10-10-16 Vol.: 2016 Iss.: 37 • Randy Durham, 2016 President • Phil Newman, TAR Digest Editor

TAR TAKEAWAYS
✔  Are you registered to vote? Deadline is tomorrow, Oct. 11!
✔  How to (and not to) designate an agent
✔  Grab your handy
Manual of Tennessee Real Estate
✔  Is the home-appraiser shortage affecting your clients?

CONTENTS

In the News
1. Facing an Appraiser Shortage
2. Last Call: Gov.’s Housing Conference
Member Services
3. Membership on the Rise
4. RETI Webinar: Online Newbies
Vote. Act. Invest.
5. Register to Vote by **TOMORROW**
Professional Development
6. TN Law at Your Fingertips
7. TransactionDesk Classes Oct. 18
Legal & Ethics Hot Line
Do’s and Dont’s of Designated Agency
8. Broker, Agent Roles Within Firm?
9. Flip from Listing Agent to Buyer’s Rep?
10. Form to Change Designated Agents?
Key Links & Resources

1. Facing an Appraiser Shortage
“…there just aren’t enough qualified home appraisers to go around, and it’s causing delays among home buyers eager to close their deals,” says THIS realtor.com post. “According to a new study by Campbell/Inside Mortgage Finance, the percentage of on-time closings has dropped over the past six months, from 77% in April to 64% today. Appraisal-related holdups jumped 50% in this time period, so it’s quite clear they’re the bottleneck.” Get the scoop—along with insights to help your clients navigate today’s appraisal environment— HERE.

2. Last Call: Governor’s Housing Conference 10/12-13

There’s still time to benefit from this week’s THDA Governor’s Housing Conference, Wednesday andThursday at Music City Center in Nashville. Five hours of TREC-approved CE are part of the line-up.

Online registration is closed, but on-site registration (for one or both days) is an option. Get the details HERE and sign up at the event.

3. Membership on the Rise
Continuing a steady upward curve, membership in the Tennessee Association of REALTORS® recently surpassed 24,000 for the first time since the economic downturn in 2008 and reached 24,222 at the end of September, up 10 percent from a year earlier. This is one sign among many of Tennessee’s growing economy and “it” status for those seeking to relocate or move up in the market. To those of us who work to be the Voice for Real Estate in Tennessee and to serve our members with tools and resources for success, the growth simply means an opportunity to do that for even more of you. Visit HERE for a menu of member services (login required).

4. Free RETI Webinar: Online Newbies
Being new to real estate is challenging, and establishing your online presence can feel overwhelming. Amy Smythe-Harris and Craig Grant of the Real Estate Technology Institute (RETI), a TAR partner, will offer a FREE webinar at 3 p.m. EDT/2 p.m. CDT this Wed., Oct. 12: “Ten Things All Online Newcomers Should Do!” Register HERE.

5. Register by **TOMORROW** to Vote in Nov. Election
Part of our Association’s mission is to increase participation and influence in the political process to protect your business interests as REALTORS®. One major form of political participation is VOTING. But to vote, you must be registered. The 2016 General Election is coming up Nov. 8, with Early Voting Oct. 19-Nov. 3. The deadline to register is tomorrow, Tuesday, Oct. 11. Registering is easy, and exercising your right in the process is vital. Learn more at THIS LINK.

6. TN Real Estate Law at Your Fingertips
If you haven’t yet bought your copy of The Manual of Tennessee Real Estate, you’re missing out on a handy resource. This portable reference of the laws and rules governing Tennessee real estate is a must-have. Published by LexisNexis in cooperation with TAR, it contains helpful information for both real estate and legal practitioners: ready access to Features At-A-Glance Annotated statutes; Revised Administrative Rules of Tennessee pertaining to real estate; and a Frequently Asked Questions section. Order your copy for $35 (print) or $30 (eBook) HERE.

7. TransactionDesk BASIC and ADVANCED: Tues., Oct. 18
Reminder: With a NEW version of TransactionDesk right around the corner, now is an ideal time to sharpen your skills to make transitioning to the new version—expected during the first quarter of 2017—smooth and seamless. Join us at TAR in Nashville on Tuesday, Oct. 18, for TransactionDesk BASIC (9 a.m. to Noon) and/or ADVANCED (1-4 p.m.). Register for BASIC HERE. Register for ADVANCED HERE.

