The 9-1-15 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. “Housing Market Strongest In Years”
2. A 10-Year Housing Surge?
3. Most Common Ways To Get Sued
4. More News for REALTOR Safety Month!
5. Are 30-Day Closings a Thing of the Past?
6. Upcoming Courses & Events!
7. HOT LINE: Seller’s Agent Wants the Actual Report?
8. HOT LINE: New Required Info in Our Email?
9. HOT LINE: Sinkholes and Land Sales?
10. Check Your Own CE Hours, Etc.
11. No DIGEST Next Week — Happy Labor Day!

“He that would live in peace and at ease, Must not speak all he knows, nor judge all he sees.” — Benjamin Franklin

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


1. “Housing Market Strongest In Years”

That’s the message in a new Freddie Mac assessment of the housing market! Last week, Freddie Mac released its Multi-Indicator Market Index (MiMi). The latest Index shows two additional states — our own Tennessee and our neighbor Arkansas — achieving a stable housing market. The same study has four additional Metro areas nationally (one of which is Chattanooga, TN) now showing stable housing activity.

Housing markets are the strongest they’ve been in years with the National MiMi above 80 for the first time since 2008. Nationally, all MiMi indicators are heading in the right direction,” remarked Freddie Mac Deputy Chief Economist Len Kiefer. “While home prices are still 7 percent below peak values nationally, price indices in many markets are at all-time highs and current low interest rates are helping to support homebuyer affordability.”

You can access Freddie Mac’s full August 26 press release (“U.S. Housing Markets Strengthen“) HERE.

You can access the actual Multi-Indicator Market Index at: http://www.freddiemac.com/mimi/


2. A 10-Year Housing Surge?

*** BEGIN QUOTE ***
The housing market is poised for one of its largest expansions in history. By 2024, demographic and economic changes are forecasted to bring 15.9 million additional households on board, according to a new study released by the Mortgage Bankers Association.

That means an average of 1.6 million additional households per year, sparking “housing market growth over the next decade that would be among the strongest the U.S. has ever seen,” according to the report.
*** END QUOTE ***

Thus begins a recent article that should brighten up your day, if not your year!

The article, a REALTOR Magazine Online report on the new Mortgage Bankers study (with a link to the actual study), includes several interesting statistics on projected demographic changes over the next ten years:

— 20 million more people age 60 and over,
— 4 million fewer people age 45 to 59, and
— 18 million more people age 18 to 44.

The report also predicts that household growth will be “driven by 5.5 million additional Hispanic households. For other races, 3.4 million additional non-Hispanic White households are expected to form by 2024, 2.4 million additional black households, 1.8 million more Asian households, and 730,000 additional other households.” Interesting.

To read more, go HERE.


3. Most Common Ways To Get Sued

This past week, Inman News ran an intriguing article (“10 most common ways real estate agents get sued“) by Ryan Ellis, covering the variety of reasons that you might get sued. One costly lawsuit can wipe out your income for an entire year, or even your career!

The author notes: “Real estate agents are particularly vulnerable when it comes to getting sued. With tons of details, multiple clients and valuable properties, it’s all too easy for things to slip through the cracks. Even the slightest mistake could end up costing you a lot of money, a lot of stress and worst of all, tarnish your reputation. Luckily, there are proactive steps you can take to protect yourself and your real estate career.”

It’s enough to make the faint-hearted think about retiring their licenses, but fortunately the author provides not only warnings, but also tips on how to avoid lawsuits in the first place!

To read more, go HERE.


4. More News for REALTOR Safety Month!

As noted in last week’s DIGEST, September is REALTOR Safety Month!

Often, personal safety is something we don’t think about until tragedy strikes or we hear about it through the media. One of our very own, Chris Garrett, TAR Division 2 Vice President, collaborated with NAR as a subject matter expert for NAR’s development of the NEW safety course, “Real Estate Safety Matters: Safe Business = Smart Business.Chris will be presenting a one-hour CE version of this course during the TAR Convention! For more information regarding the full course, please go HERE.

There is a FREE Realtor Safety Webinar Summit on September 9th, 11:00am – 3:00pm CST in which 4 different topics will be offered. Register now at: http://REALTOR.org/Safety

Last but not least, TAR has partnered with a new mobile app service called OnGuardHelpmade by a REALTOR for REALTORS — not just an app but a safety system. Please visit the NEW Member Valued Perks (MVP) page on the TAR site where you can learn about it and all the other MVP’s HERE.

DON’T COMPROMISE YOUR SAFETY!


