The 9-17-13 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. HOT LINE: Working With FSBO For Buyer-Client?
3. HOT LINE: Not Allowed To Discuss “Value”?
4. HOT LINE: A CE Course In My Company?
5. Auction ENDS This Thursday!
6. Choosing Your Clients Carefully
7. Disclosing NEW Flood Insurance Requirements!
8. Most Firms Expect To Be Profitable Next Year
9. TECH HELP: Getting Email Under Control
10. USEFUL LINKS


1. Upcoming COURSES & EVENTS

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/

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: Working With FSBO For Buyer-Client?

QUESTION: I have a FSBO that has agreed to let me be a buyer’s agent and will compensate me. What form do I need to have him sign?

ANSWER: You may use the Agreement to Show Property form, F22. This does NOT create an agency agreement between the firm and the seller, but does provide that if the seller sells his property to your buyer-client during a specific period of time, that the seller agrees to pay a commission to your firm.

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


3. HOT LINE: Not Allowed To Discuss “Value”?

QUESTION: A Realtor Appraiser member claims that real estate licensees are prohibited from discussing the “value” of a property unless they are appraisers as well. The member claims that a licensee can only discuss “price”. Is that correct?

ANSWER: Real estate brokers are mentioned in the Appraiser’s Act which states that “This chapter does not apply to a real estate broker or salesperson licensed by this state who, in the ordinary course of business, gives an opinion to a potential seller or third party as to the recommended listing price of real estate or an opinion to a potential purchaser or third party as to the recommended purchase price of real estate. This opinion as to the listing price or the purchase price shall not be referred to as an appraisal and no opinion shall be rendered as to the value of the real estate or real property.” – Tenn. Code Ann. 62-39-104(a).

It is very important, therefore, that you are not giving an opinion as to the “value” of the property. This would be in violation of the Appraiser’s Act. You may, however, provide an opinion as to list price or purchase price as a real estate broker or salesperson who is licensed by the state.

The Appraiser’s Act DOES allow licensed real estate brokers to testify as to the value of property in court. Tenn. Code Ann. 62-39-335 states “This chapter shall not act or be construed to prohibit a real estate broker licensed under chapter 13 of this title from testifying as to the value of property in court cases as an expert witness and receiving a fee for the testimony subject to review by the court.”

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


4. HOT LINE: A CE Course In My Company?

QUESTION: We have a licensed instructor in our firm. Can we hold in-house seminars for which agents in attendance can get CE credit?

ANSWER: Not under Tennessee law. TREC Rule 1260-5-.06 states:

*** BEGIN QUOTE ***
(1) No course in real estate which is designed to satisfy educational requirements in T.C.A. 62-13-303 may be:
(a) conducted in a facility which is utilized for conducting business of a broker or brokerage firm; or
(b) advertised in conjunction with any advertisement for the business of a broker or brokerage firm.

(2) No broker or brokerage firm shall use or cause to be used any facility in which a course in real estate designed to satisfy education requirements established in T.C.A. 62-13-303 is conducted for the purpose of discussing, inducing, or promoting affiliation with such broker or brokerage firm.
*** END QUOTE ***

NOTE: Tenn. Code Ann. 62-12-303 contains the education requirements for initial licensure as well as the educational requirements for renewing one’s license.

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


5. Auction ENDS This Thursday!

TREEF’s 2013 Online Auction is underway! It’s a great way 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!

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 CLOSES on Thursday, Sept. 19, at 5:30PM!


6. Choosing Your Clients Carefully

In a recent Inman News article (“Choose Your Clients Carefully”), Realtor Teresa Boardman offers good advice that many experienced Realtors would echo!

Real estate agents, unlike people in other professions, have the option to choose the clients with whom they work. However, they must possess the courage to opt not to work with certain types of clients in order to keep their work enjoyable and satisfying and avoid the stress of working for months for free. It can be rewarding for an agent to work with clients who will not necessarily generate the biggest commissions, if he or she has the skills and experience to make a difference in the client’s life.

HOWEVER, no amount of money makes it worthwhile to deal with people who threaten legal action if they are unhappy with an outcome, refuse to trust the agent and create problems throughout the process, or make accusations when problems arise because they signed a contract they failed to read, among other examples. Agents should remember that for every potentially abusive client they reject, they are making room for a client who will appreciate the service they provide. To read more: http://www.inman.com/2013/09/12/choose-your-clients-carefully/


7. Disclosing NEW Flood Insurance Requirements!

Congress recently passed a law that reauthorized the National Flood Insurance Program for an additional 5 years. But the law also implemented changes in the federal subsidy of flood insurance. Those changes will result in INCREASES in the premiums charged for flood insurance coverage. That means that a buyer who purchases a property now could be subject to substantial increases in their flood insurance premiums in the future. In response, NAR has provided legal guidance to help brokers and agents reduce their exposure to misrepresentation claims by property purchasers who acquire property located in flood zones.

The sample disclosure statement is explained in a brief video: http://www.realtor.org/videos/how-to-disclose-flood-insurance-requirements

AND it is available in PDF format HERE.

ALSO, check out the Legal Podcast for August 2013 to learn more about how NAR’s Government Affairs division is working to protect members and homeowners under this new law: http://www.realtor.org/audio/legal-podcast-flood-insurance-program

Thanks to Jewell McKinney, a member of NAR’s Risk Management Committee, for this update!


8. Most Firms Expect To Be Profitable Next Year

The National Association of Realtors (NAR) expects greater competition as the housing market recovers, with 69 percent of realty firms surveyed expecting profitability over the next year. Paul Bishop, NAR’s vice president of research, remarks, “Two out of three real estate firms expect competition in the marketplace to increase, both among firms and nontraditional market participants. Because real estate is an entrepreneurial field, some experimentation in business models is likely when the market is in a recovery phase.” It should be an interesting year….


9. TECH HELP: Getting Email Under Control

A new article by Tracey Velt (“Get a Grip on Email With These Simple Tips”), posted on the Real Trends blog, offers both tips and tools to help you out:

*** BEGIN QUOTE ***
According to a study by McKinsey, the typical corporate person sends and receives about 105 emails per day and spends 28 percent of his or her work time reading and responding to emails. For most professionals this is a huge distraction and gets in the way of getting work done. But for real estate people, email plays a particularly important role – their deal flow can depend on their effectiveness in managing email communications.
*** END QUOTE ***

To read more: http://realtrends.com/blog/get-a-grip-on-email-with-these-simple-tips


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