How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
A new question is answered every 9 seconds

Ask a Real Estate Lawyer

Tina
Tina, Lawyer
Category: General
Satisfied Customers: 5379
Experience:  17 years of legal experience including real estate law.
4460311
Type Your Real Estate Law Question Here...
characters left:
5 Real Estate Lawyers are Online Now

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Questions on Double Closing

A double closing occurs when a real estate property is purchased and sold, simultaneously, with the help of three parties: the original seller, a middleman who is an investor, and the final buyer. A double closing can happen for many reasons. One of the common reasons is to allow the middleman to use the purchaser’s funds to buy the property from the original seller. Another popular reason is to hide the identity of the seller or purchaser.

Listed below are a few questions answered by real estate lawyers on double closing related issues.

Can I do a double closing in New Jersey as a real estate investor? I want to place a house under contract, get a buyer, and pass the title from the seller to the buyer in order to earn profit on the deal.

If you are playing the role of a dual agent, you can do this as long as you get the buyer and seller to execute a dual agency agreement that indicates both parties are being represented by you. There really shouldn’t be a problem as long as everyone knows and agrees to your role.

What is the difference between a double contract and double closing?

The term "double contract" can be used in many ways in real estate. Double contracting is the process by which two contracts are created in a real estate transaction. One of these is considered the "real" contract and lists the true elements of the transaction. The second is a "false" contract or an illegal contract that is shown to the lender and helps the buyer project a higher sales price and get a larger loan. This kind of contract helps to deceive the lender and is not legal.

Double closing is the process by which a person purchases a piece of real estate and immediately sells it. One contract is drawn up to record the transaction between the buyer and the seller, while another contract is drawn up for the new buyer. Both the documents are placed in escrow and the closing occurs concurrently. This is a process followed by many real estate investors who are keen to make a quick profit on a piece of property. It is a perfectly legal process but is sometimes referred to as double contracting by mistake.

In Indiana, is it legal to perform a real estate double closing, where the transaction from A to B and the transaction from B to C happens at the same time while an investor makes money from the sale?

Yes, this is considered legal in Indiana. But since there is a strong crackdown on mortgage fraud, it could be difficult to locate a closing company that agrees to conduct a double or simultaneous closing.

In Virginia, if I enter into a purchase option agreement with a seller, am I allowed to sell the property to another buyer with the knowledge of the original seller? Do I close this deal with an assignment of my option to the new buyer or can I do a double closing? Also, can I do this under my LLC as a business without possessing a real estate license in VA?

Possessing an option won’t give you any rights to sell the property. However, it is possible to sell the option if there are no restrictions in the option agreement preventing you from doing so.

Once you sell the property, the person who buys the option would have to pay the price mentioned in the original contract to the seller. You would be allowed to keep only the amount charged to sell the option. Basically, your only rights while holding the option are that the seller cannot sell the property without you releasing your option.

Finally, your LLC can own the option and you would need a license only if you were marketing the real estate. Since you are only selling an option here, it doesn’t matter.

Usually, when a double closing happens, a real estate investor first gets into a contract with a seller to buy a property and then before closing the deal, enters into a second contract to sell the property. A double closing is then used to close both transactions at the same time. To separate the buyer and seller, the closing usually takes place in two separate rooms or at two different times or locations.

Ask a Real Estate Lawyer

Tina
Tina, Lawyer
Category: General
Satisfied Customers: 5379
Experience:  17 years of legal experience including real estate law.
4460311
Type Your Real Estate Law Question Here...
characters left:
5 Real Estate Lawyers are Online Now

How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Real Estate Lawyers are online & ready to help you now

Tina
Lawyer
Satisfied Customers: 4813
16 years of legal experience including real estate law.
Law Pro
Lawyer
Satisfied Customers: 6227
20 years extensive experience in real estate law, foreclosure, finance, and landlord tenant law.
Barrister
Lawyer
Satisfied Customers: 4966
13 years real estate, Realtor. Landlord 24+ years

Recent Double Closing Questions

  • If a Condominium Association President steps down from their

    If a Condominium Association President steps down from their position and becomes a Director and no New President is elected immediately what are the ramifications?
  • Do I have access and rights to buildings on property I

    Do I have access and rights to buildings on property I co-own with 100% interest?
  • Is it possible for a home owner member to incur an expense

    Is it possible for a home owner member to incur an expense on behalf of the HOA? Is it possible for that expense to be credited against the member dues for reimbursement?
    Specifically, a local Internet Service Provider here in San Francisco is offering ultra high bandwidth internet service to both individual and multi-unit buildings.
    https://www.indiegogo.com/projects/gigabit-wireless-to-the-home--2/x/1936544
    Because of the nature of the IndiGogo Campaign, the property management company has told the board that there is no way the HOA can participate directly. There is a majority of units, 12 of 20 who want this service. Is it possible for one member to pay the $2500 one-time cost to get the antenna on the building, and then have the HOA reimburse that member so the antenna can be shared? If so, is it possible for the HOA to credit the cost against their monthly dues of $468. This means that homeowner would not pay their dues for 5.34 months. What are other ways the HOA can reimburse the homeowner?
    Thanks
< Last | Next >
View More Real Estate Law Questions