The 12-3-13 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. Letting the Buyer Move In Before Closing?
3. YOUR Listing in TAR’s Membership Directory
4. Habitat Promotion Extended Through December!
5. Even More NAR Convention Highlights…
6. HOT LINE: Financing Contingency Not in Contract?
7. HOT LINE: Purchasing “As Is” for a Reduced Price?
8. HOT LINE: Paying Finder’s Fee to Unlicensed Agent?
9. Check Your Own CE Hours, Etc.

“Be who you are and say what you feel, because those who mind don’t matter and those who matter don’t mind.” – Dr. Seuss


1. Upcoming COURSES & EVENTS

Dec. 4-5: The Learning-Centered Instructor Workshop (16 hrs. CE) – GCAR Office, Chattanooga. This is our two-day instructor-training program. For more info or to register: http://www.gcar.net/events/event/the-learning-centered-instructor-workshop

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/

Our 2014 GRI Classroom Course Schedule is posted in the “Education” section of the TAR website: http://tnrealtors.com/education/gri/


2. Letting the Buyer Move In Before Closing?

A new Real Trends post, authored by real estate speaker and author Bernice Ross, caught our attention this week. It deals with a troubling situation that most Realtors have faced at one time or another:

*** BEGIN QUOTE ***
Recently, the following question was posed on a LinkedIn Discussion Board. The question was:

“Should a seller let a buyer move in prior to the closing?”

This question garnered over 250 responses. Based upon the litigation I saw adjudicated when I was Executive Director of Training for Prudential Jon Douglas Company, my answer to this question is “absolutely not!”

If you have been in the real estate business for any length of time, you probably have an array of horror stories about what could go wrong with a transaction.
*** END QUOTE ***

In the article, she describes not only what can go wrong (and often does!) but ALSO what steps a prudent Realtor can take to protect themselves and all of the parties involved. It’s worth your time to read this one!

To read more: http://realtrends.com/blog/youre-going-the-let-the-buyer-move-in-before-they-close


3. YOUR Listing in TAR’s Membership Directory

“Wait a minute,” you’re saying, “I didn’t know that TAR had a Membership Directory!”

Well, TAR does. It’s called the Tennessee Living Network, and since the mid-1990s, every active TAR member has his/her own personal page on the Tennessee Living Network. If you don’t believe us, go to: http://tn.living.net and click on Realtors, then search for yourself!

You have your OWN personal page on this Network that any other TAR member – or member of the public – can view, AND you can enhance this page with added information about yourself, etc., in case a Realtor in another city would like to refer a client to someone in your area. To learn HOW TO ENHANCE your personal page, go to: http://tnrealtors.com/services-support/tn-living-network-instructions/

The Tennessee Living Network is refreshed at the beginning of each month with membership data from NAR’s NRDS system, and the data there comes from your own local association. [“Refreshing” the data simply updates your office or company affiliation, it does NOT eliminate any enhancements you make to your own page.]


4. Habitat Promotion Extended Through December!

Happy Holidays! The CE Shop has decided to extend its special promotion – benefiting Habitat for Humanity – through the month of December!

Any student that enters the promotional code GIVE10 at checkout will receive 10% off your order, AND The CE Shop will donate another 10% to Habitat for Humanity (to support the flooded communities around Boulder, CO).

SO… educate yourself and spread some holiday cheer by supporting a good cause in the process! To check out CE Shop offerings, go to: http://tarnet.theceshop.com/


5. Even More NAR Convention Highlights…

In addition to those Tennesseans whom we’ve mentioned in prior issues:

The Memphis Area Association’s Glenn Moore was appointed 2014 Chair of NAR’s Diversity Committee.

The Northeast TN Association’s Jewell McKinney was appointed 2014 Chair of the Risk Management and License Law Forum.

The Greater Chattanooga Association’s Carol Seal was appointed 2014 Vice-Chair of the AEC-AE Institute Advisory Board.

Congratulations to all of our TAR members who have given of their time and talent to the National Association!


6. HOT LINE: Financing Contingency Not in Contract?

QUESTION: With regard to a contract on a listing of mine, I have received and negotiated and now have a binding agreement with a buyer. The buyer’s financing is contingent upon the sale of their home, BUT there is no mention of that in the contract. My sellers did not know about it when they negotiated the contract. Does the seller have the right to terminate the contract based on that alone?

ANSWER: We can only provide you with the Forms Committee’s intent concerning the TAR Purchase and Sale Agreement in its blank state. Lines 121-122 state that:

(5) Unless otherwise stated in this Agreement, Buyer represents that this loan is not contingent upon the lease or sale of any other real property and the same shall not be used as the basis for loan denial;

The committee did not intend for the contract to be contingent upon the sale of the buyer’s property. However, the committee also did not intend for the seller to be able to use this as a means of terminating the contract. If the financial contingency cannot be met due to the sale of property, the committee intended for this to be a breach on the part of the buyer with the buyer forfeiting the earnest money. However, the buyer has until closing to be able to close on the contract.

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


7. HOT LINE: Purchasing “As Is” for a Reduced Price?

QUESTION: I represent the buyer in a transaction. We are currently in the due diligence period. The home inspection has been completed. How would we go about responding back to the sellers that the buyer will purchase the home “As Is” for a reduced sales price?

ANSWER: Essentially, this would be an amendment to the contract. You can submit this to the seller on an amendment form which indicates that in lieu of repairs, the buyer will purchase at $XXX price. HOWEVER, the buyer should be cautious. The lender may not finance and/or the property may not appraise without the repairs being made!

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


8. HOT LINE: Paying Finder’s Fee to Unlicensed Agent?

QUESTION: Can I pay an unlicensed agent (whose license is now inactive or retired) a fee in any manner for bringing me business — i.e., finder’s fee, using them as an assistant. Does it make a difference if it is residential or commercial?

ANSWER: A firm can only pay a licensed real estate agent. Pursuant to Tenn. Code Ann. 62-13-302(a):

“It is unlawful for any licensed broker to employ or compensate any person who is not a licensed broker or a licensed affiliate broker for performing any of the acts regulated by this chapter. A licensed broker may pay a commission to a licensed broker of another state if such nonresident broker does not conduct in this state any of the negotiations for which a commission is paid.”

Therefore, an agent may ONLY pay a referral fee to a licensed firm or individual! Whether it is residential or commercial makes no difference.

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


9. Check Your Own CE Hours, Etc.

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/