Tuesday, August 17, 2010

Short Sale Training Opportunities
Atty. Peter Zarov is hosting an update on the short sale market at the Wednesday 8/25 team meeting.

In addition, we are partnering Atty. Vern Jesse and Atty. Peter Zarov to team teach for us in October.

Here are a few online trainings on short sales...

Short Sale Basics
Getting the Short Sale Listing
Servicing the Short Sale Listing


SCWMLS:  Notification of Potential Short Sale Guildelines
The SCWMLS does not mandate that a listing broker disclose that there is a potential for a short sale situation. However, if disclosure is not made, the cooperating broker is entitled to rely upon the amount of commission specified by the listing broker in the MLS upon submitting an offer to purchase. If the listing broker does disclose a short sale potential, they should also consider indicating in the broker-to-broker comments how any reduction in commission required by the lender as a condition of approving the sale would be apportioned between the listing and cooperating brokers. The timing of the communication to the cooperating broker once the listing broker is made aware of a reduction was recently clarified in the SCWMLS rules. The listing broker must disclose to the cooperating broker in writing the total reduction in gross commission and the amount by which the compensation payable to the cooperating broker will be reduced within 3 business days of notification from the lender.


WRA Training and Events
Want to learn more about upcoming WRA training and events?  Check out the online events calendar by clicking the link below.  Clicking on an event will bring up additional details.

Click here for the WRA event calendar.


WRA Legal Hot Tip
Q. The buyer finds a property and calls the listing agent. The listing agent does not answer so the buyer goes to another agent who refuses to give the buyer any information unless they enter into a WB-36 Buyer Agency Agreement. The buyer’s agent writes up a WB-36 and drafts an offer for the buyer. The offer was later withdrawn because the buyer’s agent apparently didn’t get back to the buyer. The buyer called the listing agent again who said the buyer should work with the buyer’s agent. The buyer has now contacted a third agent. What can the buyer do?

A. The buyer may elect to work with any real estate licensee he or she wishes to write an offer to acquire an interest in the property. The buyer, who is a party to a WB-36 Buyer Agency Agreement, may work with the buyer’s agent. If the buyer does not work with the buyer’s agent, the buyer may be responsible for the buyer’s agent’s fee stated in the WB-36. The buyer may be referred to an attorney if he or she has any questions regarding his or her contractual obligations to the buyer’s agent.

The buyer may also contact the listing broker for services. Although the buyer has a buyer agency agreement, the listing broker is not prohibited, upon the request of the buyer, from providing brokerage services. Standard of Practice 16-13 indicates, in relevant part, that, “REALTORS® shall not knowingly provide substantive services concerning a prospective transaction to prospects who are parties to exclusive representation agreements, except with the consent of the prospects’ exclusive representatives or at the direction of prospects.” If the two brokers are in the MLS, there may be procuring cause issues that arise out of transaction.

In situations involving procuring cause, the issue is who caused the sale of the property? There is plenty of time afterward to determine who gets what part of the commission. There is no one act which determines procuring cause; it is a conclusion drawn from a full, knowledgeable consideration of all of the facts of the case. The first and most important thing is to serve the buyer and seller by negotiating and closing the transaction. If the two MLS brokers cannot agree as to the entitlement and/or division of the selling commission, the dispute should be submitted to the local REALTOR® association for resolution by mediation or arbitration.

The buyer might also decide to work with an attorney. Finally, the buyer could work with a third broker. In both situations the buyer may still owe the buyer’s agent his fee.

The third agent in this situation may, at the buyer’s request, draft an offer to purchase for the property. As a non-MLS participant, this agent may, before providing brokerage services, contact the listing broker to determine if the broker is willing to enter into a compensation agreement for this transaction.