9-19-16 Vol.: 2016 Iss.: 34 • Randy Durham, 2016 President • Phil Newman, TAR Digest Editor

TAR TAKEAWAYS
Gaughan, Turner, Bynum honored with 2016 awards
New 2017 officers installed 
Get CRM ideas on a free RETI webinar
Tips for navigating agency relationships
 
CONTENTS

In the News
1. REALTO
R® of the Year:
Mike Gaughan
2. Educator of the Year: Sue Turner
3. Presidential Award: Alex Bynum
4. 2017 Officers Installed
5. Convention Survey on the Way
Member Services
6. RETI Webinar: RealtyJuggler
Professional Development
7. Get Speaker Handouts on Yapp
Legal & Ethics Hot Line
Agency Relationships
8. Agency Agreement vs. Confirmation of Agency?

9. Agency Disclosure in Commercial Transactions?
10. Limited Services Listings?
Key Links & Resources


 

1. REALTOR® of the Year: Mike Gaughan
Mike Gaughan, owner of RE/MAX Choice Properties of Hendersonville, is our 2016 REALTOR® of the Year. He received the award from Jewell McKinney (photo at left) at our Fall Convention. A veteran of 33 years in real estate, Mike has held numerous leadership positions at the local, state and national levels, including President of TAR in 2008, Region 4 Vice President for the National Association of REALTORS®, and President of the Sumner Association of REALTORS® (1992). He also is a member of the Greater Nashville Association of REALTORS® (GNAR). “My involvement over the years and opportunities to lead our state association have been an honor and a pleasure,” Gaughan said. “I have been and continue to be passionate about the work our local, state and national associations do to help our REALTOR® family and also give back to our communities.”

2. Educator of the Year: Sue Turner
Our 2016 Tennessee REALTOR® Educator of the Year is Sue Turner of Crye-Leike Realtors in Memphis. On behalf of our association and the Tennessee Real Estate Education Foundation (TREEF), this prestigious award is presented each year to an individual who has made an outstanding contribution to the education of REALTORS® and given generously of their time and talent to better our industry. Sue is a tireless champion of education who holds numerous professional designations. Her longstanding service to TAR includes Division Vice President, Secretary-Treasurer, President-Elect, and President. She received the award from BJ Swinehart (photo at right) at the Convention.
 
3. Presidential Award: Alex Bynum
Alex Bynum of Dresden, principal broker and partner with Wendell Alexander Realty, is the recipient of our 2016 Presidential Award. A unique and distinctive honor, the award was presented by 2016 President Randy Durham in recognition of Bynum’s service, assistance and overall contributions (photo at left). “Alex is an outstanding young leader who has made a tremendous positive difference to our REALTOR® members throughout Tennessee,” Durham said. “Since he became involved in our association several years ago, Alex’s energetic leadership, strong character and servant-hearted approach have made him a highly valued volunteer and a joy to work in every respect.”

4. 2017 Officers Installed
The association’s new officers for 2017 were installed Friday in Charleston. Congratulations to Brian Copeland of Nashville, President; Leon Dickson Sr. of Memphis, President-Elect; Kathy Tucker of Chattanooga, Secretary-Treasurer; Regina Hubbard of Memphis, Division 1 Vice President (West TN); Cindy Stanton of Nashville, Division 2 Vice President (Middle TN); and Robert Bradney of Cleveland, Division 3 Vice President (East TN). These outstanding leaders will join current Division VPs Brian Williams of Lexington (Division 1), Kathy Dunn of Cookeville (Division 2) and Travis Close of Chattanooga (Division 3), along with Randy Durham of Chattanooga, Immediate Past President, to compose the 2017 Executive Committee of the Association’s Board of Directors. Photo above right (L. to R.): New 2017 officers Regina Hubbard, Cindy Stanton, Leon Dickson Sr., Kathy Tucker and Robert Bradney. Photo above left: 2017 President Brian Copeland (right) receives the presidential pin from 2016 President Randy Durham.

5. Convention Survey on the Way
If you attended Fall Convention in Charleston, look for a separate email with a link to a survey, and please take a few minutes to share your thoughts—what you loved, what could have been better, and ideas to make future events even more beneficial and memorable.
 

6. Free RETI Webinar: RealtyJuggler
The Real Estate Technology Institute (RETI), a TAR partner, is offering a FREE webinar at 3 p.m. EDT/2 p.m. CDT this Wed., Sept. 21. “Why Every Agent Needs a CRM with RealtyJuggler,” led by Juanita McDowell, will explore a low-cost CRM solution. Register HERE.

7. Get Speaker Handouts on Yapp
Whether or not you attended Fall Convention, you can benefit from the speaker handouts posted on our Yapp event app for several CE sessions. If you have the app, click the Speaker Handouts icon for files to view/download. If you don’t have Yapp, download it from your device’s app store, select add an event, enter GREATBLUE as the ID code, and navigate to the Speaker Handouts tab.

Legal & Ethics Hot Line Source: TAR Legal & Ethics Hot Line Counsel

Agency Relationships
The Broker’s Act sets out the duties owed by a licensee to their clients and mandates when agency relationships must be documented and disclosed. All necessary disclosures and other helpful documents are available in TAR’slibrary of forms(member login required). This week we explore the difference between a confirmation of agency form and a buyer’s rep agreement, how to properly disclose agency relationships in commercial transactions, and which documents are needed in a limited-services listing.

