5-2-16 — Vol.: 2016 Iss.: 17 • Randy Durham, 2016 President • Phil Newman, TAR Digest Editor
TAR TAKEAWAYS ✔ Are you taking simple steps to keep your brain young? ✔ Why TREC’s Bobby Wood is the ultimate good sport ✔ What to do with the Trust Money ✔ Get equipped to help clients going through a divorce
1. Five Keys to a Youthful Brain “Senior Moments” at any age might seem funny at times, but they’re no joke if they affect our daily activities, especially as busy real estate professionals juggling multiple details, priorities and to-do lists. This article from PrimalSource News shares insights on five common-sense ways to keep our brains active and minimize mental declin as we grow older. Cheat sheet to the author’s five key points:
1. Stay Mentally Active 2. Exercise 3. Clean Up Your Diet 4. Improve Your Blood Pressure 5. Improve Your Blood Sugar
2. From Homeless to Homeowner This inspiring news story out of Middle Tennessee focuses on the journey of Mario Martinez, a formerly homeless man who has been taking steps to overcome his financial struggles; and Brian Kemp, the Nashville-area REALTOR® who has recently helped Mario to realize his dream of homeownership. Read and/or watch the uplifting WKRN-News 2 story at this link.
*Reminder: TREC will hold its May session in Jackson this Thurs. 5/5. For the full calendar, click here.
3. TREC Stars: Bobby Wood Our profiles of the Tennessee Real Estate Commission (TREC) continue with Bobby Wood of Mt. Juliet.
If one word could sum up Nashville-area REALTOR®, broker, instructor and Tennessee Real Estate Commission (TREC) member Bobby Wood, it would have to be: sports.
Not playing sports—although he was a soccer-team member and baseball standout at Nashville’s Dupont High School with designs on joining Vanderbilt’s squad until he arrived on campus and realized, “I’m good; these guys are REALLY good”; at age 55, he still plays competitive softball.
Not watching sports—although he is a passionate Tennessee Titans fan (an original PSL/season-ticket holder) and Vandy backer who even proposed to his sweetheart, Mary Kay, via the Jumbotron at a Commodores men’s basketball game on Valentine’s Day 1990; the pair had met at a church softball game and gone waterskiing on their first date.
But what really quickens Wood’s pulse is coaching sports—and he has discovered striking similarities between guiding young athletes and helping aspiring real estate professionals.
“I’ve been a ball coach my whole life,” says Wood, whose firm, RE/MAX Carriage House, is based in Mt. Juliet. “I coached my kids in all different sports at the YMCA, church, USTA team tennis, baseball, softball, basketball and soccer. We won a state championship one year in tennis. I like the teaching part of it. That’s what youth sports are about.”
As a broker and real estate instructor, Wood sees “a lot of parallels with sports. Teaching contracts, or helping new agents get started, is no different from teaching a kid how to catch a baseball. You begin with the basics and build them up to the point where they can perform on the field, or in the real estate world.”
Several of Wood’s former players now compete in collegiate tennis—including his own son, Trey, a freshman at Covenant College on Lookout Mountain; daughter Kelsie, also accomplished in tennis, is a senior studying chemistry at Union University in Jackson. Likewise, a number of REALTORS® Wood has taught or mentored are now thriving professionally. “I feel like they’re ‘mine’ just as much as the athletes are,” he says.
A father’s business influence Wood earned an undergraduate degree in economics and political science at Vanderbilt and then an MBA at Vandy’s Owen School of Business.
It was at college that he first realized he might have a Southern accent. “I would give tours on campus, and people would say, ‘Where are you from?’ I would say, ‘Right here.’ And they would kid me about the way I talked or say, ‘That’s so cute, say something else.’ Of course, they had accents from their hometowns, but they didn’t realize it either.”
After graduating, Wood stepped into his father’s employee-leasing service as “kind of his computer guy” in the era of huge mainframes. His dad, Robert Wood, Sr., also worked in homebuilding and development, a connection that helped to steer Bobby into real estate.
