Quick Answer

A double closing is two back-to-back real estate closings. The investor buys the property from the seller (A to B) and then sells it to the end buyer (B to C), often on the same day. Unlike an assignment, the investor takes title, even if only for a few hours.

What Is a Double Closing?

A double closing, also called a back-to-back or simultaneous closing, uses two separate transactions to move a property from a seller to an end buyer through an investor. The investor (B) closes on the purchase from the seller (A), takes title, and then closes on the sale to the end buyer (C).

Each closing has its own contract, its own settlement statement, and its own deed. The seller in the first transaction does not see the price in the second, and the end buyer does not see the price in the first.

How a Double Closing Works

  1. A to B contract: the investor signs a contract to buy from the seller.
  2. B to C contract: the investor signs a contract to sell to the end buyer at a higher price.
  3. A to B closing: the investor funds the purchase with cash, a loan, or transactional funding. The deed is recorded to the investor.
  4. B to C closing: the end buyer funds the purchase and the deed is recorded to the end buyer. The investor keeps the spread, less costs.

Example: The investor buys at $150,000 and sells at $165,000 the same day. The $15,000 spread has to cover two sets of closing costs, any funding fee, and the investor's profit.

Many title companies will not use the end buyer's money to fund the first closing. That is why investors bring their own cash or use transactional funding for the A to B side.

Double Closing vs. Assignment

  • Title: in an assignment, the investor never owns the property. In a double closing, the investor takes title.
  • Number of closings: one for an assignment, two for a double closing.
  • Costs: a double closing means two sets of closing costs, possible funding fees, and, depending on the state, transfer taxes on both deeds.
  • Privacy: an assignment fee usually appears on the single settlement statement. In a double closing, each side sees only its own numbers.
  • Capital: an assignment needs no funds beyond the deposit. A double closing requires funding the A to B purchase.

Double Closings and State Wholesaling Laws

Rules vary by state, and this is general information, not legal advice. Talk to a real estate attorney before you structure a deal.

Several states we serve now regulate wholesaling. A double closing, where the investor takes title before reselling, is generally not an "assignment" under the Ohio statute (ORC 5301.95) or the Tennessee statute (TCA 66-4-401 to 66-4-403).

South Carolina's Act 204 (2024) and Kentucky's HB 62 (2023) focus on marketing a property or contract you do not yet own. Owning the property before you market it avoids those restrictions. A same-day double closing where the deal was marketed before you took title may not.

The tradeoff is cost and capital: two closings, and money for the first one.

Frequently Asked Questions

Is a double closing legal?

Double closings are a widely used structure. Each transaction must be real, fully documented, and handled by a title company or closing attorney that permits back-to-back closings. Rules vary by state; this is general information, not legal advice. Talk to a real estate attorney.

Can a double closing happen on the same day?

Yes. Many double closings happen the same day or within a few days, as long as the title company allows it and the first closing is funded.

Do I need my own money for a double closing?

You need funds for the A to B purchase. Investors use their own cash, private lenders, or transactional funding, a short-term loan that covers the first closing and is repaid from the second.

Why choose a double closing over an assignment?

Investors choose double closings to keep their spread private, when the purchase contract does not allow assignment, or because some state wholesaling laws treat assignments differently. The tradeoff is higher cost from two closings.

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