5. Are 30-Day Closings a Thing of the Past?

Keep your clients’ interests at heart and your closings on track with the new changes. With the impending TILA-RESPA Disclosure changes effective on October 3rd, 2015, TAR is making edits to the “Purchase and Sale Agreement” and other forms to ensure your office is compliant and all agents are in the know.

All managing brokers are invited to attend a MANAGING BROKERS FORUM, Sept. 3, 2015, 10:00am – 12:00pm CST, either by LIVE STREAM or CLASS setting. There are only 40 seats available which ensures Q&A opportunities. Please register HERE. http://bit.ly/1JBzvV0


6. Upcoming Courses & Events!

Sept. 3: DEADLINE for Advance Registration for the 2015 TAR Convention at the Peabody Hotel in Memphis! After this date, only on-site registration will be available, and that will cost $130 more for members, so save some money and register NOW! To do so, go to: http://tnrealtors.com/meetings-and-events/convention/

Sept. 16-18: TAR Annual Convention — Peabody Hotel, Memphis, TN (CE and More!) — An event you don’t want to miss!

For an overview of all UPCOMING COURSES, as well as links for more information or registration, go to: http://tnrealtors.com/education/ ……and scroll down the page to see all upcoming courses!

There are 10 good reasons to earn YOUR GRI in 2015! Just go to: https://vimeo.com/90565297

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


7. HOT LINE: Seller’s Agent Wants the Actual Report?

QUESTION: My buyer conducted a home inspection and found so many deficiencies that they pulled out of the binding agreement. The seller’s agent now wants to see a copy of the inspection that my buyers paid for. Do my buyers have to give the sellers a copy of the inspection?

ANSWER: If you used the TAR Purchase and Sale Agreement, the answer is Yes. Lines 277-278 of the Purchase and Sale Agreement state: “As additional consideration for Buyer’s right to terminate, Buyer shall deliver to Seller or Seller’s representative, upon Seller’s request, a copy of all inspection reports.

Lines 418-424 state:

“In further consideration of Buyer’s right to legally, properly and in good faith invoke a right to terminate this Agreement pursuant to any specific Buyer contingency as stated herein, Buyer agrees, upon Seller’s request, to provide Seller or Seller’s representative with copies of any supporting documentation which supports Buyer’s right to exercise said contingency, the sufficiency and adequacy of said additional consideration being acknowledged. Any such supporting documentation shall be provided for Seller’s benefit only and Seller shall not disseminate the same to third parties. However, Buyer shall not be required to provide any documents to Seller in violation of any confidentiality agreement or copyright protection laws, if applicable.”

As discussed in previous TAR DIGESTs, however, many listing agents prefer NOT to see the entire inspection report, because they will then be duty-bound to disclose any and all identified deficiencies in that report to any subsequent buyers and/or buyer’s agents.

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


8. HOT LINE: New Required Info in Our Email?

QUESTION: Good afternoon. Our company was told today that by Oct 3rd we all need to have the following information in the signature line of our emails:

Agent Name
Company Name
Company License #s for all states licensed
Agent License #s for all states licensed
Office phone number
Agent cell number

Can you please confirm that this is indeed the case? Thank you.

ANSWER: Due to the time deadline presented in your question (October 3rd), we assume that this is a result of the new federal regulations for residential mortgages which go into effect on October 3rd. As part of these regulations, lenders are required to include a great deal of information in their disclosures, including detailed information on the real estate agents involved in the transaction. That probably covers all of the information that they’ve requested be included in the signature section of your emails. We would strongly recommend that you include this information. It ultimately assists your client in that the process for mortgage approval may go more smoothly.

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


9. HOT LINE: Sinkholes and Land Sales?

QUESTION: On a land sale, is the seller required to complete a sinkhole disclosure form?

ANSWER: The sinkhole disclosure is only required on residential transactions (of 1-4 units). It is NOT required on vacant land sales. This is just like the disclosures which were required several years ago for exterior injections wells, PUDs, etc.

The disclosure IS required for any residential purchase contract entered into on or after July 1st. If you have residential listings which were not under contract as of July 1st, you have several options. You can have the seller complete a new disclosure, disclaimer or exemption (all of the forms now have the required language). Another option would be to simply amend the original disclosure. Finally, you can counter any offer you receive to disclose the existence of any known sinkholes.

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


10. 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/


11. No DIGEST Next Week — Happy Labor Day!

We hope you enjoy your friends and family this coming Labor Day. The TAR DIGEST will return with the Sept. 15th Edition!