The following five items are seen by Appraisers more often than any other repairs listed on the VC Sheets. If you would like to expedite your closings and save your clients time and money, make them aware of these five repair items.

1. PEELING PAINT: For properties built after 1978, any and all peeling paint on the exterior of the dwelling must be scraped and painted with two coats of no-lead base paint. For properties built prior to 1978, any and all peeling paint on the interior and exterior and including all detached improvements must be painted with two coats of neo-lead base paint. Example: storage building, decks, patios, fences, detached quarters, etc. The detached improvement may be demolished and removed from the property as an alternative to scraping and painting.

2. GAS WATER HEATERS: Must be at least 18 inches above the floor level. Exception: if the water is electric, if the gas water heater is within the living area, or if the water heater is contained in its own area no larger than 2 feet by 2 feet with proper ventilation outdoors. If the room is large enough to store anything else other than the gas water heater, it must be raised.

3. UTILITIES: All utilities must be turned on or the Appraiser will have to come back to re-inspect.

4. STEPS WITHOUT HANDRAILS: Anything with more than one step must have a handrail. This includes both interior and exterior.

5. PLUMBING LEAKS: Nine out of ten leaks noted are found under the kitchen sink. Flush toilets and checks water lines, run water in all sinks and check fittings under the sink, check bathtubs and showers to ensure they are working properly. Make sure the hot water is turned on at time of inspection.

1. A fire destroys only the house and improvements. The ground is left. A defective title may take away not only the house but the land on which it stands. Title insurance protects the buyer against such loss.

2. A deed or a mortgage in the chain of title may be a forgery.

3. A deed or a mortgage may have been signed by a person under age.

4. A deed or a mortgage may have been made by an insane person or one otherwise incompetent.

5. A deed or a mortgage may have been made under a power of attorney after the death of the principal and would, therefore, be void.

6. A deed or a mortgage may have been made by a person other than the owner, but with the same name as the owner.

7. The testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property.

8. The testator may not have revoked a will after its execution.

9. A conveyance by heirs-at-law of a person supposed to have died without a valid will may be defeated by subsequent discovery and probate of a will.

10. An heir or other person presumed dead may appear and recover the property or an investment therein.

11. A Judgment or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding.

12. Title insurance helps speed negotiations when the property is ready for
resale.

13. If an insured title is ever defeated, the amount of the loss is reimbursed by the title insurance company.

14. Title insurance means free defense in court.

15. Only title insurance protects against claims due to marital status and validity of divorces such as a supposedly non-existent or divorced "wife" or "husband".

The following checklist will help you compare "apples to apples" as you look for your new home. It is by no means complete; there are probably items you'll want to add. It should, however, cover some of the more important things to consider during your search.

★  Is the neighborhood attractive, pleasing, and well-maintained?

★  Is the lot free from drainage from neighboring lots?

★  Is it possible to enjoy privacy in the yard?

★  Are there vents under the roof overhangs and close to the roof ridge or in the gable ends of the house?

★ Is the ridge of the roof straight and free from bowing?

★ Is the siding at least six inches above the ground?

★ If brick has been used, is it free from cracks?

★ Are the walls straight and free from major bulges?

★ Are the window and door frames sealed with unchipped caulking?

★ Do the windows have double-pane insulating glass?

★ Do windows provide good cross ventilation and adequate natural light?

★ Does the placement of windows and doors allow for a variety of furniture arrangements?

★ Do interior doors open inward into rooms and outward away from stairs?

★ Are floors level and free from squeaking?

★ Are adequate electrical outlets located in every room?

★ Does the house have adequate storage space?

★ Does the house have copper water lines?

★ Does the floor plan provide the space you want for your activities and privacy?

★ Are stairways conveniently located?

★ Is the kitchen centrally located to the rest of the house?

★ Is the kitchen planned so work flows freely from the refrigerator to the sink to the range?

★ Is counter space conveniently arranged?

★ Is the laundry area conveniently located to the bedrooms?

★ Do bathrooms have adequate storage space for towels, toiletries, etc.?

★ Are the bedrooms large enough to meet your family's needs?

★ Is the attic easily accessible, especially if you plan to use it for storage space?

