TAR Legislative Update

Every year, July 1st marks an important day in Tennessee.  It is the day that many new laws take affect, which can often change the way you, as REALTORS® serve your buyers and sellers.  Below is a brief rundown of recent changes you may need to be aware of in conducting your business.  The TAR Forms Committee has already made sure that pertinent changes have been made to TAR forms to help keep REALTORS® in compliance with the law.

• Disclosure of a PUD and/or covenants – Requires that a residential property owner SHALL, prior to entering a contract with a buyer, disclose in the contract, including acknowledgement, if the property is located in a PUD, and make available to the buyer a copy of the development's restrictive covenants, homeowner bylaws, and master deed upon request.
• Moving a residence – Requires the seller to disclose if a property has been knowingly moved from an existing foundation to another.
• Termite inspection – Prohibits a person or business entity from entering into an agreement for termite prevention unless properly chartered as a commercial pest control operator.  
• Foreclosure-related rescue consultant services – Makes it an unfair/deceptive act under the Consumer Protection Act to charge a fee for engaging in foreclosure-related rescue services before completing or performing all services related to any such foreclosure-related transaction.

Lastly, we’ve received many requests for information about the Clean Energy and Security Act that passed in the U.S. House on Friday.  Visit http://www.tarnet.com/files/pdf/2009energybill.pdf for the latest information and answers to many of the questions you may have.  REALTORS® will still have additional opportunities to make further changes to address unresolved issues.  

Stay tuned for a more comprehensive governmental affairs update on more issues that impact REALTORS® after the July 4th holiday.  And please let us know if you have any questions.