The Tennessee Real Estate Commission Remembers Charles .

Department of Commerce and InsuranceVolume 18 / Number 1An Official Publication of the Tennessee Real Estate CommissionIn This EditionImportant Reminders .4Link to DAR Report.4Tips & All Too Common Pitfalls.5Inactive vs Retired license.5Calendar & Statistics .6REAPPOINTMENTSGovernor Phil Bredesen reappointedGrover Collins of Lewisburg andWendell Alexander of Dresden foranother term as Commissioners ofthe Tennessee Real EstateCommission. Both Commissionershave done outstanding jobs duringtheir previous terms.Collins, who isprincipal broker andowner of GroverCollins Real Estateand Auction,recently completedhis term asGrover CollinsChairman of theCommission. Alexander, who isprincipal broker and owner ofWendell AlexanderRealty, has been atremendousadvocate andbenefit to theCommission. BothCommissioners’terms will expireWendellAlexander2015.Summer 2010The Tennessee Real Estate Commission RemembersCharles Haynes and Welcomes Michelle HaynesCommissioner Charles Haynes passed away in GallatinJune 15, 2010. Haynes was the longest servingCommission member and the recent recipient of the 2009William “Bill” Tune Award for Excellence in Education.Commissioner Haynes was a celebrated resident of Gallatinand seven-time Chairman of the Real Estate Commission.Commissioner Haynes has served on a number of boards andcommissions. Serving on the SumnerCounty Planning Commission sinceCharles Haynes1994, Commissioner Haynes washonored for his service and commitment, noting that he hadbeen instrumental in bringing progress and advancement to allof Sumner County. In addition, Commissioner Haynes servedon the Sumner County Election Commission, the IndustrialDevelopment Board of Gallatin and served on the AuctionAdvisory Group for ARELLO. He has been a successful andMichelle Haynesrespected real estate practitioner for almost 40 years and hiscont. page 2Chairman and Vice Chairman ElectionsTThe annual election of the TREC Chairman and Vice Chairman was held duringthe July, Commission meeting. Isaac Northern was elected Chairman and AllenWoods was elected Vice-Chairman.Chairman Northern founded NORTHERN, INC. in1982. The company’s focus was propertymanagement. In 1990, a partnership was formedwith Henry Turley, Jr. and the company’s name waschanged to HENRY TURLEY / NORTHERN, INC. Atthat time, the company’s focus was broadening toIssac Northern Allen Woodsinclude brokerage and development. Since itsformation, the company’s management portfolio has included both multifamily andsingle family properties as well as commercial.Northern was also honored in 2002 by then Governor Sundquist for “his bountifullife of purpose and commitment to the greater good; now, therefore” and “hasserved his fellow citizens faithfully and energetically in numerous capacities, and hecont. page 2

Tennessee Real Estate News-JournalEducation DirectorStephen McDonaldwas chosen asTREC EducationDirector March 1,2010. McDonald,a Hendersonvillenative, was aseven (7) yearStephen McDonaldlicensee and anactive member of the SumnerAssociation of REALTORS . McDonaldalso is adjunct faculty in theDepartment of Communication atLipscomb University in Nashville wherehe lectures on the topics of Introductionto Communication, Human Interactionand Small Group Communication.McDonald’s interest in the real estate2business stems from his mother HildiaMcDonald, who is a Broker also inHendersonville. McDonald combinesboth his interest in real estate and theduties involved with continuingeducation as Education Director tomaximize the relationship betweenTREC and licensees. McDonald, agraduate of Goodpasture ChristianSchool, earned his undergraduate andgraduate degrees from The FloridaState University in Tallahassee, Florida.Are you In-Activeor Retired?The Tennessee Real Estate Commissiononly recognizes Active and Retiredlicenses. An inactive license is anunofficial limbo status where yourTREC Remembers cont.Elections cont.professional memberships include theSumner County, Tennessee andNational Association of REALTORS(TAR) and the Middle TennesseeAuctioneer Association.has selflessly devoted his time andenergies to making Memphis a betterplace to live” by having is namebestowed on the Interstate 55 overpassbridge on Winchester Road betweenElvis Presley Boulevard and Mill BranchRoad in the City of Memphis.To fill this unfortunate vacancy,Governor Phil Bredesen appointedMichelle Williamson Haynes tocomplete her husband’s term on theCommission which expires in 2013.Michelle and Charles started their firmHaynes REALTORS and AuctionCompany in 1976. Currently, she is anactive licensee and auctioneer. Withher appointment, Haynes will be thethird female Commission member.Commissioner Haynes is anaccomplished artist and is active withthe Tennessee Native Plant Society,Tennessee Conservation Voters, TheLand Trust for Tennessee, and manyenvironmental issues. Her addition willbe of great benefit to the licensees ofTennessee.Vice Chairman Woods is a shareholderof the Law Offices of Woods andWoods and has worked for the lawfirm, in some capacity, for most of hislife. Prior to joining the firm full time,Allen worked for one of the largest lawfirms in Nashville and gained extensiveexperience assisting clients with issuesrelated to commercial and residentialreal estate and finance, zoning,municipal law, environmental law,corporate formations, contract draftingand review, and high levelnegotiations.He has represented clients in numerousregulatory, zoning, and residential andlicense sits when you have either notcompleted your 16 CE hours orrenewed your license. To retire yourlicense, you must complete all of yourCE hours including the TREC COREcourse and submit a TREC Form 1 with 25.00 to notify TREC to retire yourlicense. Do not forget to pay yourrenewal fee of 80 no matter if yourlicense is active, inactive, or retired. Ifyou decide to re-activate your license,just complete a TREC Form 1 andsubmit a payment of 25.00. This willsave you from having to test andreapply. The TREC office can not takepayments over the phone nor handlecash so allow ample time for yourpaperwork and funds to clear. You canreference this information at TCA§ 62-13-318.commercial development matters,including the drafting of complexmaster deeds, covenants andrestrictions, and commercial leases forall types of property. He has extensiveexperience closing residential andcommercial real estate and businesstransactions. He has assisted clients inthe purchase, development and sale ofnumerous small businesses throughoutmiddle Tennessee. In June, 2008,Governor Phil Bredesen appointedAllen to serve on the Real EstateCommission.Allen graduated from the VanderbiltUniversity Law School where he was aDean’s Scholar. While at Vanderbilt,Allen was editor of the VanderbiltJournal of Transnational Law and wasawarded the Vanderbilt ScholasticExcellence Award in Legal Process. Healso co-founded the local studentchapter of the American ConstitutionSociety. He earned his undergraduatedegree from Emory University inAtlanta, Georgia.

