Last spring, the NAR Board of Directors approved a policy that requires all MLSs to add new language to Section 5 of the Model MLS Rules and Regulations. This policy requires MLSs to allow participants to disclose to other participants any potential for a short sale in a transaction when the listing participant reasonably knows that a short sale may occur.
As a result, all MLSs must provide their participants with the means to disclose a potential short sale to other participants. However, the MLS has the discretion to determine if these disclosures will be required or at the option of the participant. Accordingly, each MLS in Kansas must adopt one of the two amendments (see link below) in their respective MLS rules and regulations. Since the Kansas Real Estate Commission considers the disclosure of potential short sales an adverse material defect, KAR recommends that MLSs adopt the amendment that requires the disclosure of potential short sales. To view the entire Short Sale Notice, including the model language for all MLSs to adopt, click here: http://takeaction.realtoractioncenter.com/ct/K7M8vD41Z4tF/
