Double Closings In California?
I'm hoping my fellow California investors can help me with this one. I need some advice as to how you other investors are handling your transactions when a "double closing" is involved. So far all the escrow companies I have contacted will only do a double closing with a full disclosure to all parties involved. With a full disclosure to all parties I can see this being a deal killer.
How are you other investors handling this? Also, is "full disclosure" actually the law in California or are there escrow companies in California that don't have this requirement?
Thanks, any advice will be appreciated
Full disclosure is not the law in California. It is company policy. This company policy varies in the location of the title Company. First American Title in Riverside has to disclose to all parties involved. A Investor told me he has no problems doing Flips with First American up North.
You have to find a Escrow Company who will handle your Double Escrow. I would be up-front with the Escrow Officer regarding what I am doing. If the Escrow Officer is asked “What is the Buyer doing?” he is required to disclose all that he knows.
My agreement with the Escrow Officer has been if you are asked the question you have to disclose. If you are not asked the question you do not disclose. I have been doing Flips since 1988. Not one of my Escrow Officers who was doing my Double Escrow has ever been asked the question.
I believe my success with the completion of Double Escrow has been because I treat the Buying and Selling Escrows as two different entities. Each stands alone.
Thanks Taiyo!