Bravo to the Florida Emerald Coast Association of Realtors for recognizing the risks of multiple offers on short sales. Our MLS requires all short sale contracts to be placed in “Contingent” or “Pending” status. What some agents do to skirt around this rule is submit unsigned “offers” to the short sale lender. That way, they could keep the properties listed in Active status while working multiple short sale offers, since an “offer” is not a “contract”.
Here is the new rule from the Emerald Coast Association of Realtors:
“Further clarifying what a short sale listing in Active status represents, the Emerald Coast Association of REALTORS® Board of Directors tightened the MLS rules require a status change whenever an offer has been sent for lender approval or while additional offers are being collected. Listing agents are now required to pull a short sale listing while waiting for a response from a lender whether the seller has agreed to the potential buyer’s offer or not. The following wording was added to the Short Sale paragraph in Section 1.2, Note 3 on November 19, 2009:
When an offer is received on a Short Sale listing and that offer is not rejected by the seller within three business days of receipt by the listing brokerage or is sent to one or more lien holders for consideration, that listing may not be left in Active Status.If the seller has accepted the offer – whether or not it is subject to bank approval – the listing must be placed in Contingent or Pending Status. Otherwise, the listing must be Temporarily Withdrawn until all outstanding offers are rejected, the lien holder(s) agrees to the terms of the offer, or until the seller chooses to accept an offer.
The change will prevent several “loop holes” from keeping a listing on the market when offers are being collected by the seller or considered by a lender. Contrary to the belief of some MLS subscribers, most MLS Rules, this one included, may not be superseded by the desires of the seller or by agreement of the buyer and seller. The new rule goes into effect immediately.”
I think this is a good move, what say you?
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
www.ShortSaleSuperstars.com for agents
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