LINKS


1. Upcoming COURSES & EVENTS

Oct. 1-3: Sign up for all three GRI courses in Nashville through our GRI Express option (GRI 401, 403, and 405), and save $55 over what you would pay by registering for each individually! To do so, go to: https://www.123signup.com/event?id=btfsb

Oct. 1: GRI 401, Doing the Right Thing (8 hrs. CE) – GNAR Office, Nashville. For more information or to register: https://www.123signup.com/event?id=btfgs

Oct. 2: GRI 403, Working More Effectively With Buyers (8 hrs. CE) – GNAR Office, Nashville. For more information or to register: https://www.123signup.com/event?id=btffx

Oct. 3: GRI 405, Mastering Forms & Contracts (8 hrs. CE) – GNAR Office, Nashville. For more information or to register: https://www.123signup.com/event?id=btfqr

Oct. 3-23: GRI 404, Working More Effectively With Sellers (8 hrs. CE) – An E-Class distance-learning course. For more information or to register: https://www.123signup.com/event?id=bzmbd

To see the full year’s GRI schedule, go to: http://tnrealtors.com/education/gri/

To see upcoming offerings of TREC CORE COURSES, ABR COURSES, etc., – at locations around the state – go to the TAR Course calendar at: http://tnrealtors.com/education/realtor-courses/


2. HOT LINE: Dual Agency in TN?

QUESTION: I have heard that dual agency – remaining an agent for both buyer and seller, with full disclosure to both – is illegal in many states. Is it illegal in Tennessee?

ANSWER: No, disclosed dual agency is still legal in Tennessee, BUT it is a practice that TAR neither endorses nor encourages. It is very difficult to “serve two masters” fairly and equitably when their interests are almost always in conflict. Many legal experts would claim,in fact, that dual agency is an impossibility.

With the creation of the facilitator (or transaction broker) status in Tennessee in 1996, disclosed dual agency became unnecessary. As a facilitator or transaction broker, a licensee can continue to assist both parties to a transaction (if neither one truly wants representation) without even the pretense of representing either one.

One caution, however: If you DEFAULT to facilitator status in a transaction, after being an agent for one of the parties, it’s important to go back to BOTH parties and ensure that both of them realize that you NOW no longer represent either one of them in the transaction. This is true even if you secured their permission to default earlier in your relationship with them.

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


3. HOT LINE: A Cemetery on the Property?

QUESTION: I may list a parcel of property that is about 10 acres in size. There is a house on the property. There is also a twenty-plot family cemetery on the property. It is full and no more burials can take place. There is an easement to the cemetery which is on the back of the property. My question is this: is that considered an adverse fact or does it fall within the category of stigmatized property?

ANSWER: We would consider this to be an adverse fact under the law, not necessarily from the standpoint that there is something damaged about the property, but that there are certain responsibilities associated with having a cemetery on the property.

Real estate agents are required to disclose adverse facts. Pursuant to Tenn. Code Ann. 2-13-403(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).

The families of the people buried in the cemetery have certain rights of access to the cemetery itself. They are entitled to be able to come and visit and pay their respects to their relatives who are buried there. In addition, there are restrictions as to what can legally be done with the property of the cemetery itself. This could potentially have a negative impact on the value of that part of the property. Therefore, if the seller does not disclose this, the real estate agent should.

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


4. HOT LINE: 3-Day Right of Rescission in TN?

QUESTION: Does the three-day recission period apply to real estate contracts?

ANSWER: The right of rescission is a drastic remedy in Tennessee. It is not an automatic right to be able to rescind the contract for the purchase of real property or on a buyer’s representation agreement. Under federal law, a person is entitled to change their mind regarding a loan within a set period of time. However, this does not rescind the contract.

The only way in Tennessee to rescind a contract is through a court order. This is usually only granted in extreme cases in which there was a mutual mistake between the buyer and seller or fraud. If you have a buyer who has entered into a contract and is now trying to rescind it, they should speak with their own attorney. Make sure that it is a Tennessee licensed attorney. Laws concerning this matter are different in different states. Remember you cannot give legal advice unless you have a law license.

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


5. Consumers Optimistic About Home Prices

Bankrate.com reports:

*** BEGIN QUOTE ***
In a national poll conducted as part of Bankrate’s monthly Financial Security Index, a majority said they expect the value of American homes to increase over the next 12 months. Fifty-five percent say home prices will go up, compared to just 9 percent who think they will fall and 27 percent who say they will stay flat.

Coming on the heels of Bankrate’s July FSI survey that showed real estate ahead of stocks as Americans’ preferred way to invest money they won’t need for 10 years, the new findings suggest that a horrific crash hasn’t done much to dim Americans’ enthusiasm for housing as an investment, says Greg McBride, CFA, senior financial analyst for Bankrate.com.
*** END QUOTE ***

To read more: http://www.bankrate.com/finance/consumer-index/survey-americans-upbeat-about-home-prices-1.aspx


6. FHA-Backed Mortgages Halted in a Shutdown

A government shutdown will not affect mortgages purchased and securitized by Fannie Mae and Freddie Mac. However, A CNN Money story reports that applications for loans from the FHA, the Veteran’s Administration, and the U.S. Department of Agriculture’s rural development loan program would not be processed until after the shutdown ends. Mortgage Bankers Association CEO David Stevens says a shutdown “could have a sizable impact on the recovery,” especially if it lasts for more than a few days.

To read more: http://money.cnn.com/2013/09/27/real_estate/shutdown-mortgages/


7. Online CE at 20% Discount!

In need of Continuing Education? The CE Shop is offering a 20% discount on all of the CE courses offered in our CE Shop catalog!

It’s QUICK, EASY, and AFFORDABLE!

Simply Visit: http://tarnet.theceshop.com/

Enroll today, use Promo Code OCT20, and take 20% OFF your enrollment!!


8. FREE Consumer Brochures for TAR Members!

As a service to TAR members, the Tennessee Real Estate Educational Foundation (TREEF) produced two consumer brochures on TN’s agency law: one for buyers and one for sellers!

These two brochures are the product of several months of work and editing by various agency instructors AND several attorneys who graciously gave their help to this project. The two brochures are in printable PDF format. Both firms and individual members are free to reprint them for prospective clients and customers. You can download them – and other free resources – by going to: http://tnrealtors.com/news/media-library/#content_tab3


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