Re: Double Escrow - Posted by Kristine-CA
Posted by Kristine-CA on April 14, 2007 at 17:08:23:
Allan: post where you are located in CA so people can refer you to an
escrow agent who can help you.
I suggest that you do not call the CA Dept of RE. It may be that you are
not describing accurately or clearly what you are trying to do. Asking a
bureacracy such as the Dept of RE is sure to be trouble. And provide
You use assignment and double escrow interchangeably in your
description. They are separate types of deals. There is no assignment
involved in a double closing. For a deal with the numbers you
mention, I would use a double close.
What you tell the escrow agent (not a title rep or cust service person at
the title company) you want to do is this:
Deposit your purchase contract into escrow
Deposit your sale contract for same property into escrow
Have the escrow agent use your buyer’s funds to close your
purchase with the seller. You would receive the remaining
proceeds as the seller on the second escrow.
This involves two sets of fees, two title policies, two of everything. A
double close, in my experience, is all based on the willingness of the
escrow agent to provide this service.
You may run into problems involving disclosures. I have to disclose
everything to everybody per my title companies–both my buyer and
seller are aware of the double closing and the both escrows are
contingent upon the other escrow closing.
It absolutely can be done, but finding someone who understands what
you are trying to do is very important. You should consider asking
other investors who they use. The other solution is to do some public
record research. Where I am I have data where I can see who is double
closing (sale and purchase the same day, with different prices). I have
checked their deeds to see who was doing their escrows. Escrow info
is often on the deeds and you can see you might be able to help you.
Happy researching. Kristine