10 Questions To Keep Your Neck From Stretching Out Too Far

Posted on July 27, 2015

Just how far are you willing stick your neck out to close a deal without making sure you have your backside covered? Unfortunately there are some agents out there today that are moving into a lucrative market niche and their neck is pretty extended.

Agents are well schooled in disclosures these days and every broker still in business has the subject on his or her mind most of the time. We have all the standard forms and the checklists to follow. But there is a market niche out there today that has some unique liability issues and some agents are leaving themselves legally "wide open" negotiating the Short Sale.

The obvious place to begin is to "get it in writing", and there are a number of Short Sale Release of Liability disclosure forms available to use. For instance, In California the California Association of Realtors® (CAR) has developed a Purchase Agreement with a Short Sale provision. It covers the key legal issues and many brokers have created their own Short Sale Release of Liability Disclosure forms. No matter which form you or your broker elect to use to "get it in writing," there is another step to follow that will add some insurance to protect your neck.

In his Certified Short-Sale Professional (CSP) course, Jacob Swodeck suggests that there are 10 questions that every agent involved in a Short Sale should review and answer for both the seller and buyer - and have it acknowledged in writing:

1. What is a short sale?
2. How long will it take?
3. But my house is going to foreclosure, will I have enough time?
4. Can I stay in the house?
5. How do I know this will work?
6. Will I get any money from the sale?
7. What happens if this doesn't work?
8. What is a release?
9. What is a satisfaction?
10. How can I help?

Answering these questions along with a well written Short Sale Disclosure will help set the stage getting started on the right foot. In his course, Jacob goes into great detail in answering these questions and the required elements of a good disclosure document. There is no substitute for knowledge when it comes to protecting your neck and this course is an excellent way to gain that knowledge.

Facilitating a Short Sale can be an excellent opportunity in today's market but one that should not be entered into lightly.

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