Section 5.0.1 Short Sales:

Section 5.0.1 Short Sales:

A “Short Sale” is a sale where:
  1. the Purchase Price is or may be insufficient to enable Seller to pay the costs of sale, which include but are not limited to the Seller’s closing costs and payment in full of all loans or debts secured by deeds of trust on the Property due and owing to one or more lender(s) and/or other lienholders (“Lienholders”),
  2. Seller does not or may not have sufficient liquid assets to pay the costs of sale, and
  3. the Lienholders agree to release or discharge their liens upon payment of an amount less than the amount secured by their liens with or without the Seller being released from any further liability.

Participants must disclose potential short sales (defined as a transaction where the title transfers, where the sale price is insufficient to pay the total of all liens and costs of sale and where the seller does not bring sufficient liquid assets to the closing to cure all deficiencies) when reasonably known to the listing participants.(M2)

Short Sales are disclosed by choosing Short Sale in the Stipulation of Sale Field. 

When disclosed, participants must advise other participants, whether and how any reduction in the gross commission, established in the listing contract, required by the lender as a condition of approving the sale, will be apportioned between listing and cooperating participants.(O)

This shall be disclosed immediately but in no case, later than 12 hours after receipt of notification from the Lienholders. All confidential disclosures and confidential information related to short sales must be communicated in the Agent Remarks available only to participants and subscribers.

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