8. Agency Agreement vs. Confirmation of Agency?

QUESTION: If my buyer refuses to sign the buyer’s rep agreement, can’t we just use the confirmation of agency to show that we represent them?
 
ANSWER: The confirmation of agency status form is an agency DISCLOSURE. It does not act as an agency AGREEMENT. The confirmation of agency status form is intended for use when disclosing your agency status, or if your agency status changes. The form is not a substitute for a buyer’s rep agreement. It is strongly recommend that you use one of the four forms available from TAR for buyer’s rep agreements.

Tennessee law does not require a buyer to fill out a buyer’s rep agreement; however, such agreements protect both the buyer and the firm. If an agent represents a party (as indicated by an agency agreement), they owe the buyer the duties contained in Tenn. Code Ann. § 62-13-404. The firm also is protected should the buyer decide to “cut out” the agent at the last minute. Buyer’s rep agreements generally require that the firm be paid no matter who assists the buyer in finding the home, and even if they have no assistance. It additionally requires that if there is no offer of compensation, or less than what is agreed to in the buyer’s rep agreement, then the buyer must pay the difference.

9. Agency Disclosure in Commercial Transaction?

QUESTION: With regard to agency disclosure for a commercial transaction, which forms are required?

ANSWER: Agency disclosure is NOT required for commercial agents or for leases under Tennessee law. (See Tenn. Code Ann. § 62-13-405.) However, confusion can occur when you factor in the NAR Code of Ethics, to which you are bound as a REALTOR®. Standard of Practice 16-10:
 
Realtors®, acting as buyer or tenant representatives or brokers, shall disclose that relationship to the seller/landlord’s representative or broker at first contact and shall provide written confirmation of that disclosure to the seller/landlord’s representative or broker not later than execution of a purchase agreement or lease.
 
Pursuant to Standard of Practice 16-12:
 
Realtors®, acting as representatives or brokers of sellers/landlords or as subagents of listing brokers, shall disclose that relationship to buyers/tenants as soon as practicable and shall provide written confirmation of such disclosure to buyers/tenants not later than the execution of any purchase or lease agreement.
 
According to the Code of Ethics, as a REALTOR® you must provide written confirmation of your agency status not later than the execution of any purchase or lease agreement. This information is contained in the TAR Commercial Purchase and Sale Agreement, under agency disclosure in paragraph 12 B. of the 2016 Commercial Purchase and Sale Agreement; in paragraph 24 B. of the Commercial Lease Agreement, single tenant; and in paragraph 26 B. of the Commercial Lease Agreement, multi tenant.

10. Limited Services Listing?

QUESTION: If I wish to provide limited services, do I need to execute a listing agreement?
 
ANSWER: A limited-services listing still requires a listing agreement and an agency relationship with the seller—it is just a limited one. Tenn. Code Ann. § 62-13-404 contains the duties owed to a licensee’s client (an agency relationship has been established):
 
Any licensee who acts as an agent in a transaction regulated by the Tennessee Real Estate Broker License Act of 1973 owes to such licensee’s client in that transaction the following duties, to:
 
(1) Obey all lawful instructions of the client when such instructions are within the scope of the agency agreement between licensee and licensee’s client;
 
(2) Be loyal to the interests of the client. A licensee must place the interests of the client before all others in negotiation of a transaction and in other activities, except where such loyalty duty would violate licensee’s duties to a customer under § 62-13-402 or a licensee’s duties to another client in a dual agency; and
 
(3)(A) Unless the following duties are specifically and individually waived, in writing by a client, a licensee shall assist the client by:
 
(i) Scheduling all property showings on behalf of the client;
 
(ii) Receiving all offers and counter offers and forwarding them promptly to the client;
 
(iii) Answering any questions that the client may have in negotiation of a successful purchase agreement within the scope of the licensee’s expertise; and
 
(iv) Advising the client as to whatever forms, procedures and steps are needed after execution of the purchase agreement for a successful closing of the transaction.
 
(B) Upon waiver of any of the duties in subdivision (3)(A), a consumer shall be advised in writing by the consumer’s agent that the consumer may not expect or seek assistance from any other licensees in the transaction for the performance of the duties in subdivision (3)(A).
 
Section (3) is referred to as the Minimum Services law. This means that agency is established, but an agent and client can agree to waive those services as long as they are done properly. However, a Confirmation of Agency Status form should be signed by both the agent and the client to disclose the agency relationship.

KEY LINKS & RESOURCES
To check your CE hours: verify.tn.gov/default.aspx
For CE and other courses around TN: tarnet.com/education/
For online CE courses: tarnet.com/education/?target=online-CE-courses/
To ask a TAR Legal and Ethics Hot Line question: tarnet.com/technology-support/legal-ethics-hotline/
TREC: tn.gov/commerce/section/real-estate-commission
TAR website: tarnet.com
TAR on Twitter: twitter.com/tnaor
TAR on LinkedIn: linkedin.com/groups?gid=852077&trk=hb_side_g
TAR on Facebook: facebook.com/pages/Nashville-TN/Tennessee-Association-of-RealtorsR/15041383689

Follow TAR on Twitter or Like our page on Facebook.