In this Knoxville Insider Issue…

🌤️ Real Estate Edition - New Rules in Real Estate: Understanding the Latest Changes
 

New Rules in Real Estate: Understanding the Latest Changes

You’ve likely seen the news about the significant changes in the real estate industry that take effect today, August 17th. I wanted to take a moment to clarify what these changes mean for you. Thankfully, Tennessee has been using attorney approved forms and recommended procedures for over 25 years.

• One key update is that buyers are now required to sign a written agreement before viewing any home. This is a federal regulation, and REALTORS cannot show a home without one of these agreements in place. Failure to comply can result in fines, and every REALTOR across the nation is obligated to follow this regulation. So, be nice when your REALTOR asks that you review/sign a Touring Agreement or Buyers Representation Agreement - they are required to have it signed now!

• Second key update is that offers of compensation will no longer be displayed on Multiple Listing Services (MLSs). This means that the previous practice of showing what compensation a seller is offering to buyer agents on an MLS listing will be discontinued.

Offers of compensation can still be negotiated and arranged off-MLS through direct consultation between buyers, sellers, and their real estate professionals.

Please remember that ALL commissions are fully negotiable.

Ask a Realtor😀 

Q1) My wife is passionate about real estate and wants to get a license to become a realtor. She has bought some books but she is better suited to a classroom environment. Are there any networking opportunities, clubs, or classes for people pursuing their realtor license to sign up for in the West Knoxville area?

• There are a couple of options in the W Knoxville area to take in-person real estate classes. TREES Inc (TN Real Estate Educational Systems /https://www.tntrees.com/) and TRECS Real Estate School (https://trecsschool.com/)

Q2) What % is the going rate in Knoxville Tn?

• There has never been a set or standard commission. ALL commissions have always been fully negotiable. The Sherman Antitrust Act of 1890 prohibits price-fixing in real estate, including any agreements between competitors to establish standard prices for commissions, fees, or management rates. The law also forbids competitors from discussing pricing for services.

Q3) We had an inspection done on the home. First rain we had water running down the walls by the fireplace. A roofer found the roof was rotted around the edges, being improperly installed, and long term leaking around the chimney. The chimney was also plugged with expanding foam, so non functional. Is there recourse on seller or inspector? Inspectors reply, “what do you expect, it’s not a new home!”

• When you made an offer on this home, you should have reviewed and signed a TN Property Condition Disclosure form (unless the homeowner hadn’t lived in the home for the past 3 years). I recommend pulling that out and checking if the roof was mentioned. Next, review your home inspection report to see if the inspector noted any roof-related issues. Often, inspectors will flag an issue and suggest having a licensed professional evaluate it. If the inspector advised a roof evaluation and you chose not to follow through, there’s no recourse against the inspector. However, if no roof issues were noted, you might consider reaching out to the inspector again to see if he’s willing to review his findings in good faith. If you're not satisfied with his response, you may want to consult legal counsel.

This Real Estate Edition Issue brought to you by Barbara Newton. She can be reached at [email protected]

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