A double closing is the simultaneous purchase and sale of a real estate property involving three parties: the original seller, an investor (middleman), and the final buyer.
The underlying reasons for having a double closing vary. The most pressing and usual reason is to allow the middleman to use the purchasers funds to acquire the property from the original seller. Another common reason for a double closing is to conceal the identity of the purchaser or seller.
Typically, a real estate investor first enters into a contract to purchase a property and then subsequently (before closing the purchase) enters into a contract to sell the property (hopefully for a higher price). The investor then utilizes a double closing to close both transactions at approximately the same time.
Read more about Double Closing: The Mechanics, Legal Standpoint
Famous quotes containing the words double and/or closing:
“O, my offense is rank, it smells to heaven;
It hath the primal eldest curse upon ‘t,
A brother’s murder. Pray can I not,
Though inclination be as sharp as will;
My stronger guilt defeats my strong intent,
And like a man to double business bound
I stand in pause where I shall first begin,
And both neglect. What if this cursed hand
Were thicker than itself with brother’s blood,
Is there not rain enough in the sweet heavens
To wash it white as snow?”
—William Shakespeare (1564–1616)
“Our two eyes do not make our lot better; one serves us to see the good things, the other the evils of life. A lot of people have the bad habit of closing the first, and very few close the second.”
—Voltaire [François Marie Arouet] (1694–1778)