BrokerageIndustry News

NAR considers new short-sale disclosure rules

Some MLSs have already adopted policies

In response to the rising tide of short-sale properties and foreclosures, a National Association of Realtors committee that meets next month is expected to consider new rules to better describe the status of properties in Realtor-affiliated multiple listing services. Some local and regional multiple listing services have worked out definitions and disclosures about the status of properties and developed their own policies related to bank-owned foreclosure properties and short sales. Short sales are typically defined as transactions in which the lender agrees to accept less than the full amount due on a mortgage when a property is sold in order to avoid a costly foreclosure process. There are some differences of opinion within the industry about how and when to characterize a property as a "short sale" property, and members of the National Association of Realtor trade group's Multiple Listing Issues & Policies Committee are scheduled to review and discuss polic...