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


1. TAR Rocks Memphis This Week!
2. New Home Construction May Lag Demand
3. To Find Out About E&O Loopholes…
4. TIP: Design Real Estate Flyers for Free!
5. REMINDER: Governor’s Housing Conf. — Oct. 7-8
6. Upcoming Courses & Events!
7. HOT LINE: Working With an Out-of-State Broker?
8. HOT LINE: Problem After the Transaction?
9. HOT LINE: Buyer’s Rep Agreement Ends When?
10. Check Your Own CE Hours, Etc.

“Live in such a way that you would not be ashamed to sell your parrot to the town gossip.” — Will Rogers

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


1. TAR Rocks Memphis This Week!

This week, the Tennessee Association of Realtors holds its 2015 Annual Convention at the Peabody Hotel in Memphis, starting this Wednesday, Sept. 16!

The theme this year — Rock ‘n’ Roll in Memphis! — describes a Convention program designed to expand your know-how AND your network! The Convention also features the Annual Meeting of TAR’s Board of Directors and the Installation of 2016 Officers.

If you’re not already registered to attend the Convention, you can still register on-site. For more information, go to: http://tnrealtors.com/meetings-and-events/convention/


2. New Home Construction May Lag Demand

This past week, the National Association of Realtors (NAR) released a new study, showing that new home construction is lagging behind job growth in a majority of Metro areas across the country.

*** BEGIN QUOTE ***
Researchers found that homebuilding activity for all housing types was underperforming in about two-thirds of the metro areas tracked.

“In addition to slow housing turnover and the diminishing supply of distressed properties, lagging new home construction — especially single-family — has kept available inventory far below balanced levels,” says Lawrence Yun, NAR’s chief economist. “Our research shows that even as the labor market began to strengthen, homebuilding failed to keep up and is now contributing to the stronger price appreciation and eroding affordability currently seen throughout the U.S.
*** END QUOTE ***

Of interest to Tennesseans, Chattanooga was cited as one area where new home construction has been “nearly adequate” to what’s needed to keep pace with local job growth.

To read more, go HERE.

In related news, a recent government study revealed that, across the U.S., the number of residential builders DROPPED BY 50% between the years 2007 and 2012! This may account for some of the delay in new home construction. To read more about this study, go HERE.


3. To Find Out About E&O Loopholes…

If you want to know how E&O works, the top reasons claims are denied, and how to assess your E&O insurance to help ensure you’re covered in a lawsuit, NAR is offering a free webinar on Oct. 1.

Real estate attorneys Robert Sunderland, and Steven Sargenti, CEO and President of CRES Insurance Services, will explain the benefits of individual E&O Insurance and how to effectively conduct one’s own risk management exercise. The Oct. 1 webinar is at 2 p.m., Eastern Time, and is sponsored by CRES Insurance Services. Registrants receive 25 free Permit History Reports (a $99.95 value).

REALTOR Magazine, the webinar host, believes the information will be useful to real estate professionals, BUT note that NAR’s participation does not constitute an endorsement of the content.

To register, go to: https://www.cresinsurance.com/eando-webinar/


4. TIP: Design Real Estate Flyers for Free!

The days when you had to hire a graphic designer for a decent professional-looking flyer may be over, at least for most of your properties. A FREE service on the web — Canva.com — offers Realtors the opportunity to create attractive marketing pieces at no cost!

They offer a special page on their website featuring real estate flyers using their free templates, although Canva.com is useful for ANYONE who wants to create marketing materials, ads, etc., with graphic appeal …no special artistic talent required!

Even if you don’t want to use it right now, Canva is worth checking out. To see how a real estate flyer can be created, visit: https://www.canva.com/create/flyers/real-estate-flyers/

Canva.com also offers a higher-powered version (Canva for Work) at a VERY affordable price. To read about one Realtor’s experience with Canva for Work — and you should — go to Lee Davenport’s recent article on NAR’s YPN Blog HERE.


