Why Is This So Hard?? Maybe I Am Not Explaining It Right.
First, I would like to explain the situation as clearly as possible. I am trying to structure a system (meaning a legal contract, and title company) that will allow me to successfully implement the simultaneous close (option to purchase). However my conflict occurs when I explain to the title company that I will not own the property, just the legal right given to me by the owner to sell it. So after talking to about 15 different title companies I decided that the best way to do this would be contact an attorney to put together the contract. Now I have a whole new set of problems, nobody seems to understand the fact that I will not own the property. The contract will give me the right to sell the property under the terms of the agreement. Am I crazy here? Is this not possible? Why doesn’t anyone know what I am talking about?
Try explaining that you will own the property in between the time you exercise your option and the time the t/b exercises his. in a sim close it's usually a time period of about 1/2-1 hour.
Good example, that has come up however it is my understanding that I would have to generate the funds for the short time period in between. And that raises the problem that has me pursuing this method in the first place ”bad credit”.
Boyd is right.
You WILL own the property, but just for a short period of time. It's not the "option" to purchase (that's a lease option), you will actually take ownership to the property for a short period of time and then carry back a note.
How is ownership taken? As it has been described to me the buyers payment takes care of the sellers sales price, and I receive the remaining balance. Right???
I have noticed in the last year or so that if it is not common everyday sale with cash or using a mortgage company, the title companies are completely lost. There are some good ones out there but you must have the relationship with them.
With that said, I have found that it is a matter of explaining to them in a way that their minds can handle what you are trying to do. Let them know that you are excercising your option to purchase a property. At the same time you are selling the property to another individual. Ask if they can perform both of those matters at the same time. My advice in a nutshell. KEEP IT SIMPLE.
I just don’t want to get to the closing and be put on the spot for the full amount of the contract with the seller, before I can satisfy the contract with the buyer. In other words the contracts have to be completed backwards the buyers cash to close has to be in the escrow account prior to me honoring the contract I have with the seller. Does that make since. Maybe this is why, It is a very hard situation to try and explain clearly.
I have done this at an attorneys office. Like you said, the money from the buyer is there to pay the seller and you get the difference. Simple as that. Title co. should not expect you to come up with a wad of money only to get it back in an hour. If they do, go somewhere else. It can be done.
So what type of contract did you use to legally do the transaction? I am going to see an attorney soon and anything I can have together will save me the time of drawing it up. Then he only needs to make sure that there are no changes needed because of state regulations.