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:
“Because I have work to care about, it is possible that I may be less difficult to get along with than other women when the double chins start to form.”
—Gloria Steinem (b. 1934)
“At closing time would go
In waders and peaked cap
Into the showery dark,
A dole-kept breadwinner
But a natural for work.”
—Seamus Heaney (b. 1939)