Listing Short Sale Flips on MLS

[Josh D.]

Someone was telling me you can not list properties on the MLS that you do not own in Florida.

If you have an option contract on a property, have paid the seller consideration and recorded the notice of option in the public records, don't you have the right to list the property on MLS (in Florida) even though you don't own the property?

My understanding is the option gives you an equitable interest in the property and allows you to list the property on MLS to flip to a retail buyer.

Is this correct? If not how are short sale flippers advertising their properties to retail buyers besides craigs list?

Thanks!

[Keith Barton]

Originally posted by Justin H.:

Where can I find the marketable/equitable interest laws for Ohio?

Justin: I'm an Ohio attorney and I just had occasion to research this matter twice in 2 different contexts in the last month. In Ohio - you acquire equitable rights to real estate ONLY if there is a purchase agreement in full force and effect. If you have an option contract and you have not yet exercised the option to purchase - there is no purchase agreement in full force and effect. I have no information about marketable interest. Here is the authority for equitable interest not existing if the option has not yet been exercised:

“A written optional contract for a nominal consideration given by the owner to sell his real estate is not a sale thereof, but only a standing offer to sell to the person, and at the price named therein, if accepted within the time stated in the optional contract. The option confers no right to the holder of the option in the real estate, but it is only a sale of a right to him to become the purchaser upon the acceptance thereof within the time stated. Until the acceptance of the offer according to the terms thereof, it does not ripen into a sale of the real estate or become a completed contract between the parties for the sale thereof. It is only after the holder of the option has accepted the option that he becomes the equitable owner of the property, and can compel specific performance of the contract in a court of equity.â€
Sause v. Ward (1917, 11th Appellate District), 7 Ohio App. 446, 450-451.

Sincerely,
Keith