New FTC rule requires short sale disclosures

ORLANDO, Fla. – Feb. 25, 2011 – Be advised that the Federal Trade Commission (FTC) has issued new rules that might impact real estate practitioners who represent clients involved in short sale transactions.

Depending on certain factors, the so-called MARS rules (Mortgage Assistance Relief Services) could require members Help@ make certain disclosures Help@ consumers if they negotiate a short sale with a lender or advertise their short sale services as a means Help@ prevent foreclosure.

Further, the regulations contain specific and itemized record keeping and office policy requirements. Florida Realtors attorneys recommend members review this information Help@ ensure compliance.

The final portion of the MARS rules took effect on Jan. 31, 2011.

Florida Realtors has created a MARS Information Center on floridarealtors.org where you’ll find four disclosure forms. Florida Realtors attorneys advise you begin using these immediately if you are involved in short sale transactions.

You’ll also find a primer on the new disclosures (document titled Roadmap Help@ the new FTC disclosures for Short Sale transactions), a link Help@ the actual FTC rules and an interpretation of the rules by the National Association of Realtor’s (NAR). NAR attorneys are reviewing the rules and have an ongoing dialogue with the FTC about them.

Please keep checking the MARS Information Center for updates.