A seller who is selling their home for normal reasons is not a distressed seller and not the subject of this new law.
Only the sale of the owner's primary home is affected by the new law.
If this was a primary home, under the new law, there will be some brokers and agent swho will choose not to take on the additional liability and decline to represent a buyer in such cases. Buyers could also have liability if they end up as as a fiduciary to the seller if (when) the home is under a 20 notice of a Foreclosure Sale once there is a mutually accepted P&SA. and the home is STI or Pending.
Since in your example, the home has been a rental, this is not an issue beyond the normal challenges of short sale. Any agent you choose to represent you can, and not have the additional liabilities in the above paragraph.
Good luck with your purchase Bryan!
Two part answer. As I read the new law, Distressed Home has to be the owner's primary residence, thus it would not fall under the new law. Second part is an investment property can be a short sale and would fall under that part of the listing agreement and NWMLS forms. I would check with my Broker and my local real estate attorney before proceeding.
An agent cannot represent you in an unlawfull transaction and we have a legal duty to disclose what we know.
My understanding of the actis that it is to help homeowners and not investors.
Real estate agents cannot give tax advice or legal advice. We refer you to those professionals. We could sell the house but you would need to talk to an attorney and a CPA on how to file your taxes or anytoher legal question that the sale brings up.