Licensed in 1986, Wood “primarily did new construction, because that’s what we were focused on rather than resales. I came to it naturally. My dad was a good salesperson and a great teacher.” (His father and mother both passed away several years ago).
Wood began instructing when Eastern Middle Tennessee (EMTAR) Executive Karen Lowe asked him to fill a vacancy for an orientation class. “She saw something in me that I didn’t, because she kind of pushed me. From there it was a progression. I got a lot of encouragement from Karen and from [former TAR education director] Pug Scoville.” Eventually Wood was honored as Tennessee’s Educator of the Year in real estate.
The self-proclaimed introvert comes alive in the classroom. “I really like teaching; that’s the fun part of this whole thing,” he says. “My wife laughs at me, saying the students don’t realize I’m actually quiet everywhere else. Teaching just feels natural, like a calling.”
‘REALTOR®-friendly’ TREC One of three newbies on the Commission, appointed to a five-year term in 2015 by Gov. Bill Haslam, Wood says he appreciates his peers’ depth of expertise. While TREC’s primary purpose is to protect consumers, “in all of my years in real estate, I don’t think the Commission has ever been as REALTOR®-friendly as it is now,” he says. “The REALTORS® [on TREC] all believe that being one is a good thing. That hasn’t always been the case.”
Wood seeks to bring a thorough focus to each issue. “Being a managing broker makes you look at every piece of information and gather all of the details before making a decision.”
For licensees, Wood would like to see TREC address “overall efficiency, and maybe simplifying the process. I really think [new Executive Director] Malcolm Young is going to do that. I am so impressed with him. He has gotten a quick grasp of what’s important. We’re all really going to like what he helps us accomplish.”
The Proposal Reflecting on that Vanderbilt game where he popped the question to Mary Kay, Wood considers it the toughest deal he has ever closed. “My best sales job was convincing her to go to a basketball game on Valentine’s Day,” he says. “She went, but not willingly at first. It didn’t seem very romantic.”
When Memorial Gym’s Jumbotron scrolled the words, Mary Kay, will you marry me? Bobby wants an answer, it took a minute for her to realize the message was for her. After she said yes, Wood ran up to the press box to tell the scoreboard operator, who updated the cheering crowd via the big screen. The game was on regional TV, and Wood’s grandparents, watching at home, thought they heard their grandson’s proposal mentioned.
“Do you think that’s our Bobby?!” his grandmother asked.
His grandfather scoffed. “Nah, he wouldn’t do nothing like that.”
But oh yes, he had. For Wood, it was yet another pivotal sports-related moment. Game, set, and lifelong match—the future tennis coach had won at love.
For more about Bobby Wood, click here. For more about TREC, click here.
4. REMINDER: Tax-$aving Webinar Tomorrow 5/3
Learn how to keep more of your hard-earned cash in afree one-hour webinarfrom Taxbot, a TAR preferred vendor, at 10 a.m. CDT on Tuesday, May 3. Led by attorney, CPA and tax-reduction expert Sandy Botkin, the webinar is geared toward self-employed individuals and will cover:
How to deduct meals and entertainment
Why hiring your kids or spouse could save you big $
How to legally deduct your home office
How to get the equivalent of free gas for your vehicle
How to easily track mileage and other expenses to stay tax compliant
5.TransactionDesk Tip: Digital Signing Certificate We periodically share tips to help you navigate TransactionDesk, including step-by-step tutorials featuring our own Buzz Steele, RCE. This week: How to Create a Digital Certificate in Authentisign What if your lender asks you for the DIGITAL SIGNING CERTIFICATE so they can verify proof that this was a legitimate electronic signing that met the state and federal requirements of the eSign Act? Obtaining the certificate is easy; this screencast shows you how.
6. RCS-D Focuses on Divorce, Elder Care TAR is hosting an opportunity for you to become better equipped in helping clients navigate seasons of life that can be painful and challenging. The RCS-D designation course (Real Estate Collaboration Specialist–Divorce), June 20 and 21 at TAR, will help you learn to work with divorce and elder-care clients, and their attorneys, throughout the property buying and/or selling process. To learn more and register, visit this link(login required).