Legal & Ethics Hot Line

Source: TAR Legal & Ethics Hot Line Counsel

The Do’s and Dont’s of Designated Agency
Of the different agency types practiced in Tennessee, one of the most common is designated agency, which occurs when a listing agreement is signed with a seller, and the principal broker appoints one agent to represent that seller to the exclusion of all other agents in the office. See Tenn. Code Ann. § 62-13-102(7). Below are some scenarios to help you navigate issues that may arise when practicing designated agency.

8. Broker, Agent Roles Within Firm?

QUESTION: As the managing principal broker, can I be the designated listing agent and have another agent in my office be the designated buyer’s agent on my listing?
 
ANSWER: Yes, the principal broker may be the designated agent for one side of the transaction, while another agent in the firm is designated agent for the other side. The beauty of designated agency is that it is almost like an insurance policy against dual agency. In a designated agency office, the principal broker can assign different agents to represent the buyer and seller. This prevents dual agency under the Broker’s Act. Tenn. Code Ann. § 62-13-102(7) defines a designated agent as “a licensee who has been chosen by such licensee’s managing broker to serve as the agent of an actual or prospective party to a transaction, to the exclusion of other licensees employed by or affiliated with such broker.” Tenn. Code Ann. § 62-13-406 states:
 
(a) A licensee entering into a written agreement to represent any party in the buying, selling, exchanging, renting or leasing of real estate may be appointed as the designated and individual agent of this party by the licensee’s managing broker, to the exclusion of all other licensees employed by or affiliated with such managing broker. A managing broker providing services under the provisions of the Tennessee Real Estate Broker License Act of 1973 shall not be considered a dual agent if any individual licensee so appointed as designated agent in a transaction, by specific appointment or by written company policy, does not represent interests of any other party to the same transaction.
 
(b) The use of a designated agency does not abolish or diminish the managing broker’s contractual rights to any listing or advertising agreement between the firm and a property owner, nor does this section lessen the managing broker’s responsibilities to ensure that all licensees affiliated with or employed by such broker conduct business in accordance with appropriate laws, rules and regulations.
 
(c) There shall be no imputation of knowledge or information among or between clients, managing broker and any designated agent(s) in a designated agency situation.

9. Flip from Listing Agent to Buyer’s Rep?

QUESTION: I have a property co-listed with another agent. A buyer is interested in making an offer, but would like to be represented. Can I flip over from the listing side and represent the buyer?

ANSWER: No, this is not advisable. Because you have the property co-listed with the other agent, you are privy to confidential information on that seller. Therefore, it would be a conflict of interest for you to become the buyer’s designated agent. The two of you could default to a facilitator position, or the buyer could enter into a buyer’s rep agreement with the firm, and a third agent could be appointed designated agent for the buyer, while you and your co-lister remain the agents for the seller.

10. Form to Change Designated Agents?

QUESTION: Which form is needed when changing Designated Agent from one agent to another within the same company?
 
ANSWER: TAR form RF141, the exclusive buyer representation agreement, speaks to the appointment of subsequent designated agent: “…buyer hereby authorizes the Managing Broker, if necessary, to appoint a licensee, other than the licensee named above, as Designated Agent for the Buyer, to the exclusion of any other licensees associated with Broker. This shall be accomplished through an amendment to this Agreement, if necessary.” To accomplish this, simply fill out an amendment to the listing agreement and write in the new agent as the designated agent. You may use form RF601.

KEY LINKS & RESOURCES
To check your CE hoursverify.tn.gov/default.aspx
For CE and other courses around TN: tarnet.com/education/
For online CE coursestarnet.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 Twittertwitter.com/tnaor
TAR on LinkedInlinkedin.com/groups?gid=852077&trk=hb_side_g
TAR on Facebookfacebook.com/pages/Nashville-TN/Tennessee-Association-of-RealtorsR/15041383689

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