Posted by John Merchant on August 24, 2006 at 18:20:14:
Suggest you might want to find and chat with some title officer at a title co and see what he/she says about this.
In my experience they’re not going to like any title without a deed.
On assigning a 2dd buyer the 1st buyer’s rights in a REC, no problem and this is a very common deal…and the title and escrow people work hard to get the title into the right hands as agreed by the Assignment.
That is, if I have a REC or P&S Agreement, giving me the right to buy Blackacre for $1000 and I then assign all my rights to you,(say for $500 to me) you can take it to T & E and close the deal by paying the S $1000.
Being new to trusts, I thought I would ask a question about using a trust to wholesale property.
Can the trust enter into a purchase contract with seller A, and then assign the contract to buyer B, or does the trust close with seller A first, and then close with buyer B shortly thereafter? Does this creat a duel closing event, or can it be a simultaneous closing? I understand that the trust allows the investor to close on a property, and then resale it, avoiding the title seasoning requirements, because the trust shields ownership of the property.
I’m just having difficulty ‘visualizing’ the transaction. Any help ‘painting the picture’ for me would be greatly appreciated.