simultaneous closing | Andrew Robb RE/MAX Fine Properties simultaneous closing | Andrew Robb RE/MAX Fine Properties

Simultaneous Closing

Arizona simultaneous closing In Arizona, a simultaneous closing occurs if the sale of the buyer’s current property closes on the same day as the buyer’s new property purchase.

Myth: simultaneous closings require using the same title company for both escrows. While it may be logistically simpler (and possibly cheaper) to use one title company to close both transactions on the same day, two title companies can be used. In fact, a simultaneous closing is even possible across 2 different states.

To make a simultaneous closing in Arizona possible, the Buyer Contingency Addendum is used when the purchase of the new property is contingent on receiving an offer for, and closing of, buyer’s current property by a certain date. Or if buyer’s current property is already under contract, it is contingent on closing of pending sale of buyer’s current property. The Arizona Buyer Contingency Addendum also provides for all executed documents of the sale of buyer’s current property to be provided to seller.

The reality of closing simultaneously in Arizona calls for a detailed understanding of each step in the escrow process, a firm grasp of the timelines involved and a realistic expectation that things will get stressful as the day of closing both homes approaches. Ultimately, the sale of buyer’s current home must close first, then those closing proceeds are used in conjunction with buyer’s loan to pay for new property.

As you might expect, with two or more families trying to each move at the very last minute on the same day, it can get complicated. Working with everyone involved to make compromises and being reasonable about what is physically possible and what can actually be done will go a long way in easing the tension.

Andrew Robb - RE/MAX Fine Properties, 21020 N Pima Rd, Scottsdale AZ 85255