Distressed properties have become such a large part of our market in Boise, Idaho that you almost can’t turn around without bumping into a short sale or foreclosure. With that comes a whole new list difficulties in how to deal with them ethically and legally.

It seems to have become a standard practice of Idaho short sale buyers to put in multiple offers on short sale properties and close on the one that gets approved the fastest. A proverbial throwing at the wall to see what sticks if you will. It sounds good in theory and knowing how long a short sale can take to complete, I can see why buyers of Idaho short sales resort to this.

The question becomes, is it legal to do so? The answer is yes, so long as you disclose it to the seller. Many buyer’s agents are running around with a short sale addendum that gives them a false sense that it allows them to do this without disclosing it and the fact is they could be setting you up to be liable in doing so.

Here’s why: In Idaho, if your agent is aware that you do not intend to perform on each short sale contract, according to the definition of adverse material fact, you are required to disclose it to the seller.

Adverse material fact, what’s that?

“Adverse material fact is a fact that would significantly affect the desirability or value of the property to a reasonable person or which establishes a reasonable belief that a party to the transaction is not able to or does not intend to complete that party’s obligation under a real estate contract.”

It’s a better idea to disclose it up front than risk legal recourse for something you might not have even been aware you were doing. The laws regarding Idaho short sales are changing almost as quickly as lending standards, it’s important to protect yourself.