TGIF Legal Tip: Short Sale Third Party Coordinators

Working with Short Sale Third Party Coordinators (Vendor Assistants)

NRS 645F and NRS 645

If you are working with a short sale third party coordinator to assist you in short sale listings here are two things to consider:

Licensed Real Estate Facilitator/Vendors – Have the licensed real estate agent assisting you sign the Duties Owed By A Nevada Real Estate Licensee indicating that that they are also representing the Seller. This renders the scenario in compliance with the applicable laws. Working on a loan modification, which is what a short sale is, requires a Loan modification consultant license. A Nevada real estate licensee is exempt from this law and has been since 2007. However, to be exempt you must do the loan modification as a “part of a real estate Transaction.” The real estate licensee assisting you, after signing the Duties Owed, can have access to the entire real estate transaction folder. If the licensees are from separate brokerages, each company will have to retain a copy of the transaction folder 5 years.

Third Party Companies – If it is not a real estate licensee as above described, ensure your client is engaged directly with the company. Be it an attorney such as Black and Lobello , Stout Law Firm or simply a secretarial styled service, make sure your client is aware this service is being used and best case scenario have your client sign an agreement directly with the third party facilitator allowing for permission for you to have access to confidential information and to share confidential information amongst you and the company. Whether or not these companies require special permits, licenses etc. is the responsibility of that particular company if your client is in direct contract with them. But if you are using these companies, paying them yourself, i.e. using them as an assistant you must not share confidential information with them without your client’s written approval and your liability grows as to whether or not these companies should be licensed.

This is part of my short sale series listed below in alphabetical order:

IRS PUBLICATIONS shortsales/foreclosures: