Simultaneous or "double" closings in Tampa? Is this still an option any more or is it actually illegal?

Question

Hi Guys n Gals,

Are double closings actually illegal in Florida as its been told to me by about a half dozen title companies?  With each title company I spoke with, no one could cite any particular law that said they were illegal but they all said they couldn't do double closings.  They all just seemed disinterested in doing them and blew me off.

I'm in the final stages of setting up my wholesaling business and I'm looking for a good title company.  Anyone have any recommendations in or around Tampa on who to use for wholesaling/assignment closings?

If you know of a great title company in Tampa for wholesaling and would like to share, I would be most grateful.

Thanks guys.

James Moesch · Answer

I don't wish to scare ya, but if it's a significant assignment fee, I am almost positive you"ll have issues with the seller AND buyer when they see the HUD. It's really unfortunate. I'm working on a deal right now that involves a really good assignment fee. I'm in the same boat. I thought that if it was a cash transaction you can do a double closing. Ahhh, the good old days....

Daniel Miller · Answer

@Brandon M.

I second what Brandon said. Chris from Anchor Title is one of the most knowledgeable title agents I've worked with. He cleared up a very difficult deal for me and was very professional. He probably knows how to handle it.

Phil B. · Answer

Brandon,  thanks for the info.  I'll get with Chris Monday to discuss.

Wayne, others, so in order to not relinquish the assignment fee, I can do a double wet close (sounds kinda kinky, lol)?  In that case, I am buying and actually OWNING the property, even if its only for a minute.  I am merely buying it at one price and selling it at another - Im NOT assigning it in this case, right?

The other option is a straight assignment.  I get a contract, find a buyer, sign an assignment contract, expose to basically everyone involved how much Im making on the property and its a done deal.  Is this all correct?

On the assignment deals, when do you guys get paid, in advance at the time the contract is assigned or at closing?  If at closing, how does that work?

Thanks everyone!  You guys are awesome!

Wayne Brooks · Answer

@Phil B.

As Joe said, if you're trying to use the end buyer's money, for the initial A to B transaction (a Dry closing), that's where the title co. will step away.  If you're actually funding the A to B, then simply closing again with the B to C (Wet closing), any title co. in the world will do that.  You need to clarify to the title co. which you are trying, as many people use the term "double close" to mean different things.

Brandon M. · Answer

@ Phil B- I just spoke with my friend Chris, he owns Anchor Title in Tampa. Give him a call, he could tell you what can and can't be done. Just let him know you are the one Brandon was talking to him about.

http://www.anchortitleassoc.com/

**disclaimer- I am in no way affiliated with this company and not being compensated for any referrals**   Just in case referring someone was an issue....

**Edited to add- He is a very successful rehabber/buy and hold/wholesale from time to time guy so he is very familiar with what you are wanting to do.

Doug Merriott · Answer

@Joe Gore I just got clarification on that. There are actually legal ramifications of funding the first deal with the second deal's money. If you can fund the A to B close then you can continue with the B to C close.

Doug Merriott · Answer

@Phil B. try calling it A to B and B to C closing and see where that gets you. I know that the practice is frowned upon by many Realtors, because they may worry that their clients feelings might get hurt. I don't know why a title company would tell you that. In essence you are selling the same day you are buying, great for your holding costs, great for the title company because they get to double up on the deal. In all honesty it just sounds like a receptionist answering the phone and not knowing what it is, getting scared and telling you that it is illegal.

I called a couple of title companies I know over here in Pinellas. One said it was just fine, the other said it was fine but would be concerned about RESPA violations. If institutional borrowed money were in play then you may want to be cautious.

As far as a title company you may want to go to a Tampa or Suncoast REIA meeting to see who everyone else is using.

Account Closed · Answer

You can do a double closing, but title companies will not allow you to use the end buyer's money to close A to B transaction.

Joe Gore