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Posted by Phil Newman | Comments Off on 6-27-16 TAR DIGEST
6-27-16 — Vol.: 2016 Iss.: 24 Randy Durham, 2016 President • Phil Newman, TAR Digest Editor

TAR TAKEAWAYS
? **Let your voice be heard in a vital Call for Action**
? What the FAA’s new drone rule means for your business
? When do you need to pay the firm’s former agent?
? Let the inFORM Tool sharpen your transaction skills

Note: The Digest will take July 4 off and return Mon., July 11. Happy Independence Day to you and yours!

CONTENTS
Vote. Act. Invest.
1.Call for Action! Tell U.S. Senate to Get to Work for Future Homeowners
In the News
2.President’s Pen: Randy Durham
3. FAA Drone Rule Boosts Real Estate
4. Affordability Challenges Remain
Member Services
5. inFORM Tool Simplifies Your Life 6. Free RETI Webinar: Optimize Gmail

Professional Development

7. LCI: Become an Instructor
Legal & Ethics Hot Line
8. Owe Commission to Former Agent?
9. Broker Leaves, Do Listings Follow?
10. Firm Continue After Broker’s Passing?
Key Links & Resources
**Register for Fall Convention!**

1. Call for Action! Tell U.S. Senate to Get to Work for Future Homebuyers
A Call For Action for all REALTORS® to tell the U.S. Senate to pass legislation that would provide significant benefits to taxpayers, homebuyers and the real estate market. The U.S. House already voted 427-0 to pass H.R. 3700, but the U.S. Senate has yet to act on a companion bill, S. 3083, the “Housing Opportunity Through Modernization Act.” This vital legislation will expand housing opportunities for first-time homebuyers and low-income rental-housing residents, ease restrictions on existing homeowners and landlords, streamline rural housing programs, and save taxpayers money. Take action today and tell the Senate to pass this bill!

2. President’s Pen: A Word from Randy Durham

Dear TAR Members,

As your 2016 President, it is my privilege and pleasure to report that we have seen a great deal of progress as a statewide Association during the first half of this year, thanks to the dedicated efforts of our tremendous leaders throughout Tennessee. Among many highlights, here are just a few:

  • In light of Tennessee’s growing economy and attractiveness as a destination for businesses and residents, this is a great time to be a REALTOR®—and our numbers show it. TAR membership continues to rise and has reached 23,548, a 9% increase from one year ago and the highest since the financial downturn of 2008-09.
  • TAR’s volunteer leaders are making steady progress on the goals set forth in our Strategic Plan, which are focused on seven critical areas: Archives, Communication, Facilities, Nomination and Election, Community Outreach, the REALTOR® brand, and RPAC Ambassadors. Through these efforts we are strengthening the Association and raising the bar of excellence in service to our members.
  • Working in concert with our Local Associations, TAR is offering an increasing breadth and depth of Professional Development/CE opportunities. In a game-changing development, we just received approval from the Tennessee Real Estate Commission (TREC) to begin live-streaming CE courses across the state. Stay tuned for details!
  • From TransactionDesk to TAR Forms to special partnership programs, TAR’s Member Services remain focused on making your life easier. I am especially excited about ERMA, our mobile app that provides Tennessee licensees fingertip access to CE courses available statewide, and which will soon include a direct feed from the state so you can track your CE and licensure status in real time within the app. (To download it, search ERMA on your device’s app store.)
  • I’m very encouraged about progress on our legislative and advocacy fronts as TAR works to be the Voice for Real Estate in Tennessee. For example, our annual RPAC-A-THON in May was a tremendous success. It was inspiring to see so much enthusiasm and excitement from every corner of Tennessee as we came together to stand up for issues affecting private-property owners and the real estate industry. Of course, it’s never too late to invest in RPAC (or to invest more!) and the REALTOR® Party; to learn more,visit this link.
  • We are exploring new ways to communicate most effectively with our members, anchored by our weekly TAR Digest but soon expanding to include tailored message options, more video and social-media engagement, tools to help you tell your story and reinforce the value of a REALTOR®, an updated brand identity and website, and more.

I could go on, but I hope you get the picture that TAR is on the move in many ways, all designed to better serve you and inspire you toward greater success.

In closing, I would love to see you at our 2016 Fall Convention: The Great Blue, Sept. 14, 15 and 16, in Charleston, S.C. The event promises to be one of TAR’s best ever, featuring outstanding CE sessions, inspirational and practical speakers, social and networking opportunities, awards and new-officer installations, and much more—all set in one of America’s most beautiful Coastal cities. To learn more and register, visit this link.

Yours sincerely,
Randy

Randy Durham, Broker, CRS, ePro
2016 TAR President / Keller Williams Realty / Direct line: (423) 593-2400 / Office: (423) 664-1900 / www.randydurham.com

3. FAA Drone Rule Boosts Real Estate
Commercial drone use in real estate got good news last week with the release of the Federal Aviation Administration’s (FAA) final rule governing unmanned aerial systems (UASs, or drones), which will take effect within the next few months. As noted in this Inman blog (subscription required), the ruling’s implications include:

— “The FAA no longer requires Section 333 waivers for drones weighing less than 55 lbs.”

