The TAR Digest: The Membership Newsletter of the Tennessee Association of Realtors
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The 10-28-14 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. TREC Disciplinary Actions in September
3. Rates Hit a New LOW for the Year!
4. A Video Update on Hot Issues…
5. New QRM Rule Eases Access to Credit
6. “The World is Ridiculous!”
7. HOT LINE: What Qualifies as a Bedroom?
8. HOT LINE: Mutual Non-Disclosure & Confidentiality Agreement?
9. HOT LINE: Bones on the Property?
10. Check Your Own CE Hours, Etc.

“Your smile is your logo. Your personality is your business card. How you leave others feeling after an experience with you becomes your trademark.” — Jay Danzie

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


1. Upcoming COURSES & EVENTS

Nov. 7-10: NAR Annual Convention – New Orleans, LA.

Nov. 11: Be Safe: Real Estate, Robbers, Thugs & Con Men (2 hrs. CE) – TAR Office, Nashville. For more information or to register, go HERE.

Nov. 12: TransactionDesk Basic (3 hrs. CE) – TAR Office, Nashville. For more information or to register, go HERE.

Nov. 12: TransactionDesk Advanced (3 hrs. CE) – TAR Office, Nashville. For more information or to register, go HERE.

To see upcoming offerings of TREC CORE COURSES, ABR COURSES, etc., – at locations around the state – go to the TAR Calendar at: http://www.tarnet.com/meetings-and-events/calendar-of-events/


2. TREC Disciplinary Actions in September

At its September meeting, the Tennessee Real Estate Commission (TREC) imposed significant fines ($1,000-$3,000) and additional penalties on nine (9) individuals for the following offenses:

Misrepresentation (MULTIPLE)
Failing to exercise adequate supervision over the advertising activities of affiliate (MULTIPLE)
Failing to exercise adequate supervision over the activities of affiliate (MULTIPLE)
Failing to account for or to remit any money (MULTIPLE)
Failing to be loyal to the interests of the client (MULTIPLE)
Advertising violation
Misleading or untruthful advertising
Unlicensed practice of real estate

NOTE: The (MULTIPLE) notation indicates that more than one licensee was punished for this reason.

IN ADDITION TO THE ABOVE: 458 real estate licenses were revoked for failure to maintain their E&O insurance, following their earlier suspensions!


3. Rates Hit a New LOW for the Year!

Home loan interest dipped for the fifth week in a row, Freddie Mac reports. Rates on 30-year mortgages averaged 3.92 percent this past week, down from 3.97 percent the previous week and from 4.53 percent at the start of the year. The benchmark is now at the lowest level since June 2013! The rate for 15-year loans, which are often selected by borrowers who refinance, slipped to 3.08 percent from 3.18 percent.

Market insiders have been expecting mortgage interest to climb based on speculation that the Federal Reserve would begin boosting its short-term rate in 2015; however, that rate hike has not materialized in response to the soft global economy, the spread of Ebola, and other international concerns.


4. A Video Update on Hot Issues…

The newest Voice for Real Estate video dives into four big stories: A huge $200,000 RESPA fine, new rules regarding condo rescissions, why more than 80 percent of brokers are hiring, and which candidates are getting backed by REALTORS in upcoming elections.

To read more, go HERE.

To access/view the Voice for Real Estate video, go HERE.


5. New QRM Rule Eases Access to Credit

NAR has applauded the Oct. 21 announcement of the new Qualified Residential Mortgage (QRM) rule:

*** BEGIN QUOTE ***
Under the QRM rule, as under the QM rule, loans are generally considered qualified if the borrower’s debt-to-income ratio is 43 percent, among other things. There is no onerous down payment requirement, which regulators had talked about including and which NAR and coalition partners strongly opposed.

“Importantly, the final rule relies on sound and responsible underwriting rather than on an onerous down payment requirement to qualify as a QRM loan,” [NAR President Steve] Brown says. “NAR strongly opposed earlier versions of the rule that included 20 and 30 percent down payment requirements, which would have denied millions of Americans access to the lowest cost and safest mortgages.”
*** END QUOTE ***

To read more, go HERE.


6. “The World is Ridiculous!”

The world is indeed ridiculous when you think about it, and that’s Reason Number One of the “6 Reasons Not to Take Life So Seriously“, a new article by Steve Kux on the Lifehack website.

Finding the humor in everyday life and taking yourself a little less seriously is perhaps the best antidote for real estate stress! Take a break from all of your headaches and read all six reasons HERE.

There is a LOT of profound truth in this article, so it’s not entirely meant just for fun!


7. HOT LINE: What Qualifies as a Bedroom?

QUESTION: Please clarify what qualifies a room to be a bedroom under Tennessee law.

ANSWER: There is no standard statewide answer to determine what constitutes a bedroom. Therefore, you should check with your local Codes Department and your local board or MLS to determine whether they have a definition as to what a bedroom is.

These definitions will vary from place to place, so if you ever have a question, you should check the Codes definitions for that particular area. In addition, if the home is on septic, you need to determine how many bedrooms the home is permitted to have. The number of bedrooms advertised should not exceed this number.

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


8. HOT LINE: Mutual Non-Disclosure & Confidentiality Agreement?

QUESTION: I need a mutual non-disclosure and confidentiality agreement for a residential property. Can I find one on the TAR website?

ANSWER: TAR does have a confidentiality agreement which can be used for residential property.

Take a look at form F98, the Real Estate Offer Confidentiality Agreement to see if it meets your needs. We also have a commercial form which is form F90, the Commercial Non-Disclosure Confidentiality Agreement. It is broader and restricts disclosure of financial information. We have recommended to the Forms Committee that the residential form be broadened a bit to include non disclosure of financial information. If these forms do not work for you, you may need to contact your own attorney who can draft something that will suit your client’s specific needs.

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


9. HOT LINE: Bones on the Property?

QUESTION: We have a contract that is closing today. A couple of weeks ago, bones were discovered on the property. The seller received a letter from TDEC last week. How does this affect the title on the property, if at all?

ANSWER: Good question for the Halloween season! This could impact the title to the property in several respects.

There are restrictions for cemeteries which current owners must respect (i.e., allowing family members access to the property to come and visit and/or restricting what can be built on the property so as not to disturb the remains). If your client has concerns about this issue, they should speak with their own attorney.

[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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