simultaneous close definition?? - Posted by david

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.

simultaneous close definition?? - Posted by david

Posted by david on September 04, 2003 at 16:12:00:

I have been working with a realtor for awhile now, doing L/O’s, and we recently got a property under contract that will have a 40k spread if we sell it. Could someone please describe the mechanics of a simultaneous close to me so she can take that to her broker for clarification.

Thanks for the help!