The 11-5-13 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. NAR Announces FREE “Conference Live”!
3. A SPECIAL AUCTION!
4. Rate Predictions for 2014, 2015
5. A 10% Savings and a 10% Donation
6. LIFE TIP: 9 Ways To Stay Positive!
7. HOT LINE: Buyer Then Wanted His Own Agent… ?
8. HOT LINE: Who Picks the Title Company?
9. USEFUL LINKS

NOTE: Because of staff travel to the NAR Annual Conference, there will be no TAR DIGEST next week. The DIGEST will return with the 11-19-13 Edition!


1. Upcoming COURSES & EVENTS

Our last two GRI Courses of 2013 are coming up:

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. NAR Announces FREE “Conference Live”!

The NAR Annual Conference takes place this week in San Francisco, and now YOU can “be there” with no travel or expense!

The National Association of Realtors (NAR) is pleased to announce “Conference Live”, a virtual window into the REALTORS Conference & Expo experience. This FREE NAR resource takes viewers behind the scenes of the event in San Francisco. Watch Chief Economist Lawrence Yun’s residential and commercial economic forums, catch interviews with expert speakers, and view exhibitor demonstrations. PLUS follow along with the experiences of over 30 Featured Attendees – members and board staff from across North America who will share their personal thoughts and reflections over the four days of the event!

Conference Live will be active November 8-11, 2013! To visit NAR’s Conference Live this week, go to: http://www.narconferencelive.com


3. A SPECIAL AUCTION!

The REALTORS Relief Foundation (RRF) is proud to kick off it’s first annual online auction fundraiser. All proceeds will go to the RRF Foundation to assist those impacted by disaster. This is a LIMITED-TIME event and will start on November 8, 2013 at 3:00 p.m. (PST) and close on November 10, 2013 at 2:00 p.m. (PST).

Anyone can participate in this auction, not only members. When you register, you can bid on a wide array of items including spectacular travel getaways, entertainment & sports packages, restaurant & gift certificates, and many one-of-kind finds!

The Auction website – http://www.biddingforgood.com/rrf – will go live for everyone to preview the items for auction on Tuesday, Nov. 5. The auction will open on Friday, Nov. 8 at 3 p.m. (PST).

It’s for a great cause! Please participate!


4. Rate Predictions for 2014, 2015

Last week, the Mortgage Bankers Association released its predictions for rates and loan originations in 2014 and 2015. Jay Brinkmann, MBA’s Chief Economist and Senior Vice President for Research and Education, released the following statement highlighting key points of the forecast:

*** BEGIN QUOTE ***
“We are projecting home purchase originations will increase in 2014 due largely to gains in home sales and home prices. We expect to see a decline in the share of sales paid for with cash, and higher average LTVs on purchase mortgages, due to the rise in home prices.”

“We expect mortgage rates will increase above 5 percent in 2014 and then increase further to 5.5 percent by the end of 2015. As a result, mortgage refinancing will continue to drop, and borrowers seeking to tap the equity in their homes will be more likely to rely on home equity seconds rather than cash-out refinances.”
*** END QUOTE ***

To read more: http://www.mbaa.org/NewsandMedia/PressCenter/86111.htm


5. A 10% Savings and a 10% Donation

Educate yourself and give to a good cause while doing so!

Enroll in any of our online Continuing Education courses offered by The CE Shop in November and SAVE 10% on your enrollment fees, AND The CE Shop will donate an additional 10% to Habit for Humanity!

Enter GIVE10 at checkout to receive your discount, and The CE Shop will donate another 10% for you!

Enroll today: http://tarnet.theceshop.com/


6. LIFE TIP: 9 Ways To Stay Positive!

*** BEGIN QUOTE ***
It’s common to be struck with a bout of pessimism, or to naturally be more towards the pessimistic end of the perspective spectrum. It’s hard to see the positives in life and become an optimist when you’re lost in the murky waters of negative thinking. However, Henrik Edberg of Personal Excellence [shares] nine ways we can create a more optimistic outlook and positive perspective….
*** END QUOTE ***

To read more: http://www.lifehack.org/articles/communication/9-ways-stay-positive.html


7. HOT LINE: Buyer Then Wanted His Own Agent… ?

QUESTION: I was given a referral from a company for a buyer. Nevertheless, the buyer entered into a contract with a seller without our assistance, while the listing agent claimed to be working as a transaction broker. The buyer, however, then decided he wanted his own agent. Now, the seller’s agent does not want to cooperate on this transaction. How should I handle this situation?

ANSWER: If the buyer did not sign an agency agreement with another firm, then the buyer DOES have the right to work with any real estate company he chooses. HOWEVER, this does not necessarily mean that you would be entitled to a cooperative compensation from the listing company. This would be a determination of procuring cause at a subsequent arbitration. We cannot determine who is the procuring cause of a transaction as that is a decision to be made by the local association.

Procuring cause is determined by the local association after the property is closed. You can request the local association to have a hearing once the closing has occurred. Please bear in mind that if the association conducts such a hearing, they will generally award the buyer’s side of the commission to only one party; they will not “split the baby.” You may want to get with the other firm and see if you can reach an agreement as to an equitable split. However, if you cannot, you can always request arbitration or mediation.

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


8. HOT LINE: Who Picks the Title Company?

QUESTION: What should a selling agent do when the title company requested in the offer is countered by the listing agent? Most of the time the listing agent wants to use the title company that is owned by their firm. Does RESPA say that if the seller is paying for the title policy, he/she can select the company? Our area does not have split closings with different attorneys for each side. We use title companies for all of our closings.

ANSWER: We can provide you with the following information on title insurance and RESPA. Under RESPA, if the buyer is paying for the title insurance or it is being paid for with the assistance of a federally related mortgage loan, then they have the right to select its provider. However, if the seller is paying for the title insurance without the assistance of a federally related mortgage loan, then it can be negotiated. See 12 USC 2608 which states:

“(a) No seller of property that will be purchased with the assistance of a federally related mortgage loan shall require directly or indirectly, as a condition to selling the property, that title insurance covering the property be purchased by the buyer from any particular title company.
(b) Any seller who violates the provisions of subsection (a) of this section shall be liable to the buyer in an amount equal to three times all charges made for such title insurance.”

Another thing to keep in mind is who is issuing the policy. Often, the lender will dictate who is to issue the lender’s policy. However, if that title company is going to charge a high rate for the owner’s policy, then see if the two title companies will agree to have one company issue the policies and then to split the premiums. If not, then you can indicate that the seller will bring their own owner’s policy. Often this will encourage cooperation so as to avoid paying the higher rates for the lender’s policy. Please keep in mind that this would only apply if the property were residential.

From a practical standpoint, if the lender will not allow this, then the transaction may not close. One solution may be to do an amendment to the contract which will allow for a title company approved by the lender to do the title work.

“Section 9: Seller required title insurance
Section 9 of RESPA prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance.” [Source: HUD’s website]

The important thing to remember is that this is a decision to be made by the buyer and seller.

By the way, the fact that your area “does not have split closings with different attorneys for each side” is a matter of local custom only; a different arrangement could be negotiated even if it were not common in your area.

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


9. USEFUL LINKS

To check your CE credits on file with TREC, go to: http://verify.tn.gov

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/