In an Addendum to a Purchase and Sale Agreement, does anyone have a sentance or two that you use to clearly disclose to the Title Co and Lender that you are Double Closing?
I want to simply show that proceeds from my Buyer’s loan will satisfy both Purchase and Sale Agreements - the original PSA between the Owner and me and the ultimate PSA between me as the Seller and my Buyer.
on the addendum you simply says which will be your EXIT STRATEGY and i quote, “THIS CONTRACT IS CONTINGENT UPON FAVORABLE INSPECTION BY BUYER”. Layman’s term whatever you want. if you find after doing your DUE DILIGENCE that the title is not correct, your numbers are over your budget, you can walk away out of the whole deal.
and when you contract it, it should say YOUR NAME AND/OR ASSIGNS.
then you turn around and send the purchase and sale agreement to the title company and the ASSIGNMENT OF CONTRACT and your title should know what to do with the property.
You don’t need to disclose to the title company that you are doing a double closing in many cases. I don’t understand what lender needs to know that you are doing a double closing, you won’t need a lender because your doing a double close. I must be missing something. Many lenders may have a problem with you doing a double closing depending on the type of financing that your buyer is obtaining. There are many lending laws in place that limit how fast a home can be sold and still obtain financing. There are some excellent ways to get around having to do a double closing in the first place
I would just assign the contract and skip the whole double closing all together!
Too many closing costs! Or, make sure you have a cash buyer and you should have
no problem. I never heard of having this sort of disclosure in the P.A.
From my limited learning, I do not believe their are “laws” the limit how fast a home can be sold. Instead, most lenders follow the FHA GUIDELINES when looking at chain of title. Guidelines are not laws.
Debra in OH