What is a Concurrent Closing?
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 and then it can record. Sometimes we have concurrent recordings in which the second transaction is not dependent on funds from the first transaction. In this case the two can record back to back without delay, however, if the first transaction is pulled due to technical difficulties, then the concurrent transaction will also be pulled.
Do I have to use the same Title & Escrow Companies on all transactions?
No you don’t, although it can make things easier. The normal procedure on a single transaction is to fund the new loan, record the documents, and then send the proceeds via wire or check to the escrow company. When a concurrent closing is involved, time is of the essence. If both transactions use the same title and escrow companies then no money needs to move locations. If different title and escrow companies are used, we just need to communicate with each other. At the close of the first transaction instead of sending the money back to the first escrow companies and have them send it to the second escrow company who would then send it to the title company, we would simply wire the money directly to the second title company saving valuable time. Once the second title company verifies the funds, they can go ahead with the second transaction.
Is there anything else I need to consider?
Just a couple of things. First of all, when you open an escrow, most of the time you do not know at the time, that it is dependant on another property. When you do find out, please let your escrow know that you have a concurrent closing situation and give them all the particulars. Second, keep in mind if any of your transaction are in a country other than yours, this could cause an additional delay.
What is the key to a successful transaction?
Communication is the key. No matter what you may have heard, all title companies actually work quite well together. Our goal is to help you succeed. By communicating your needs to your escrow and title companies, we can work with all parties involved to insure a successful close.