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  Printer Friendly Version Printer Friendly Version 2-1-16 TAR DIGEST
Posted by Phil Newman | Comments Off on 2-1-16 TAR DIGEST
2-1-16 Vol.: 2016 Iss.: 5 Randy Durham, 2016 President • Phil Newman, TAR Digest Editor

CONTENTS
In the News
1. Three Questions to Rock Your Website
2. Five Perils of Pessimism
Member Services
3. Suggested TAR Forms Packages
4. Important Change re: InstanetOffers
5. Product/Service Discounts from NAR

Professional Development
6. You Could Win Free CE Renewal
7. MRP Grads Bless Military Families
Legal & Ethics Hot Line
8. Requirements for a TREC Licensee Transacting Personal Property?
9. Canceling a Contract on Weekends/Holidays?
10. Options for an Expiring License?
Key Links & Resources
Spring Conference Registration
1. Three Questions to Rock Your Website
An Inman News post asks three quick questions that could spur ideas for evaluating the quality and impact of your agent/brokerage website, focused on:

1) Site-visitor experience;
2) The consumer’s needs; and
3) Your brand positioning.

The full item (a quick read) is posted at this link.

2. Five Ways Pessimism Can Ruin Your Day
Michael Hyatt, a Tennessee author, speaker and former CEO, wrote a blog a while back on five perils of “negaholism” and the transformative value of optimism. Its simple-yet-powerful message is a good one to consider as we pursue meaningful goals and dreams in 2016.

To sum up Hyatt’s take, pessimism:

1) kills your creativity;
2) harms you emotionally;
3) keeps you down professionally;
4) damages relationships; and
5) makes you sick.

The entire brief and insightful blog is here.

3. Suggested TAR Forms Packages for Your Office
We’re often asked which TAR forms are required in Tennessee. The answer: none. The use of TAR forms is voluntary and optional. However, the vast majority of our REALTOR® members use TAR forms, so using them makes it much easier to work with others. As a service, our website includes a list of suggested form packages that you may customize for your office: Listing Packages, Residential Sale Packages, New Construction Packages, etc.

To find them:

1. Log into the TAR site.
2. Click the “Member Services” TAB.
3.
Select “Forms on the Fly”.
4. Select the “Forms Packages” TAB.

The Forms on the Fly page includes many other goodies as well, such as:

1. 2016 documented FORM CHANGES.
2. TAR FORMS Inventory list.
3. SEARCHABLE keyword field to help you find the right form.

4. **Important Change Re: InstanetOffers**
In light of unforeseen circumstances, TAR will not market or offer the InstanetOffers service to its membership, as previously scheduled to begin in February.

5. Product/Service Discounts from NAR
The National Association of REALTORS® has published its 2016 REALTOR® Benefits Program Catalog, featuring unique offers anddiscounts for all members. To view anddownload a PDF of the catalog, click here.

6. You Could Win CE Renewal at Spring Conference
Free CE? Yes, it could be yours! At our Spring Conference March 21 and 22, we’ll hold drawings to give away 10 renewal packages from The CE Shop—valued at up to $139 for any one package available in TN at this link. To be eligible, simply register for the conference and hope for

your name to be called at drawing time.

7. MRP Grads Bless Military Families
Working with active-duty armed services families and veterans who need real estate services is profoundly rewarding. It also requires distinctive knowledge and skills. To help equip you to make a meaningful difference in these families’ lives, we’re hosting the Military Relocation Professional (MRP) Certification, a one-day, eight-hour CE course at TAR on Thursday, Feb. 25. Register today here. (Login required.) You’ll be more than glad you did.

Editor’s Note: The following response is from the TN Department of Commerce and Insurance’s Office of Legal Counsel, Division of Regulatory Boards.

8. Requirements for a Licensee Transacting Personal Property?

QUESTION: Is a Tennessee Real Estate Commission (TREC) licensee who rents or conducts real estate transactions for their own property required to run the transaction through the licensed real estate firm with which he or she is affiliated—including placing money involved in the transaction into that firm’s escrow account, per the Tennessee Real Estate Broker License Act of 1973?

ANSWER: T.C.A § 62-13-104(a)(1)(A) states that the Act does not apply to “an owner of real estate with respect to property owned or leased by such person.” T.C.A § 62-13-102(13) defines “person” as “individuals, corporations, partnerships or associations, foreign and domestic.” As such, it appears that if a licensee conducts real estate transactions for property they own individually, the requirements of the Act would not apply. This includes requirements that the licensee run the transaction through the licensed real estate firm with which the licensee is affiliated and place money involved in the transaction into the firm’s escrow. This also appears to apply to a licensee who owns property in a general partnership, because there is no legal separation between the partners and the business entity.

