[WSBARP] [SPAM] restrictions on show of listing by seller

Mon Apr 14 16:46:10 PDT 2014

It’s NWMLS Rule 11 that talks about permissible restrictions on showing
and sale.  Some restrictions are permitted if that restriction is
disclosed in the listing’s “Remarks” Section and other restrictions
require the Seller’s signed written request.  As to choice of lender, this
restriction requirers the Letter on File by the Seller and the specific
verbiage is:

Rule 11(b)(viii) The seller requires that the buyer be pre-qualified or
pre-approved by an identified lender.

The good news is that while the buyer must apply (and pay to do so), the
buyer does not have to actually use that financing.  I too own a Real
Estate office and I find this to be just obnoxious.  When I first came
across this on a Short Sale listing back in 2009, it didn’t take much to
uncover the relationship between the agent and the mortgage broker. 

I’m told that the thinking behind this restriction is so that buyers don’t
come in with their pre-qual from Shifting Sands Lender which isn’t worth
the paper it’s written on and so the seller has a way of forcing the buyer
to show their financing ability by making them pre-qual or pre-approve
with Big Bank lender of their choice.  Ironically, in today’s tighter
credit times, this rule has the opposite effect.  A buyer already
pre-qualified with Big Bank now has to apply with Shifting Sands,
coincidentally owned by the real estate broker’s sister, brother-in-law,
himself (you get the idea). . . 

Even the big banks have gotten into this game on their short sales.
Nationstar, for example, would routinely require that the buyers apply
with them even if the buyers already were pre-approved with another
lender.  On any of my short sale listings where Nationstar was the 1st
lienholder, I would often have to put that on the listing and make sure
the buyer’s agent knew in advance of mutual that there was no getting
around this.  Nationstar even required a cash buyer get pre-qualified with
them!  

I agree with Steve, there’s usually a back door relationship going on and
I believe the real estate agent still has to present all offers, even
those that don’t meet the lender criteria.

- Lynn

              Lynn Arends
                     Attorney | Designated Broker
    LYNN ARENDS LAW GROUP, PLLC & LYNN ARENDS REALTY GROUP
                         323 1st Avenue West, Seattle, WA 98119

d: 206.769.LYNN (5966)   o: 206.282.4848   f: 206.350.5030   e:
<mailto:lynn at lynnarends.com> lynn at lynnarends.com   w:
<applewebdata://C91D66F9-5411-4CBE-B39D-E2BAC59F2535/www.lynnarends.com>
www.lynnarends.com

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From: "swhite8893 at aol.com" <swhite8893 at aol.com>
Reply-To: "wsbarp at lists.wsbarppt.com" <wsbarp at lists.wsbarppt.com>
Date: Monday, April 14, 2014 at 3:23 PM
To: "wsbarp at lists.wsbarppt.com" <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] [SPAM] restrictions on show of listing by seller

A licensee cannot refuse to present an offer. RCW 18.86.030(c). The seller
is free to counter with that stipulation. It would seem to me to be a red
flag that the licensee has some arrangement with the bank. By that I mean
there may be other legitimate reasons, but this arrangement bears
scrutiny. The issue is not one for the NWMLS, but for DOL. I would
communicate to the licensee that if the offer is not presented forthwith,
that DOL will be contacted.

Steve Whitehouse

Stephen Whitehouse
Whitehouse & Nichols, LLP
Attorneys at Law
P.O. Box 1273
601 W. Railroad Ave.
Shelton, Wa. 98584
360-426-5885
swhite8893 at aol.com
-----Original Message-----
From: Justin Monro <justinm at monrolawfirm.com>
To: 'wsbarp at lists.wsbarppt.com' <wsbarp at lists.wsbarppt.com>
Sent: Mon, Apr 14, 2014 2:41 pm
Subject: [WSBARP] [SPAM] restrictions on show of listing by seller

List mates:

I own a real estate company. One of my brokers recently presented an
offer, full price to a NWMLS agent and she refused to send the offer to
the sellers unless the buyers went through a specific bank that is listed
in the listing. I call the NWMLS and they stated that the brokers can
restrict the bank that they want the buyers to go through as long as there
is a written letter on file and in this case there is. As member broker of
NWMLS  I really have some trouble with this rule.  What is to say that the
financing would fall apart with the bank they want you with?

Sincerely,

Justin K. Monro
Attorney at Law
The Monro Law Firm P.S. Inc.
1830 Bickford Ave. Ste 204
Snohomish, WA 98290
P:360.863.3728
F:360.863.3985

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All opinions and comments in this message represent the views of the
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Bar Association nor its officers or agents. 

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As with all lists - let the reader beware! No warranties or
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All opinions and comments in this message represent the views of the
author and do not necessarily have the endorsement of the Washington State
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