REA told me double closings might become illegal

So then your agent is saying that double closings are legal now. Go out and do a deal while they are still legal and worry about it later. Like my Dad always used to say, "Don't worry until you have something to worry about."

You make there THomas!

Matt, what you said is true. I have heard about this and I even mentioned it here around June. There is talk about including other things like assignment of contract. Lots of pressure being put on by the real estate agents and brokers because since the economy is not as robust, these individuals mentioned above feel that money is being stolen from them from unlicensed individuals!
Joseph

It might be coming but until it does - go for it!! If you have deals in the making that involve double closings - close them! You aren't doing anything illegal until it becomes "Law."

So, like, are you guys thinking of getting out of real estate if they do away with double closings and assignments?

1. Your agent represents you as the buyer. What does your agent need to know about how you SELL the property?? Think about this.
2. Before you have to worry about a double closing you must first have a property under contract and then sell it to your buyer for your fee using your own contract.
3. You must have the TITLE COMPANY that does double closings. Your agent has NOTHING to do with the B to C closing. Why tell them anything other than I will close with cash on anything I purchase?

I have done so many double closings using my buyers money (dry double close) that I have lost count!! EXPERTS say this can't be done anymore, but I do them legally all the time. Fewer and fewer Title companies do this however. That's OK, we are already implementing a new strategy that will allow us to wholesale REOs, HUDs, Short Sales with or with out deed restrictions and collect our fee BEFORE the closing.

Of course assigning contracts will NEVER become illegal. We are not selling real estate with out a license!! We are just selling the contract(the paper) Most agents have no clue to the law!! The way most newbies explain what they think they are doing only fuels the flames of misunderstanding.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

people on this site screamed "the sky is falling!" because they thought assignments, double closings, and lease options were illegal because an undertrained, overrated salesman "told" them they were? Cause that was the longest 9.5 minutes of my life. Asking an agent or broker anything about law outside of how their sales process is like asking your local sheriff to solve our world's foreign policy problem. "Way outside their league" doesn't even begin to describe it.

Sorry for the rough response but, this topic has been rebeaten TO DEATH on this site. Enter the keywords in Dean's search bar for past posts and articles and see what I mean. Misunderstanding and misinformation is EXACTLY why most "do not"s become "have not"s and stay that way for life, because another person told them "you can't do that!" and they believed it.

You're not trying to do an agent's job selling a contract. That's not their job. You're not trying to do their job going FSBO. Being able to sell anything you control is a basic tenet of American and European culture and freedom, and it's NOT GOING ANYWHERE. If anything, it's expanding.

Now every salesman in the country can cry foul and put limits on it (good luck), but the most they can ever hope for is renaming what the contract is or how the process is done, and that hasn't happened yet no matter what they tell you. They'll never be able to make money off it or make it illegal. But if you need an excuse to not even try, letting someone with 48 hours of sales training tell you what the LAW says will do just fine.

In South Korea they wouldn't let women swim because they were convinced their ability to make babies made them unable to float. They were SURE if they let women into water over their head they would drown. So for over 100 years, only men and boys were allowed to go swimming. Then an American woman showed up in the 50's and proved them wrong. She was my Anthropology professor. The women were drowning because they didn't know how to swim, not because they couldn't float! The early space program missions were all male because NASA was afraid a woman's ability to make babies would cause a fatal embolism or hemorrage in zero gravity, OR that working in zero grav would make them UNABLE to have children. Here's what to take away from all this.

1) Lease Options are illegal in TX, and assignments are illegal in MD. Other than that, everything is free and clear and if you don't believe me, ask a RE ATTORNEY in that state and see what they say. Go ahead, I'll wait...

2) Even the biggest and best expert starts out not knowing jack sh#t. Most "experts" actually prefer to stay that way, and make a very nice living telling other people what they "can't do."

3) RE agents and brokers know the RE retail sales process. They know how to demand 10% up front on all offers and 30% down (with the other 70% in hand) if you want a house. That's it and that's all.

4) For every "expert" that says one thing, I can find 5 others that will say the opposite. You know how many "expert reports" shape the BS machine that is our modern news, only to be changed and updated before the 1st article's ink is even dry?

5) Don't stand on the sand, convinced you'll drown. At least take your shoes off and get your feet wet. As long as you don't venture out over your head, and learn to swim first, you should be fine.

Best of luck to you. May God help anyone else whose been fed this same line of BS.

Why don't you go out and get a deal, do a double closing, and see if it works!

If it doesn't, you can believe your REA; if it does, you'll have some $!

I have a correction here. I do not know about the assignments in MD, but L/Os are NOT ILLEGAL in Texas! They just must be done properly and the laws are very stringent. My very good friend and mentor, John Jackson has the largest L/O company in Texas and I trained with him in Fort Worth. He has been doing them there for about nine years now and closes at least 5-6/month.

Karen

since before this country was even incorporated. Do you believe the REA? Ask the REA to give you a reference to where she is getting her information and what bill is in the works to pass something like that. Should stump him/her pretty quickly.

Thanks for the replies.

To address one thing: I am not not making offers because I think I can't double close them. I know I can double close them. I was just curious about the future.

How are assignments illegal in MD? Michael Mangham said "Of course assigning contracts will NEVER become illegal. We are not selling real estate with out a license!! We are just selling the contract(the paper)" I fully understand this, which is why I'm curious as to why it's illegal in MD.

http://www.findlegalforms.com/product/maryland-contract-assignment/

http://www.avvo.com/legal-answers/i-want-to-find-the-correct-forms-to-be...

This second thread also includes the name and location of a RE Attorney in MD that says he works with investors and can help. He just posted three days ago so it is current.

Karen

With the implementation of Dodd-Frank, the limitations on owner financing should be a major concern.

the Earth is flat....believe it??

Maybe it's an urban legend circulating real estate agency water coolers? LOL