By Suzanne Foley, Compliance Coordinator
MRIS, Dec. 8, 2008-It is common for the sale of a property to have a contingency. Either the buyer or the seller may request the contingency. Contingencies can range from third-party approval in a short sale situation to a home inspection. The contract may contain multiple contingencies. A contingency may or may not contain a kick-out clause. Once the buyer and the seller have signed the contract, the status must be changed be to Contingent No Kick Out (CNTG/NO KO) or Contingent with a Kick Out (CNTG/KO).In a short sale situation, the contract is between the buyer and the seller. The lender does not sign the contract. However, a third party approval contingency may be needed. The seller may need the lender (third party) to accept an amount less than the outstanding balance on the loan.
The entry of these contingencies requires that you provide the date that the contingency will expire. If you have multiple contingencies the one with the furthest date will appear on Matrix. For example if you have a Radon expiration of 11-1-2008, a Home Sale of 11-2-2008 and a third party approval of 11-3-2008, the 11-3-2008 date will be displayed.
The expiration date of the listing is not the same as the contingency expiration date. The information is located in the Contracts section, when you select the type of contingency it is required that you input a date. This is the date that should be updated if the contingency has not been removed. If the contingency has been removed the listing should be changed to contract. When a property is in a contingent status it will NOT update to expired status.
Subscribers can monitor any listings that may need updating by signing on to the MRIS website. There are two reports that will assist you; the Compliance Listing Report and the Listing Expiration Report, http://www.mris.com and http://www.mris.com
As always, please feel free to contact the Compliance Department directly at 301-838-7140 with any questions or concerns or email us at Compliance@mris.net.
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