sukrpunch 0 Report post Posted October 17, 2007 I'm aware that Realtors/agents are not always the easiest to work with when it comes to piecing together a LO, but I've found that many of them in my area have properties available for LO and are willing to "hold paper" until the deal closes. I was speaking with one today that has a couple SLO properties for me and he asked me a question that kinda caught me off guard (i'm trying to avoid SLOs, but I already committed a SLO, not CA, to him): He wanted to know exactly how the check gets cut at purchase. Basically, say at closing, I sold the house for $5k more than what I contracted it for with the seller. He wants to know how exactly the $5k gets paid out to me and how the $100k (seller's price) gets paid to the seller. Does title transfer through me then to the t/b (which would basically be a double close)? Or how exactly, in legal terms, do I get paid in the deal? Thanks! Chris Share this post Link to post Share on other sites
MichaelC 160 Report post Posted October 17, 2007 Chris, it varies. Depends upon how the title company/lender/attorneys prefer to handle it. Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted October 17, 2007 Chris, that depends on whether you do a double close or an assignment. I do an assignment or release, otherwise land transfer tax (which is high here in Ontario) would be paid twice, once by me and again by my T/B. * So basically the T/B gets a new mortgage for say $105k.* They pay me $5k to release my contract.* The other $100k goes to the seller.* The T/B and seller close directly with each other.In your scenario, the seller would then pay their agent out of the $100k they collected. In a double close the T/B would pay you $105k, you would then buy from the seller and pay them their $100k. You close with the seller and then immediately turn around and close with the buyer. Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted October 17, 2007 Like MC said, let the attorneys figure it out Share this post Link to post Share on other sites
sukrpunch 0 Report post Posted October 17, 2007 * They pay me $5k to release my contract. Thanks for the responses MC and Doug! Is there an extra step that needs to be taken to release the contract (i.e. signing another contract)? Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted October 17, 2007 Just a simple one page mutual release (or assignment if you prefer). Just ask your lawyer/title company what they require. Share this post Link to post Share on other sites
sukrpunch 0 Report post Posted October 17, 2007 Just a simple one page mutual release (or assignment if you prefer). Just ask your lawyer/title company what they require. Perfect. Thanks Doug! Share this post Link to post Share on other sites
