Double Closings/Simultaneous Closings-ILLEGAL.
Dear Investors/Experts:
I have a property under contract( SS) and another one in the pipeline. But Title companies in Chicago are claiming that doing double closings/Simultaneous closings are ILLEGAL. I have read a lot of articles on the same and it says, its illegal only if the end buyer is taking a mortgage or paper work is manipulated. But Iam doing no such thing. I want to hold the property for a few minutes and wholesale it to a cash buyer. So,if I am selling to a cash buyer and am a middle man( woman) in the transaction, why would it be illegal?!!! Without a title company, I cant even proceed on this deal. What should I do?
Any recommendations? Please help.
I do my double closing with a real estate attorney.
Just assign the contract. A lot of title companies are not familiar with double closing as I found out in Texas. Therefore I just assign my contracts to investors.
To reaffirm, double closing are not illegal and in order to get one done properly, it is best to use a real estate attorney to facilitate the transaction. Because what is happening from my understanding is that your end buyers is funding both closing(you & seller ; you and end buyer). So your pretty much borrowing his money temporarily to close with the seller. Only experienced, attorneys and title companies know about these type of closings.
Good luck,
Nate
Why pay closing cost twice when you can just assign it to your cash investor?
Wow! Thanks for the responses folks. But if I am making a larger fee, I would prefer to do a double closing. I have spoken to 11 companies so far and none of them are ready to do the deal without all parties in the same room! I dont want the end buyer to know how much I put the property under contract for !!
If anyone has any references of title companies in Chicago, I would appreciate it greatly.
Really you need to contact a real estate attorney, mine does it all the time.
Even a similtaneous closing will have a chain of title.
We just closed out a condo complex on the gulf and out of the 68 units in the complex 45 had flipped with a few flipping 3 of more times. They were all handled with Simultaneous closing at the title co. The only problems came up on two of them where the lenders would not accept title that was not in the sellers name. (Title was still held in the developers name) If cash is involved it should really not be a problem.