Staying In Business and Out of Court

Tennessee Real Estate Foundation and the Association of Realtors

LEGAL CASE REVIEW

Most Common

Legal Violations

4 Tips to Reduce Risk

•Fill out property disclosure form

•Always recommend home inspections

•Recommend home warranties

•Always use current approved sales contracts

Getting It Right

Mistake

Misrepresentation

Fraud

Avoiding Antitrust Risk

Fair Housing Concerns

ADA: Americans with Disabilities Act

Real Estate Settlement

Procedures Act1. Federally related

mortgage

2. Referral

3. Agreement or understanding

4. Thing of value

5. For the referral of settlement services

TREC’S RULES FOR GENERAL

AND INTERNET

ADVERTISING

Internet Advertising

General Principles of Advertising

General Principles of Advertising

GIFTS AND PRIZES

E & O Policy

Exclusions

Relation to property

Non-covered costs

Traditional Agency

Designated Agency

Changes to Agency Status

Any change in agency status in a given transaction must be discussed and approved in advance with your

client and confirmed in writing.

Minimum Service Requirements Under Law

Scheduling all property showings on behalf of the client

Receiving all offers and counter offers

Answering any questions the client may have

Upon waiver of any of these duties, the consumer may not expect or seek assistance from any other licensees in the transaction for the performance of these duties

What You Should Know About Tennessee Agencies

Common Myths and Misconceptions

MYTH:An agency relationship can be “implied,” created “accidently,” or created simply by a licensee’s actions, statements or behavior.

MYTH:You can be a seller’s agent (the listing agent) and a facilitator for the buyer at the same time.

MYTH:If you’re not sure what your agency status is at the time you submit a written confirmation of agency status, then it’s probably safest to check several boxes… since one of them is sure to be correct!

MYTH:You can’t sell your own listing without changing your agency status in the transaction to facilitator.

MYTH:Designated agency is intended solely for in-house transactions.

MYTH:The managing broker remains a dual agent even if the buyer and seller are each represented by different designated agents in the broker’s office.

MYTH:An office-wide agency policy is unnecessary. Each license should just select the type of agency (or non-agency) relationship that works best for him or her.

MYTH:Licensees in Tennessee are still subject to the common law of agency.

What may an unlicensed employee do?

Case Study: Services We

Provide

CASE STUDY:

KEEPING IT CONFIDENTIAL

CASE STUDY: Agency Dilemma