The 9-29-15 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. TREC Disciplinary Actions: August, 2015
2. It’s Back To School Time …For YOU
3. NAR Reports a Dip in Existing-Home Sales
4. Working With Hispanic Clients
5. REMINDER: TAR Forms Updated
6. Upcoming Courses & Events!
7. HOT LINE: Listed Seller Advertising His Own Property?
8. HOT LINE: Competency of the Seller?
9. HOT LINE: Marketing Agent’s Other Businesses?
10. USEFUL LINKS

“Concentrate all your thoughts upon the work at hand. The sun’s rays do not burn until brought to a focus.” — Alexander Graham Bell

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


1. TREC Disciplinary Actions: August, 2015

At its August meeting, the Tennessee Real Estate Commission (TREC) assessed significant civil penalties (ranging from $250 to $12,000!!!) and additional penalties on nine (9) individuals for the following offenses:

Failure to disclose all pertinent details on an offer, guaranty, warranty or the like (MULTIPLE)
Failure to be loyal to the interests of the client (MULTIPLE)
Failure to exercise reasonable skill and care
Advertising violation
Failure to supervise affiliate brokers
Failure to supervise the actions of an affiliate broker
Failure to obtain the required education
Failure to timely complete administrative measures for change of affiliation

NOTE: (MULTIPLE) means more than one licensee was found guilty of this!

In addition, two individuals had their licenses suspended.


2. It’s Back To School Time …For YOU

Laura Stack, president of The Productivity Pro (a training company for professionals), recently wrote an article for the network of city Business Journals that should be read by every Realtor. The article — “Why school is never out for the professional” — offers compelling reasons why continuing your own education is a prerequisite for true professionalism.

As she notes: “Would you want to go to a surgeon who never read his monthly medical journals? How about an auto mechanic who wasn’t certified to fix cars made after 1990? I doubt it. So why would you, as a business professional, ever want to stop learning?”

There is always more to learn …about your own market, about real estate, about effective marketing, about the forms you use, about residential construction, about best practices in negotiation, etc.

To read her article, go HERE.

And check out “Upcoming Courses & Events” below for some good opportunities to sharpen your skill set in coming weeks!


3. NAR Reports a Dip in Existing-Home Sales

Following three straight months of gains, existing-home sales dipped in August despite slowing price growth and a positive turnaround in the share of sales to first-time buyers, according to the National Association of Realtors. None of the four major regions in the U.S. experienced sales increases in August.

Despite last month’s decline, however, sales have risen year-over-year for 11 consecutive months and are 6.2 percent above a year ago (5.00 million)!

Existing-home sales in the South fell 6.6 percent to an annual rate of 2.14 million in August, but are still 5.9 percent above August 2014. The median price in the South was $196,300, up 6.0 percent from a year ago.

To read NAR’s complete news release, go HERE.


4. Working With Hispanic Clients

NAR’s online YPN Lounge features a new article by Erika Villegas (“Working With Hispanic Clients“) that offers excellent reasons why you should learn how to work with this expanding market.

She notes: “The 2014 State of Hispanic Home Ownership Report, published by the National Association of Hispanic Real Estate Professionals, finds that Hispanics will account for 55.5 percent of new home owners from 2010 to 2020.

You don’t speak Spanish? She assures you that speaking Spanish is not a necessity. Learning more about this market, though, probably is.

Her article is well worth reading.To do so, go HERE.


5. REMINDER: TAR Forms Updated

As of Sept. 21st, the TAR Purchase and Sale Agreements (Residential, New Construction and Lot/Land) and Notification forms have CHANGED due to the impending TRID regulations effective October 3rd. These forms will require members to use SPECIAL STIPULATIONS in cases where the loan application occurs before October 3, 2015.

The special stipulations verbiage can be referenced in form RF707, paragraphs #23, #24, #25, #26 and inserted into the following TAR forms:

RF401 – Purchase and Sale Agreement
RF403 – New Construction Purchase and Sale Agreement
RF404 – Lot / Land Purchase and Sale Agreement
RF656 – Notification Form

If you’re using TransactionDesk, you can insert these clauses into the Special Stipulations sections for each of these forms.


6. Upcoming Courses & Events!

Oct. 7: TransactionDesk Basic (3 hrs. CE) — TAR Office, Nashville. For more information or to register, go HERE.

Oct. 7: TransactionDesk Advanced (3 hrs. CE) — TAR Office, Nashville. For more information or to register, go HERE.

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: Listed Seller Advertising His Own Property?

QUESTION: I have a property listed. My Seller yesterday put it on Zillow, with no mention of the listing firm. He has it submitted by him, with his phone number. Can he do this?

ANSWER: This may be in violation of your listing agreement, especially if you have an exclusive right to sell listing agreement. Many such listing agreements contain language only permitting advertising to be done by the listing firm and/or that all communications regarding the listing must be conducted by the listing firm.

It all depends upon your listing agreement and what it permits or doesn’t permit.

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


8. HOT LINE: Competency of the Seller?

QUESTION: I represent the seller on a property. We have a binding contract. The seller has asserted that the stress of the sale has caused her to attempt suicide. The seller’s children want me to go ahead with the transaction, but I am hesitant to given the fact that she attempted suicide and some doubts about her mental capacity. How should I handle this situation?

ANSWER: Remember that the children cannot give legal instructions to you concerning the sale of the property unless they have a power of attorney or a conservator for their mother. If you have concerns about the competency of the mother, you should speak with the closing attorney.

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


9. HOT LINE: Marketing Agent’s Other Businesses?

QUESTION: I am a licensed Realtor and I also have a cabinet-painting business and I do home staging. I’ve heard that in some states there is a Conflict of Interest law that would prevent charging for these services for my own listings. What is or is not permitted in TN?

ANSWER: You may offer these services to your customers/clients as long as you follow certain requirements. Tenn. Code Ann. 62-13-403(7)(B) states that an agent may:

“Not recommend to any party to the transaction the use of services of another individual, organization or business entity in which the licensee has an interest or from the licensee may receive a referral fee or other compensation for the referral, and referrals to other licensees to provide real estate services under the Tennessee Real Estate Broker License Act of 1973, without timely disclosing to the party who receives the referral, the licensee’s interest in such referral or the fact that a referral fee may be received.

TAR provides form RF 307, the Referral for Service Disclosure, for this purpose.

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


10. USEFUL LINKS

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/technology-support/legal-ethics-hotline/

For CE classroom courses around the state, go to:†http://tnrealtors.com/education/

For online CE courses, go to:†http://tnrealtors.com/education/online-courses/

Tennessee Real Estate Commission: http://tn.gov/commerce/section/real-estate-commission