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SmartMLS Commission Rules are now Easier for Short Sale Listings!
Posted on 13. Feb, 2018 by ctlms in Blog, My Blog, News, Real Estate, Short Sale
SmartMLS Rules and Regulations now allow agents to advise other agents how commission reductions would be handled.
SmartMLS rules and regulations "Section 7.1.0 Disclosure of Potential Short Sale. Participants may, but are not required to, disclose potential short sales to other participants and subscribers. When disclosed, participants may, at their discretion, advise other participants whether and 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."
I recently reached out to MLS Compliance and confirmed that it is now allowed for agents to offer an actual % to co-broke on the MLS and describe how any reductions to commission required by the lender would be handled.
As an example;
Your listing could offer 2.5% to co-broke, check the box for Potential Short Sale and in the Short Sale Comments state something like "Any reduction in commission, required by the short sale lender, as a condition of the short sale approval, will be split 50-50".
NOTE THAT THIS IS JUST AN EXAMPLE. Check with your broker or office manager for your company policy on this. Also, note that I would suggest including the language in the Compensation Notes Section since it is right near the commission offered section on MLS printouts.
The update to these rules should no longer make it necessary to list short sales at $1 co-broke to protect against cuts required by the short sale lender.
Brokerages may want to review these rules and determine if updating their company policies is in order.
Sean Wilder
Loss Mit Services
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Bio
Sean Wilder started in the pre-foreclosure business in 2007. Previously he enjoyed successbusiness in the transportation industry, real estate investing and as a licensed Realtor. Sean brought the same determination and work ethic that lead to great success in his previous businesses to Loss Mit Services based in East Windsor, CT. His focus, combined with his drive to succeed, have been essential to his success as one of the area's top short sale negotiators.
Known for finding creative ways to overcome hurdles and never ending persistence; Sean, believes in the power of team. Sean and his team are in the trenches everyday, plowing through challenges and objections while negotiating with various lenders, and finding solutions to difficult problems. It is this daily experience that brings Loss Mit Services consistent success and provides them the knowledge to share.
Sean belongs to a number of industry groups and associations that allow him to collaborate, share, learn, teach and stay updated on the latest changes in the pre-foreclosure industry at the federal, state, local and lender specific levels.
Effective Oct 1, 2009 all debt negotiation companies that offer loan modification, short sale, or foreclosure rescue services needed to be licensed by the CT Dept of Banking. Sean and his company Loss Mit Services were the 1st to be awarded the Debt Negotiation License NMLS # 828273 which can be verified at the CT Dept of Banking Website by Clicking Here. In addition, effective Oct 1, 2011 Debt Negotiators were required to also be licensed Mortgage Loan originators and Sean also has received this license, NMLS# LO-831853.
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