Zillow Advice: Buying Process - I am a Real Estate Broker and I have a buyer wanting to arrange a double close. Is this legal-AZ?

The reason lenders have trouble ...

Sun, 14 Jun 2009 19:48:00 GMT

The reason lenders have trouble with these types of "double escrow" transactions is that in the past it has been connected with inflated property values and straw buyers. I doubt you will be able to get financing under A-Paper agency terms.

Doing a double close is perfectly ...

Sun, 24 May 2009 22:26:00 GMT

Doing a double close is perfectly legal, and very easy if you can find an good title company. If the transaction is "cash" to "cash" you are doing somthing that is very legit.

so to get this straight: ...

Sun, 24 May 2009 19:01:00 GMT

so to get this straight: your buyer has a contract to buy, he has found another buyer for the property?

1. is his original purchase contract assignable? you will have to read the fine print to see if it is.
2. Is your buyer buying with cash? a hard money loan?

the devil will be in the details on this, per se it isn't illegal to immediately sell something you just bought...

I'm just curious, but is ...

Sun, 24 May 2009 18:41:00 GMT

I'm just curious, but is risking your license and reputation worth the fact that you are trying to save a few hundred dollars and not seek qualified legal advice.

Because that is exactly what you are doing. I hope you realize that what you put here is reflective of that fact. I would never wish to do business with someone who is that cheap that they would subject themselves to such liability exposure simply to avoid paying a few hundred dollars in legal fees to seek out QUALIFIED advice.

Regards

If this is a cash purchase ...

Sun, 24 May 2009 17:37:00 GMT

If this is a cash purchase . . . you should have any issues. You'll run into issues when the is a loan attached to it. The complication is the Title and a Inflation of Value; the biggest one of all is it treads closely to someone making a real estate transaction and not being licensed and utilizing you as a go between to "stay" within guidelines. It's not worth jeapordizing your license.

The first investor wants to make the money without taking Title to avoid paying taxes, but make the money.

Bottomline, when we become Brokers, we have no protection like we did when we were agents . . . the liability is tooooo high! Don't risk the potenial fraud issue.