Are double closings Illegal or not? I have researched many title companies in the state of Louisiana and all i’ve heard was double closings are illegal, but I hear many real estate gurus saying that these transactions are legal and that they take place all the time. Can anyone shine some light on this topic for me.
Thanks,
SW
Not.
Keith
SlikWil,
They are not illegal. There is a lot of confusion with this though. Try calling title companies in your area to see which ones will do a double closing. You should know however, that some title companies are now requiring the funds to be available for both transactions as they are not allowing the second transaction to fund the first.
Good Luck
Rick
not illegal - period
Absolutely not illegal. According to the manager of the title company I use they may not be insurable if the examiner sees the particular transaction as a “flip” which inflates market value.
In my opinion buying low and selling high is just capitalism but evidently some title companies and lenders will continue to screw up deals, sometimes even deals that are good for all parties. I can’t blame them really, they are trying to make a policy that can protect idiots from themselves and unscrupulous deals. There are no policies that can out maneuver human ingenuity.
Well meaning dumb asses often cause problems for legitimate deals. There are always ways to get deals done. If they involve some one getting screwed then I choose to pass.
I gave up my argument with the title compamy manager after a few minutes because I don’t do double closings. I was just asking for information but I think that their policy is wrong.
Not illegal. I think the confusion is with the seasoning issues. But if as an investor you flip to buyers with cash, then seasoning should not be a problem.