★ Is the garage large enough for the number of cars your family uses?

★ Does the garage provide sufficient storage space?

★ Visit the homes you are considering at different times of the day.

Whether your are just now guessing which color to paint your nursery or have a little one that is ready to crawl, taking preventive measures to childproof your home against unintentional accidents is essential. Even you don't want your children to get into something, it seems that they can always find a way to do so. Specialists in child safety recommend that parents get down on their hands and knees and take a look around the house from a child's viewpoint.

Consider the following room-by-room tips to help make your home safer for your children:

SAFETY MEASURES FOR ALL ROOMS

• Install child-resistant covers on all unused electrical outlets.

• Keep all mini-blind cords out of reach.

• Tape down the corners of area rugs or electrical cords that might trip children.

• Place furniture well away from all windows.

• Keep cigarettes, matches and lighters out of reach.

• Place screened barriers around fireplaces, radiators and portable space heaters.

• Keep firearms and ammunition safely locked away.

• Secure unsteady furnishings.

• Be vigilant about choking hazards. ( Anything that fits inside a toilet paper tube has the potential to choke a child. )

LIVING ROOM

• Secure bookcases to the wall, using shelf brackets attached to the side and/or top of the bookcase, and then screw into the wall.

• Secure or remove heavy or breakable items from tables, as children are likely to grab or shake them, causing whatever is on top to move or fall off.

• Use corner bumpers on furniture and fireplace hearth edges.

• Keep the houseplants high. ( The objective here is two-fold: to keep a falling plant from hurting your child and potentially poisonous houseplants out of reach. )

KITCHEN

• Install childproof latches on all cabinets and appliances within a child's reach.

• Keep knives, cleaning supplies, and plastic bags out of reach.

• On stoves, keep the handles of pots and pans turned toward the wall. Never leave cooking food unattended.

• If stove knobs are easily accessible to children, use protective covers to prevent kids from turningthem on.

• Keep chairs and step stools away from counters and stove.

• Keep syrup of ipecac on hand.

BABY'S ROOM

• Place infants under one year of age on their backs to sleep.

• Crib bar spacing should be no greater than 2-3/8 inches, smaller than the diameter of a soda can.

• Position the Crib away from all drapery, electrical cords, and windows.

• Be sure the crib sheet fits snugly.

• For crib bumpers, make sure it's firm ( not fluffy ) and secured tightly with at least six ties.

• Remove mobiles and other hanging toys from the crib as soon as a child can reach up and touch them.

• Never use an electric blanket in the bed or crib of a small child or infant.

STAIRS AND HALLWAYS

• Have two safety gates, one at each end of the staircase.

• Brighten dark hallways.

• Install carbon-monoxide ( CO ) alarms and smoke alarms in each room on every level of the home.

WINDOWS AND DOORS

• Mark sliding glass doors with colored tape or stickers to distinguish them from open doorways.

• Place sleeves on doorknobs to prevent toddlers from accessing dangerous areas of the house.

• Use doorstops to ensure that doors can't slam shut.

BATHROOMS

• Turn down the hot water heater temperature to a maximum of 120 degrees.

• As in the kitchen, lock or tie cabinet doors, and move all soaps and shampoos to higher surfaces ( especially colorful ones, or varieties that have tempting scents like vanilla or strawberry ).

• Place a non-slip mat or stickers on the bottom of your bathtub.

• Put locks on medicine and cleaning supply cabinets.

• Cover the bathtub waterspout with a soft, protective cover.

• Install toilet lid locks.

• Install ground-fault circuit interrupters on outlets near all sinks and bathtubs.

If you are unsure about any of the items listed, ask a professional. Professionals may come to your home to "child or baby-proof" it by installing protectors and locks, while looking for hazards that might go unnoticed. Your family doctor or pediatrician may be a great resource for locating reliable, inexpensive professionals that may perform these services in your area.

The Role and Responsibility of the Real Estate Agent in
Responding to questions about Sexual Offenders

Tennessee Law TCA 40-39-106 makes some Tennessee Sexual Offender Registry Information about sex offenders who committed certain offenses on or after July 1, 1997, a matter of public record.

