One of the ways to make money in real estate is to move property as quickly as possible. Jumping from one home to another often leads to a double closing situation.
Three Party Closings In Real Estate
Traditional home sales involve two parties, a buyer and seller. You may, however, run into a situation where there are actually three parties involved. This can occur when you are dealing with a real estate investor. The situation essentially involves a flip of the home by your investor. Here is a closer look.
Assume you list your home for a certain price and accept an offer from a real estate investor. The investor is not really interested in owning your property. Instead, they are looking to make a profit as quickly as possible. The are also looking to move it as soon as possible to free up cash so they can invest in other properties. If they are particularly good at their job, they will often find another party to buy the home from them while they are still in escrow with you! This is where we get the three party closing.
The specifics of how three party closings occur are highly dependent upon the situation. Regardless of how it is done, the third party purchasing the property from your buyer will often submit the funds for payment of your contract. This essentially turns the investor into a middleman who is collecting a fee and profit for doing practically nothing. That being said, you will actually do two separate escrows with two completely separate sets of documents. As the seller, you will only have to deal with your transaction.
There are definite downsides to three party closings. Obviously, the more parties involved, the more chance there is something will go wrong. Three party closings can also make lenders nervous. That being said, there is often a bigger problem.
As a seller, you want to get the top price for your home. In a three party closing, you are confronted with the fact that you did not get the best price. Moreover, you agreed to such a low price that the investor was able to flip the house immediately for a profit. This situation leads to serious seller's remorse. If you try to pull out of the deal, you can get into litigation and so on.
As a seller, there is not much you can do about a three party closing. Just try not to get to disillusioned about the situation.
Raynor James is with the FSBO site - FSBOAmerica.org - homes for sale by owner.
Specific Performance Demands In Real Estate Transactions
Every so often, real estate transactions can go bad. This often results in one party demanding the other specifically perform pursuant to the real estate contract.
Specific Performance Demands In Real Estate Transactions
Once a seller and buyer agree on a price for a property, a real estate contract is signed. The contract contains provisions each must comply with, provisions that are legally binding. If problems arise during escrow, particularly if things turn nasty, one party may look to legal remedies to force the other party to do something.
Specific performance is a legal demand that a party perform some act. Although the theory can be applied to many situations, it is often seen in real estate transactions. This is because courts have determined that property is unique, and specific performance is often more valuable than monetary damages.
In the case of real estate, specific performance demands often involve the conveyance of title. Having met the conditions of the contract, the buyer demands the seller convey title to them. Why would sellers not do this automatically? Situations can include seller remorse, basic flakiness or the realization the seller accepted far too low an offer compared to what the market would produce.
Specific performance demands are a two sided situation. Courts often are reluctant to grant them because human nature is such that the defendant will often poison a situation by damaging the property or screwing up title. This does not mean the seller is off the hook.
While courts are hesitant to grant specific performance demands, they are not hesitant to enforce real estate contracts. Depending upon the laws in your state, the court may grant something called a lis pendens. The lis pendens represents the equivalent of the monetary damages suffered by the buyer. More importantly, it is recorded against the deed of the seller's property. This effectively forces the seller to pay the buyer if the seller ever hopes to sell the property. When a title insurance company reviews title for any subsequent sale, it will notify the new purchaser of the lis pendens and refuse to issue title insurance. With no title insurance, the seller is going to have an extremely hard time moving the property. In fact, it will be nearly impossible as it is difficult to imagine any buyer that would want to get involved in the dispute.
While there can be sniping in real estate transactions, most go fairly smoothly. When they fall apart, specific performance and lis pendens can become dominant issues.
Raynor James is with the FSBO site - FSBOAmerica.org - homes for sale by owner.
Commercial Real Estate Michigan
Commercial real estate listings in Michigan area are
available for your review and purchase. You can
purchase a commercial site that is already
established, or you can purchase a commercial lot that
is just waiting for you to build, develop and bring in
the people to make the sales. The average family
income in Michigan during the year 1999 was about
$42,000. For the business, this means there is money
available in the family units to support various types
of industry, such as pools, spas, camping, and many
other types of hobbies and sports as well.
Commercial real estate listings are those that will
include retail centers, doctor's offices, business
settings and similar retail situations. Commercial
listings are wide ranging, from the small lots, to the
huge office buildings where hundreds of employees
could be located. Commercial real estate in Michigan
is one that you should consider if you are thinking
about relocating your business, or if you are
contemplating starting a new business venture.
Mortgage rates are always changing, and for the prime
locations in Michigan you will find your real estate
investment is well worth the mortgage you will be
paying. If you have completed a business plan,
detailing your business ideas, your business traffic
needs, and the demographics of who your customer base
will be, you can find a real estate investment in
Michigan that will fit this requirement. Many
commercial real estate settings in Michigan will
service many functions in promoting your industry.
When you are looking for commercial real estate
listings in Michigan, there are many different ways to
go about it. You may have a pacific idea to where you
are looking for the commercial property. If you know
where you want to have your company that is a big
advantage because you will be able to narrow down your
search a little because of where you are looking.
Some of the listing areas are the Lakefront Real
Estate Michigan or Waterfront Real estate but there
are many more areas that you may be looking at for the
commercial real estate that you whish to have your
company at for business, some are considered prime
locations, while others are commercial settings thatdo not have the heavy traffic. One thing that you are
going to want to do is check out what area in Michigan
would be the best for your companies business and for
the consumers as well. If you need heavy traffic to
get the high numbers of customers, you should seek out
some of the prime locations, which can be a bit higher
in cost, but well worth the investment.
Once you have done some of the work on checking out of
the different locations, you will notice that there
are areas of the state that is going to be a great
location for your business of operation. Many
companies may choose to have their business location
near the lakes so that they have some easy access for
shipment and deliveries in many different ways beside
vehicle. If you are checking out the lakefront real
estate in Michigan, you may notice that you are going
to need to be ready to pay a little more for the
property because of its location but it could be a big
benefit in the long run when you think about the
different ways that you are going to be able to ship
and receive deliveries and even the possibility of how
many consumers that would be available if you are in
the business of sales because of the visitors that
could come to your shop some supplies or needs for
their vacation. That right there would be a great
advantage to acquiring some Michigan waterfront real
estate when you are going to start up a business of
sales that would be a benefit for the vacationers. If
you have, a product or service that would benefit the
many who love to vacation you should search commercial
real estate in the Waterfront Real Estate Michigan
listings.
Michigan waterfront real estate is a prime location
for many types of business, not only because of the
high number of tourist that come to this area, but
also because of the high number of traffic daily that
will see your business in this area. Grand Blanc
Michigan Real Estate is also a prime location for
commercial real estate, as this is an area that is
growing yearly, with new residential areas expanding
around the commercial area. About seventy percent of
the homes in Michigan are two and three bedroom homes,
housing families that are available to support the
commercial sales needs.
About The Author:
Jennifer Hershey has more than twenty years of experience as a mortgage loan officer. Her site http://www.explainingmortgages.com - a real estate investing and mortgage resource devoted to making mortgage types and home loan programs easy to grasp.