Can I market a house within 90 days?

[Jay Z.]

I bought a shor-sale house and the agreement is that not to sell it for more than 120% value from day 30 to day 90. I plan to complete the renovation within 60 day, and sell it after 90 days with more than 120% value of course. The question is: is it legal to maket it starting from day 60?

[Kim Knox]

Often a short selling bank will include a recorded deed restriction with these terms.  Short selling banks do this because they don't want to encourage discount purchasers and fraudulent short sale activity.

Please review the exact deed restriction, or verbiage used for the deed restriction.  You might be restricted to not enter into contract until the date the deed restriction is lifted, so I would be pretty careful to make sure.  

To sell to an FHA borrower, you need to have acquired the property for 90 days anyway, so this deed restriction doesn't hurt you that much. You cannot even execute a contract with an FHA purchaser until 90 days has passed within your ownership. There are exceptions to this rule, but just mentioning in case you don't know FHA has limitations like this.

I mention this because even if you can put the home on the market after 60 days in hopes to close shortly after your 90 day period, be careful about entering into contracts with FHA borrowers prior to 90 days. Make sure it is allowed in your circumstance.