The 9-10-13 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. HOT LINE: Buyer Already Had an Agent?
3. HOT LINE: Transferring Listings to a New Firm?
4. Join the Fun! Make Your Bids Now!
5. Loan Size to Be Cut for Fannie, Freddie
6. Jumbo Mortgages Hit a Milestone
7. Awakening the Steve Jobs in You!
8. Mobile Marketing Is Made for Real Estate
9. USEFUL LINKS


1. Upcoming COURSES & EVENTS

Sept. 12 – Oct. 2: GRI 403, Working More Effectively With Buyers (8 hrs. CE) – an E-Class distance-learning course. For more info or to register: https://www.123signup.com/event?id=bzmcr

Sept. 18-20: TAR Annual Convention, Destin, FL.

Sept. 25-27: Sign up for all three GRI courses in Knoxville through our GRI Express option (GRI 402, 404, and 406), and save $55 over what you would pay by registering for each individually! To do so, go to: https://www.123signup.com/event?id=btxjk

Sept. 25: GRI 402, Staying In Business & Out of Court (8 hrs. CE) – KAAR Office, Knoxville. For more information or to register: https://www.123signup.com/event?id=bxkrt

Sept. 26: GRI 404, Working More Effectively With Sellers (8 hrs. CE) – KAAR Office, Knoxville. For more information or to register: https://www.123signup.com/event?id=btgfy

Sept. 27: GRI 406, Tips, Tools, & Technologies for Your Business (8 hrs. CE) – KAAR Office, Knoxville. For more information or to register: https://www.123signup.com/event?id=bxkhf

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


2. HOT LINE: Buyer Already Had an Agent?

QUESTION: We have an agent that showed a buyer a property. Afterwards, we learned the buyer had signed a buyer’s rep agreement with another agent; however, the buyer does not want to use that other agent. Is there any way to get around paying the other agent?

ANSWER: This buyer may be in a position to owe two different commissions! At this point, all you can do is recommend that the buyer consult with his own legal counsel concerning the first buyer’s rep agreement. You should NOT do anything further than that concerning how to terminate the agreement! If you do, you could be charged with interference with a contract.

A buyer’s rep agreement is a written contract which establishes an agency relationship between a buyer and a real estate company. In order to terminate this contract, it requires a termination and release in writing and signed by all parties to the buying agreement. It should terminate the contract and release both sides from the obligations under the original buyer’s rep agreement. Until this is completed, the buyer’s representation agreement will continue in place until its natural termination.

If you have a buyer who wishes to terminate their buyer’s representation agreement with you, your principal broker must decide whether you wish to hold them to that contract or not. This is completely up to the broker as to whether they want to release them from the representation agreement. TAR provides a form for you to use if you wish to agree to terminate the buyer’s representation agreement – form F82. [If it is a listing agreement that is being terminated, the form does provide a carry over clause (if they sell their home within X days without the help of another agent who was introduced to it by the original listing agent) and a place to negotiate a cancellation fee. It also provides for a complete release with no fees having to be paid.]

In order to avoid what could become an ugly situation, the two principal brokers may agree to some sort of commission split. This is not required of either company, but it is a possibility.

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


3. HOT LINE: Transferring Listings to a New Firm?

QUESTION: When an agent transfers to a new firm and the previous firm allows the listings to “transfer” as well with the agent, what paperwork needs to be completed? The MLS just changes the office number to indicate the new firm, but what forms, if any, such as Listing Agreement, Confirmation of Agency, etc.. needs to be completed?

ANSWER: If the agent is taking the listing with him (with the permission of their former broker or owner, if he was the broker), then several things will have to happen.

First, the broker will need to document that he is transferring the listing. Your MLS may have a form for this; however, TAR does not. Secondly, the new company will need to do an amendment to the listing agreement and any contract documenting the change in listing company and a new confirmation of agency status form will need to be signed. Another option would be for the original company to release the listing (using form F82) and the new company to execute a new listing agreement. However, this does not obligate the seller to resign a listing agreement with the second company. If you have any contracts which are being transferred, then the contracts will have to be amended to identify the new listing company. If you are holding earnest money for those contracts, the contracts will also have to be amended to reflect the transfer of the earnest money.

