Home Buying in Tacoma>Question Details

Kelly Vaughn, Home Buyer in Tacoma, WA

Does NWMLS rule #120 apply to short sales? If the seller signs off on the offer, should the property show as

Asked by Kelly Vaughn, Tacoma, WA Fri Apr 4, 2008

STI or PENDING?

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3
Hey Kelly,

Sorry about the delay in responding. I wanted to confirm. The MLS is very specific about this and I have pasted in their specific answer to this question to make it clear. With things of this nature vagueness is our enemy.

5. Rule 120. Rule 120 requires the listing office to give notice of sale by changing the status of the property after a purchase and sale agreement is executed. The existence of a right to review the agreement by the lender does not affect this obligation. A contingency allowing the lender to review the agreement is no different than any other agreement, and if the parties have reached mutual acceptance, the property is under contract. The status must be changed to Active STI, Pending, or Contingent no later than 5:00 p.m. of the next business day.

Again, these procedures are not new. They are based on existing NWMLS Rules that have always applied to all listings, including short sales. NWMLS issues this bulletin only to remind members of the critical need to comply with these Rules in the context of short sales. Proper disclosure, as set forth above, is absolutely critical to protect all parties' interests and to comply with NWMLS's Rules.

So there you go. If parties have mutually accepted, (even if review is required) it must be changed in the MLS.

I hope that was helpful. If you have any further questions feel free to contact me.

Danny Altizer
Windermere RE South Inc.
33405 6th Ave S
Federal Way, WA 98003
253.250.6474
dannya@windermere.com
1 vote Thank Flag Link Fri Apr 4, 2008
Yes it should show as STI if a seller signs the offer and is waiting for bank acceptance.
1 vote Thank Flag Link Fri Apr 4, 2008
Absolutely. Below is a paragraph from Legal Bulletin 169 which explained NWMLS rules for Short Sales:

5. Rule 120. Rule 120 requires the listing office to give notice of sale by changing the status of the property after a purchase and sale agreement is executed. The existence of a right to review the agreement by the lender does not affect this obligation. A contingency allowing the lender to review the agreement is no different than any other agreement, and if the parties have reached mutual acceptance, the property is under contract. The status must be changed to Active STI, Pending, or Contingent no later than 5:00 p.m. of the next business day.
0 votes Thank Flag Link Mon Apr 7, 2008
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