What are the distinctions between closing terms?

[Cecelia A]

Hi,

I've heard a lot of closing terms that are quite confusing to distinguish.

For example, simultaneous closing, back-to-back closing, double closing (I think it's doing 2 separate closing, one between AB, and another between BC, and use transactional fundings, right?).

I don't really know exactly what they mean, please help?

Thanks in advance!

[Jon Holdman]

There are no specific hard and fast definitions of these terms. When you're having a converstaion about these types of closing, you should ALWAYS clarify exactly what's meant. Just because you have a meaning in mind for any of these terms doesn't mean the other person has the same meaning in mind.

All these are variations of "double closing". That's because there are two separate closings. The only real difference is whether or not you, as the "B" person, has to bring your own cash to closing.

In any sort of double closing, the check you get is not really for your fee. Its your net proceeds from the transaction. You will not have any "fee" that appears on any document. What you will have are two different prices. A lower one for the AB transaction and a higher one for the BC transaction. You will also have costs associated with each transaction. Your check is the difference between the two prices, less all your costs on the two transactions.