7. Get Your TN Real Estate Manual It’s vital to have the latest laws and rules at our fingertips. To help with that, Tennessee licensees may purchase The Manual of Tennessee Real Estate—2016 Edition, featuring Tennessee Code Annotated and 2015 Supplement. This hard-copy manual is the first printed version in seven years. TREEF, the education arm of TAR, partnered with LexisNexis to make the manuals possible in print ($31.50) and e-book ($27) formats. **Shipping is free** to TAR members; enter promo code 2016TAR at checkout. The cost will rise to $35 print and $30 e-book June 1, so act soon. To order, visit this link. Note: This manual is not affiliated with TREC or the State of Tennessee; it was brought to our members and the public as a service. We hope to offer an updated printed edition every two years.
Source: TAR Legal & Ethics Hot Line Attorneys
8. Amend (or Replace) P&S Agreement to Change the Buyer?
QUESTION: A real estate buyer has a contract for a piece of land, but the mobile-home dealer has decided to do a package deal and buy the land. As a REALTOR®, do I need to write an Amendment to the Purchase and Sale (RF653) to change the buyer, or does a new Purchase and Sale Agreement (RF401) need to be written?
ANSWER: This can be handled in several ways. If all the parties are agreeable, it may be simplest to execute a new contract between the mobile-home dealer and the seller of the land. This way the mobile-home dealer can purchase the land and then execute a separate contract for the sale of the land plus the mobile home. You would then terminate the contract between the buyer and the seller of the vacant land. The other option would be to amend the contract so that the buyer is the mobile-home dealer. In that situation, it would be necessary to have the original buyer, seller and mobile-home dealership sign the amendment.
9. What to Do with the Trust Money?
QUESTION: If a REALTOR® writes up a contract and receives the trust money, should they: 1) Stick it in a safe location until they have an accepted contract? 2) Hand it to their broker to stick in a secure location until they have an accepted contract? 3) Have the broker deposit it upon receipt and return it if the contract is not accepted? 4) Collect the check after there is an accepted contract within days, as specified in the contract?
ANSWER: TAR’s recommendation is option 4. REALTORS® are required to turn over the trust money immediately upon receipt. TREC Rule 1260-2-.09 includes: -(2) Each principal broker shall maintain a separate escrow or trustee account for the purpose of holding any trust money which may be received in his fiduciary capacity. -(3) An affiliated broker shall pay over to the principal broker with whom he is affiliated all trust money immediately upon receipt. -(11) Trust money shall be deposited into an escrow or trustee account promptly upon acceptance of the offer unless the offer contains a statement such as “Trust money to be deposited by:”. Therefore, TAR would recommend that agents only collect the trust money at the time that the offer has been accepted.
10. Disclosure Exception for Non-Resident Sellers?
QUESTION: I have a seller who has not resided in the listed property for two years, as the property had been rented. The seller has not lived outside of the property for three full years, and does not technically qualify for the Property Disclosure Exemption (RF203), yet he cannot truly vouch for the condition of the property. Is there any use of the exemption form with either notation or addendum to notify prospective buyers?
ANSWER:The exemption referenced is only for those sellers who have not lived in the home in the previous three years. There is no special “exception” which can make two years sufficient. If the seller is not comfortable completing the disclosure, then he can complete the Disclaimer form (RF 204). This is the form that you use when the seller wants to sell the property “as is”. The seller is stating that he is not going to make repairs and is not disclosing anything. However, in these circumstances, the buyer MUST agree to this disclaimer. If not, then the Condition Disclosure form must be completed if the sale is to proceed. If the buyer agrees to accept the disclaimer, the seller is not obligated to present the disclosure statement (and the buyer does not have to sign it). In this situation, you can explain to a buyer that the seller has not lived in the property for two years and is not certain how accurate a disclosure would be. This may make them more agreeable to accept the disclaimer, especially if they understand that they can make whatever inspections they wish and can terminate the contract if they are not happy with the outcome of the inspections.