RealTown's RealTalk

Tom Scaglione asks:
"So, John & Ken,
Do you mean that the Rule must be adopted using only one of the options or does it
need to be adopted using both of the two options? In either case how is this rule Not
Mandatory?"

Upon examination of the MLS Policy, I note that the rule (i.e., that participants
must be given the ability to disclose to other participants any potential for a short
sale) is categorized in the Mandatory compliance classification (note the M at the
end of the rule). That rule seems to leave it to local discretion whether the
disclosure is voluntary or required.

When NAR adopts a MLS Policy change, it notes the compliance classification category
by the following letters:

M
Mandatory*
R
Recommended
O
Optional
I
Informational

*Adoption is necessary to ensure compliance with mandatory policies and ensure
coverage under the National Association master professional liability insurance
policy.

Note 3: Multiple Listing Services must give participants the ability to disclose to
other participants any potential for a short sale. As used in MLS rules, short sales
are defined as a transaction where 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.
Multiple Listing Services may, as a matter of local discretion, require participants
to disclose potential short sales when participants know a transaction is a potential
short sale. In any instance where a participant discloses a potential short sale,
they must also be permitted to 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 listing and cooperating
participants. All confidential disclosures and confidential information related to
short sales must be communicated through dedicated fields or confidential "remarks"
available only to participants and subscribers. M

John