My primary real estate blog is at a different site.   It combines all three of my blogs: ALL ABOUT…..Portland.Oregon.Real Estate and my two photo blogs: Lake Oswego Living.A Photo Blog and Oregon Snapshots – at http://allaboutportlandoregonrealestate.com

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Quite a while ago I wrote a post about disclosing in a listing agreement whether or not a property is a short sale. In our Portland RMLSâ„¢ we are required to disclose when a property is bank owned, an auction, a third party transaction and/or a short sale. In my post, I said I felt it was a good idea to disclose the fact that it was a short sale and to provide that information in fairness to all parties.

It surprises me that some multiple listing services in other states aren’t required to do so. It also surprises me that a former director of the National Association of Realtors ® and master’s degree Princeton graduate feels short sales shouldn’t be disclosed. Recently, there was a case in California (4th Appellate District Court of Appeal-Holmes v. Summer) where a buyer sued the real estate brokerage firm for not disclosing that a property was a short sale.

The author of the article, the past NAR director, feels the courts will ultimately take the side of the real estate agents in California and say it wasn’t required for them to disclose the short sale. He states that: “Fairness has to do with treating others according to the rules “ treating them equally. It requires not favoring one party over another “ with respect to the application of a particular rule “ nor to disfavor one at the expense of another. It has nothing to do with looking out for someone’s welfare or trying to prevent them from harm. It may be a nice thing to look out for the welfare of another; and sometimes it may even be a moral duty. But it has nothing to do with being fair.”

Our Ethics and Standards says the opposite of what he indicates, I believe. We are not allowed to give unfair advantage to either a buyer or seller. And, his very statement saying one party knows there’s a short sale (seller and listing agent), while the other party (buyer and selling agent) would, in my opinion, be favoring one party over the other. However, not being a real estate attorney or a real estate agent in California and knowing their rules, I still believe that disclosure is the most important element in a transaction and that all sides must disclose what is known.

Further, contrary to the NAR Director’s statement, isn’t that exactly what laws are designed to do? Aren’t they written to protect a citizen from harm? Seat belt laws, no cell phones while driving, driving laws, for that matter any law, etc. etc. look out for everyone’s welfare.

I’m glad I’m a real estate agent in Oregon. I feel our Principal Brokers, RMLSâ„¢, our Oregon Association of Realtors ® and Portland Board of Realtors ® have it all figured out to the benefit of our clients, the buyers and sellers. Also, this is just my opinion and not that of Re/Max equity group, inc.

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