What is a double contract?

Asked By: Adela | Last Updated: 7th January, 2020
Category: real estate real estate buying and selling
4.4/5 (303 Views . 32 Votes)
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.

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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.

One may also ask, is Double closing legal in Florida? Double closing are NOT illegal in Florida, but what has become illegal is the use of the B-C buyer's funds to close on the A-B. For Double closings, transactional funds must be used or your buyer must agree to have their funds used for your closing.

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.

Are double closing legal?

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.

14 Related Question Answers Found

Do you need money to double close?

Your name or the name of your company will go on the chain of title whether you sell the property the same day (which is typical for a double closing) or 30-60 days or more down the road. The main reason I really like doing this type of closing is that you do not need to bring any of your own money to the closing.

What does it mean to assign a contract?

An assignment of contract occurs when one party to an existing contract (the "assignor") hands off the contract's obligations and benefits to another party (the "assignee"). Ideally, the assignor wants the assignee to step into his shoes and assume all of his contractual obligations and rights.

What is back to back closing?

A simultaneous closing — also known as a back-to-back closing — is an arrangement where you buy a new home on the same day that you sell your old one. If everything works out according to plan, you would close on your current home in the morning, and then on your new house that afternoon.

What is double escrow closing?

Double escrow is a set of real estate transactions involving two contracts of sale for the same property, to two different back-to-back buyers, at the same or two different prices, arranged to close on the same day.

How does a simultaneous close work?

Simultaneous closing is a real estate seller financing technique, whereby the private mortgage note created by the seller is simultaneously sold to a note buyer on closing. Typically, the terms of the note are agreed upon between the seller and the buyer with some suggestions from the note buyer.

What are double sold loans?

What is Double Selling? Double selling is a type of real estate or mortgage fraud that generally involves a mortgage broker. The mortgage broker takes the information from a potential borrower in order to obtain a mortgage loan. The borrower is usually in on the mortgage fraud scam.

Is wholesaling illegal in Florida?

Wholesaling is not illegal in Florida. Period. Assign the contract, double close, whatever.