Dry Double Closings?

I know what a double closing is but I never heard of a dry or wet double closing. I am no a seasoned expert ofcoarse, so I would like to know.

Thanks,

Dave

A=Original seller
B=Principal (you)
C=End Buyer

With a dry double closing, the money from the B-C part of the closing is used for the A-B, so you do not have to use Transactional Funding. So B is using the end buyer's money to purchase the property from the original seller.

In a wet double closing, A-B uses Transactional Funding and then you have the B-C close. This one is more expensive, because you are having to pay the fees on the TF.

In the dry closing, the B-C part of the deal actually closes first and then the A-B will close immediately after, so you are literally selling a property in the B-C portion that you don't really own yet. That's why a lot of escrow/title companies are hesitant on doing them.

Karen

Ok I got it. Thanks for clearing that up.

Thanks for the definition. That helps. I was wondering about the difference. Does anyone know if DRY closings are legal in Florida?

Hi all thanks for your replies, Jim

Hi thanks for sharing, Jim

The key to a dry closing is finding the right closing agent, either a title company or a lawyer. Call different closing agents to see if they can do a dry closing. Most are not going to be able to do it, but there are a few out there doing dry closes. It is just like everyone else on your power team, interview them to find the one that will work best for you and can do creative closings like this.

I sat down with my Title Co. and basically the main issue is that they want to make sure that the transfer tax is paid on both ends. Thats it!!

Jay C