Posted by Dallas Allbritton on June 19, 2001 at 20:28:29:
When I’ve done these I show up on the HUD1 (settlement statement) only for the owner of record. I assign my interest in the L/O I hold to the seller and he pays me (on the hud1) at the closing the difference due me. I tell him (and it’s true) that the money paid me will reduce his potential tax liability since his net profit is reduced due to the money paid to me.
I have my title company set the closing at least 30-60 minutes apart so the buyer comes in at the start, then leaves and the seller comes in at the end so they never see each other and I show up with the seller and get my check and we all go our way.
I ALSO MAKE SURE I see the HUD1 “BEFORE” the closing to ensure that my name is on it as an expense to the seller and not in the area for realtors. The expense is no different than the pest guy or surveyor.