The TAR Digest: The Membership Newsletter of the Tennessee Association of Realtors
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The 6-30-15 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. CFPB May Delay Implementation of TRID Rule!
2. Nashville, Memphis, & Tri-Cities All In the News
3. Legislature Approves One-Hour CE Courses
4. Is 2016 YOUR Year To Serve?
5. REMINDER: Check Your License Expiration Date!
6. Upcoming COURSES & EVENTS
7. HOT LINE: Listing an Owner-Built Property?
8. HOT LINE: Listing Agent is Unresponsive?
9. HOT LINE: Putting Info on MLS Sheet?
10. Check Your Own CE Hours, Etc.
11. No DIGEST Next Week — Happy 4th of July!

“Many of life’s failures are people who did not realize how close they were to success when they gave up.” — Thomas Edison

NOTE: If you’re reading this on a mobile device (iPhone, etc.), GO HERE for a mobile-friendly DIGEST.


1. CFPB May Delay Implementation of TRID Rule!

Last week, the Consumer Financial Protection Bureau (CFPB) issued a proposed amendment to the Know Before You Owe mortgage disclosure rule, which proposes to move the rule’s effective date to October 3, 2015. The rule, also called the TILA-RESPA Integrated Disclosure rule (or TRID rule), requires easier-to-use mortgage disclosure forms that clearly lay out the terms of a mortgage for a homebuyer. The Bureau is issuing the proposal to correct an administrative error that would have delayed the effective date of the rule by at least two weeks, until August 15 at the earliest.

The CFPB is proposing a new effective date of SATURDAY, OCTOBER 3. The Bureau believes that moving the effective date may benefit both industry and consumers with a smoother transition to the new rules. The Bureau further believes that scheduling the effective date on a Saturday may facilitate implementation by giving industry time over the weekend to launch new systems configurations and to test systems. A Saturday launch is also consistent with existing industry plans tied to the original effective date of Saturday, August 1.

The proposal will be open for public comment until July 7.

This will be welcome news for Realtors, because NAR and others in the industry have been asking for a delay for months, feeling that the new rule will almost certainly cause disruptions in the closing process.

TAR is hosting two special classes regarding the TRID Rule on July 8th. SEE ARTICLE 6 – Upcoming COURSES & EVENTS


2. Nashville, Memphis, & Tri-Cities All In the News

Nashville and Memphis both made an important “Top 10” list recently: RealtyTrac’s identification of “the top 10 markets [with home prices] that have exceeded their pre-housing crisis peaks in the last year”. In a survey of markets across the nation, Nashville came in at number 5 on their list and Memphis came in at number 10! San Jose, California, was on top of the list! To see the full report, go HERE.

Meanwhile, the latest Trends Report from the Northeast Tennessee Association of Realtors (NETAR) shows that May was the single best month for home sales in the Tri-Cities area since the recession began in 2008! NETAR President Sharon Duncan said, “May put sales back into positive year-to-date territory after volatility left it negative for three months and flat one month.”


3. Legislature Approves One-Hour CE Courses

For several years in its Strategic Plan, TAR has pursued the goal of having one-hour courses approvable for Continuing Education in Tennessee, since shorter courses are often more conducive to student comfort and — for certain topics — are all that’s needed. Attention-deficit syndrome is not a problem limited to teenagers!

The legislature recently approved this change in law, with TAR’s support, and it will take effect as of July 1, 2015, so that one-hour courses meeting all other requirements of the Commission may now be approved for CE!


4. Is 2016 YOUR Year To Serve?

If service on a state association (TAR) committee or foundation has ever been a goal of yours, then 2016 could be the year you turn that goal into a reality! Serving at the state level is a wonderful way to make friends and contacts with others across the state, not to mention the positive difference you can make on the future of our industry!

All it takes is to complete an online application. Applications for appointment to most TAR committees must be received at the TAR office no later than AUGUST 28, 2015!

Applications for consideration as TREEF Trustees, however, must be received by JULY 15, 2015!

To submit an application for any of these positions, go to: http://www.tarnet.com/committee-request-application/


5. REMINDER: Check Your License Expiration Date!

In case you missed our notice in last week’s DIGEST….

In an effort to better serve all licensees, the Tennessee Real Estate Commission (TREC) is in the process of updating many important facets of its database. TREC does, however, anticipate a delay in processing renewals during the transition, which will take place September 1-15. In order to minimize the impact on licensees, they have sent renewal notices (in an envelope) to all licensees whose licenses have a renewal date during the period June 1, 2015 – November 30, 2015. They are encouraging these licensees to ACT NOW to complete your required CE and pay your renewal fee (either online or by mailing the renewal fee), in order to avoid any possible delay in renewal during, and possibly following, the transition to the upgraded system.

PLEASE check your license expiration date AND, if that date is on or before November 30, 2015, complete your CE and pay your renewal BEFORE the transition period begins at 12:01 a.m. on September 1, 2015, to avoid any unnecessary snags!

NOTE: See the link under item #10 below to check your CE hours currently on file with TREC!


