Posted by Randy on September 04, 2003 at 16:30:22:
A simultaneous close occurs when the ?Seller? does not take title to the property but it passes to a secondary buyer simultaneously. For example you have a Purchase agreement to buy a property at $100k, you have an ?end buyer? who is buying from you at a higher price say $120k and paying for the property cash or with a new mortgage. Title passes from the original seller to the end buyer (without you going on title as an owner) but you get the difference between the two prices ? your purchase price and your selling price $20k. Most traditional lending sources will not allow simultaneous closes. The other frequently confused term is ?Double Close? same scenario only you do go on title if even for only a few hours or a day hence the double closing costs.