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


4. Join the Fun! Make Your Bids Now!

TREEF’s 2013 Online Auction is underway! It’s not too early to find a good Christmas gift for a loved one …or for yourself!

Go to: http://www.myminiauction.com/treef

The Tennessee Real Estate Educational Foundation (TREEF) is a nonprofit organization that has been serving the educational needs of the real estate industry in Tennessee for OVER 40 YEARS!

TREEF was originally established by the Tennessee Association of REALTORS (TAR) in the late 1960s, to provide low-cost and free educational services to real estate professionals. This 2013 Online Auction will help the Foundation continue such services as: Professional Standards and Ethics updates, the development of new CE courses for local association use, and information services to help TAR members and others stay up-to-date on a fast-changing business!

Bidding will close on Thursday, Sept. 19, at 5:30PM!


5. Loan Size to Be Cut for Fannie, Freddie

The Federal Housing Finance Agency is preparing to lower the maximum size of mortgages eligible for backing by Fannie Mae and Freddie Mac, although it has not signaled how far it will drop the loan limits. The policy change aims to facilitate a larger role for private capital in the mortgage market but is likely to face resistance from some critics in Congress and in the real estate industry, who say the move will shrink the pool of eligible home buyers and hold back housing recovery. “It would be counterproductive to make changes to the loan limits before private capital is fully engaged,” warns National Association of Realtors President Gary Thomas. The new loan limits would take effect Jan. 1, 2014. The FHFA contends that it does not need congressional approval as long as Fannie Mae and Freddie Mac remain under government control.


6. Jumbo Mortgages Hit a Milestone

Mortgage interest on high-end homes has fallen BELOW the rates for smaller, traditional loans backed by Fannie Mae, Freddie Mac, and government agencies. According to lending executives, this is a first-time occurrence!

The Mortgage Bankers Association reports that the average 30-year, fixed-rate conforming mortgage was 4.73 percent last week, compared to 4.71 percent for the average jumbo 30-year fixed loan. Jumbo mortgages are too big for government backing, and their borrowing rates historically have been set higher than rates on conforming loans. The relationship between the borrowing rates has flipped due to interest rate volatility, government policy, and banks flush with cash enjoying lower funding costs, making jumbo mortgages an attractive investment for them.


7. Awakening the Steve Jobs in You!

A new Realty Times article by Michael Gerber (of E-Myth fame) outlines a few ways that you can emulate Apple’s famous entrepreneur and achieve greater success:

*** BEGIN QUOTE ***
Early in my career, the driving question became: What’s the difference between the survivors and the thrivers? …With only $5,000, Jobs and his partner and an unlikely idea they called the personal computer created what would become the most valuable enterprise on the planet: Apple, Inc.

…Most people suffer a lack of what Steve Jobs possessed. Was he so out of the ordinary that it would be virtually impossible to awaken the Steve Jobs within every one of us?
*** END QUOTE ***

To read more: http://realtytimes.com/agentnews/agentadvice1/item/26133-20130904-stevejobsinyou


8. Mobile Marketing Is Made for Real Estate

With most agents owning smartphones and home buyers conducting property searches on mobile devices, mobile marketing has become common in real estate. even ESSENTIAL. Mobile marketing can be useful to buyers in several phases of the buying process!

During the research phase, postcard listings with QR codes enable them to scan the code for more information about a home; or they could be taken to a landing page where they can receive an ebook or coupon if they sign up for the agent’s email newsletter. Agents should provide information about themselves via blogs that can be viewed on mobile devices. In the discussion and planning phase, buyers will want to share information about listings with their decision-making partner, so agents must ensure that blog posts and listings feature their contact information and tools that allow sharing via email or social media.

When it comes time for buyers to make a decision, agents should give them something of value in order to build trust. They must keep in mind that consumers make decisions based on trust, convenience, and economics; and if they provide these, buyers will need the agent’s help — even with the vast amount of information available to them online.

To read more: http://www.business2community.com/mobile-apps/mobile-marketing-made-real-estate-industry-0601080


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