PUTTING SHORT SALES IN “C” STATUS

Short sale listings must be placed into contingent (“C”) status within two days of an executed agreement, pending bank approval. MLS Policy #12 defines a contingency: “Purchase Agreement has been executed but completion of certain acts or events must take place before the agreement is binding.” One type of contingency specified in the definition is “short sale approval.” In other words, waiting on the bank’s approval is the contingency. This is because the homeowner is still the record owner and, therefore, the seller who can enter into a contingent contract. In a short sale, the bank is not the seller and does not convey the property; the bank can only remove a contingency.

Once approval is obtained, the status would be updated to pending (“P”) assuming all other contingencies have been met. The same two-day rule applies.

Agents are also reminded to comply with Nevada law in promptly presenting all offers to the sellers and obtaining clients’ signatures on rejections (NAC 645.632).