Concurrent Closings In Real Estate - Part II

May 27, 2007

Do you have to use the same Title and Escrow Companies on all transactions?

No, that is not necessary, however, it can make things easier. The normal procedure on a single transaction is to fund the new loan, record the documents and then send the proceeds via wire or check to the escrow company. When a concurrent closing is involved, time is of the essence. If both transactions use the same title and escrow companies then no money needs to move locations. If different title and escrow companies are used, those companies need to communicate with each other. At the close of the first transaction, escrow instructs their title company to forward funds directly into the second transaction. This process saves valuable time by avoiding the process of wires being transferred back and forth between two escrows and two title companies. Once the second title company verifies receipt of the funds, they can the proceed with their transaction.