Posted by Kristine-CA on September 19, 2004 at 23:10:30:
RE King: well, first off: what does your option agreement say about exercising your option? Does it have language that specifies how you (buyer) will either go into a contract or have the option contract turn into a purchase contract?
My understanding from your post is that, no, you cannot agree to sell the property as the buyer, because you are not the owner. All you have to sell is the option.
Secondly: if you can’t do a double close, have you checked with a closing/escrow agent to see how they can help you to get paid at closing. Sounds like your buyer is using lender funds–so you may have to check into how to put your option price/fee onto the HUD-1 to make it fly. But if you explain what you want to do to the closing agent, you should be able to figure it out.
Regarding double closes: my experience is that if you are very clear with the escrow people that you agree to two escrows and two sets of fees that they will allow it. However, I have been required to disclose the double to everyone, which hasn’t always been easy. It definitely brings us the issue of profit, especially for the seller.
If it were me, though, I’d look for a buyer that either has the cash to pay me off at the time of assigning the option, or for one that has other property to collateralize a promissory note until they get cash back at closing or can re-fi.
Just my opinions here. Sincerely, Kristine