On December 04, 2012, Bank of America published the guidelines regarding short sale agent commissions. Short sale commissions have been a hot topic as of late. This is more so with respect to those agents that have had commissions reduced or short sales denied because of relationships of the brokers or agents to the seller.
An eligible short sale transaction is made on an arm’s-length basis, meaning the buyer and the seller have no personal, familial or professional (business associate, business interest) relationship and the property is listed for sale on the open market at fair market value. Arm’s length transaction rules are strictly enforced by lenders and it will be helpful for the short sale agent to understand the commission rules and how they interact with an arm’s length transaction.
By way of example, please see examples that Bank of America published in the December 04, 2012, article:
As always, should you have any questions regarding any of the foregoing, please do not hesitate to contact Berlin Patten, PLLC.
This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.
All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.