People who are selling their home in order to buy another
frequently put a "coinciding settlements" clause into their
contract offer on the new home. The purpose of this is usually
twofold. In this article, we discuss the first purpose which is
to use funds from the old home to pay for the new one.
How Coinciding Settlements Work
A coinciding settlement clause usually says something along the
lines of "settlement under this contract is contingent upon the
settlement of the contract for the sale of the Purchaser's
property located at 1234 Spring Valley Drive..." It typically
goes on to state the maximum number of days this settlement can
be delayed by delays on the other settlement. It also usually
says what will happen if the other contract becomes void.
(Usually "this" contracts becomes void, too, but that doesn't
have to be the case if there's another source of funds.)
The settlements don't literally happen at the same time as the
name implies. They can be back-to-back in the same office. They
can be a day (or even days) apart in offices in different
states. Very often it's necessary for the settlement agent for
the first settlement to wire transfer funds directly to the
banking account of the settlement agent for the second
settlement. This is usually a smooth, seamless procedure.
A Word to the Wise Seller
Coinciding settlements usually work well for the purpose of
providing funds as outlined above. The one problem that crops up
from time to time occurs when the first sale falls apart for
some reason. The most frequent reason the first sale falls apart
(when it does) is that the buyer is unable to get his loan.
Because of this, some sellers insist that coinciding settlement
clauses include langauge giving them permission to check with
the lender for the first buyer. Making sure the first buyer is
qualified for the necessary loan is good business. Don't feel
awkward about it.
Coinciding settlement is a common fact in the current real
estate market. Use the above technique to avoid problems with
your real estate transactions.
What do you think about this article? Do you agree or disagree with it? Be the first to comment on this article, and share your thoughts with the world. No registration is required to post comments.
People who are selling their home in order to buy another
frequently put a "coinciding settlements" clause into their
contract offer on the new home. One reason for doing this is so
they can move from one...
Why do we even refer to it as a lawsuit loan? It is clearly not a loan in any sense of the word! To be precise, we should refer to it as settlement funding, a form of funding provided in advance of...
More than 90% of plaintiffs (i.e., the one filing a complaint), and many attorneys are unaware that a lawsuit loan (a/k/a "settlement funding") may be obtained to assist with expenses incurred in the...
Everyone has aspirations, goals we wish to realize. Usually there are things we wish to try to do or to have or to quite possibly be. A lot of people aspire to maximize our personal injury settlements and...
Have you received a structured settlement recently? A structured settlement can be a good thing if you have been a victim of malfeasance, have been severely injured or can no longer physically work. Structured
Is A Structured Settlement the Right Choice for You? Mark Benedict Young These days many settlements are made in the structured format. In case you have been injured in a road accident, you might need money...
In recent years, it has become more common for victims of accidental injury who accept a settlement from the at-fault party to accept a structured settlement instead of a lump-sum payment. With a...
FTC Compliant Debt Settlement Processing brings a good transformation in the whole performance of the settlement sector. This legislation has made settlement or negotiation a much more reputable method and...
Providing settlement funding requires consideration of many issues. In making a lawsuit loan, the risks involved determine the cost to the borrower. You may be eligible for such a loan if you suffer loss...
You may not be mindful of Structured Settlement Protection legislation, but if you are getting annuity from a structured settlement deal, it is protecting your interests since then.
How would you feel if losing your home were imminent, your credit were about to be ruined, and your personal pride destroyed? For homeowners who have gotten way behind on mortgage payments, there are...
Today, the real estate market is such that it is hard to get hard money. Lots of hard money lenders have gone out of business, while the ones in business have new strict lending requirements.
In most...
Selling your home can be an overwhelming task. This is why people seek out the help of a real estate agent during the moving process. They are there to help you every step of the way. Realtors are ready to...
Realtors are great to use when it comes time to sell your home. Typically how this works is that you allow a realtor the opportunity to sell your house for you in exchange for a percentage of the selling...
If you are having trouble selling your home on your own, then getting a real estate agent involved is always going to be your best choice. Not only are they trained on real estate specific marketing skills...
You may be close to your purchase of used RVs for sale by owner, especially if you have analyzed what used RVs for sale by owner you can afford and what lifestyle type of motor home you want for your life...
Wholesaling properties, or flipping properties, involves selling a property at wholesale price to another real estate investor. This is the easiest and fastest way to make money in real estate investing.
If
Negotiating with banks to buy properties for less than the mortgage balance can make you big profits in real estate investing. Not all short sales are potentially profitable, which some can make you lots of...
Home staging means to fully furnish and groom the house that you are trying to sell in Houston. A furnished house in Houston will raise the value of the home and make it more attractive to potential buyers....
Real estate agents for the Ringwood/ Melbourne area knows that it is not easy getting a home off the market whether you are a buyer or a seller. Staging a home is very important to the sale of a home...
How you take title in your new home is key decision.
Unfortunately, in the euphoria of the moment, many new
homeowners don't put much thought into it. TitleWhen purchasing a new home, you become the title...
Once considered a bit of a backwater state, many Americans are
reconsidering the virtues of living in the State of Wisconsin.
Here's a primer on Wisconsin real estate and living in the...
The first requirement in finding a buyer for a home is to make
sure the pool of potential buyers know it is on the market. For
FSBO sellers, holding an open house can help to get the word out
to buyers....
A good way to get potential buyers interested in your home is to
have an open house. Of course, you have to make sure they know
about it.Looking GoodThere is one mandatory step that must occur beforee holding
You've decided to sell your home yourself and decide to have an
open house to show off the property. Potential buyers come and
you get an offer. What now?Qualifying Buyers Your home is looking sharp and...
Buying a home is a stressful and emotional affair. You can avoid
the home buying blues by keeping your cool at closing. I've just come from a settlement table at which a friend bought
a new condo. It's...
Closing on a home is an undeniably stressful experience. Trying
to move on the same day you close just adds to the stress unless
you prepare.Get MovingA very high percentage of people move on the day they...
If you're looking to move to a new state, Arizona real estate is
definitely worth a look. Following is a primer of the state and
the FSBO Arizona real estate market. PhoenixPhoenix is by far the largest...
If you're tired of living in close quarters, Wyoming may be the
answer for you. Wyoming real estate is also appreciating at a
nice pace. WyomingWyoming is the least populated state in the United States...
Mother nature has done some amazing work in Utah. Fortunately,
you can live in the middle of the masterpiece with reasonable
prices for Utah real estate. UtahUtah is a state of open desert in the south and...
Article: Coinciding Settlements Clauses - Funding Issues Author: Raynor James Publication Date: 2008-01-27 Total Views: 259 Word Count: 319 Category:Home /
Real Estate / Selling
Categories