5. REMINDER: Governor’s Housing Conf. — Oct. 7-8

The 10th Annual Governor’s Housing Conference offers countless opportunities for professionals from every facet of the housing industry to connect with one another, share best practices, attend educational panels, meet with vendors and exhibitors, and explore how to better meet the housing needs of Tennessee families. Speakers this year include: NAR Past President and Tennessee Realtor Martin Edwards; Ed Pinto, Co-director of the International Center on Housing Risk for the American Enterprise Institute; Sheila Crowley, President & CEO of the National Low Income Housing Coalition; and others!

For more information, or to register, go to: http://tnghc.com


6. Upcoming Courses & Events!

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

Oct. 13-15: Sign up for all three upcoming GRI Courses (404, 405, and 406) being held at the Greater Nashville Assn. of Realtors. When you sign up for all three, you save $55! To do so, go HERE.

Oct. 13: GRI 404, Working More Effectively with Sellers (6 hrs. CE) – GNAR Office, Nashville. For more information or to register, go HERE.

Oct. 14: GRI 405, Mastering Forms & Contracts (6 hrs. CE) – GNAR Office, Nashville. For more information or to register, go HERE.

Oct. 15: GRI 406, Tips, Tools, and Technology (6 hrs. CE) – GNAR Office, Nashville. For more information or to register, go HERE.

Oct. 21-23: Sign up for all three upcoming GRI Courses (404, 405, and 406) being held at the Knoxville Area Assn. of Realtors. When you sign up for all three, you save $55! To do so, go HERE.

Oct. 21: GRI 404, Working More Effectively with Sellers (6 hrs. CE) – Lighthouse, Knoxville. For more information or to register, go HERE.

Oct. 22: GRI 405, Mastering Forms & Contracts (6 hrs. CE) – Lighthouse, Knoxville. For more information or to register, go HERE.

Oct. 23: GRI 406, Tips, Tools, and Technology (6 hrs. CE) – Lighthouse, Knoxville. For more information or to register, go HERE.

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/

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!


7. HOT LINE: Working With an Out-of-State Broker?

QUESTION: A Florida Broker wants to receive part of a commission for a sale where he will send his buyers here to look at a property, while he will stay in Florida. He wants to represent them, write the offer etc. from Florida. Is this legal? As an alternative, can I pay a referral fee to the Broker if he is not licensed in TN? The broker wishes to have me send blank forms to review with his clients, and I am not comfortable with this. Would this be a violation?

ANSWER: This question seems to come up regularly. 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, if this person is not a licensed agent, then you cannot pay him. If he is a licensee in another state, he can ONLY be paid if he did not conduct any of the negotiations in Tennessee. If he did, then you cannot pay him. This same rule applies to referral fees.

You can, however, send him TAR forms to review with his clients since you represent the seller.

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


8. HOT LINE: Problem After the Transaction?

QUESTION: I have an agent that represented the buyer in a transaction. The basement flooded after the closing, and this was not disclosed on the property condition report. My agent called the seller and they texted him and stated that they had water in the basement a few times. For what period of time does my agent owe a fiduciary duty to their client(s)? Should my agent share this information with his buyer?

ANSWER: Absolutely. Since the buyer is your agent’s client, he must disclose the information to the buyer. One’s fiduciary duty extends beyond the closing.

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


9. HOT LINE: Buyer’s Rep Agreement Ends When?

QUESTION: I have a potential client that recently purchased a home with another agent. The buyer’s rep agreement officially expires later this year, but the sale has closed on the home for which the buyer signed that agreement. This client is not satisfied with the home and wants to purchase another property. Would I be safe to assume that the buyer’s rep agreement would not extend past the closing on the previous home, or is there some form that my client needs to sign to nullify the previous agreement?

ANSWER: When the buyer’s representation agreement terminates should be addressed in the agreement. If the buyer has concerns about whether he is still subject to the agreement, he should speak with his own attorney.

If they used TAR forms, the TAR buyer’s rep agreement ends on the date specified or at closing, whichever occurs earlier. Lines 11-13 state: “This Buyer Representation Agreement (“Agreement”) begins on this date and terminates at 11:59 p.m. local time on _______, __________, or at the closing (or in the case of a lease, the date of possession) of any Purchase under this Agreement, if such occurs earlier.”

[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/