SHORT SALES

In accordance with NAR policies you are reminded that our local MLS Rules state the following:

Multiple listing services, at their discretion, may adopt rules and procedures enabling listing brokers to communicate to potential cooperating brokers that gross commissions established in listing contracts are subject to court approval or to lender approval; and that compensation payable to cooperating brokers may be reduced if the gross commission established in the listing contract is reduced by a court or by a lender. In such instances, the fact that the gross commission is subject to court or to lender approval and either the potential reduction in compensation payable to cooperating brokers or the method by which the potential reduction in compensation will be calculated must be clearly communicated to potential cooperating brokers prior to the time they produce an offer that ultimately results in a successful transaction. Page 15, Note 4

To allow for recent changes in the MLS software, when the rules are revised, this paragraph will be amended slightly to account for the new "compensation notes section" that was added to our MLS software recently to facilitate the notification prior to submission of offer. I would encourage all of you to use this field when dealing with an outside party for approval and acceptance of offers and ultimately commissions paid.

There are also new addendums available through FAR,
Short Sale Addendum to Purchase, click here
Short Sale Exclusive Right of Sale, click here

It is expected that you represent the commission as agreed upon with the seller in your listing agreement; but that you also indicate in the compensation notes section you are in fact dealing with a short sale and the method by which the potential reduction in compensation will be calculated. For example: 50/50; 60/40, or per Broker to Broker agreement etc.. It wouldn't hurt to include some verbiage in your agent notes section directing attention to the compensation notes field.