However, please be aware that a licensee conducting real estate transactions under the owner exemption set forth in T.C.A § 62-13-104(a)(1)(A) must still meet the personal-interest disclosure requirement in Tenn. Comp. R. & Regs. § 1260-02-.12; any requirements set forth in the Uniform Residential Landlord and Tenant Act and any other applicable laws; and rules of the federal, state and local government.

It should also be noted that if the licensee does anything during the transaction that requires licensure under the Act—such as advertise the property as a licensee or with any reference to the licensee’s firm—the licensee is then acting in his or her capacity as a licensee, and all requirements under the Act apply. Further, a licensee is not shielded from discipline for any conduct that was dishonest, fraudulent, misrepresentative, or any other action authorized under the Act that could warrant discipline.

Finally, please be aware that legal staff cannot give a “formal opinion” on behalf of TREC. Each case is unique with its own sets of facts and circumstances. The only way to get a definitive formal opinion or determination is via a request for a declaratory order pursuant to T.C.A § 4-5-223. As such, this answer consists solely of the statement of the law and the legal department’s understanding of its meaning and is not a formal opinion of TREC.

9. Deadlines for Canceling Contracts on Weekends and Holidays?

QUESTION: A buyer client emailed me at 11:52 p.m. on the Saturday of a holiday weekend, demanding that I get her the documents to cancel the contract by end of the following day, Sunday. From what I am reading in our PSA, if a deadline falls on a weekend or holiday, it is extended until Monday or next business day. Is that right?

ANSWER: Yes, with one or two qualifications. Regarding how the Forms Committee intended days to be calculated, the purchase and sale agreement defines “days” and how to calculate them. The contract provides definitions for the calculation of time. Section 14, E, states that all days will be calendar days. However, if the deadline is a Saturday, Sunday or legal holiday, it will roll over to the next business day. If the last day is a weekend, it would roll to the next business day (not necessarily Monday if Monday is a legal holiday). There are several exceptions: If the deadline is a closing date, date of possession, offer expiration date, or repair completion date, it does NOT roll over to the next business day. Therefore, the inspection date deadline would roll over if it ended on a Saturday, Sunday or legal holiday. Furthermore, the contract defines day as ending at 11:59 p.m. unless otherwise specified. One begins calculating the dates generally on the day after the Binding Agreement Date.

10. Grace Period, Options for Expiring License?

QUESTION: Because of an illness, I am not renewing my license after it expires this month. I have a transaction that should close next month; do I need to transfer this to my broker, or can we proceed? Also, do I need a form to surrender my license?

ANSWER: There is no grace period for an expired license. Once it expires, you cannot do any real estate work, period. However, if a contract is in place when your license expires, it is possible you could be paid your commission even if it closes after the license expires; that depends on your office policy and/or your independent contractor’s agreement.

If you don’t want to let your license expire, you could opt to place it into retirement; you could then bring it out of retirement at any time without having to retest and get relicensed (TREC 1 form). However, all education requirements must be up to date at the time of retirement. Another option is to voluntarily surrender your license. These forms are available on TREC’s website under the Licensee/Applicant Resources, Forms and Downloads.

As for illness, TREC just enacted a rule that allows for reinstating an expired license within 60 days via a medical waiver: TREC Rule 1260-1-.21. (1) Expired License Due to Health Issues or Medical Problems: (a) If a licensee fails to renew a license within sixty (60) days after expiration of the license because of personal or family health issues, and, as a result, wishes to request a medical waiver from the Commission, that licensee must: 1. Provide a signed doctor’s statement attesting to the nature and length of the illness; and 2. Submit a statement explaining the lapse, which must be signed by the person seeking reinstatement. (b) If the Commission grants the medical waiver request, then renewal fees must be paid and all other conditions for licensure must be met, but late penalty fees will not be assessed. (c) Information submitted will become public record unless otherwise prohibited by law.

KEY LINKS & RESOURCES
To check your CE hours: http://verify.tn.gov/default.aspx
For CE and other courses around TN: http://www.tarnet.com/education/
For online CE courses: http://www.tarnet.com/education/online-courses/
To ask a TAR Legal and Ethics Hot Line question: http://www.tarnet.com/technology-support/legal-ethics-hotline/
TREC: http://tn.gov/commerce/section/real-estate-commission
TAR website: www.tarnet.com
TAR on Twitter: http://twitter.com/tnaor
TAR on LinkedIn: http://www.linkedin.com/groups?gid=852077&trk=hb_side_g
TAR on Facebook: http://www.facebook.com/pages/Nashville-TN/Tennessee-Association-of-RealtorsR/15041383689

This is a perfect day to register for TAR’s 2016 Spring Conference, March 21 and 22 at Franklin Marriott Cool Springs!

Click here or on the ad for more details.

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