Tennessee Real Estate News-Journal3Are You Ready for an AuditKeeping tract of your files and maintaining an office is animportant and large task. With that responsibility inmind, here are some simple guidelines for what contentshould be in your files should an auditor visit your office. Anaudit will include at a minimum that the firm has a sign, thatthe firm address and telephone numbers are reflected withTREC records, that all licenses are posted and are current, areview of the escrow or trust account, and an interview withthe broker to determine compliance with statutes, rules andpolicies of TREC. Also during the inspection, the auditor willask if there are any branch offices. The auditor will also wantto know the hours of operation for the firm. Specifically forthe principal, the auditor will determine if the principalbroker has a copy of the latest TREC manual, if the recordsare being kept for at least three (3) years and to what extentthe principal broker supervises and trains their licensees. Allinspections are performed at random but for more ruralareas or the case of a home office, contact to the principalbroker may be made by the auditor before the auditor leavesour TREC office. An auditor will always be able to showproof of their employment by a badge issued by the stateand in most cases will visit in a marked State of Tennesseevehicle. For more information, reference TCA § 62-13-309.Here are frequently asked questions:Q1. What happens once the inspector completes theinspection?A1. The inspector will prepare a detailed written report toOF ADDRESS CHANGEHave you recently moved? If yes, then TRECneeds to know!! It is important to notifyTREC of your change of address. We needthis information because a growing numberof licensees are not in constant contact withtheir firm. The process is fast and easy andof course NO CHARGE! Go online towww.tn.gov/commerce/boards/trec/formsand download the Transfer, Release andChange of Status Form (TREC Form 1) andsubmit to us. We will update your file. Makesure to provide all your informationincluding your license number.be signed by the Principal Broker after it has beenreviewed and then the inspector will submit the report tothe inspection supervisor. Once the supervisordetermines no further documentation or clarification isrequired, the report is finalized and placed in the firm’sfile. If violations are found, either a Letter of Warning orAgreed Citation will be given.Q2. How should the broker handle an overage orshortage in the escrow account?A2. The broker should identify the source of the overage orshortage and immediately take corrective action todiscover the credit or debit.Q3. How long is the expected time for a broker to hearback from the commission concerning an inspection?A3. There is no mandated time. Depending on theinspection and its findings, it typically takes 60-90 daysbefore the broker will get the commission’s response.The audit is not complete until reviewed by thecommission. If the issues found warrant immediateaction or immediate compliance, then the principalbroker should address those items immediately. Oncethe auditor compiles the report and turns it into thecommission, it will be the responsibility of thecommission to determine the items noted in the reportare significant and warrant pursuit of formal discipline.CE Available Thru TRECYou can receive once every two year licensing period eight (8) hours ofcontinuing education by attending a two day commission meeting. Thispolicy has been in place since August 2006. You do need to register atleast ten days prior to the Commission meeting to get your name on theroster. Though Commission meetings are open to the public, sometimesseating is limited based on the meeting location so make sure to reserveyour spot. The process is simple once you arrive. You must sign in andprovide your Tennessee Real Estate License Number/ File ID and be seatedprior to the 9am start. Our Commission meetings are two (2) days so makearrangements to be in attendance for both as credit is only awarded for alicensee attending both meetings. You will receive a packet of informationthat has the meeting’s agenda and all information presented plus acertificate at the end of the meeting validating your attendance. If you areinterested, please contact Betsy Bowman at betsy.bowman@tn.gov.