A Concurrent Closing is the term used to define two or more properties dependent on each other to close. For example, the first property funds and records and the proceeds from that transaction are used to fund or partially fund the second transaction so it can then record.
Full Answer
What does concurrent closing mean when selling a home?
Often, a concurrent closing means that the sale of your current home will be finalized first, and then the purchase of your next home will be finalized the following day. Sometimes, the purchase of your next home is finalized within two days. Find out how much you would net from selling your home. Get Your Home Valuation
How do I schedule a concurrent closing?
There are ways to schedule a concurrent closing, in addition to making the sale of your home contingent on finding a replacement home to buy. The strategy you decide to employ will depend on the type of real estate market in your locale.
Should I Make my offer contingent on closing concurrently?
Nothing yells "discount your offer" like a listing that reads, "seller motivated, bought another." By making the sale of your home contingent on closing concurrently with your new purchase, you have basically said to the buyer, "If I can't find the home I want to buy, I'm under no obligation to sell to you."
How can I improve my chances of a smooth concurrent closing?
Here are two ways to improve your chances of a smooth concurrent closing: 1 Use the same Title Company for both selling and buying. If only one Title Company handles both transactions, it can take... 2 Use the same Escrow Company for both selling and buying. Using the same Escrow Company also eliminates the number of... More ...
How do I move with concurrent closing?
How Does a Concurrent Closing Work?Step #1: Your Buyer pays for your house. ... Step #2: The Title Company pays off your existing mortgage. ... Step #3: The Title Company orders the Grant Deed recording at the County Assessor's Office. ... Step #4: The Title Company transfers any remaining funds to the Escrow Company.More items...•
How do you coordinate a house closing?
Simultaneous Closing TipsInclude enough time for both closings.Order all inspections & services early.Use same settlement agent, attorney, or title company for closing.Choose an experienced lender.Choose a good Realtor.Close in the morning.Communicate among all parties often.
What is concurrent loan escrow service?
Concurrent closings are a common escrow situation where a client is conducting two real estate deals, and wants them both to close on the same day. It sounds like a simple, straightforward matter of timing; in reality, the request for a concurrent close can be a difficult and stressful affair for all concerned.
How do you find the closing date of a coordinate?
On closing day, make sure you have everything you need and arrive early. Scheduling the two closings a few days apart and not during the last week of the month (when title companies are usually very busy) is also a good idea. That way even if anything does go wrong you have some time to fix it.
What not to do after closing on a house?
What Not To Do While Closing On a HouseAvoid Big Charges on a Credit Card. Do not rack up credit card debt. ... Be Careful with Trends. ... Do Not Neglect Your Neighbors. ... Don't Miss Tax Breaks. ... Keep Your Real Estate Agent Close. ... Save That Mail. ... Celebrate!
How many days before closing is the final walk through?
In most cases, the final walk-through is scheduled within 24 hours prior to the closing date. Your real estate agent can help you set a time with the seller's agent when you can be sure the property will be accessible and (hopefully) vacant.
What is concurrent mortgage?
Concurrent Second Lien Mortgage Loan means a Second Lien Mortgage Loan as to which the prior lien on such Mortgaged Property is secured by financing which was obtained by the related Mortgagor from the related Borrower at the same time that such Second Lien Mortgage Loan was originated.
How do you coordinate to sell one house and buy another?
Buying and selling at the same timeGet a free cash offer in just 24 hours.Make an offer on an existing Opendoor home (and, in select cities, an offer on any home on the market)Schedule your closing dates for both transactions simultaneously.
Why do you have to pay escrow when refinancing?
A lender requires an escrow account when a refinance results in equity of less than 20 percent, which results in a loan-to-value ratio of more than 80 percent. The loan-to-value ratio, commonly called LTV, compares the loan balance to the home's appraised value.
What is the fastest you can close on a house?
It's possible to close faster than the national average closing time of 49 days. In fact, some buyers close in 30 days or less, though you'd need to have a very straightforward mortgage application and no complications with the sale to do so.
What is the best day to close on a house?
End of the month With a June 30 closing, you'll owe interest only for the last day of the month, but you'll have just one month before your mortgage is due on Aug. 1.
Can a mortgage fall through after closing?
Mortgage approvals can fall through on closing day for any number of reasons, like not acquiring the proper financing, appraisal or inspection issues, or contract contingencies.
What are the 4 steps of a closing process for a home?
The steps leading up to the closing date include: Purchase agreement acceptance. Optional buyer home inspection.
