Double Closings in NJ

[Jessica Zolotorofe]

I spoke to my title company yesterday and apparently they will no longer do double closings. First American and Chicago won't do them and Fidelity and ORNT last I heard would consider it with an affidavit that the purchase price was disclosed to the buyer, which basically defeats the purpose of a double close. Looks like assignment is our only option now!

[Yavuz Bayram]

Thanks for the heada up on this issue. If theyre ok with double closing when you disclose the price that does defeat the purpose so whats the point of even putting it on the table?

[Federico Gutierrez]

Why are you double closing in the first place? Cause you don't want to tell the original seller how much profit you're making? Just trying to understand. 

[Jessica Zolotorofe]

@Federico Gutierrez yep, that's exactly why investors do it. 

[Noel Challenger]

There's a difference between double closing and back to back closing. Double closing is when you plan to use the end buyers money to fund the purchase of the property from the seller to you and then from you to the buyer. Double closings are no longer allowed in the state of NJ so I've been told by one or two title companies that operate and do a lot of transactions in Northern New Jersey. On the other hand there's a back to back closing where you purchase the property from the seller using your OWN FUNDS and/or hard money and then you sell the property to an end buyer (two transactions). Any title company will do this because these are two transactions that are just like any other transaction. So, we still have the option of closing on the property and then selling it, it just needs to be our own money or a loan that's in our name/LLC's name.

[Jamar Jackson]

Hi, can anyone recommend a good title company  and real estate attornyey that’s close to Jersey City?

[David Lichtenstadter]

@Jamar Jackson you would want to talk to @Jessica Zolotorofe,

@Jessica Zolotorofe, no more double closing evan if buyer A brings funds to the table ? as @Noel Challenger mentioned ?

@Jessica Zolotorofe

[Jessica Zolotorofe]

@David Lichtenstadter  To the best of my understanding and having just talked to my title company, they are legally the same result. Unless the purchase price of the original sale is fully disclosed, and even then, some underwriters require that you actually have your deed recorded with consideration thereon in the public record before they will close a second sale. If you wholesale, and there is only 1 deed transfer with a gap fee going to the wholesaler, that's ok in NJ. But 2 back to back deeds are not accepted.

[Lavon Newborn]

Thanks! Your updates were awesome! You all provided great news and Q&A 😇

[Jahl Brown]

@Jessica Zolotorofe

Hello From the Future ;)

Ive spoken to a couple title companies, and transactional lenders and I have not heard about double closings/backtoback closings being illegal. Some title companies just don't do them but there are a few that do...

any updates?