— “Flight in the airspace classified G does not require clearance from local air traffic control.”

— “Drone pilot must be at least 16 years old and pass an initial aeronautical knowledge test at an FAA-approved knowledge testing center.”

For the NAR release on the FAA’s decision and its implications, visit this link.

4. Affordability Challenges Remain
“Americans are losing faith that the housing crisis that began nearly a decade ago is over. A significant majority (81%) continues to believe that housing affordability is a problem in America today,” according to a survey of housing attitudes released by MacArthur. To view the full study results, go HERE.

 

 

5. inFORM Tool Simplifies Your Life
TAR’s many form-related resources include theinFORM Tool, which provides practical tips on how to fill out TAR forms and understand form contents. If you’re not sure how to use a form, what goes in a certain blank, what an instruction within a form means, and/or which forms to use in conjunction with the one you’re filling out, the inFORM Tool can bring you more clarity. Simply visit this link (login required) to see a list of form names. Click on any name, look for the color-coded legend when the form opens, and click within the form to pull up specific tips and explanations to get inFORMed!

6. Free RETI Webinar: Optimize Gmail
The Real Estate Technology Institute (RETI), a new TAR partner, is offering another free webinar at 3 p.m. EDT/2 p.m. CDT this Wednesday, June 29. “7 Free Gmail Plugins That Will Help You Conquer Your Inbox,” with Juanita McDowell, will help you optimize your email experience and save valuable time. RegisterHERE.

7. LCI: Become an Instructor
Are you eager to show others the real estate ropes? If so, the upcoming Learning-Centered Instructor (LCI) course—required by the Tennessee Real Estate Commission (TREC) for all aspiring instructors—could be your ticket to the front of the classroom. The next course will be hosted by the Clarksville Association of REALTORS®, August 2 and 3, 8:30 a.m. to 5 p.m., taught byMonica Neubauer. The cost is $225 for 16 hours of CE. To register, contact Nikohl Rirsu atnikohl@clarksvillerealtor.com.

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

Handling TRANSITION Within Your Firm
Turnover happens—both expected and unexpected. The hotline receives many questions from firm owners, principal brokers, and transitioning brokers on the proper way to deal with these changes. Below are some frequently asked questions on the subject.

8. Owe Commission to Former Agent?

QUESTION: We had an agent who was recently released, but there is a walkthrough and closing today on one of his contracts. Should we pay the agent?

ANSWER: An agent who has left the firm may be paid directly as long as the contract was entered into while he was affiliated with the original firm. TREC enacted a rule covering these issues on October 18, 2015. TREC Rule 1260-2-.39 states:

(1) The commissions earned by an affiliated licensee while working under a principal broker can still be paid after one (1) or more of the following circumstances occur:
(a) the affiliated licensee transfers to a new broker;
(b) the affiliated licensee retires his or her license;
(c) the affiliated licensee is in broker release status;
(d) the affiliated licensee allows his or her license to expire; or
(e) the death of the affiliated licensee.

TREC has determined that a commission is earned by a licensee when the contract to purchase (or lease) is signed by all parties. Therefore, if an agent is affiliated with a company at the time that the contract is signed, then the broker may pay that individual after closing, even if that agent is no longer affiliated with his/her company. It is within the broker’s discretion whether to do so.

9. If Broker Leaves, Do Listings Follow?

QUESTION: If our current broker leaves the office and becomes a principal broker at another office, what would happen with my listings? My understanding is that he owns the listings and they would transfer with him.

ANSWER: Listings belong to the firm, not to the broker. TREC Rule 1260-2-.02(4) states, “When a licensee terminates his affiliation with a firm, he shall neither take nor use any property listings or buyer representation agreements secured through the firm, unless specifically authorized by the principal broker in writing.” If a principal broker leaves a firm, he must have the permission of the owner to take any listings with him.

10. Firm Contiunue After Broker’s Passing?

QUESTION: Our principal broker passed away, and our office is without a broker. How do we proceed?

ANSWER: This unfortunate situation is covered under TREC rule 1260-01.38, which pertains to the absence of a principal broker and states:

(1) The Commission must be notified within 10 days of the death, resignation, termination, or incapacity of a principal broker. In the event of an unexplained extended absence of a principal broker, the Commission must be notified within a reasonable time period. At the time of notification, a plan must be submitted which addresses the continuation of operations without a principal broker.

(2) The Commission may, in its discretion, based on the merits and circumstances of each case, permit a real estate firm to continue operating without a principal broker for a period of time not to exceed thirty days from the date of death, resignation, termination, or incapacity of a principal broker, subject to conditions imposed by the Commission.

(3) If, within the aforementioned thirty day period, a real estate firm contacts the Commission demonstrating compliance with their initial approved plan and circumstances which require additional time to continue operating without a principal broker, the executive director shall have the authority to grant a thirty day extension to the period originally allowed by the Commission. In the event that a thirty-day extension is granted, a new principal broker must be in place no later than the 61st day from the date of death, resignation, termination, or incapacity of a principal broker.

See You in Charleston!
2016 TAR Fall Convention
Sept. 14, 15 and 16

Watch the PREVIEW VIDEO
REGISTER HERE
#GreatBlue

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