1-16-17 Vol.: 2017 Iss.: 2 • Brian Copeland, 2017 President • Phil Newman, TAR Digest Editor

  Get Early Bird rate for Spring Conference (3/27-28)

  What’s new with the Purchase and Sale Agreement?

  REALTOR® Force training spotlights RPAC investing

✔  Free office/individual training on NEW TransactionDesk

In the News
1. Be an Early Bird for Spring Conference
2. Remodeling on the Rise
3. Five Housing Market Trends for 2017
4. Key Dates for Tennessee REALTORS® 
Vote. Act. Invest.
5. REALTOR® Force: Invest in RPAC
Member Services
6. Free Training for TransactionDesk
7. How to Open an Office: Free Webinar

Legal & Ethics Hot Line
Changes to Purchase & Sale Agreement
8. Appraisal Lower than Purchase Price?
9. Copy of Inspection Reports?
10. Loan Denial Letter?

Key Links & Resources

1. Get Early Bird Rate for Spring Conference
Go HERE to register for our 2017 Spring Conference, March 27 & 28 at Franklin Marriott Cool Springs. This year’s event will feature 19 hours of CE** in three tracks featuring nationally renowned speakers. Our theme, Press Play, will focus on helping you roll the tape toward your fullest potential, pause for refreshment with your peers, rewindfrom outmoded approaches, fast forward to greater success, and go full screen to see more clearly what lies ahead. Save your spot! **pending TREC approval

2. Remodeling on the Rise
It’s no secret that renovations and remodels play a key role in Tennessee’s housing market. Nationwide, “remodeling spending is surging,” says Money magazine HERE. “It’s expected to jump by 8.3% in the second quarter of 2017, up from 5.7% growth in the same period in 2016,” according to the Joint Center for Housing Studies at Harvard University. “That’s partly because of buyers purchasing houses that need a little work, but also because of a projected increase in discretionary income…” Meanwhile, Remodeling magazine notes its Top 5 improvements for return on investment (% share of cost recovered at resale):
1. Garage door replacement (92%)
2. Entry door replacement (91%)
3. Minor kitchen remodel (83%)
4. Siding replacement (77%)
5. Deck addition (75%)

3. Five Housing Market Trends for 2017
Rising rates, more credit, an uptick in new construction, growing medium-sized cities, and an influx of foreign buyers are among trends that will shape U.S. housing in 2017, according to this article in Fortune“…in the wake of the real estate bubble, lending standards have remained tight, while the cautious builders who survived the crisis have been reluctant to dive headfirst into expanding their operations again. But there are signs that these trends are about to change.” Read more about the trends HERE.

4. Key TN Dates for 2017
Here’s a listing of important dates this year for our Tennessee REALTORS®. The dates are also posted at THIS LINK

5. REALTOR® Force: Invest in RPAC
Last Thursday, 94 volunteer leaders and staff from throughout Tennessee gathered in Nashville for REALTOR® Force: Heroes in Homeownership, a great day of learning and sharing ideas on the power of investing in RPAC (the REALTORS® Political Action Committee) and standing strong for the rights of property owners.

Big THANKS to all who made it such a high-impact event, led by Brian Copeland, our 2017 President; Cindy Hagan, 2017 Division 2 Vice President; Hagan Stone, 2017 NAR RPAC Trustees Fundraising Chair; our fantastic guest speakers; and every attendee.

To learn more about how you can invest in RPAC to help strengthen our industry, visit HERE or check with your local Association’s Governmental Affairs contact.

6. Office / Individual Training for NEW TransactionDesk
There’s no turning back. The OLD TransactionDesk interface is going BYE-BYE-BYE at the end of February. There’s time to learn the NEW version—and the training is FREE! Instanet Solutions, our TransactionDesk Vendor, offers free, live, interactive, hands-on webinars.

For individuals: Visit the online calendar HERE to select/submit a day and time that works for you. 

