As you know, short sale listings are the norm and not the exception in today’s marketplace. In this article we will be highlighting three short sale listing requirements: Compensation Disclosure, Status and Realtor/Public Remarks.
Clarification of OPTION TWO Disclosure
Last month, the MFRMLS Board of Directors voted favorably for a new policy clarifying the language in current short sale listing rule specifically regarding Compensation. OPTION TWO under the Disclosure Options contains the new clarification language as underlined and italicized below:
- OPTION TWO: If the listing Broker DOES want to bind the cooperating Broker to be obligated to accept a reduced commission amount as determined by owner(s) of record lender(s), the following remarks must be placed as the first words in the public remarks:
And the following remarks must be placed as the first words in the Realtor Only Remarks:
“Short Sale; approval of the owner(s) of record lenders(s) may be conditioned upon the gross commission being reduced, any reduction of the gross compensation will be apportioned (insert apportionment or split) between listing and cooperating brokers."
Please be sure to update the listing status of your properties — especially short sale listings. Updates should be made within 48 hours per the MFRMLS Rules and Regulations.
Don’t forget, the following remarks must be included with short sale entries. Within the Realtor Remarks and Public Remarks, the first two words must be "Short Sale." In the Special Provision Field the selection in the drop-down window should be "Short Sale."
If you are reporting a violation, MFRMLS’s Administration Specialists can investigate it with our progressive fine system. You can reach us at (407) 218-8607 or (800) 686-7451 (Option 3).
If you are filing a complaint about commissions or contract violations, FAR’s legal hotline is available at 407-438-1409.