Real Estate Agents should forward any questions about Sexual Offenders to the Tennessee Bureau of Investigation's " Sex Offender Registry".

Tennessee Law requires the Tennessee Bureau of Investigation to post information about sexual offenders on their Internet home page.

http://www.tbi.state.tn.us/sorint/SOMainpg.aspx

Any additional Information requested concerning sexual offenders can be should be directed to the TBI at 1-888-837-4170

The Role and Responsibility of the Real Estate Agent in Disclosing Stigmatized or Psychologically Impacted Properties.

Tennessee Law: TCA 66-5-207 state "...no cause of action shall arise against an owner of real estate or a real estate licensee for failure to disclose that an occupant of the subject real property, whether or not such real property is subject to this part, was afflicted with HIV or other disease which has been determined by medical evidence to be highly unlikely to be transmitted through the occupancy of a dwelling place;

or that the real estate was the site of: An act or occurrence which had no effect on the physical structure of the real property, its physical environment or the improvements located thereon; a homicide, felony or suicide,."

An agent does not disclose any information about Stigmatized or Psychologically Impacted Properties without the written authorization of the property owner. Without authorization, the agent's response to any questions about Stigmatized or Psychologically Impacted Properties should be —"Tennessee Law prohibits me from answering that question".

The Duties of real estate licensees as stated in the Tennessee Property Disclosure Law TCA 66-5-206.

· A real estate licensee representing an owner of residential real property as the listing broker has a DUTY TO INFORM each such owner represented by that licensee of the owner's rights and obligations under the Property Disclosure Law.

· If a purchaser is not represented by another licensee, the real estate licensee representing the owner of residential real estate and dealing with the purchaser has a DUTY TO INFORM the purchaser of the purchaser's rights and obligations under the Property Disclosure Law.

· A real estate licensee representing a purchaser of residential real property has a DUTY TO INFORM each such purchaser represented by that licensee of the purchaser's rights and obligations under the Property Disclosure Law.

· A real estate licensee working with a purchaser of residential real property has a DUTY TO INFORM that purchaser of the purchaser's rights and obligations under the Property Disclosure Law.

If a real estate licensee performs these duties, the licensee shall have no further duties to the parties to a residential real estate transaction under the law, and shall not be liable to any party to a residential real estate transaction for a violation of the law or for any failure to disclose any information regarding any real property subject to the law.

A cause of action for damages or equitable remedies may be brought against a real estate licensee for:

· Intentionally misrepresenting or defrauding a purchaser,

· Failing to disclose adverse facts of which the licensee has actual knowledge or notice.

The Twenty (20) Common-Law Factors Determining Employee or Common-Law Independent Contractor Status.

The Internal Revenue Service has enumerated twenty (20) factors in Revenue Ruling 87-41 which it considers in determining whether individuals are employees or common-law independent contractors for federal tax purposes. The degree of importance of each factor depends on the occupation and is case specific. When evaluating each of these twenty (20) factors in light of your office practices, remember that a "yes" for a factor weighs in favor of assessing a worker an employee. The twenty (20) factors below:

1. Instructions.
Is the worker required to comply with the employer's instructions? A worker who is required to comply with other persons' instructions about when, where, and how he is to work is ordinarily an employee. This control factor is present if the person for whom the services are performed has the right to require compliance with instructions.

2. Training.
Is the worker required to receive training from the employer? Training a worker by requiring an experienced individual to work with him or by requiring the worker to attend meetings, or by using other methods, indicates that the services are to be performed in a particular method or manner.

3. Integration.
Does the worker provide services that are integrated into the business? Integration of the worker's services into the business operations generally shows that the worker is subject to direction and control. When the success or continuation of a business depends on the performance of certain services, the workers who perform those services are generally subject to a certain amount of control by the owner of the business.

4. Services Rendered Personally.
Must the worker personally perform the services? If the services must be rendered personally, an employer-employee relationship is assumed.

5. Hiring, Supervising and Paying Assistants.
Does the worker hire, supervise and pay assistants for the employer? If the person for whom the services are performed hires, supervises and pays assistants, it generally demonstrates control. However, if one worker hires, supervises and pays the other assistants pursuant to a contract under which the worker agrees to provide materials and labor and under which the worker is responsible only for the attainment of a result, this factor indicates an independent contractor status.

