What Does "Close Fast" Mean?

Question

When I see advertisements that say "Close Fast" what is fast? What types of transactions are the fastest? I would think subject 2 is since there's no change in financing. So how quick can a deal realistically close?

Account Closed · Answer

@Brandon G.

To make it simple, it means purchaser is bringing their money to the table "fast" 14 days or less.

Steve Bradigan · Answer

As an abstractor and investor in Maryland I can confirm that what @J  Scott and @Daniel DiGiacomo state above is pretty much on the money. It is legal here to create your own Deed. The required certificate of preparation on the Deed would have to state "prepared by one of the parties hereto". We rarely see this when recording documents and obviously one may forego title insurance in this scenario. As a former title company owner, I would never advise this. I have seen and been party to too much litigation in the last 26 years. As an abstractor I can attest that we request a 4 day turn around time for a 60 year full title search, the current standard requirement from the underwriters to issue title insurance for a transfer. AND yes, ALL taxes, water bills, transfer and recordation tax and any other blessed thing the county and state can think of have to be paid prior to recording or they will not stamp and accept the deed. Here, cash or no cash, 10 days is quick.

As many above have mentioned, regardless of the State, the complexities of each deal will most likely negatively impact the time frame.

J Scott · Answer

In Atlanta, we were able to close in about 3 days -- took 1-2 days for the title search (if we paid to rush it) and then a day to get to settlement.

In Maryland, title searches seem to take a lot longer, and the shortest timeframe for closing here was about 10 days.

Guy Gimenez · Answer

It can be from a few hours to ????...depending on a multitude of issues.

A transfer can occur in a day by the owner executing a deed transferring the property to a buyer and the buyer recording the deed. This obviously does not involve a title company.  If an investor wishes to get a title policy, survey, review notes/deeds of trust, etc., it will extend to at least 2 business on a super rush but more likely 5-7 business days assuming you have a cooperative title company.

I have been formally investing in Texas since 2000, so feel free to reach out to me if I can be of any assistance.

Larry Turowski · Answer

@Brandon G. It means buying as-is with few or no contingencies that will delay closing, such as a mortgage or inspection.  As-is means they will not have to do anything to the property.  There are no impediments.

How that impacts closing time is different in different states.  I believe in TX you could close in two weeks.  Here in New York it would take a miracle to close in two weeks, and even 30 days is a push.  But still there are offering a cash, as-is, no-inspection offer smooths the process along.

As a flipper who sells to people with such contingencies I can tell you it can seriously bog things down.  I had one closing that took 6 months because of bank snafus.

Daniel DiGiacomo · Answer

With an actual deed transfer, I can't imagine in any market you can get a transaction done in less than 3 or 4 days.

But anything under 2 weeks is considered pretty quick...

Jay Hinrichs · Answer

Kristine Marie Poe

THAT is EXACTLY what it means.. you may not transfer title in the state of WA without the Ad valorum tax's being brought current and pay the Excise ( transfer tax).

so process if your doing it yourself.

Is you go to tax collector pay back tax's  get recipt and proof... Next you go to the excise tax desk pay and get proof with those two docs and your deed you then go to recorder and record... But don't right in the margins of the doc other wise they won't record either they are margin Nazi's in WA   :)

Jay Hinrichs · Answer

Kristine Marie Poe

good points.

ONe other thing in Washington you must pay transfer tax ( excise tax they call it ) and bring tax's current this can take you a little bit of time you need those signed off before the recorder will record your deed.

in the pre foreclosure world this could mean the difference between saving a property and it going to sale... As we did a very large amount of these the day before the sale or the morning of...

Account Closed · Answer

Does this mean you cannot buy a property subject to existing property tax debt?  Is that a recording requirement, or a title requirement? That makes no sense to me.

Account Closed · Answer

I can "close" in one day with no title insurance.  Done it many times, although I'm lacking Kahunas. Works for subject-to purchases and getting title in order to control property asap.    I can fix the title on the re-sale.

Even with an escrow and title policy, Chicago Title can now close a trouble free title for me in less than 5 days.  Typically though it's about two weeks.  Sellers have to fill out escrow docs and statements of information so title can run the full report.  There are a lot of moving parts in escrow that are hard to control.  Pay off from lenders can be slow.  City liens where I am are sometimes hard to get payoffs on.  County abstract judgment liens for child support kill a fast close for me.  That being said, cash is king and you can close anything if you have the money and will accept a deed with no title insurance.

What Does "Close Fast" Mean?

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