Posted by John Merchant on September 17, 2003 at 20:58:31:
Brent
I think your telling them, in advance, is the key to getting their cooperation…and if it’s a new concept to a particulare title co., it might be wise to chat with one of their escrow officers to see if there is some particular form they’d like signed, etc.
I do this a lot, when I have something a little different, and frequently learn something from them as to a better way to process the deal.
Our title cos here in my area are apparently so used to this they never even comment, but do charge some additional for their extra services involvedl
Can you sell a sales contract to a buyer? - Posted by Ralph Cochran
Posted by Ralph Cochran on August 30, 2003 at 18:30:58:
I have found a great opportunity in a NJ coastal resort town to Flip some property. I just signed a sales contract 3 weeks ago on a shore property for 285,000 new construction due to be completed in November 2003. The realtor I bought the property from has already found a buyer for the property at $320K. I will not even go to close on the home till late October.
My question is if there is a methodology and legal way to avoid going to closing and just sell my contract to the existing buyer with the agreed upon difference 320K-285K=45K. This way I would avoid the hassle of going through two closings and paying closing costs.
In summary is there a legal method to sell a contract to a buyer prior to me the 1st buyer going to closing?
Selling sales contract beforehand - Posted by John Merchant
Posted by John Merchant on August 30, 2003 at 22:18:20:
Sure, if your P&S agreement is to you & assigns, or is not specifically non-assignable.
If not, then it shouldn’t be all that hard to do a double closing, first buying in deal A, then selling in deal B, but both closings are being handled simultaneously, and the money from your buyer is going to your seller and the overage to you.
So you walk away from the closing with $ in your hand, the Seller walks with his $ in his hand, and your buyer walks with the deed in his.
Title/escrow people are quite familiar with these double closings and do them very routinely, with nobody knowiing all details but you, the flipper, and the T/E folk themselves.
Re: Selling sales contract beforehand - Posted by Brent_IL
Posted by Brent_IL on September 17, 2003 at 19:10:33:
John,
I notice that many posters report that the title companies are giving them a hard time. Would you recommend alternative phrasing to using “double close”? I never had any difficulty in greater Chicago at all, but that may be because I informed the escrow officer that I was paying a second fee in the initial conversation and called it an additional follow-up closing.