Short Sale Flips-MLS info

[Brandi Paul]

Hello,
I have a question regarding what information is best to disclose in the agent only remarks section of the MLS listing when listing a short sale flip. Do you note that it is an investor flip? It seems to cause confusion with agents who look up the property and see that is has a NOD or NTS but isn't listed as a short sale because an investor has already contracted to purchase it and is having it listed to find the C buyer.
Any advice and/or experiences shared would be much appreciated.

[Scott Hubbard]

You should disclose the Seller is not owner of record but you need to also not disclose too much in the listing.

Some have had success with," Sale is contingent upon seller exercising its option to purchase and resell. Please contact me for more details".

In my opinion, you can refer to the investor as seller provided the owner of record has granted his or her rights to market the property and the investor as an option to purchase and resell.

Also, having the investor record a notice of option or a memorandum with the investor's name can help to clarify.

I am of the opinion when disclosing to prospective agents, you are much better off keeping it simple with a reference to call you for clarification.

[Brandi Paul]

Thank You Scott. I appreciate the suggestions.

I agree that the information should be concise and to the point and if the agents would like further clarification, they can call.

[Bill Patterson]

Brandi,
What do your local MLS rules say? We have seen these vary as well as the interpretations of the rules. Scott's contingency language sounds like it may be a good option. Some where or somehow, it should be disclosed that the sale is contingent on the "B" investor getting the property, either with "third party approval required" or language like Scott suggested.
Bill

[Maryann L.]

Brandi, we have the agents put in the private remarks or disclosure section that the sale is contingent upon the seller taking title. AND YES, it confuses the hell out of most agents but my listing agent are patient and MOST of them are experienced in what we are doing so they can handle the questions.

[Andrew R]

I would recommend legal counsel from CAR possibly ?

[Corry Taie]

I have it listed, then when I get an offer, I ALWAYS counter back & let the know 2 things.....

1) Contingent upon acceptable s.s. acceptance to seller & successful closing of sellers previous transaction.

2) Seller to become owner of record prior to closing of this transaction.

[Jerry R.]

I know this is an old thread, but interesting so I em reviving it.

So Corry, it sounds like you are listing them on the MLS before you even have SS acceptance? I understand the successful closing part of the disclosure, but am not sure how one lists a property without having acceptance on it in the first place?

[Brandi Paul]

Hi There,

Thank you again for all the replies and thanks to Jerry for reviving the thread. It is funny because I have seen various ways used in the MLS. Everything from Flip to REO to Standard Sale.

Unfortunately the deal in question never went through as the bank ended up foreclosing. They were apparently sick of postponing the Trustee's Sale as they had already postponed it quite a few times for the homeowner prior to our involvement. Definitely a learning experience.

I would love to hear how others are wording it for the MLS.

[Shane Haffey]

There's no magic pill here as most agents have been taught there's only one way to sell real estate so expect tons of questions however, I do believe it is unarguable act of disclosure. "Seller is investor purchasing property through a short sale in a SEPARATE transaction. Escrow w/your buyer is NOT a short sale;however seller must receive written consent from existing lien holders&acquire title free from liens in order to transfer clear title to your buyer."