Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm not sure that dictate is the right word but they get to say "these are the terms and conditions under which we'll accept the short sale" and those may include a reduction in the commission amount. The brokers don't have to accept less money since there is already an agreement (contract) between the seller and the listing broker spelling out the amount that will be due at closing. In most cases, if not all, the brokers do accept the reduction, however, and in our MLS we must agree to accept and split any reduction as a term for using the ML system for short sales.
A short sale? I wouldn't discount my fee a penny, simply because the time involved in the short sale and, the bank will determine who gets paid what amount. So much more work than a regular sale.
Most commissions are not subject to "lowering" unless they are greater than 6% total.
There is no federal law about negotiating short sales by real estate licensees. The California DRE has come up with a position statement that you must be licensed.
There is a new Federal rule about not be able to charge upfront fees for either short sales or loan mods....
I would be concerned if your lawyer is this uninformed.
I'll have to ask the attorney for the statute. He is very reputable in doing real estate law, teaches it, and was recommended by my parents' own real estate agent.
In Florida, an agent can negotiate a short sale but not for additional compensation. I believe you have to be a licensed mortgage broker (don't ask me) or an attorney to charge for the service. We also just heard about the MARS program (FTC) that went into effect at the end of January which affects everyone involved with short sales and loan mods.
... We also just heard about the MARS program (FTC) that went into effect at the end of January which affects everyone involved with short sales and loan mods.
Right, agents have to be careful how they assist with short sales, and provide the required disclosures - here's the AZ Realtor association MARS overview:
It appears that agents can work on short sales as long as they don't charge a separate negotiation fee, unless they are also a licensed loan originator.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
