Not sure what the legal answer is unfortunately.  I have been putting them in "Hold" status.

Mark,

I would keep it active if you can or we can put it in as STI BU that means a Back Up Offer is requested.  Sometime the banks won't do anything until they get more than one offer so if you show them that you are attempting to do that it may help you in the long run.

David Bell

RE/MAX Metro

Seattle

First of all the bank approval needs to be done before the seller accepts.  Otherwise you have a wish list!  A lot of uninformed agents are listing properties as short sales when they are not.  Approval needs to be on the front side.  If that is the case and you are just waiting for the stamp..it is contingent.

I have heard back from MRED Connect MLS Aurora Tri-County Association of Realtors. If you have a short sale property listed for sale and receive an offer that your seller signs subject to back approval if MUST be marked CTG. The contract is between the buyer and the seller subject to back approval. The property must be marked CTG with 72 hours or you will be fined. I also discussed this issue with a local real estate attorney and he agrees. He also mentioned that by leaving the property active you may be putting yourself at risk for a lawsuit. The first buyer who had their offer accepted by the seller could have a problem with other offers coming at a different time and being presented to the bank. 

MRED rules & regulations department 630-955-0011 or call your own real estate attorney.