Make sure the tile company (closing agent) aware of what is happening. Do not forget the lender must also be aware of situation. Be prepared because we have been told that they usually do not like double closings.
My buyer is all CA$H. but my title co is requiring me to pay for 2 title policies unless all 3 parties sign a "pass through letter". I can't have this happen because my seller is not aware of the double closing. Any suggesstions how to by- pass this. I dont need a policy but my seller is willing to pay for it.
They shouldn't be requesting double title insurance from you...double fees?sure, but not the title policy.
classimg,
First of all, the title company obviously has to know about a double closing since they have more to do with it than the buyer, seller, or investor. Second, I'd say lenders don't usually like them. So much so that conventional lenders don't do them. Cash, Hard Money Lenders, or SubPrime Lenders(2 or 3 still will) are the only way to fund the ending.
Does the contract you signed with your seller have the "and or assigns". If it does(and I suggest this for the future) you can do an assignment of contract with your buyer(he steps in for you as stated in your contract). He will actually close with your seller, and the title company will issue you an assignment fee from the closing monies. Thus, you will save the double closing costs.
If you do an assignment then the buyer will be buying at the price you bought it at so doesn’t that eliminate your profits? I am just confused, please explain.
the original contract is not assignable. that was the original issue, but even if it was I was willing to pay the double closing so that my profit was not known by all parties. What is the verbage for an assignabel contract?
As for the profit. If you assign a contract you have a second agreement that stipulates the amount of money you recieve for assigning the contract. ie PROFIT.
I'm going to ask why are you trying to hide that your selling property. The seller is selling and the buyer is buying, you were able to bring the two together and you are going to make some money doing it. Don't be afraid, if both are at the closing table, so what if they know. At that point, I highly doubt anyone would back out. Besides, you have a contract, you fulfilled your end of the bargin and they must too. have a good lawyer on your side and everything should be fine.
you are correct. however my seller is a bank and I get very good deals from them REO's and my buyer is an investor with deep pockets. I dont want my buyer to go to the bank directly on the next deal
ASSIGNMENT OF CONTRACT
FOR VALUE RECEIVED,____________________________, the undersigned Assignor ("Assignor" hereby assigns, transfers and sets over to ____________________________ ("Assignee" all rights, title and interest held by the Assignor in and to the following described contract:
The Assignor warrants and represents that said contract is in full force and effect and is fully assignable.
The Assignee hereby assumes and agrees to perform all the remaining and executory obligations of the Assignor under the contract and agrees to indemnify and hold the Assignor harmless from any claim or demand resulting from non-performance by the Assignee.
The Assignee shall be entitled to all monies remaining to be paid under the contract, which rights are also assigned hereunder.
The Assignor warrants that the contract is without modification, and remains on the terms contained.
The Assignor further warrants that it has full right and authority to transfer said contract and that the contract rights herein transferred are free of lien, encumbrance or adverse claim.
This assignment shall be binding upon and inure to the benefit of the parties, their successors and assigns.
Signed this _________ day of ______________________________, 20_____.
____________________________
Assignor's Signature
____________________________
Assignor's Printed Name
____________________________
Assignee's Signature
____________________________
Assignee's Printed Name
Quote:
On 2003-11-05 17:41, metrocity wrote:
I dont get what your saying, If they bank will not assign then how will another title co make things different
Look for another title company that will do a double close and not charge you as much. A double close is not assigning.
None I can think of...
hope this helps,
clear2close
[addsig]
Make sure the tile company (closing agent) aware of what is happening. Do not forget the lender must also be aware of situation. Be prepared because we have been told that they usually do not like double closings.
Eric & Rosa
[addsig]
My buyer is all CA$H. but my title co is requiring me to pay for 2 title policies unless all 3 parties sign a "pass through letter". I can't have this happen because my seller is not aware of the double closing. Any suggesstions how to by- pass this. I dont need a policy but my seller is willing to pay for it.
First time with this title company?
They shouldn't be requesting double title insurance from you...double fees?sure, but not the title policy.
classimg,
First of all, the title company obviously has to know about a double closing since they have more to do with it than the buyer, seller, or investor. Second, I'd say lenders don't usually like them. So much so that conventional lenders don't do them. Cash, Hard Money Lenders, or SubPrime Lenders(2 or 3 still will) are the only way to fund the ending.
..careful with your posts.
hope this helps,
clear2close
[addsig]
Does the contract you signed with your seller have the "and or assigns". If it does(and I suggest this for the future) you can do an assignment of contract with your buyer(he steps in for you as stated in your contract). He will actually close with your seller, and the title company will issue you an assignment fee from the closing monies. Thus, you will save the double closing costs.
Bryanb
If you do an assignment then the buyer will be buying at the price you bought it at so doesn’t that eliminate your profits? I am just confused, please explain.
the original contract is not assignable. that was the original issue, but even if it was I was willing to pay the double closing so that my profit was not known by all parties. What is the verbage for an assignabel contract?
As for the profit. If you assign a contract you have a second agreement that stipulates the amount of money you recieve for assigning the contract. ie PROFIT.
Do you have the verbage for the second agreement. I was not aware of this.
thanks
I'm going to ask why are you trying to hide that your selling property. The seller is selling and the buyer is buying, you were able to bring the two together and you are going to make some money doing it. Don't be afraid, if both are at the closing table, so what if they know. At that point, I highly doubt anyone would back out. Besides, you have a contract, you fulfilled your end of the bargin and they must too. have a good lawyer on your side and everything should be fine.
you are correct. however my seller is a bank and I get very good deals from them REO's and my buyer is an investor with deep pockets. I dont want my buyer to go to the bank directly on the next deal
I'm not a lawyer but this is the contract I use.
hereby assigns, transfers and sets over to ____________________________ ("Assignee"
all rights, title and interest held by the Assignor in and to the following described contract:
ASSIGNMENT OF CONTRACT
FOR VALUE RECEIVED,____________________________, the undersigned Assignor ("Assignor"
The Assignor warrants and represents that said contract is in full force and effect and is fully assignable.
The Assignee hereby assumes and agrees to perform all the remaining and executory obligations of the Assignor under the contract and agrees to indemnify and hold the Assignor harmless from any claim or demand resulting from non-performance by the Assignee.
The Assignee shall be entitled to all monies remaining to be paid under the contract, which rights are also assigned hereunder.
The Assignor warrants that the contract is without modification, and remains on the terms contained.
The Assignor further warrants that it has full right and authority to transfer said contract and that the contract rights herein transferred are free of lien, encumbrance or adverse claim.
This assignment shall be binding upon and inure to the benefit of the parties, their successors and assigns.
Signed this _________ day of ______________________________, 20_____.
____________________________
Assignor's Signature
____________________________
Assignor's Printed Name
____________________________
Assignee's Signature
____________________________
Assignee's Printed Name
Assignments all well and good, but if the bank is a seller 90% have a non-assignablity clause. Seek another title company. They're a dime a dozen.
I dont get what your saying, If they bank will not assign then how will another title co make things different
So you have the person you are assigning the contract to sign this right? Just clarifying, sorry.
original buyer is the assignor
new buyer is the assignee
both need to sign doc
Metro,
Thanks
Quote:
On 2003-11-05 17:41, metrocity wrote:
I dont get what your saying, If they bank will not assign then how will another title co make things different
Look for another title company that will do a double close and not charge you as much. A double close is not assigning.