Posted by Natalie-VA on October 26, 2007 at 12:05:52:
Hi Jeff,
Sorry I can’t answer the legal part of your question.
Contract assignments and double closings are indeed two very different things. I do contract assignments all the time, but I do not do double closings.
In a contract assignment, there is only one closing. The closing occurs between the original seller and the end buyer (assignee). The assignor collects an assignment fee at closing. It’s called “selling a contract”.
In a double closing, you have two buyers and two sellers and two closings. Seller #1 sells to Buyer #1 who becomes Seller #2 who sells to Buyer #2. Many times investors will do a double closing with Buyer #2’s funds used to close both transactions.
It’s my understanding that this might be illegal in some states. My state, Virginia, has a wet settlement act that prevents a settlement agent from disbursing funds prior to recording a deed. That makes it impossible IMO to do a double closing where only the end buyer brings money. It probably happens all the time though. Of course, take all of this for what it’s worth since I’m not a lawyer. It would be nice if one chimed in here to help you out.
i want to assign a contract to another buyer after putting a property under contract from a seller. i have no money or credit and want to just go to closing and collect my share of the sale. i live in florida and want to know if it is legal to do such a transaction.
Re: double closings by assignment of contract - Posted by Natalie-VA
Posted by Natalie-VA on October 16, 2007 at 16:27:34:
Jeff,
I’m not an attorney. Double closings and contract assignments are two different things. Regardless of the legality, it would be unethical to put someone’s house under contract if you didn’t have the intention or ability to close on it yourself. The exception would be if the seller knows exactly what you’re doing.
natalie, you put it in the contract that you have the right to assign the contract. so no it isn’t two different things. you assign the contract and then double close. so my original question still hasn’t been answered.