Re: Double Closings - Posted by B.L.Renfrow
Posted by B.L.Renfrow on September 17, 2003 at 17:06:44:
Sure it can be done in NY. I’ve done it a number of times in the past. Your attorney doesn’t know what he’s talking about. That’s not unusual. The vast majority of them only know how to do a “conventional” closing. You start throwing unfamiliar scenarios in there like double closings and the like, and they will get all flustered and tell you it can’t be done. You will either need to educate the attorney (which most of the time, is just too much time and effort) or find another one who knows how to handle this. Perhaps if you post your location in NY, others can give you referrals. And $1200 for a closing? You’ve got to be kidding. Mine charges $300.
It’s not really complicated. Say you are buying a property from Sue Seller and “flipping” (and don’t use that word around the attorney or RE agents or lenders) it to Billy Buyer. You go into the attorney’s office on Monday morning, sign all the closing documents which the attorney has prepared, and leave. The attorney puts the file back in his desk. Billy Buyer comes in Tuesday morning. He either is buying with cash, or he is using a lender with no seasoning requirements. He brings a cashier’s check, or his lender has wired the funds to the attorney’s trust account. Billy signs all the buyer’s documents, the seller’s share of the proceeds are either wired to the current lender to pay off the loan, if there is one, or a check to Sue Seller is prepared, and Billy leaves with the keys. The attorney writes you a check for your amount due. That’s all there is to it.
Of course, as you have discovered many lenders now impose title seasoning requirements making the double close less practical for retail buyers. That’s a frequently-discussed topic here; an archive search should bring up multiple discussions of how to deal with this situation. In a nutshell, you either sell to cash buyers, your buyer needs to use a lender with no title seasoning requirement, or you figure out a way to transfer title directly from the seller to the end buyer, without going through you.
Finally, there is no state requirement for any specific amount down. That sounds like more nonsense from someone who is uninformed. I also don’t recall a specific mortgage tax, but it’s been a while since I’ve done a closing and the documents are filed away. Are you talking about the mortgage recording fee? At least in my county, there aren’t any onerous fees. And to the extent you can, those fees should be passed along to your buyer anyway.