Anybody out there in Tennessee (hopefully in Knoxville) willing to share what title company they use to conduct a double close?
From my research I'd determined that (hopefully correctly):
-Assignments in TN are ILLEGAL but Double Closes are LEGAL (anyone know the specific statute that addresses this?)
-There are definitely folks in Nashville that are doing double closes, so it is likely legal.
-Most title company have no idea what I am talking about, even most of the in-house lawyers don't.
I've called 20+ title companies and they either say it is either illegal or don't know exactly what I am talking about.
I have done several assignments and I'm in Tennessee and it's never been an issue.
@Curt Davis Thanks, I thought that seemed strange but I read it a couple different places (still wasn't sure about it).
Do you have a particular clause that you add to the contracts to assign? Or is there some paperwork that both the seller and end buyer must sign? thanks
I have a contract between myself and the seller. I then have my buyer sing an assignment co tract that myself and end buyer sign. We then send both contracts to closing attorney for the closing.
Happy New Year!
I have done both assignments and double closes in TN. I have a great person in Nashville.
@Martin Stevens thanks for your input. Would you be comfortable sharing specifics on who? Is it a title company that does the double closes for you?
My thought is that if I can get a hold of someone in Nashville or Memphis that does double closes I can see if they know of anyone in Knoxville that does them.
I'm no attorney, but I don't think that assignments are illegal in TN (and I live in TN). I've never done a double-close (I just close on mine the ordinary way, then rehab them, then sell them and close the ordinary way again) - but it should be doable too.
I am no Attorney but I don't think they are illegal. However most title companies simply wont do them (there is not really much money in it for them). I did them in the past but not anymore. You may have better luck dealing directly with closing attorneys or just using a trust and selling the trust. I have done many a double close and know of a few places that locally that will do them all day long.
Tip: When you call a title company make sure you ask for the closing Attorney. A lot of times the receptionist will just look on the company's website or brochure and if they don't see "Contract Assignment" they will say that them don't do them. Also they may not understand what you mean by "Assigning Contracts" or just tell you they don't do them because they are too lazy to look it up.
Neither are any issue in TN. I have used 3 different attorneys in Memphis all happily do them. I don't have a contact in Knoxville though.
Dean Letfus, Memphisinvestment.com | 901 264 8674 | http://memphisinvestment.com/
Thanks for the input everybody, it's a big help. Sounds like I should start looking up real estate attorneys.
@Ted Faust It's all about how you approach them. Sound CONFIDENT and don't use a typical newbie guru script. Think about what assignments and double closings are for. It's originally not a making money strategy it's in law as an "exit strategy". So you want to come across as an experienced investor already doing deals and some of them you'll assign or double close for a fee to sell the contract because you have investors you work with that want what you happened to already have. Does that make sense? Assume they do it. Say, "You DO handle assignments and double closings right?"
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