Thank you for your responses. I have a signed purchase agreement and have not yet closed w/ the original seller so I will set up a simul closing as you outlined. Thank you so much for clarifying the process for me, I really appreciate it (and I understand how it works now :-))
I am wholesaling a house to a rehabber for all cash.
I purchased the property w/ a small down payment and seller financing and do not have a deed.
For my purchase from the original seller, there is really no closing necessary other than signing the contract and delivering my check to him so I guess it doesn’t need to be simultaneous.
When I close with the rehabber, will I encounter any trouble? How is it handled if he’s bringing cash to the table and all I have is my signed seller financed contract?
This is my first deal and I would appreciate any insight from those who have experience in this area.
Re: Is this a simultaneous closing problem? - Posted by Ray S(FL)
Posted by Ray S(FL) on November 07, 2001 at 15:33:03:
There is a few problems with your situation that I would have me a little concerned. How did he(seller) convey interest to you in the property if he did not give you a deed? Is there an agreement for deed? Did you use a closing agent to handle this closing? Was there any title work done? The reason for all the questions is that in order for you to sale you must have an equitable interest in the property some how. If you have a purchase and sale agreement between you and the seller that would be adequate to do a simultaneous closing.
I guess the real question is have you actually closed on the property that you are buying or do you have it under contract? Either way you can sale to your buyer. You just need to find a title company who has experience in doing Simultaneous closings and let them do both closings. It can all happen at the same time and you walk away with a check.
However, you can not convey to your buyer without ownership yourself. So, yes a closing is necesary in order for you to obtain ownership, you just don’t need to do it until you are ready to close with you buyer.
This is how you do it…I have been doing this type of deal for over 6 years. First, call a local Title Co and do a title update, hopefully you did one when you bought the house. After you have a title policy, have the original seller deed you the house, without actually recording it yet. Have the title co hold all documents in escrow. You then have to have all new paperwork for your new buyer, all recording documents, and deed papers. The title co will help you fill all these out. Then, with the title co holding ALL paperwork for both deals, all the parties come in and sign, the seller and you in one room, and then the buyer and you in another room. Everything is signed, notorized, and held by the title co until the next day when all paperwork goes on record. The title co collects the money from your buyer, pays off the seller, and you walk out of the closing with a fat profit check. Your investment? earnest money, and some sweat getting through your first simul deal! If you have any more questions, you may e-mail me privately and I will do my best to answer them.