Member Login | Print Page | Contact Us
News & Information: REALTOR® News

New FTC rule requires short sale disclosures by REALTORS®

Monday, February 28, 2011  
Share |

The Federal Trade Commission has adopted regulations, effective immediately, that require additional disclosures by REALTORS® to sellers in all short sale transactions where the REALTOR® provides short sale negotiation services.

The Mortgage Assistance Relief Services (MARS) regulations define anyone who provides services that assist or attempt to assist a consumer in negotiating a short sale as a MARS provider. Specifically these regulations require three possible disclosures for any MARS provider:

*A disclosure in any advertising materials regarding short sale expertise or services. The language may simply be incorporated into the advertisement.

*A transactional disclosure when a real estate licensee enters into an agreement to provide short sale assistance or negotiation services, most likely a listing agreement to market and sell a short sale.

*A second transactional disclosure upon the lender's or servicer's short sale approval; this must be accompanied by an additional statement regarding the differences between the seller's current loan and the approved short sale terms.


*ORRA's class MARS Rules and Legislative Update (Thursday, April 7 from 1:00 – 4:00 pm; three CE credits) will include a 30-minute segment to review the new MARS regulations and disclosures. Florida REALTORS® attorney Margaret Grant will also be on hand to answer questions. Register online, or e-mail the ORRA Professional Development Department to reserve a seat. Cost is $30. Since this class is expected to sell out, please register early.

*ORRA will be hosting an Open Forum MARS Attorney Panel program on May 11 from 2:00 – 4:00 pm.

*Florida REALTORS® has created a MARS Information Center on its website, which includes fact sheets and disclosure forms.

*Detailed information about the regulations is available here on the NAR website (login required).

ORRA Partners
ORRA would like to thank our Partners for their continuing support.
View the full list of ORRA Partners