To: Realtors AND Loan Officers
From: John M. Brennan, Attorney - President, Brennan Title Company
ON JULY 22, 2013, THE MARYLAND REAL ESTATE COMMISSION issued its GUIDELINES FOR LICENSEE'S IN SHORT SALE TRANSACTIONS. These guidelines are a HEADS UP to any agents or brokers who may be negotiating short sales. Specifically, they point out the RISK to agents and Brokers in negotiating short sales with only a real estate agents/broker's license and the limits of protection that agents/brokers may be receiving in their "Errors and Omissions" coverage. In particular you may want to consider the following specific language from these guidelines which says, in part "...the Real Estate Commission and the Commissioner of Financial Regulation consider that negotiation of short sale deficiency agreements or any other type of mortgage collection forbearance with a sellers mortgage lender or servicer falls "OUTSIDE OF THE SCOPE OF A REAL ESTATE LICENSE".
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