Florida Realtors® Legal Alert - New FTC rules require short sale disclosures.
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 to make certain disclosures to consumers if they negotiate a short sale with a lender or advertise their short sales experience.
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 to 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 to the new FTC disclosures for Short Sale transactions), a link to the actual FTC rules and an interpretation of the rules by the National Association of Realtor’s legal team. Please keep checking the MARS Information Center for updates.