What is SIMULTANEOUS DOUBLE CLOSE?

[John S]

Hi,

I've heard of double close, simultaneous close, but what is simultaneous double close?? (it's suppose to be used for reos)

Thanks in advance!

[Will Barnard]

John S. there is no such term and if anyone used it, they just made it up. As Jason stated, simultaneous close and double close are often mixed up or interchanged as many do not know or understand the difference, however, the proper definitions for each are as follows:
Double Close = Two spereate and stand alone transactions in which a property transfers title from seller to buyer in the A-B transaction, and then follows a second stand alone transaction from new owner to new buyer (B-C). Both transactions must stand on their own merit and must be funded with what is called "wet funds" meaning that the buyer brings their own money or borrowed money to the table.

Simultaneous close = Two escrow transactions, most commonly with the same escrow company/closer where the funds from the end buyer (C party) are used to fund the A-B transaction "dry funds", then those same funds are used to close the B-C transaction.

Wet funds = Use of your own funds or that of borrowed money
Dry Funds = Use of end buyers funds to close your transaction first, then same funds to close the second transaction.