Closing On A S2 Deal?
is there an actual closing with a title company or an attorney on a sub2 deal? or do you just get purchase contract and deed signed and record deed and begin making payments? also what about turning around and selling the same property with owner financing? is there a closing, or again just get signed purchase contract and record the mortgage? i know there would be a definate closing when your end buyer refinanced to cash you out. but what about the first and second instance?
thanks
eric
good question ... :-? id like to know the answer to that also?
Haven't actually done this yet, but here's how I plan to:
Buying Closing:
Attending: me, my seller, a traveling notary
Place: anywhere (Mcdonald's, hood of car, at the seller's property)
Docs to be signed:
- purchase & sale agreement (should already have done this at the beginning of the deal with the seller);
- deed document (check with your county to see what they'll accept);
- a limited power of attorney (so you can sign for the seller in case you can't find him anymore and need a sig right away);
- an affadavit from the seller affirming that he gave you title to the property--just in case he tries to claim he didn't know what he was doing;
- any Quit Claim Deeds in case ex-spouses/lien holders, etc were on the original title.
After closing, record the deed with the county; pay any RE transfer tax (here in IL).
Selling Closing: this one may depend on your buyer or how you structure the deal. If you are doing a Contract for Deed (CFD), you could do it yourself:
Attending: me, buyer, traveliing notary
Location: anywhere, but probably would like to be somewhere semi-professional (bank, office, etc. If you use a bank, they usually have notaries you can use for free!)
Docs to sign/notarize:
- Contract for Sale of Real Property (land contract or contract for deed) which spells out purchase price, monthly payment and term before buyers actually get the title/deed;
- Deed transferring ownership to them (but I won't record this until they satisfy the contract for deed, usually in 2 years);
- if you are carrying the note for 2 years, a copy of the promissory note that specifies that;
- for IL, a seller's disclosure form and lead paint disclsoure/advisory form.
If the buyer was an all cash or purchase mortgage buyer (basically a "conventional" buyer), they may require the whole formal closing process: attorneys, title company, title insurance, HUD-1--the whole shootin' match and I would just go along for the ride and collect my check at the end (title co. will disburse funds to original mortgage holder and county/state and anyone else; what's left comes to me...).
Of course, none of this is a substitute for sound legal advice--you should always verify in advance what, if any, regulations there are on property closings in your location.
Andy
[ Edited by arytkatz on Date 03/27/2004 ]
[ Edited by arytkatz on Date 03/27/2004 ]
[ Edited by arytkatz on Date 03/27/2004 ][ Edited by arytkatz on Date 03/27/2004 ]