Section 5.0.1 Disclosing Potential Short Sales

Section 5.0.1 Disclosing Potential Short Sales

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) 

Where participants communicate to other participants 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 the listing and cooperating participants, listing participants shall disclose to cooperating participants in writing the total reduction in the gross commission and the amount by which the compensation payable to the cooperating broker will be reduced within 12 hours of receipt of notification from the lender. (Adopted 5/10) 

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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