Legal Blog

 
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The Legal Blog brought to you by NVAR's Professional Standards department helps you stay on top of the latest rules and regulations in the industry.

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First Time Doing a Short Sale

Sep 23, 2016

Short Sales and REOs

An agent is contacted by a seller who wishes to engage her services to sell his house. The agent and the seller sign a listing agreement. After signing the listing agreement the agent discovers that the seller forgot to mention that he is having trouble making his monthly mortgage payments and because of the market, he now owes more than the house is worth. The agent is concerned because she has never done a short sale before.

Article 11 of the Code of Ethics states that REALTORS® shall not undertake to provide specialized professional services that is outside their field of competence unless they fully disclose their lack of experience to the client or engage the assistance of one who is competent in the area. The REALTOR® must therefore disclose to their client that they do not have experience handling short sales. If the agent chooses to continue representation and the seller agrees to proceed after disclosure of the agent’s lack of experience, or in the alternative, if the agent selects to employ the assistance of a person competent to handle such a transaction, then Article 11 is satisfied.
Group(s):
  • Short Sales and REOs