6. Continuing Relationship.
Does the worker have a continuing relationship with the employer? A continuing relationship between the worker and the person for whom the services are performed indicates an employer-employee relationship. A continuing relationship may exist where work is performed at irregular intervals if they are recurring.

7. Set Hours of Work.
Must the worker follow set hours of work? The establishment of set hours of work by the person for whom the services are performed is a factor indicating control.

8. Full-Time Required.
Does the worker work full-time for the employer? If the worker must devote substantially full-time to the job, control over the amount of time the worker spends working is assumed and restricts the worker from other gainful employment. Therefore, an employer-employee relationship is assumed. An independent contractor, on the other hand, is free to work when and for who he or she chooses.

9. Doing Work On Employer's Premises.
Does the work take place on the employer's premises? If the work is performed on the premises of the person for whom the services are performed, that factor suggests control, especially if the work could be done elsewhere. Work done off premises, such as at the office of the worker, indicates some freedom from control. However, this fact by itself does not mean that the worker is not an employee. Control over the place of work is indicated when the person for whom the services are performed has the right to compel the worker to travel a designated route or to canvass a designated territory.

10. Order or Sequence Set.
Does the worker have to follow a work sequence set by the employer? If a worker must perform services in the order or sequence set by the person for whom the services are performed, that factor shows that the worker must follow established routines and schedules. Often, because of the nature of an occupation, the person for whom the services are performed does not set the order of the services. It is sufficient to show control, however, if the person has the right to do so.

11. Oral or Written Reports.
Does the worker have to submit regular reports? A requirement that the worker submit regular or written reports to the person for whom the services are performed indicates a degree of control.

12. Payment by Hour, Week, Month.
Does the worker receive regular amount of compensation at fixed intervals? Payment by the hour, week or month generally points to an employer-employee relationship, provided that this method of payment is not just a convenient way of paying a lump sum agreed upon as the cost of a job. Payment made per job or on a straight commission basis generally indicates that the worker is an independent contractor.

13. Payment of Business and/or Traveling Expenses.
Does the worker receive payment for business and traveling expenses? If the person for whom the services are performed pays the worker's business and/or traveling expenses, the worker is ordinarily an employee.

14. Furnishing of Tools and Materials.
Does the employer furnish tools and materials? The fact that the person for whom the services are performed furnishes significant tools, materials, and other equipment to do the job tends to show the existence of an employer/employee relationship.

15. Significant Investment.
Has the worker invested in facilities used to perform the service? If the worker invests in facilities that he uses in performing services which are not generally maintained by employees (such as the maintenance of an office rented at fair market value from an unrelated party), that factor tends to indicate that the worker is an independent contractor. The lack of investment in facilities indicates dependence on the person for whom the services are performed and the existence of an employer-employee relationship.

16. Realization of Profit of Loss.
Can the worker make a profit or suffer a loss? A worker who can realize a profit or suffer a loss is generally an independent contractor. For example, if the worker is subject to a real risk of economic loss due to significant investments or liability for expenses, such as salary payments to unrelated employees, that factor indicates that the worker is an independent contractor. The risk that a worker will not receive payment for his or her services, however, is common to both independent contractors and employees and thus does not constitute a sufficient economic risk to support treatment as an independent contractor.

17. Working for More Than One Firm at a Time.
Can the worker work for more than one employer at a time? If a worker performs more than de minimis services for a number of unrelated persons or firms at the same time, the worker is generally considered an independent contractors.

18. Making Service Available to General Public.
Does the worker offer services to the public? The fact that a worker make his or her services available to the general public on a regular and consistent basis indicates an independent contractor relationship.

19. Right to Discharge.
Can the worker be fired? The right to discharge a worker is a factor indicating that the worker is an employee and the person possessing the right is the employer. An employer exercises control through the threat of dismissal, which causes the worker to obey the employer's instructions. An independent contractor, on the other hand, cannot be fired so long as the independent contractor produces the result that meets the contract specifications.

