What Is a Concurrent Closing?
In a standard Florida real estate transaction, a buyer purchases a home from a seller in a single closing. In a concurrent closing (or "double closing"), two separate transactions involving the same property occur on the same day, often within hours of each other.
Here is a typical scenario: A real estate wholesaler finds a distressed property listed for $200,000. The wholesaler signs a contract with the seller. The wholesaler then finds an investor willing to pay $250,000 for the same property. Instead of assigning the contract, the wholesaler arranges a concurrent closing.
- Closing #1 (A-B) — At 10:00 AM, the wholesaler (B) buys the property from the original seller (A) for $200,000.
- Closing #2 (B-C) — At 11:00 AM, the wholesaler (B) immediately sells the property to the end buyer (C) for $250,000.
The wholesaler pockets the $50,000 difference and never actually moves into the house.
Funding Requirements
The critical challenge in a concurrent closing is funding. In Closing #1, the wholesaler needs $200,000 to buy the property from the seller. Historically, the title company would use the end buyer's $250,000 from Closing #2 to fund Closing #1. However, many modern title companies and lenders now refuse to allow this "daisy-chain" funding due to fraud concerns.
Instead, the wholesaler must bring their own $200,000 to the table (or use "transactional funding," a short-term, same-day loan specifically designed for concurrent closings). The transactional lender loans the wholesaler $200,000 for a few hours, charges a fee (typically 1-2% of the loan), and is repaid the moment Closing #2 is completed.
Related Terms
- Contract — The purchase agreement signed with each party
- Title Company — The neutral closing agent that manages both transactions
- Closing Costs — Incurred twice in a double closing, once for each transaction
Barnes Walker Real Estate Transactions
Barnes Walker's real estate attorneys structure and oversee complex concurrent closings for Florida real estate investors and wholesalers, ensuring both transactions are legally compliant, properly funded, and that anti-fraud disclosures are made to all parties involved. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 83, Part II
The Florida Residential Landlord and Tenant Act governs lease agreements, security deposits, maintenance obligations, and the eviction process.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC