The 9-24-13 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. HOT LINE: Possible Encroachment on Listed Property?
3. HOT LINE: SOLD Sign for Buyer’s Agent?
4. HOT LINE: Both Agents Reducing Their Commissions?
5. 2014 TAR Officers Elected!
6. 2013 Award Recipients Announced!
7. Still Cheaper to Buy Than Rent
8. Good News: Foreclosures Dropping In TN!
9. USEFUL LINKS


1. Upcoming COURSES & EVENTS

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

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: Possible Encroachment on Listed Property?

QUESTION: I represent the seller on a property. A few months ago, the neighbor approached me and stated that he felt my seller’s driveway was encroaching on his property. I told him he needed to talk to my seller about this, which he has not done. Is this something I need to disclose to our potential buyer? How should I handle this situation?

ANSWER: You need to discuss this with the seller. He may wish to have a survey done if he has not already had one done when he purchased the home. This should show whether there is a problem with the driveway.

As a real estate agent, you are required to disclose adverse facts. 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. We cannot advise you on this matter definitively, but encroachment could have a negative impact on the value of the real estate, so it is likely it would have to be disclosed.

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


3. HOT LINE: SOLD Sign for Buyer’s Agent?

QUESTION: I have been seeing signs after a property has been sold with the buying agent’s name on it. I was trying to figure out how this is done and if ethically it is correct. I was just looking for a little guidance on the subject, and any insight would be helpful.

ANSWER: We have previously discussed this issue, and it is specifically addressed by the NAR Code of Ethics. Standard of Practice 12-7 states: “Only Realtors who participated in the transaction as the listing broker or cooperating broker (selling broker) may claim to have ‘sold’ the property. Prior to closing, a cooperating broker may post a ‘sold’ sign only with the consent of the listing broker.”

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


4. HOT LINE: Both Agents Reducing Their Commissions?

QUESTION: Is there a form between brokers indicating that commission compensation has been reduced by both agencies? Both agents have agreed to reduce our commissions.

ANSWER: If the brokers have agreed to reduce the offer of compensation to the buyer’s agent, then you can use form F56, the Compensation Agreement between Listing and Selling Broker. If the listing firm has agreed to reduce their commission with the seller, then you would need to complete an amendment to the listing agreement. You can use form F81, the Amendment to the Listing Agreement form and check the box named Other and state that the commission has been reduced to $_____.

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


5. 2014 TAR Officers Elected!

The 2014 Officers for the Tennessee Association of REALTORS were elected and installed this past week at TAR’s Annual Convention. The following take office in mid-November:

2014 TAR President – Neal Clayton (Nashville)
2014 President-elect – Pat Beech (Memphis)
2014 Secretary-Treasurer – Randy Durham (Chattanooga)
2014-15 Division 1 VP – Alex Bynum (Dresden)
2014-15 Division 2 VP – Chris Garrett (Murfreesboro)
2014-15 Division 3 VP – Sharon Duncan (Kingsport)

Continuing members of next year’s TAR Executive Committee will be: Randy Thomas (Kingsport) as Immediate Past President, Division 1 VP Leon Dickson (Memphis), Division 2 VP Margaret Dixon (Mt. Juliet), and Division 3 VP Amanda Stone (Maryville).

Please extend your congratulations to our new TAR Officers when you see them!


6. 2013 Award Recipients Announced!

The TAR Annual Convention was also capped with the announcement of major awards for 2013:

Realtor Janice Carlton (Shelbyville) was named TAR’s 2013 REALTOR of the Year, having served her local and state associations so admirably for so many years!

Realtor Diane Hills (Kingsport) received the 2013 Presidential Award for service, and Diane Hills was ALSO named the 2013 State REALTOR Educator of the Year for her constant support of educational programs and services!

Diane’s daughter, Clarissa Brown (Kingsport) was named the 2013 Outstanding GRI Student of the Year. [It was quite an evening for the Hills family!]

We are grateful for the examples set by Janice, Diane, and Clarissa!


7. Still Cheaper to Buy Than Rent

A recent FORBES article notes that it is STILL cheaper to buy than rent in many of the biggest U.S. cities, despite rising home prices and mortgage rates. A new Trulia study finds that, nationally, it is 35 percent cheaper to own a home.

Even in notoriously renter-heavy cities like New York and San Francisco, it is still 21 percent and 9 percent more affordable, respectively, to own. Trulia chief economist Jed Kolko comments, “Recent mortgage rate and home price increases have made buying significantly more expensive than last year, but not enough to tip the math in favor of renting. This is because rates remain well below historical norms, and prices are still slightly undervalued, too.”

Mortgage interest would have to hit double-digit levels before the tide would turn in most markets, he notes. Nonetheless, Kolko concedes, the gap between owning and renting is narrowing. Nationwide, it was 45 percent more affordable to buy than to rent a year ago. Of the 100 biggest metropolitan areas that Trulia tracked, all but one — Springfield, Mass. — saw the cost of homeownership move closer toward the cost of renting.

To read more, CLICK HERE.


8. Good News: Foreclosures Dropping In TN!

A recent USA Today article (“States with the biggest drops in foreclosures”) listed the 9 states with the biggest drops in homeowners entering the foreclosure process:

1. Illinois – Change in foreclosure starts: -66.2%
2. Arizona – Change in foreclosure starts: -64.9%
3. Washington – Change in foreclosure starts: -64.9%
4. Florida – Change in foreclosure starts: -64.6%
5. California – Change in foreclosure starts: -57.5%
6. North Carolina – Change in foreclosure starts: -56.0%
7. Michigan – Change in foreclosure starts: -55.0%
8. TENNESSEE – Change in foreclosure starts: -51.0%
9. Virginia – Change in foreclosure starts: -50.0%

To read more, CLICK HERE.


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