Clarification Regarding Short Sale Transactions
Author: New Jersey Association of REALTORS
Written On: Thu, 01 Oct 2009
Recently, NJAR® was advised that an issue had been raised regarding whether or not real estate licensees are required to be licensed as “debt adjusters” in order to negotiate with lien holders, including lenders, when they are handling short sales. NJAR® has been working with the Department of Banking and Insurance (DOBI) and the Real Estate Commission (REC) to clarify the guidelines for real estate licensees so that they may perform the necessary services when negotiating short sales under their real estate licenses, rather than need to seek additional debt adjuster licenses.
As result, DOBI issued an opinion on October 28, 2009, stating that real estate licensees do not have to be separately icensed as debt adjusters and can communicate with lien holders of record against the listed property where the following factors are present:
1. The real estate licensee is acting in the course of providing brokerage services to a seller in accordance with the terms of a previously executed listing agreement between the seller and the licensee's brokerage firm; and
2. The real estate licensee receives no consideration other than payment from his/her broker for the brokerage services specified in such a listing
