| FAR's Counsel Addresses Short Sale Issues |
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| Increased short-sale transactions throughout Florida have prompted members to regularly ask the Florida Association of REALTORS® two legal questions. FAR's General Counsel Randy Schwartz answers them below. Q: If a real estate licensee lists a property at a below market price he knows the seller probably won't accept, is the licensee in violation of Florida real estate license law? A: Randy Schwartz: While a violation of the Florida real estate license law is a matter to be determined by the Florida Real Estate Commission, in my opinion, if a licensee lists a property for a price the licensee and the seller know is not acceptable, a case of misrepresentation and false advertisement can be made under Chapter 475.25(1) (c) Florida Statutes. It would not make any difference if the listing indicated that the selling price was subject to a third party lender or not; it is more a matter of advertising something that is known to not be acceptable. Q: Is the seller in violation of any law if he states he would sell a property at a certain price even though he knew it would not actually sell at that price? A: Randy Schwartz: I do not believe the seller would be violating any license law because Chapter 475, Florida Statutes, does not regulate the public. However, Chapter 817, Florida Statutes, might come into play for the licensee and a member of the public. Whether the seller could be held accountable for civil damages, due to his or her misrepresentation, would be completely determined by the individual facts of the case. Click here to view the National Association of REALTORS® Field Guide to Short Sales |
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