The 1-28-14 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. Memphis and Nashville Get Good News!
3. A Legislative Update from Chris
4. Time To Change Your Passwords?
5. TWO Instructor-Training Opportunities!
6. HOT LINE: Handling Multiple Offers?
7. HOT LINE: Multiple Copies of the Disclaimer Notice?
8. HOT LINE: Repairs When FHA-Financed?
9. Check Your Own CE Hours, Etc.

“20 years from now you will be more disappointed by the things you didn’t do than by the ones you did. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.” — Mark Twain


1. Upcoming COURSES & EVENTS

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/

Save 15% on your online CE purchase this February in any of our CE Shop courses! This is a Limited Time Offer! Enroll today: http://tarnet.theceshop.com/ …and enter “hearts15” at checkout to receive your discount!


2. Memphis and Nashville Get Good News!

Our two largest market areas — Memphis and the Nashville-Middle Tennessee area — were both complimented this past week!

CNNMoney named Memphis, Tennessee, as one of the 10 Hottest Housing Markets for 2014 that “are expected to see the biggest increase in home prices this year, according to CoreLogic Case-Shiller’s latest home price forecast.” To read more, go HERE.

Meanwhile, the Nashville-Middle Tennessee area made news as one of the 8 Best Large Metros for Home Ownership! To arrive at this ranking, the financial site NerdWallet studied the 100 most populated metro areas to determine which areas are the most favorable to home buyers. Factors considered were “the number of homes available, the median household income and monthly home owner costs, and population growth to find out what areas have strong economies.” To read more, go HERE. To read more in the full NerdWallet study, go HERE.


3. A Legislative Update from Chris

The Tennessee Legislative Session is moving fast this year, and your TAR Governmental Affairs Team is hard at work making sure Realtors and property owners remain protected once again in 2014!

A special thanks to Rep. William Lamberth (TN House District 44) for all his work on the interpleader issue we’ve been dealing with for months. While our team has decided not to move forward with legislation, Rep. Lamberth was a key component in helping us deal with an intricate issue. Rep. Lamberth is someone we can definitely call a friend and Realtor champion!

Be sure to keep up with the happenings on the Hill this year through our website HERE …and we’ll see you at our Spring Conference and Annual Day on the Hill on March 26th! Contact Chris Sexton — at — for more information.


4. Time to Change Your Passwords?

If, like your Editor, you have WAY too many passwords to remember, you may tend to use the same one over and over again. Bad mistake, according to a Business Journal article last week! The same article (“If you have one of these passwords, it’s time to change it”) highlighted the worst passwords in use, according to a recent survey:

*** BEGIN QUOTE ***
There’s a new worst password, and the dishonor goes to “123456,” according to SplashData.

Don’t worry: “Password” is still an awful password. It lost the No. 1 spot, but ranked second on the software company’s annual roundup of worst passwords. “Worst” is synonymous with “most common” — and, in turn, easily guessable.
*** END QUOTE ***

In these days of identity theft and security concerns, let’s start 2014 being much more careful about our online accounts and activities! To read more, go HERE.


5. TWO Instructor-Training Opportunities!

TREEF’s 2-day Learning-Centered Instructor Workshop has been held for instructors in Tennessee, Missouri, and Arizona, and consistently receives great reviews. Steve Champion leads this workshop, designed for both current and potential instructors and trainers who want to improve their skill-set and know-how as instructors or trainers. The workshop is approved for 16 hours of CE!

It’s being offered in TWO locations, for your convenience:

On February 20-21, the Greater Chattanooga Association is hosting it. For more details, go HERE …and click on the 20th of February!

On March 11-12, the Williamson County Association is offering it. For more details, go HERE.


6. HOT LINE: Handling Multiple Offers?

QUESTION: If a seller does not want to enter into a multiple offer situation, even when multiple offers come in, is this legal? Can they just choose any one offer that they want?

ANSWER: There is certainly more than one way that multiple offers can be handled. The listing agent must present all offers to the seller. Then the seller has options.

One, the seller can review the offers received and select one to counter. Another option would be to notify all interested buyers to submit their highest and best offer by a particular date and time. The seller would then review all offers and select the one they wish to work.

TAR has a form for the second option. You can review form F37, the Multiple Offer Disclosure and Notification form.

The Code of Ethics also addresses multiple offers. Standard of Practice 1-15 states: “Realtors, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, disclose the existence of offers on the property. Where disclosure is authorized, Realtors shall also disclose, if asked, whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker.

Either option is permissible, and it is up to the seller as to which route he wishes to pursue.

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


7. HOT LINE: Multiple Copies of the Disclaimer Notice?

QUESTION: Is it necessary to have two copies of the Disclaimer Notice for our files, one with the Buyer signature and one with the Seller signature? I was told that this is a new rule. If you have both seller and buyer sign the same form, is that OK?

ANSWER: First of all, the Disclaimer Notification (F14) is not a form which both the Buyer and Seller have to sign. This form is intended to be signed ONLY by the party you are representing or assisting. This form is not required by law, nor is it intended as a part of the contract package, but many brokers make it a requirement for their offices, to ensure that the company’s agents have clarified the limitations of their expertise to clients and customers. Not all companies require it.

If both the listing agent and the selling agent in a transaction want to use the same form (to save paper), they can certainly do so, but this is not required. If both parties (Buyer and Seller) sign the form, then both signature blocks at the end of the form would be used. Nevertheless, nothing would prevent two forms from being used.

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


8. HOT LINE: Repairs When FHA-Financed?

QUESTION: I have a listing on a property. The buyer has FHA financing and agreed not to request that repairs be made by the seller. Now the buyer has submitted a request for $8,000 in lieu of repairs. How should I handle this situation?

ANSWER: The issue will be what the lender will permit. Typically a lender will not allow the buyer to receive cash at closing from the seller. Therefore, you will need to find out what the lender will permit. One idea is to have the buyer select contractors and/or companies that will provide the goods and/or services and have them be paid directly at closing.

Another idea would be to do an amendment (F6) to the contract in which the Purchase Price is reduced by this amount and to indicate that no repairs will be made. HOWEVER, FHA may not permit the loan if there are repairs which need to be made on the property.

[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/