Posted by HR on February 23, 2000 at 20:32:19:
I like Phil’s advice. Use your purchaser’s funds to purchase your property. To do this, in your sale’s agreement with your purchaser, require your purchaser to deposit funds 24 hours in advance with the same title company you will be using to buy the house with. This way, you use their funds to buy your house, and you keep the difference. Also require them to put down a larger earnest money deposit than you put down, so if you lose yours because they coulden’t close, you still make $$$. Also, do this in a corporation; if they are going to sue you for non-performance of the contract (which they very likely woulden’t; they will just keep your earnest money deposit), you sleep better at night knowing all they can get are the meager corp assets.
Just spread the two purchases a couple hours apart, and let that closing agent know what you are doing, and you should be fine. If they fail to perform 24 hours in advance, you have advance warning, you can always look to get the funds from another source (Phil gave you some) or look to delay the closing a couple days and find a new buyer. A friendly closing agent can come up with some excuse to delay it a few days.
This type of transaction has been the easiest I have done yet on a close.
Hope this helps.