6. Upcoming COURSES & EVENTS!

July 8: Say Goodbye to HUD1 and GFE (2 hrs. CE) — TAR Office, Nashville. This course provides detailed analysis of the planned changes for real estate transactions with an explanation of the Loan Estimate and Closing Disclosure. We’re offering this course two times, so you can pick either one….

9-11AM — To register for this one, go HERE.
1-3PM — To register for this one, go HERE.

Sept. 16-18: TAR Annual Convention — Peabody Hotel, Memphis, TN (CE and More!) — An event you don’t want to miss! For more information, go HERE.

For an overview of all UPCOMING COURSES, as well as links for more information or registration, go to: http://www.tarnet.com/education/ ……and scroll down the page to see all upcoming courses!

There are 10 good reasons to earn YOUR GRI in 2015! Just go to: https://vimeo.com/90565297

You can ALSO begin work toward your GRI designation ONLINE! To find out how, go to: http://www.tarnet.com/education/e-class-gri-information/


7. HOT LINE: Listing an Owner-Built Property?

QUESTION: Is it legal to list a property that was built by the owner, a licensed contractor, who never got inspections done?

ANSWER: This is fine as long as it is thoroughly disclosed. If the seller completes the Tennessee Residential Property Condition Disclosure (RF 201), then there is a place for this to be disclosed. Lines 153-156 deal with permits and building codes. If the seller does not disclose the lack of permits for some reason, then you as an agent will have to disclose it as an adverse fact. Pursuant to Tenn. Code Ann. 62-13-403(2), a real estate agent is required to “[d]isclose to each party to the transaction any adverse facts of which the licensee has actual notice or knowledge.”

Tennessee law defines an adverse fact as “conditions or occurrences generally recognized by competent licensees that have a negative impact on the value of the real estate, significantly reduce the structural integrity of improvements to real property or present a significant health risk to occupants of the property.” — Tenn. Code Ann. 62-13-102(2).

Therefore, if an agent has actual knowledge of an adverse fact, he must disclose it, particularly if the seller does not. This could be seen as an adverse fact.

[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]


8. HOT LINE: Listing Agent is Unresponsive?

QUESTION: A seller lists their property with a real estate agent. The agent is unresponsive and has not answered their calls. They finally get the agent to remove the listing from the MLS, but have not yet received a release. How should the seller handle this situation so that another agent can list the property?

ANSWER: The seller will need to resolve the issues with the other firm before they can work with another firm to sell their property. If the seller has not had any luck with the agent, then he should speak with the principal broker of the firm and/or his own legal counsel. There really is not much more than you can do for the seller. You must be very careful because you CANNOT interfere with the other company’s listing agreement. You could have a complaint or a lawsuit filed against you if you assist the seller more than advising him to speak with the broker and/or an attorney.

[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]


9. HOT LINE: Putting Info on MLS Sheet?

QUESTION: When we note payment of certain closing costs and/or concessions on an MLS sheet, can we include the amount in the note? We have been told that this is confidential information and should not be included. Please advise.

ANSWER: This issue seems to come up with some regularity. We have very real concerns about disclosing this information without the permission of the parties. Under the Broker’s Act, an agent owes a duty to all parties to:

“(3) Maintain for each party to a transaction the confidentiality of any information obtained by a licensee prior to disclosure to all parties of a written agency or subagency agreement entered into by the licensee to represent either or both of the parties in a transaction. This duty of confidentiality extends to any information which the party would reasonably expect to be held in confidence, except for information which the party has authorized for disclosure, information required to be disclosed under this part, and information otherwise required to be disclosed pursuant to this chapter. This duty survives both the subsequent establishment of an agency relationship and the closing of the transaction.” — Tenn. Code Ann.42-13-403(3)

Some parties may consider seller concessions as being confidential. For example, a builder makes a business decision to offer a particular buyer substantial concessions, they may not want that information made public because others will expect (and/or demand) similar treatment.

One possible solution is to draft a form which can be presented at closing for both parties to sign stating that they will approve disclosure of this information.

[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]


10. Check Your Own CE Hours, Etc.

To check your CE credits on file with TREC, go to:†http://verify.tn.gov

To go to the TAR website: http://www.tarnet.com

To access current and past TAR DIGESTS: http://www.tardigest.com

Follow TAR on Twitter at: http://twitter.com/tnaor

TAR’s LinkedIn page: http://www.linkedin.com/groups?gid=852077&trk=hb_side_g

TAR’s page on Facebook: http://www.facebook.com/pages/Nashville-TN/Tennessee-Association-of-RealtorsR/15041383689

To ask a TAR Legal and Ethics Hot Line question:†http://www.tarnet.com/services-support/legal-ethics-hotline/

For CE classroom courses around the state, go to:†http://www.tarnet.com/education/realtor-courses/

For online CE courses, go to:†http://www.tarnet.com/education/online-courses/

Tennessee Real Estate Commission: http://tn.gov/regboards/trec/


11. No DIGEST Next Week — Happy 4th of July!

In observance of the upcoming 4th of July holiday, the TAR DIGEST will not be published next week, but we WILL return with the 7-14-15 Edition! Meanwhile, we hope all of our readers will celebrate your independence and enjoy a safe and happy 4th of July!


 

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