The 1-6-15 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. 2015 TAR Forms Are Online!
3. Good News for Tennessee
4. …And for Nashville!
5. Have a SAFE 2015
6. Don’t Make Resolutions, Make Habits!
7. Ten Good Reasons for Optimism in 2015
8. HOT LINE: Property Condition Update Always Needed?
9. HOT LINE: The 48-Hour Kick-Out Clause?
10. HOT LINE: Buyer Wants Me Instead of Their Other Agent?
11. Check Your Own CE Hours, Etc.

“I have no way of knowing how people really feel, but the vast majority of those I meet couldn’t be nicer. Every once in a while someone barks at me. My New Year’s resolution is not to bark back.” — Tucker Carlson

NOTE: If you’re reading this on a mobile device (iPhone, etc.), GO HERE for a mobile-friendly DIGEST.


1. Upcoming COURSES & EVENTS

The complete 2015 Schedule of GRI courses is posted on the TAR website at: http://tnrealtors.com/education/gri/

You can also begin work toward your GRI designation in 2015 ONLINE! To find out how, go to: http://tnrealtors.com/education/e-class-gri-information/

To see upcoming offerings of TREC CORE COURSES, ABR COURSES, etc., – at locations around the state – go to the TAR Calendar at: http://tnrealtors.com/meetings-and-events/calendar-of-events/


2. 2015 TAR Forms Are Online!

The 2015 TAR forms are now online.

To view the online video of the 2015 Managing Brokers Forum, where the 2015 changes to TAR forms were explained, go to: http://tnrealtors.com/2015-managing-brokers-forum/

At this same page, you’ll find links to the written explanations of changes and additions to both residential and commercial forms for 2015!


3. Good News for Tennessee

Our Volunteer State received some well-deserved kudos in THE TENNESSEAN:

*** BEGIN QUOTE ***
For the second straight year, Tennessee won a top ranking for boosting jobs and capital investments through company relocations and expansions.

Economic development and site selector magazine Business Facilities named Tennessee its 2014 “State of the Year,” pointing to its emphasis on infrastructure and education as supportive to companies’ growth.

…Tennessee has been awarded the top title three times since Business Facilities began ranking states in 2007 and is the first state to earn it in consecutive years.
*** END QUOTE ***

To read more, go HERE.


4. …And for Nashville!

A different article in THE TENNESSEAN by 2015 GNAR President Cindy Stanton (“Realtors play crucial role in changing housing market“) does a great job of explaining the value of Realtors to the local economy and to their clients. To read Cindy’s article, go HERE.

Also a recent Wall Street Journal article (“Eight Cities Where U.S. Home Prices Are Setting New Records“) highlights good news for Nashville sellers. In a study of home prices in the 40 largest metropolitan areas in the U.S., Nashville is one of eight cities where home prices (from Jan. – Oct., 2014) have set new records, rising even above their 2006-2008 peaks!

To read the Journal report online and see the other seven markets (four of which are in Texas), go HERE.


5. Have a SAFE 2015

The murder in 2014 of Arkansas Realtor Beverly Carter, a Crye-Leike agent, should have alerted every Realtor in the country to take personal safety more seriously!

The National Association of Realtors (NAR) has now produced a new safety video that you can watch online. It highlights twelve (12) steps to take when meeting strangers for the first time. It’s less than 5 minutes long, but these five minutes could save a life! To watch it online, go HERE. Or watch it together in your next sales meeting!


6. Don’t Make Resolutions, Make Habits!

In this, our first issue of the DIGEST in the new year, we have traditionally run an article about good New Year’s resolutions to make. This year, instead, why not move beyond your typical wish list of resolutions and form some habits to make your 2015 a year of genuine change for the better in your business and in your life?

To help you get started, a recent article by Whitson Gordon (“What It Takes to Form a Good Habit“) offers several practical ways to establish productive habits that will hopefully last through December of 2015 …and beyond!

To read the whole article, go HERE.


7. Ten Good Reasons for Optimism in 2015

Take heart! There are many good reasons to be optimistic about the real estate business and real estate market in 2015. A new article by Melissa Dittmann Tracey on RealtorMag online (“10 Reasons 2015 Will Rock for Real Estate“) covers ten of these. Just one of these — the return of the 3 percent down payment — was just announced in early December by Freddie Mac and Fannie Mae.

If you read what Melissa has written, you’ll understand why “housing analysts and economists have high hopes for 2015.”

For your own dose of optimism, go HERE.


8. HOT LINE: Property Condition Update Always Needed?

QUESTION: Is the property condition update form required on all transactions? What constitutes an update?

ANSWER: 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:

“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.”

Therefore, it is required at or before closing on ALL transactions. However, if the seller is exempt from completing the property condition disclosure form in the first place, he is exempt from having to do the update.

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


9. HOT LINE: The 48-Hour Kick-Out Clause?

QUESTION: Where is the 48 hour kick-out clause located?

ANSWER: We assume that you are referring to form F34a (Seller’s Right to Continue to Market Property) — a means for the seller to put the buyer on notice that, if they receive another acceptable offer, then buyer #1 has xx hours to remove certain contingencies or the seller can terminate that contract. Form F34b is the means by which the seller gives notice to buyer #1 and vice versa.

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


10. HOT LINE: Buyer Wants Me Instead of Their Other Agent?

QUESTION: A prospective buyer called me and is currently under a buyer’s rep agreement with another agent. The buyer is not happy with the other agent and wants to work with me instead. Is the buyer’s rep agreement a unilateral or bilateral agreement? Also, is there some law stating you can get out this agreement within so many days of signing it? How should we handle this situation?

ANSWER: As you might expect, this question has come up before.

A buyer’s rep agreement is a written contract which establishes an agency relationship between a buyer and a real estate company. In order to terminate this contract, it requires a termination and release in writing and signed by ALL parties to the agreement (unless the agreement allows for one side to terminate without the approval of the other. TAR’s forms do NOT provide this option). It should terminate the contract and release both sides from the obligations under the original buyer’s rep agreement. Until this is completed, the buyer’s representation agreement WILL continue in place until its natural termination.

If you have a buyer who wishes to terminate their buyer’s representation agreement with you, your principal broker must decide whether you wish to hold them to that contract or not. This is completely up to the broker as to whether they want to release them from the representation agreement. TAR provides a form for you to use if you wish to agree to terminate the buyer’s representation agreement – form F82. If it is a listing agreement that is being terminated, the form does provide a carry over clause (if they sell their home within X days without the help of another agent who was introduced to it by the original listing agent) and a place to negotiate a cancellation fee. It also provides for a complete release with no fees having to be paid.

If this is a result of a buyer approaching you for advice on terminating an agreement with another company, the only thing that you can advise is that you would be happy to help them, but they must resolve their issues with the previous company first. They should speak with either the broker of the firm or with their own attorney. If you advise them of anything further, you could be facing a claim of interference with a contract.

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


11. Check Your Own CE Hours, Etc.

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

To go to the TAR website: http://tnrealtors.com

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/