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:
“Hollywood held this double lure for me, tremendous sums of money for work that required no more effort than a game of pinochle.”
—Ben Hecht (1893–1964)
“It is closing time in the gardens of the West and from now on an artist will be judged only by the resonance of his solitude or the quality of his despair.”
—Cyril Connolly (1903–1974)