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    Q&A: Making Status Updates to Listings

    Are you apprehensive about changing the status on a listing while you’re waiting for bank approval in a short sale? Confused about the appropriate use of ACT-O? Not sure when you should change a listing to Pending? Here are the answers to some of your status update questions.


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    Question:

    "I always use the Pending status if I only have inspections and mortgage to get through. Is this correct?"

    Answer:

    Usually but not always. Home inspections, mortgage and appraisal contingencies are usually just formalities in the process, and usually lead to a sale. So it would seem to make sense that the listing be set as a Pending status.

    However, the appropriate status is based on whether or not the seller wants to continue showing the property. That is where “not always” comes into play.

    When updating your listing, the information in the agreement of sale ultimately determines the status of your listing. The MLS system will prompt you to answer questions about the terms of the agreement of sale as to whether or not:
    • The buyer or the seller has the right to terminate the contract AND
    • The seller has instructed you to continue showings AND
    • The seller will accept a back-up offer
    Your answers to these questions will determine the appropriate status and if applicable, set the contingency indicator (ACT-A, ACT-E, ACT-F, or ACT-O).

    If the seller does not wish to continue showing the property, the system will assign the Pending status to your listing.

    If the seller does specifically wish to continue showing the property, the system will assign your listing the appropriate contingency indicator. Of course, beforehand you want to outline to your seller the legal risks associated with considering additional offers and continuing to market the property.


    Question:

    "At what point must a short sale purchase offer (awaiting lender approval) be updated in TREND? Should I wait until the lender has approved the sale, which could take several months?"

    Answer:

    Once the seller accepts the purchase offer, a contract is formed and the offer is accepted with at least one unresolved contingency: the lender’s approval of the short sale. The listing must then be updated in TREND within 72 hours of the seller’s acceptance.

    There seems to be a general misconception that the purchase offer does not become fully executed until the lender (or lien holder) has approved the short sale. But the lender is only a third party to the transaction. Once the seller accepts the offer, the listing must be updated.

    In almost all cases of a short sale, the seller wants to continue to consider other offers in case the transaction falls through. So typically a short sale that is under contract would be assigned an ACT-O indicator.

    Note: listings in TREND which are designated as ACT-O get automatically converted to Pending status after 21 days. However, short sale listings can remain in the ACT-O status for 60 days before being converted to a Pending status.


    Question:

    "I know that I should update the status of my listing since my seller has accepted an agreement but he/she has requested that I not update the listing until all contingencies have been met. What should I do?"

    Answer:

    You should update the listing within 72 hours of the acceptance of an offer.

    We understand that you want to represent the interests and fiduciary obligations of your clients. However, you need to do so within the guidelines of the industry. In this case there are the National Association of Realtor (NAR) guidelines and MLS guidelines by which you are also bound. It is your duty to explain to your client the reasons for updating the listing, and the risks of not updating it.

    In all cases, the listing broker is obligated to comply with TREND’s rules, as it is part of his/her membership agreement.

    TREND continuously monitors listings, and contacts listing brokers and agents to address status update issues with them directly. We do issue fines for blatant and repeat violations.

    To report an inaccuracy in the status of a listing, please use the accuracy link or contact the Support Center at 800-330-9900.


    Rose-Marie Lucas • Policy Resource Specialist

    Rose-Marie joined TREND in May 2001 as coordinator for the Industry Relations Department. She is currently the Policy Resource Specialist, and is responsible for managing escalated compliance concerns, providing editorial contributions, and much more.






    4 Comments
    1 - 4 of 4 Comments
    1
    TREND MLS
    4/5/2017 11:01 AM

    Linda,

    If you notice a potential issue with a status on a listing, I would suggest reporting it through the accuracy link in TREND. This is the best place to alert us to a potential issue.

    Rose-Marie Lucas
    TREND, a Bright MLS

    Linda Walters
    4/2/2017 7:24 AM

    There should be a place in Showingtime for an agent who has come across an incorrect status to report it for someone to check into

    Miriam Mosquera-Martinez
    3/21/2017 8:17 PM

    Great information!! I just wish everyone follows the rules. It's very annoying when you schedule a showing then you come to find out that the property is under agreement.

    Dee Jones
    3/17/2017 8:51 PM

    Thank you so much for posting this as many agents do not follow and it's very frustrating.

    1 - 4 of 4 Comments
    1
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