For the Office: Please contact Gregg Driscoll, Instanet Solutions Training Manager, at 800.668.8768 x841You can set up customized training for the agents in your office. It’s also FREE! Please take advantage now before Father Time creeps up (Feb. 28) and it’s too late. 

7. How to Open an Office: Free Webinar
If you hope/plan to open your own office at some point, this webinar is for YOU. Setting up a real estate company—and launching successfully—is tough. The Real Estate Technology Institute (RETI), a TAR partner, will offer this FREE webinar at 3 p.m. EDT / 2 p.m. CDT Wed., Jan. 18: “Setting Up a New Real Estate Brokerage and Being Profitable from Day 1”, led by industry veteran Warren Dow. Register HERE.

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

2017 Changes to the Purchase and Sale Agreement
A number of changes to the Purchase and Sale Agreement (PSA) took effect Jan. 1. (For a video explaining all 2017 updates, go HERE. For a PDF created to accompany the video, go HERE.) This week’s Q&As will help you navigate the purchase and sale agreement’s changes in your daily transactions.

8. Appraisal Lower Than Purchase Price?

Q: Now that buyers have two days to terminate the contract or waive the appraisal contingency if the appraisal comes in lower than the asking price, can buyers and sellers renegotiate a sales price instead of terminating or waiving the contingency, and what if two days is not enough time for a decision to be reached?
A:If the appraisal price comes in lower than the asking price, your buyers and sellers can renegotiate a sales price if they wish. This can be accomplished using the amendment to the PSA. The same amendment form can be used to extend the two-day timeframe if your clients need more time. Another option is to add more days before the contract is executed via the Special Stipulations portion.
The forms committee added the two-day timeframe to prevent a buyer from receiving the low appraisal, but then dragging their feet to make a decision on how to move forward. The timeframe is designed to give a deadline for action to be taken.

9. Copy of Inspection Reports?
Q: The 2017 PSA removes the line, “Buyer shall deliver to Seller or Seller’s representative, upon Seller’s request, a copy of all inspection reports” in the paragraph involving termination based on inspection. If the buyer is requesting repairs to be made, how will the seller know what to fix and whether the requests are legitimate?
If the buyer is requesting repairs or replacements pursuant to the inspection report, the 2017 PSA provides that, “Seller shall have the right to request any supporting documentation that substantiates any item listed.” Therefore, before your seller invests any money in repairs, they have the right to see supporting documentation.

The line stating that buyer shall deliver to seller a copy of all inspection reports to terminate the agreement was deleted to protect both buyers and sellers. Sellers may not wish to see a copy of the complete inspection report, as it may find defects in their house of which they were not aware. Further, it adds a burden on the listing agent to disclose any adverse facts of which the listing agent is made aware through receipt of the inspection report, especially if the seller does not disclose. Buyers have purchased the inspection reports for their use, and it may be in their contract with the home inspector that the report is not to be shared with others. If sending documentation to support your repair request, it is recommended that only the pertinent parts are pulled from the inspection report, and that the complete inspection report is not sent or requested.

10. Loan Denial Letter?

Q: Now that a loan denial letter is no longer required to be sent if a buyer terminates the agreement based on the inability to receive a loan, how will the seller know the buyer is being honest when saying they are unable to receive financing?
The 2017 PSA states, “Seller shall have the right to request any supporting documentation regarding loan denial.” This can be accomplished using the notification form and checking box 16 under notification from seller to buyer, “This is Seller’s written demand for Buyer to provide supporting documentation regarding loan denial.” A loan denial letter is not always available to buyers who are unable to receive financing for varying reasons, one being that not all lenders provide them. By requesting supporting documentation instead of a loan denial letter, your seller is more likely to obtain such documentation from the buyer.

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 questiontarnet.com/technology-support/legal-ethics-hotline/
TREC: tn.gov/commerce/section/real-estate-commission
TAR website: tarnet.com
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