When Doing A Buying And Selling On L/O, Is There Any Way Around Doing A Simultaneous Closing?

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I mean, not alot of title companies understand what you're trying to do. So, is there a way to avoid doing having to do this?

Quinn

Comments(4)

  • DerrickAli5th December, 2003

    Quinn:

    your proprly structured Opton agreement should secure your interest above the pay off to the original seller (theOwner)

    Does Your Orignal Purchase Contract and/or Option Agreement with the Seller spell this all out?

    Do You Have a Power of Atty. to close and/or convey title?

    What IS Your Original Agrement with the Owner of Record (on title)?

    Is it an LO?

    Subj-2?

    Trust?

    CFD?


    Eample:

    "Seller agrees that all NET-Proceeds from the sale (after costs),OVER and ABOVE $XX,XXX.XX""which would be credited to (owner of Record),"" be PAYABLE TO:
    QUINN.....

    in a Draft from the Buyer by the Title-Officer(Agent) or by the Buyer's Atty... "

    Something like the above language should be included in your Purchase or Option Agreement.

    The title co. can list this amount on the HUD 1 as a creditor payment or for Services Rendered.

    Hope this helps!

    Derrick

  • quinn5th December, 2003

    But won't there still have to be a double closing? Or am I missing something?

    OH, I SEE! There won't be a simul-closing beause I'm operating as POA so I'm selling on behalf of the seller, who will not be present. Right? I close, sign whatever docs are needed to close, the original seller's loan in paid off, I get the remainder and my buyer gets a house with his own mortgage.

    Right?

    Have I missed anything?

    quinn

  • DerrickAli5th December, 2003

    NOPE!

  • myfrogger5th December, 2003

    In Iowa, any type of lease/option or contract for deed will give you equitable title with real title (?) in the origional deed holders name. The title opinion/insurance should allow a clear transfer in states where equitable title is acknowleged.

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