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The 5-26-15 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. TREC Disciplinary Actions: April, 2015
2. Register for the 2015 TAR Convention!
3. New Home Sales in Nashville Are Booming
4. Congratulations to Sally Cummings
5. D.A.N.G.E.R. Report Now Available!
6. Upcoming COURSES & EVENTS
7. REMINDER: Professional Privilege Tax!
8. HOT LINE: Which Property Condition Disclosure Form?
9. HOT LINE: Agent Wants To Purchase Property?
10. Check Your Own CE Hours, Etc.

“The elevator to success is out of order. You’ll have to use the stairs… one step at a time.” — Joe Girard

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


1. TREC Disciplinary Actions: April, 2015

At its April meeting, the Tennessee Real Estate Commission (TREC) imposed significant fines ($1,000-$5,000) and additional penalties on seven individuals and one firm for the following offenses:

Failing to exercise adequate supervision over the activities of an affiliate (MULTIPLE)
Failure to diligently exercise reasonable skill and care (MULTIPLE)
Engaging in Unlicensed Activity (MULTIPLE)
Violation of deposits and earnest money rule (MULTIPLE)
Failure to be loyal to interest of client
Operating an unlicensed firm
Advertising violation
Failure to remit money
Failure to preserve records for 3 years
Accepting commission outside firm
Failure to respond to a complaint filed with the Commission

NOTE: The (MULTIPLE) notation indicates that TREC punished more than one licensee for this infraction!


2. Register for the 2015 TAR Convention!

This coming September 16-18 in Memphis at the Peabody Hotel, TAR will hold its Annual Convention. It should be a GREAT one!

It’s been FIVE years since the State Association’s Annual Convention has been held in Memphis, and it’s been TEN years since it’s been held at the world-famous Peabody Hotel.

Our Keynote Speaker, Jeanne Robertson, will set the tone for what should be a fun and exciting three days! The TAR Convention is a great opportunity for affordable education featuring national speakers and 10 hrs. of education sessions, networking, and learning more about the services provided on a local, state and national basis to Realtor members.

For more information, or to register online at Early Bird rates, go to: http://www.tarnet.com/meetings-and-events/convention/

Don’t put this off! The 2015 Annual Convention promises to be a spectacular event!


3. New Home Sales in Nashville Are Booming

The Nashville real estate market continues to capture a lot of national press. The latest attention-getter is a new report from CoreLogic, citing Nashville as “the fastest-growing new home sale market in the U.S., according to the California-based housing research firm.”

*** BEGIN QUOTE ***
Here’s what Sam Khater, deputy chief economist with CoreLogic and author of the report, wrote of Music City’s new home sale growth: “Nashville is not only exhibiting strength over the last year, but it is one of only five markets that have higher new home sales in 2015 than in the very early 2000s when markets were normal.
*** END QUOTE ***

San Jose, California, was the second fast-growing market, and Atlanta was third in the CoreLogic report.

To read more, see the Business Journal’s article (“Report: New home sales in Nashville are growing faster than anywhere else in the U.S.“) HERE.


4. Congratulations to Sally Cummings

With a heavy heart, TAR must now wish a fond farewell to our friend and staff member Sally Cummings. After 34 years with the Tennessee Association of Realtors, TAR’s Education Coordinator is retiring.

Sally was here when MLS books were a regular issue, keys were still hidden under rocks and Zillow was just a made up word. Still, Sally Cummings tackled the issues at hand and helped bring the Realtor Association up to prominence.

“I’m proud to be a part of the Realtor family,” says Sally. “TAR has been a great place to work, and I got to watch so many Realtors flourish. The opportunity has been amazing and I hope I helped make a difference.”

Sally, congratulations on a great career with the Tennessee Association of Realtors. We wish you all the best in your retirement!

Always friendly… always fun… and always Sally. You can reach out to Sally at: sallycummings5@gmail.com


5. D.A.N.G.E.R. Report Now Available!

A host of major challenges face the real estate industry today — threatening individual agents, brokers, firms, MLSs, and associations at all levels!

Loss of listing data control, new regulations, and dilution of the REALTOR brand by substandard performance are among 50 issues keeping brokers, sales associates, and executives of associations and MLSs up at night in the D.A.N.G.E.R. report, available on REALTOR.org. In case you’re wondering, D.A.N.G.E.R. stands for “Definitive Analysis of Negative Game Changers Emerging in Real Estate“. The report was commissioned by the NAR Strategic Thinking Advisory Committee and researched and compiled by industry analyst Stefan Swanepoel.

