Agency

What is a 'short sale' and what agency obligations does it create for Delaware agents?

AA quick sale of a property in less than 30 days
BThe sale of a property for less than the mortgage balance — requiring lender approval; agents must disclose the short sale nature to buyers and work transparently with all parties✓ Correct
CA sale of a very small property (under 500 sq ft)
DA sale that closes in less than 30 days at a discounted price

Explanation

A short sale occurs when a lender agrees to accept less than the full mortgage balance to release the lien and allow the property to sell. Delaware agents must disclose to buyers that the sale is subject to lender approval (which can take months). The listing agent represents the seller, not the lender. Agents must be honest with all parties about the process.

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