Posted by WilliamGA on February 08, 2000 at 16:41:28:
Ben,
I would suggest to you to keep looking for a title company until you find one that knows what you are trying to do. Here in Georgia, title companies can’t do the closings, you must use an attorney to do them. I went through 3 different attorneys before I found one who even knew what a simultaneous closing was. The other 2 lookes at me as if I were crazy. These are the same ones by the way who all but told me that placing properties in a land trust to avoid DOS was illegal and might get them disbarred.
As for your question, no, you do not have to disclose to your buyer that you only have the property under contract. I don’t think I would lie about it if asked directly, but it isn’t required that you volunteer the information. Your title company will have your seller come in a little while before your buyer. You will complete your transaction with your seller, you will be on title for a moment, then you will complete your transaction with your buyer.
A simultaneous close is simple. As the attorney who I FINALLY found said," You just use your buyers funds to purchase the property, and you keep whats left over." Simple!
RE: Simultaneous Closing Question - Posted by Ben-Tx
Posted by Ben-Tx on February 08, 2000 at 16:00:47:
I want to first of all thank everyone for their time and energy for this awesome site!
I have been following this site for a while now and done lots of research in the meantime. I now have my first property under contract and have a couple of questions.
Situation: I have a 75% LTV foreclosure under contract. Running an ad in the paper. Now, for the next hurdle - at closing, Im expected to have a cashier’s check to give to the bank. I do not have the money, nor do I want to take a loan out, even for a day to accomplish this purchase. I want to do a simultaneous closing.
I called the title company and asked them if my buyer deposited his funds into escrow at closing, if they could cut a check from escrow to the bank to pay my purchase cost, cut a second check to pay for my closing costs and pay me the difference. The escrow officer said yes, as long as I have something in writing from the buyer stating that they are aware of the above transaction and agree to it.
Question:
Am I required to disclose to the buyer that I only have this home under contract ? Will I have to disclose my purchase price?
If so, what verbage should I use? Any suggestions?
As was said on closing you use the buyers funds. In Texas here we use title companies or fee attorneys to close with title insurance. With cash I like to buy at 65%. With a foreclosure will you not have to close by 3/7/00. Foreclosures don’t just happen so would there not be 10% for repairs. At 85% into the deal it doesn’t work for most investors. You may have to go more retail.