Tuesday, November 17, 2009

Double Closing


Real estate is an investment option that can help double your money within a short span of time. Though one requires huge amount of funds to begin a real estate transaction, once the money is invested at the right place, the returns could be bountiful.

Closing is when the deal is finalized and the title is transferred to the buyer from the seller. A double closing occurs when there is third party involved in the transaction who benefits from the process. When a person purchases a plot and finds that another buyer is ready to buy it at an appraised value, then the first buyer would be willing to sell the property to the second buyer with enormous profit margin. Simultaneous closing is effectuated where the middleman buys the property and sells it at the same time.

Double closing is also done when the buyer or seller do not wish to reveal their identity. The buyer and seller never come in contact with each other instead an investor (middleman) helps in the transactions and completes the legal formalities.

The catch here is that the buyer and seller may find out about the double closing if the contract is read accurately and that may stop them for signing it. When the seller finds out that someone is willing to pay more for his/her property then why would he/she sign. And if the buyer finds out that the property is available at lower costs, then why would he/she pay more? Double closing thus needs a lot of skill, knowledge and luck.

www.corporatestaysolutionss.co.in

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