✔ *NAR Call for Action is in full swing: respond HERE!*
✔ Foreclosed “boomerang buyers” back in the market
✔ Hotline: Legal pitfalls to avoid on social media —->
✔ A ringing endorsement for TransactionDesk classes
Call for Action: Take a Moment, Make Your Voice Heard!
A Call for Action (CFA) from NAR to save the National Flood Insurance Program (NFIP) is under way. Click HERE to respond to the CFA now!
Need motivation to act? Watch Nashville flood survivor and Tennessee REALTOR® Hagan Stone share his family’s harrowing story (left). (To be sure you receive notice of future CFAs, sign up for REALTOR® Party Mobile Alerts. Text REALTORS to 30644 or fill in the form HERE.)
After the Crisis: ‘Boomerang Buyers’ Returning to Market
“Remember all those people who defaulted on their homes during the last housing crisis?” writes Jaymi Naciri in Realty Times. “Well, those bankruptcies are about to be discharged, or they already have been, and that means we could soon see an avalanche of homebuyers hitting the market.” So far, the return has been more gradual than expected—”Of the 4.4 million owner-occupied foreclosures completed since 2000, 1 million foreclosed homeowners have returned”—but it’s a trend to keep an eye on. Read the full story HERE.
of Purchase and Sale Agreement*
This Agreement IS CONTINGENT upon the appraised value either equaling or exceeding the agreed
upon Purchase Price. If the appraised value is equal to or exceeds Purchase Price, this contingency is satisfied. In consideration of Buyer having conducted an appraisal, the sufficiency of such consideration being hereby acknowledged, if the appraised value of the Property does not equal or exceed the Purchase Price,
Buyer shall terminate this Agreement or waive appraisal contingency via the Notification form or equivalent written notice within two (2) days following Buyer’s receipt of Appraisal; Buyer shall promptly notify the Seller via the notification form or written equivalent notice. Buyer shall then have 3 days to either:
- waive the appraisal contingency via the notification form or equivalent written notice
- terminate the agreement by giving notice to seller via the notification form or equivalent written notice. Upon timely termination, Buyer is entitled to a refund of the Earnest money.
iIn the event Buyer fails to do so to either waive the appraisal or terminate the agreement as set forth above, this contingency is deemed satisfied. Thereafter, failure to appraise shall not be used as the basis for loan denial or termination of contract. Seller shall have the right to request any supporting documentation showing appraised value did not equal or exceed the agreed upon purchase price. Upon timely termination, Buyer is entitled to refund of the Earnest Money/Trust Money.
In the new version, the Buyer shall promptly notify the Seller if the appraised value of the Property does not equal or exceed the purchase price. After notification, the Buyer has 3 days to either waive the appraisal contingency or terminate the agreement. This language will still allow Buyers and Sellers to negotiate a new purchase price and execute an amendment to the contract within those 3 days if the parties wish to do so.
This is a change from the current requirement that the Buyer must terminate the agreement or waive the contingency within 2 days following Buyer’s receipt of an appraisal where the value does not equal or exceed the purchase price.
This change appears in the Residential Purchase and Sale Agreement (RF401), The Lot/ Land Purchase and Sale Agreement (RF404), and the New Construction Purchase and Sale Agreement (RF403). In addition, the Notification form (RF656) and the Purchase and Sale Agreement Timeline Checklist (RF708) have been edited in support of the P&S Agreement.
If you have any questions regarding the changes, please contact our Legal and Ethics Hotline at 800-899-5297.
*LAST FEW DAYS* to Register In Advance!
The Sept. 1 advance-registration deadline is upon us. Scroll down OR watch the preview video starring 2017 President-Elect Leon Dickson Sr. OR register HERE. **Be sure to buy your tickets to the Inspirational Breakfast and the Main Event when you register! The Kickoff party at BB King’s is included with registration.**
New Leads/Listings via ‘Farming’ — Webinar Wed. 8/23
Real estate is a hyper-local business; does ‘farming’ still work to cultivate leads and listings right in your backyard? It can, says Smartzip’s Ryan Beard. Hear his insights in a free webinar from the Real Estate Technology Institute (RETI), a Tennessee REALTORS® partner, 3 p.m. EDT/2 p.m. CDT this Wed. 8/30. Register HERE.
Committee Nominations: ByAug. 31!
Are you ready to serve in statewide leadership? Apply for a 2018 Tennessee REALTORS®committee, RPAC Trustee or TREEF Trustee position. You MUST apply by 8/31! Committee & RPAC trustee: HERE. TREEF trustee: HERE. (login required)
Your Peers are Glowing About Brent’s CE Classes…
“Both REAL and entertaining…exciting from beginning to end…you taught through the eyes of a REALTOR®…so glad I took the full day!”
— Ginger Coggins, Collierville
Get in on it! Wed., Oct. 11
With TransactionDesk “in the cloud” you can access and manage your real estate forms, contracts, documents and more from any computer with web access—and always have your “virtual” office with you. Bring your laptop and/or smart device!
You’ve worked with TransactionDesk…now take it to a higher level with the integrated cloud service (DocBox), E-signatures (AuthentiSign), and E-faxing (InstaFax), to walk away with a complete transaction-
For more upcoming classes, log in to the portal HERE and look around.
Source: Tennessee REALTORS® Legal & Ethics Hotline Counsel
Legal Risks of Social Media
Social media is a great tool for REALTORS® to promote your services and engage with peers. However, there are some legal risks to posting certain things on social media, including those in this week’s Q&As below. Before posting anything on social media, make sure you are familiar with the REALTOR®Code of Ethics and be conscious of the Standards of Practice when posting.
Disclosing a Paid Endorsement?
Q: Can I post a glowing endorsement of a maid service on my social media pages and get paid for it?
A: Yes, if you post it properly. The U.S. Federal Trade Commission is tasked with protecting consumers from unfair and deceptive practices and requires the disclosure of payment for endorsements. If you post a review of a business and that business is paying you to do so, either with money or free services, you must disclose this fact. Include a simple disclaimer with your endorsement.
Ganging Up on Another REALTOR®?
Q: There are licensees in our area posting negative things about an agent, including his ethically questionable business practices and examples of potential law breaking. These licensees are attempting to get other agents to agree not to work with the agent. Is this legal?
A: Federal antitrust laws prohibit competitors from joining up to boycott a particular individual or business. If the others were to agree not to work with him, this would constitute a group boycott in violation of antitrust laws. If someone believes a REALTOR® is engaging in ethically questionable behavior, they should contact the local board and file an ethics complaint. If it is believed a licensee is violating the law, a complaint should be filed with the Tennessee Real Estate Commission (TREC). It is wise to refrain from posting such comments on social media. Further, if any of these comments are unfounded, the poster may be sued for defamation.
Sharing Transaction Details on Facebook?
Q: Is it a good idea to use a Facebook page for REALTORS® to discuss my transactions and seek advice on those transactions?
A: No, this is not a good idea for two reasons. First, there may be members of the group who are located outside of Tennessee, and laws that apply in, say, Georgia or Kentucky may not be the same as ours. It’s not smart to accept legal advice that may apply the wrong standard. Second, even if you do not list the name of your client, you may be providing enough information that someone in the group will know which transaction you are referring to and may be able to use such information to their client’s advantage. It is best to speak to your firm’s attorney or contact the Tennessee REALTORS®Legal and Ethics Hotline to avoid any breaches of confidentiality and receive the correct advice.
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