To read more about the report, see “Challenges Loom for Real Estate Industry, NAR Report FindsHERE.

To download a copy of the D.A.N.G.E.R. Report, go to: http://www.dangerreport.com


6. Upcoming COURSES & EVENTS!

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. REMINDER: Professional Privilege Tax!

Due Date: June 1!

The $400 professional privilege tax is an annual tax imposed on certain professionals who hold an active Tennessee license or registration on the JUNE 1 due date, regardless of whether the person practices his or her profession in Tennessee. Professionals who are subject to the tax may file and pay it online at: https://apps.tn.gov/privtx/.

The TN Department of Revenue is available to answer taxpayer questions. They encourage taxpayers to reach them through their new online help application, Revenue Help, located at: https://revenue.support.tn.gov/hc/en-us. This application allows taxpayers to search and find answers to their questions, or submit requests to them electronically.

It’s important to note that, when this legislation was originally introduced several years ago, this tax would have been levied on ALL real estate licensees! Thanks to the lobbying efforts of the Tennessee Association of REALTORS, however, all licensees other than principal brokers were exempted from this tax …so ONLY principal brokers must pay it!


8. HOT LINE: Which Property Condition Disclosure Form?

QUESTION: Could you please explain the three Property Condition Disclosure forms and how they’re supposed to be used?

ANSWER: As you note, there are three TAR forms that deal with the Tennessee Residential Property Disclosure Act. One of these three forms should be completed in every transaction involving residential property. ALL of these should be completed by the SELLER and disclosed to potential buyers. They are: Form RF 201 (Tennessee Residential Property Condition Disclosure form), Form RF 203 (Tennessee Residential Exemption Notification form), and Form RF 204 (Tennessee Residential Property Disclaimer form).

Form RF 201 is the one most commonly used. This is the one that is given to the seller where he discloses information about the property. Form RF 203 concerns those exemptions that the statute has provided for, when a disclosure is not required. These include things such as: the seller has not lived on property at any time in the last three years, some bankruptcies, foreclosure sales, auctions, etc. (please see the form for a complete list). In these instances, no form is required, but we recommend using the RF 203 so that your file has documentation in it clarifying that the seller is exempt.

The third form is RF 204. This is the form that you use when the seller wants to sell the property “as is”. The seller is stating that he is not going to make repairs and is not disclosing anything. However, in these circumstances, the buyer MUST agree to this disclaimer. If not, then the Condition Disclosure form must be completed if the sale is to proceed. If the buyer agrees to accept the Disclaimer, the seller is not obligated to present the disclosure statement (and the buyer does not have to sign it). In certain situations (such as someone has a power of attorney for the seller), you can explain that the seller is not able to provide an adequate disclosure form (get the seller’s permission or the person holding the power of attorney before stating this to the buyer). This may make them more agreeable to accept the Disclaimer, especially if they understand that they can make whatever inspections they wish and can terminate the contract if they are not happy with the outcome of the inspections.

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


9. HOT LINE: Agent Wants To Purchase Property?

QUESTION: If an agent wants to purchase a property, when does the agent have to disclose that they are a licensed real estate agent? Also, do they have to disclose why they are purchasing the property (i.e., investment, personal residence, etc.)?

ANSWER: Agents are required to disclose their personal interest in property they are purchasing under BOTH the Broker’s Act AND the Code of Ethics. Pursuant to Tenn. Code Ann. 62-13-403, an agent has a duty to all parties to:

“(7)(A) Not engage in self-dealing nor act on behalf of licensee’s immediate family, or on behalf of any other individual, organization or business entity in which the licensee has a personal interest without prior disclosure of such interest and the timely written consent of all parties to the transaction.

Article 4 of the Code of Ethics states:

“Realtors shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, Realtors shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative.”

Standard of Practice 4-1 states:

“For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by Realtors prior to the signing of any contract.

TAR provides form RF 305, Personal Interest Disclosure and Consent, for this purpose.

There is not a requirement under the Broker’s Act, TREC Rules or the Code of Ethics to disclose the intended purpose. However, some lenders will require this.

[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/


 

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