The 10-15-13 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. Dealing With Deceptive Clients
3. The Older They Are, the Pickier They Are
4. Flood Insurance Rate Increases!
5. Want Better Relationships? Listen Up!
6. HOT LINE: Statute of Limitations on a Dispute?
7. HOT LINE: Purchasing My Listing Myself?
8. HOT LINE: The Final Inspection Form?
9. USEFUL LINKS


1. Upcoming COURSES & EVENTS

Our last three GRI Courses of 2013 are coming up:

Oct. 24 – Nov. 13: GRI 405, Mastering Forms & Contracts (8 hrs. CE) – An E-Class distance-learning course. For more information or to register: https://www.123signup.com/event?id=bzmpf

Nov. 14 – Dec. 4: GRI 406, Tips, Tools & Technologies (8 hrs. CE) – An E-Class distance-learning course. For more information or to register: https://www.123signup.com/event?id=bzmpd

Dec. 6: GRI 406, Tips, Tools, & Technologies (8 hrs. CE) – KAAR Office, Knoxville. For more information or to register: https://www.123signup.com/event?id=dxycf

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. Dealing With Deceptive Clients

Bernice Ross authored a recent article for Inman News about deceptive and/or manipulative clients (“Winning a multiple offer: Some clients believe deception is their only hope”) and how to deal with them, or walk away.

*** BEGIN QUOTE ***
Have you ever had a seller who asked you to not to disclose a property issue to a buyer? Or how about the buyer in a multiple-offer situation who has you write an “all cash” offer when you know she cannot close without obtaining a loan? The question is, do you let them manipulate you, or do you walk away and/or disclose the truth?
*** END QUOTE ***

It’s an interesting article, and a challenging one! To read more: http://www.inman.com/2013/10/10/winning-a-multiple-offer-some-clients-believe-deception-is-their-only-hope/


3. The Older They Are, the Pickier They Are

A new poll of recent home buyers and sellers suggests that older people are more selective home shoppers. The National Association of Realtors found that about half of people 58 and older made no compromises during their recent home purchase, compared to only 28 percent of the youngest home buyers who refused to make concessions on their ideal property. Older Americans have already owned one or two homes, know what they want, and will likely face a tougher home search as a result. The survey shows that the older a house-hunter, the newer he or she wants the home to be. Young buyers tend to focus on needs, such as enough room for their kids and a good school district; and most make trade-offs on price, lot size, distance from their job, and the style of home.

To read more: http://www.denverpost.com/lifestyles/ci_24242924/older-homebuyers-more-picky-selecting-houses


4. Flood Insurance Rate Increases!

How about a 400% INCREASE for one couple!?!

*** BEGIN QUOTE ***
Real estate agent Rebecca Steffes found a starter home in Glendale for a young couple living on a tight budget.

They made an offer for the two-bedroom, one-bathroom house. Then they checked to make sure there were no hitches.

That’s when they learned recent changes in the National Flood Insurance Program would cause the flood insurance premiums for the small house, which is not far from the Milwaukee River, to jump from less than $900 a year to about $4,500 annually within five years.
*** END QUOTE ***

We talked about the coming rate increases a few weeks ago in the DIGEST. To read more: http://www.jsonline.com/business/flood-insurance-costs-on-the-rise-b99112536z1-226590521.html


5. Want Better Relationships? Listen Up!

A recent article posted to Lifehack.org (“How To Be A Good Listener That Others Want To Talk To”) caught our eye….

Some people worry about being a better talker, BUT relationships – and this is especially true of new client relationships – are probably built stronger when you can become a better listener.

As the article says, “Do you find yourself thinking about what you want to say in response to what they have said or are you fully engaged with what they are talking about? When it comes to connecting with others, it’s all about consciously listening to them and the information that they are sharing with you.”

To read several useful tips, go to: http://www.lifehack.org/articles/communication/how-good-listener-that-others-want-talk.html


6. HOT LINE: Statute of Limitations on a Dispute?

QUESTION: Is there a statute of limitations on how far someone can go back to dispute a transaction?

ANSWER: Please note that there are exceptions to every rule. However, if the suit is based upon a breach of contract, the statute of limitations is six years. If someone has a question concerning a specific issue, we would recommend that they speak with their own attorney who can advise them of the applicable statute.

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


7. HOT LINE: Purchasing My Listing Myself?

QUESTION: I have an exclusive right to list agreement with a client. I am considering purchasing the property myself and need to know what I need to do to cancel the agreement with my client prior to doing so. Please advise.

ANSWER: We have a couple of concerns regarding this. The safest thing to do is to terminate the listing agreement with the seller, although he must understand that he will then be unrepresented in the transaction. However, this will not necessarily keep you out of trouble as you have an inherent conflict of interest. The problem is that you have garnered confidential information regarding the seller and the property during the listing period, for example, what the seller may be willing to take in order to sell it. This would put you in an advantageous position. The seller could realistically file a complaint against you if they have seller’s remorse and state that you have breached your duty to them and worked for your own gain. This could be problematic with both the local association and TREC.

If you do go forward with plans to purchase the property, we would strongly recommend that they have an independent agent represent them. You would also need to complete a personal interest disclosure. However, this is still a hazardous proposition for you.

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


8. HOT LINE: The Final Inspection Form?

QUESTION: Is the final inspection form required for closing? If so, when did it become required?

ANSWER: There are two different forms which you may be referencing. Form F41, the Buyer’s Final Inspection, is a right which is provided to the buyer in the Purchase and Sale Agreement. Lines 289-294 state:

*** BEGIN QUOTE ***
9. Final Inspection. Buyer and/or his inspectors/representatives shall have the right to conduct a final inspection of Property no later than _______ days prior to the Closing Date only to confirm Property is in the same or better condition as it was on the Binding Agreement Date, normal wear and tear excepted, and to determine that all repairs/replacements agreed to during the Resolution Period, if any, have been completed. Property shall remain in such condition until the Closing at Seller’s expense. Closing of this sale constitutes acceptance of Property in its condition as of the time of Closing, unless otherwise noted in writing.
*** END QUOTE ***

This allows the buyer to confirm that the property is in the same or better condition as it was on the Binding Agreement Date and that all repairs or replacements have been completed. If this is not done, the buyer may be waiving any rights he has for complaints following closing. If you are representing the seller, we would have the buyer sign stating that the buyer has waived it if they have not done a walkthrough.

The second form, F16a, the Seller’s Property Condition Disclosure Update. 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:

*** BEGIN QUOTE ***
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.
*** END QUOTE ***

Therefore, it is required at or before closing on ALL transactions.

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


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