20. Right to Terminate.
Can the worker quit without incurring liability? If the worker has the right to end his or her relationship with the person for whom the services are performed at any time without incurring liability, an employer-employee relationship exists.

These are the factors the IRS has used when determining whether a real estate agent is an employee or common-law independent contractor.

KITCHEN

Stove

Refrigerator

Microwave

Dishwasher

Trash compactor

Garbage disposal

Faucets

Light fixtures

Floor (under rugs)

LIVING AREA AND BEDROOMS

Floor (under rugs)

Light fixtures

Ceilings (new stains or holes)

Walls (new stains or holes)

Outlet covers

Switch covers

MECHANICAL

Water heater

Heating system

Air conditioning

Garage door (openers)

Smoke detectors (check batteries)

Carbon Monoxide detectors (check batteries)

BATHROOMS

Faucets

Tub

Shower

Plumbing (leaks)

Floor (under rugs)

Walls (new stains or holes)

Ceiling (new stains or holes)

GENERAL

Doors

Windows

RESIDENTIAL AND COMMERCIAL REAL ESTATE FIRMS ARE REQUIRED BY TENNESSEE LAW TCA 62-13-312. #6 TO PRESERVE FOR THREE YEARS FOLLOWING ITS CONSUMATION, ALL RECORDS RELATING TO A REAL ESTATE TRANSACTION.

( THE FIRM MAY UTILIZE ELECTRONIC OR COMPUTERIZED DATA STORAGE ) .

Those Records Should Include:

1. The Listing Contract or Property Management Contract between the property owner

and the real estate firm.

2. The Agency Disclosure Form between the property owner and the real estate firm's

sales affiliate.

The Agency Disclosure Form between the real estate firm's sales affiliate and the

buyer, only if the transaction was an Inhouse sale or lease.

(The Law does not require a real estate firm to have copies of Agency Disclosure Forms

from all the parties and sales affiliates involved in a transaction unless it is an Inhouse sale

or lease and the firm has an agency relationship with all the parties involved in the

transaction.

If the buyer or tenant is represented by or working with a sales affiliate from another real

estate firm, a copy of the Agency Disclosure Form between that sales affiliate and the

buyer or tenant is not required in the transaction file.

3. The Seller Agency Agreement between the property owner and the real estate firm and their sales affiliate.

4. The Buyer Agency Agreement between the buyer and the real estate firm and their

sales affiliate.

5. Copies of all Offers to Purchase/Lease even those that are that do not become

contracts.

6. A copy of the Property Disclosure Form, if required by law of the property owner.

A copy of the Exemption Notification if a Property Disclosure Form is not required.

A copy of the Waiver which is required if the property owner refuse to fill out a Property

Disclosure Form.

A copy of the Property Disclosure Addenda from the property owner if there were any

material changes in the physical conditions of the property prior to the closing or a

Certification Addenda from the property owner stating that the condition of the property at

closing is the same as stated on the Property Disclosure form prior to the closing of the

transaction.

7. A copy of the Lead Base Paint Disclosure if property was constructed prior to 1978.

8. Copies of any other Environmental Disclosures.

9. A copy of the Termite or Pest Inspection Report.

10. A copy of the Contract to Purchase or Lease.

11. A Detail Record of the handling and disbursement of all deposits and earnest money involved in the transaction.

The Broker who accepts or whose sales affiliate accepts a deposit or earnest money from

a buyer or tenant is always responsible for that deposit or earnest

money, regardless of whether such deposit or earnest money is actually held

by some other real estate firm or other person. - TREC Rule 1260-2-.09 #3.

(It appears that a safe policy for the real estate firm accepting the deposit or

earnest money from a party to a transaction would be to always hold the

deposit or earnest money in the firm's escrow account.)

12. A copy of the Closing Statement.

13. Any and all Correspondence pertaining to the transaction.

14. Any and all Notes pertaining to the transaction.

15. Any other Relevant Information pertaining to the transaction which might

be beneficial to you if the real estate firm, Broker, and or sales affiliate is

involved in a lawsuit concerning the transaction.

Recommendation: The Principal Broker or Office Manager should convert the above into a checklist to be followed by every licensee in the office.