Which of the following describes a "short sale" in real estate?

A short sale in real estate specifically refers to a transaction where the proceeds from the sale of the property are insufficient to cover the total amount owed on the mortgage. In this scenario, the owner seeks to sell the property for less than what they owe to the lender, and the lender must approve the sale to accept the reduced payoff. Short sales typically occur when the homeowner is facing financial difficulties and cannot keep up with mortgage payments, and they are trying to avoid foreclosure. This type of sale requires careful negotiation and approval from the lender, making it a distinct process within real estate transactions.

The other options do not accurately describe a short sale. A rental agreement pertains to leasing property rather than selling it. A marketing strategy for luxury homes focuses on how properties are showcased to attract buyers, unrelated to the financial condition of the seller or the sale transaction. A standard transaction between a buyer and a direct seller does not capture the essence of a short sale, which inherently involves complexities due to the seller's financial obligations to the lender.