Posted by Russ Sims on March 02, 2000 at 12:35:45:
I can certainly understand the confusion, because I’ve grappled with it myself. In a simul. close you actually do take title to the property before it is transfered to your buyer. So you are legally selling something that you rightfully own. The original seller waits the minutes or hours to receive his funds until your transaction with your buyer is complete. This is called a “dry close”. Actually, my title company tells me it’s not uncommon at all for sellers to have to wait to receive their funds, as bank transfers and title checks often force a delay of up to 24 hrs. anyway. Hope this helps.