Who should determine time and location of closing?
Who should determine time and location of closing? The listing agent generally requests it from the broker at least 24 hours before closing.
What is the order of the closing process?
To close the deal on your home, you need a closing agent (also called a settlement or escrow agent). They'll coordinate document signing for all the parties, verify that both you and the seller have met the terms of the purchase agreement, and finally pay out all funds, transfer the title, and record the deed.
What are the steps in the closing process?
A typical house closing process follows these steps.Step 1: Find a title company or lawyer to open an escrow account for you. ... Step 2: Title review starts. ... Step 3: Pay your earnest money. ... Step 4: Submit the loan application officially. ... Step 5: Review the Loan Estimate. ... Step 6: Order the inspection and any follow-ups.More items...•
What is a concurrent closing?
A concurrent closing means you are selling one home and buying another within a short amount of time — sometimes even on the same day. Concurrent closings cannot actually happen at the same time. The first closing must be completed before the next can happen, so a timeframe of at least a couple hours (bare minimum) is needed between them.
Why do escrow companies do double closings?
However, some title and escrow companies will no longer do a double closing because of the possibility of loan fraud.
When you sell a home and buy another, there is no overlap of ownership?
When you are selling one home and buying another, there is no overlap of ownership, creating the question of when you will move. This means coordinating move-out dates for both properties and where you and your possessions will reside in the transition.
Can you do two closings in a short amount of time?
The risk of trying to do two closings in a short amount of time is that many things can go wrong to delay one or both closings. If your first closing is delayed, it almost always means the second one will also be delayed.
Why is concurrent closing so difficult?
The challenge in executing a concurrent closing arises because any real estate transaction involves a multitude of agencies and stakeholders. Title agencies must work through the process of transferring title; spouses, business partners, or other parties with an interest in the property need to be consulted; lenders have approval processes that depend on other paperwork being completed in a timely manner. In short, the escrow officer works an impressive feat of organization and coordination in a concurrent close.
Why do clients ask for concurrent closings?
A client may ask for concurrent closings for several reasons. Perhaps they are buying a new house, and using the proceeds from selling their current house to pay for it. Perhaps it’s a business deal with a need for close timing. Perhaps they are involved in a 1031 exchange, and the timing of the closings has strong financial implications.
What is concurrent closing?
Concurrent closings are a common escrow situation where a client is conducting two real estate deals, and wants them both to close on the same day. It sounds like a simple, straightforward matter of timing; in reality, the request for a concurrent close can be a difficult and stressful affair for all concerned. It’s like trying to line up two flocks of ducks at the same time.
Why is concurrent closing so difficult?
The challenge in executing a concurrent closing arises because any real estate transaction involves a multitude of agencies and stakeholders. Title agencies must work through the process of transferring title; spouses, business partners, or other parties with an interest in the property need to be consulted; lenders have approval processes that depend on other paperwork being completed in a timely manner. In short, the escrow officer works an impressive feat of organization and coordination in a concurrent close.
Why do clients ask for concurrent closings?
A client may ask for concurrent closings for several reasons. Perhaps they are buying a new house, and using the proceeds from selling their current house to pay for it. Perhaps it’s a business deal with a need for close timing. Perhaps they are involved in a 1031 exchange, and the timing of the closings has strong financial implications. For whatever reason, the less time between the closing of the two deals, the more the client benefits.
How long does a contingency period last?
A contingency period will give you the right to cancel the contract during that time period if you so choose, which can range, on average, from seven to 21 days.
What happens if a buyer doesn't require immediate occupancy?
If the buyer doesn't require immediate occupancy, the seller might rent back their own home for the amount of the buyer's new mortgage payment. Or the seller might move out, put their belongings into storage, and rent a furnished, short-term apartment.
Is it better to wait for a replacement home in a seller's market or a buyer's?
The strategy you decide to employ will depend on the type of real estate market in your locale. Buyers are much more willing to wait for a seller to find a replacement home in a seller's market than in a buyer's market.
Can you make a sale contingent on closing?
By making the sale of your home contingent on closing concurrently with your new purchase, you have basically said to the buyer, "If I can't find the home I want to buy, I'm under no obligation to sell to you." You don't have to name the property address. You can simply state, "This sale contingent on closing concurrently with the purchase of seller's replacement home."
Can a smart buyer's agent sign a contract with contingency clause?
In fairness, a smart buyer's agent won't let a buyer sign a contract with a contingency clause like that; however, some get away with inserting that clause because few agents understand its implication.
