What is a double contract?
Category:
real estate
real estate buying and selling
Dual Contract Law and Legal Definition. Dual contract refers to a contract between parties who have made two contracts for the same transaction. Most often, the contract for larger amount is used to apply for a loan and the real contract is for a lower amount.
People also ask, how does a double closing work?
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 investor then utilizes a double closing to close both transactions at approximately the same time.
Hereof, what is a double sale?
A double sale is the selling of the same property by the same seller to different buyers with conflicting rights.
Double closings, or “back to back closings”, occur when two separate real estate settlements on the same property are scheduled sequentially. There is nothing illegal or wrong about double closings. There are perfectly legal and ethical. Parties generally run into problems, however, under three sets of circumstances.