In regards to doubling closing (using transactional funding) how does the escrow/title company close on the 2nd deal on the same day when sometimes it takes until the end of business day to record the deal at county?
I know that often times if everything is signed early in the day it can record before noon so then that way the second deal can happen that same day in the afternoon.
I ask because I read posts and hear stories where people do both closings at the same time at title/escrow, going from one room to the next to sign. How can escrow have you sign docs on the 2nd deal when it hasn't even recorded yet and legally you don't own the property yet to sell.
Thanks for any insight.
In most counties (except several California counties) title can submit both Deeds to be recorded in the priority they indicate to the recorder (your purchase first and your resale right behind it).
You can always execute documents before an actual legal closing and transfer of title takes place. The second closing docs are executed and held in "escrow" by the title company, subject to instructions from the transactional funder. Title knows from instructions from the transactional funder that the second set of docs has to be executed and held in escrow until recording of the first Deed for your purchase, and then the second Deed is recorded. It is not until the Deed is recorded that either transaction is legally "closed". I hope this helps.
Thanks Ted. That makes more sense now. Some escrow officers out here don't even understand this situation because I have been told by a few that they cannot do same day double closes. I think just maybe they have never done one before. Thanks again