The TAR Digest: The Membership Newsletter of the Tennessee Association of Realtors
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The 12-9-14 Newsletter of the Tennessee Association of REALTORS
Editor: Pug Scoville


1. Upcoming COURSES & EVENTS
2. Two Tennessee Markets Make News
3. 2015 TAR Forms Update!
4. Upcoming Changes to RESPA
5. NAR Accepting Leadership Academy Applications
6. In Which Group Are You?
7. HOT LINE: Language Needed for a Back-Up Contract?
8. HOT LINE: Waiving the Warranty on a New Home?
9. HOT LINE: Which Form for New Construction?
10. Check Your Own CE Hours, Etc.

“I’ve failed over and over and over again in my life and that is why I succeed.” — Michael Jordan

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


1. Upcoming COURSES & EVENTS

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. Two Tennessee Markets Make News

Real estate news this past week featured both the Memphis and Nashville/Middle Tennessee markets!

First, Clear Capital, a provider of data and solutions for real estate asset valuation and collateral risk assessment, recently released its Home Data Index (HDI) Market Report with data through November, 2014. In that report, Clear Capital names the 15 Highest-Performing Major Metro Markets, and the Memphis market ranks SEVENTH on their list, with markets ranked according to their price gains.

Also last week, Trulia identified 10 markets to watch next year, based on solid job growth, which fuels housing demand, and a low vacancy rate, which spurs construction. Trulia Chief Economist Kolko noted, “We gave a few extra points to markets with a higher share of millennials.” That roughly includes those ages 18 to 30. Boston was ranked Number 1, followed by Dallas, TX, Fresno, CA, Middlesex County, MA, and Nashville, TN.

Good news for both markets!


3. 2015 TAR Forms Update!

An update on 2015 TAR Forms — for Managing Brokers ONLY — is scheduled for Thursday, December 18, 2014 (10:00AM to 12:30PM Central) at the TAR Office in Nashville. There is a nominal charge of $25 for the session. Seating and registration is open to the first 40 who register, BUT the session will be recorded and added to the TAR website at a later date for all members to view.

Our panel of attorneys will provide the information TAR members will need regarding TAR forms as well as other changes that will impact your business. Your TAR Residential Forms Committee, through our legal panel, will present a comprehensive overview of the Purchase and Sale agreement as well as other forms. To register go HERE.

NOTE: When registering, use the following:
Your USERNAME = Your NRDS Email Address (e.g. “john@johnsmith.com”)
Your PASSWORD = LAST NAME (case sensitive e.g. “Smith” or “Smith-delray”)


4. Upcoming Changes to RESPA

Changes are coming in both RESPA rules and the Truth in Lending Act (TILA)!

On Sunday, Nov. 9, 2014, NAR members heard from RESPA attorney Phil Schulman about the Consumer Financial Protection Bureau’s (CFPB) changes to the Real Estate Settlment Procedures Act (RESPA) and the Truth in Lending Act (TILA) under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The new rule combines the Good Faith Estimate with the Truth in Lending (TIL) disclosure now called the “loan estimate” and the HUD-1 settlement statement with the final TIL, now called the “closing disclosure.” Perhaps the greatest change is that the closing disclosure must be in the hands of the consumer THREE DAYS BEFORE CLOSING. Schulman also discussed new enforcement efforts under RESPA’s anti-kickback provisions. CFPB is aggressively enforcing RESPA and people should be reminded that they cannot receive anything of value for the referral of settlement services in residential transactions involving a mortgage. Furthermore, marketing agreements are under extra scrutiny as well.

For a copy of the PowerPoint that Phil Schulman used, go HERE.

An upcoming FREE webinar with Phil Schulman, covering these changes, is scheduled for Dec. 11 from 2-3PM Eastern, 1-2PM Central. To register, go HERE.


5. NAR Accepting Leadership Academy Applications

The online application process for NAR’s Leadership Academy is open until March 31. Apply now to be considered for the Leadership Academy graduating Class of 2016!

The program gives emerging leaders with state and local experience an opportunity to gain institutional knowledge and an understanding of the big picture to help them become leaders at the national level. Participants are chosen through an application process and are asked to provide references from a state officer, a state AE, and a local AE or officer.

For more information about the Leadership Academy, and a link to the online application process, go to: http://www.realtor.org/programs/leadership-academy


6. In Which Group Are You?

Only 60% of Realtors participated in ANY real estate transactions this past year; 40% did not participate in a single transaction!

Those figures are the result of a recent REALTOR Productivity Study of Multiple Listing Service activity conducted by the WAV Group and sponsored by the REALTORS Property Resource. The survey reflects responses from nearly 335,000 Realtors.

To read more, go HERE.


7. HOT LINE: Language Needed for a Back-Up Contract?

QUESTION: I have a house under contract with a 48 hour first right of refusal. There is another buyer who wants to put an offer in on the property. I cannot find any wording to put into the special stipulations regarding the 48 hour verbiage? How is this usually handled?

ANSWER: You do not need any special language for the second contract. You can use the Back-Up Agreement Contingency (Form F13). This will put the second offer in a back up position. It will only move to a primary position in the event that the primary contract fails to close.

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


8. HOT LINE: Waiving the Warranty on a New Home?

QUESTION: A new home over 1 year old is listed, a buyer submits a contract, and the contract is accepted. The buyer and seller/builder agree to waive the home warranty. Is this legal?

ANSWER: According to our research and the general counsel for the Tennessee Contractors Licensing Board, there is no state statute that unilaterally requires a builder/contractor to provide a 1 year warranty to new home buyers. There is a statute that provides for an implied warranty of merchantability. This warranty can be disclaimed by the builder in the contract.

In addition, the doctrine of an “implied warranty of good workmanship and materials” was adopted in 1982 by the Supreme Court of Tennessee. The warranty is implied only when the written contract is silent. Builders/vendors are free to contract in writing for a warranty upon different terms and/or conditions or to expressly disclaim any warranty. Case law indicates that in order to have a valid disclaimer of the implied warranty, it must be in clear and unambiguous language. In other words, the buyer must be aware of the implied warranty protections that he/she is waiving by signing the contract.

If the builder has questions about his legal rights and obligations, then he should consult with his own attorney.

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


9. HOT LINE: Which Form for New Construction?

QUESTION: When a new construction home is completed and finished and is listed, which is the correct form to use? Is it the F-60 New Construction Purchase and Sale Agreement OR the F-9 Purchase and Sale Agreement? Or does it matter?

ANSWER: If the construction has been completed, we would recommend using the standard Purchase and Sale Agreement (F9). This is because the New Construction Purchase and Sale Agreement (F60) and its related forms are geared toward those homes in which the buyer must make selections for things such as floor plans, flooring, cabinets, etc. Since it is the first time sale of a property, make sure that you also use the Impact Fees or Adequate Facilities Taxes Disclosure (F83).

[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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