Asked by Lenard Jones, Fort Washington, MD • Sat Sep 19, 2009
I asked a question a few days ago concening dual closing, whether or not if they were legal. Some responded not knowing what a dual closing is. A "dual closings" or "double closings" are two closings, arranged to occur simultaneously, where an investor, using a buyerâ€™s money, purchases property from a seller and immediately sells to the buyer for a profit. By way of example, assume the following: Investor enters into a contract with Seller to purchase his residence for $100,000. Investor then enters into a contract to sell the same residence to Buyer for $125,000. Investor arranges for a â€œdual closingâ€. At the closing, the settlement agent pays $100,000 to the Seller, and $25,000 to Investor. My question, would this practice be ethical, from a Licensed Realtors perspective?
Email me when…
Success! Your email alert settings have been saved. Access all your email alerts in your My Trulia account anytime!