90 Day Flip Rule: In Need of Clarification

[Adrian Jones]

Good Evening Investors,

Question. I closed on a house on 12/15/2017 and began renovations immediately, with plans to resell. The transfer of deed did not get recorded until a month later on 01/16/2018. I believe the 90 day rule starts from the date the deed was recorded (Jan 2018). However my question is this...

The property is ready to go on market tomorrow. Although I'm still within the 90 day limitation:

1) Can I/should I still list the property now? My 90 day anniversary will be 04/16/2018.

2) If I get a quick contract on the house, will a lender begin underwriting a loan for a perspective buyer since the closing would happen after the 90 day limitation will have expired? Or will a lender not even work with a buyer on a property that was listed for resale inside the 90 day window?

Thank you very much!

Adrian

[Tom Gimer]

We don't record before disbursing in Maryland. And, depending on volume, it can take the county clerks days or even weeks to get instruments on record. Throw in rejections and that turns into months.

As you might imagine there is a lot than can happen in the "gap" and a lot of title claims as a result.

I would argue that the relevant date is the settlement date, not the recording date.