Does anyone have a double closing contract for both sides

Question

I am speaking with a closing attorney to get them to do a standard double closing. I define standard as when funds from the B-C transaction (me selling my interest in the A-B transaction to buy a property) are used to fund the A-B transaction. This type of closing is not usual in my area. In our discussion we are "close" to agreeing to make a purchase in this fashion but I'd like to show him an example of such a contract because he keeps saying "as long as everything is disclosed" and "as long as the contract is assignable". I have never done one of these myself so if anyone has a standard contract of this nature please send it to me. I looked in the files and haven't yet found a double closing. Thanks

Wayne Brooks · Answer

If you’re doing a “double closing”, there is no assignment involved. Disclosure usually means you have to dickise to C that you are using their money to buy from A.

Stanley Bronstein · Answer

@Doug Haisten.  @Nick C. is correct.  For a true "double closing", you should probably use 2 contracts in this type of situation and make the closing of the second contract contingent upon the closing of the first. You don't need C knowing what your deal is with A.

However, you should disclose to them that you are acquiring the property from a separate closing and that their deal is contingent upon that closing. When they go to pull a title report, they're going to see that anyway, so you should disclose it up front.

Based upon what you said the attorney said, it sounds like they are contemplating that you should just flip the contract and there is no double closing. To me, that's usually the better way to do things, if it can be structured that way. If I'm representing the person in the middle, I recommend that they try to NOT take title to the property as part of the transaction, if at all possible and the contract permits you to do so.

You really need to take the attorney's advice on this one.

Nick C. · Answer

I don't know that there is a "double closing" contract. Just use 2 standard "as is" contracts for your state. One for the first transaction, one for the 2nd transaction. There should be an option in there to make it assignable, and there's always room to write in special clauses where you can make any disclosures you want.