simultaneous close afs.....lawyer who can do these in ontario??

[MichaelDunbar]

if you purchase via afs, you are actually purchasing at a later date(in
the future) and taking possession now. the goal is to find a buyer to
rent-2-own with a closing date ideally that corresponds to the maturity
of the sellers mortgage...let's just say 3 years. in those 3 years
buyer "qualifies" and you aim to do a single transfer of land to end
buyer. this seemed to me like a simultaneous close. the reason this
scares me is because we purchased a property for really cheap, found a
buyer no problem and attempted to do a simultaneous close. Which didn't
work, flat out! seller's lawyer would under no circumstances issue the
title redirection for the increased consideration amount. we were able
to save the deal(just barely) by doing a conventional close and close
again in a few days to buyer. but with a property worth more, this is
probably not possible if you cant come up with that amount of money. so
would you have a problem in ontario closing to buyer in the end after
you've purchased via AFS? (drawing on the similarities between the
above mentioned simultaneous close and the completion of an AFS). is
this countered by the registratino of notice on title? does this give
you more control to "re-direct" the title in the end?

as a side note...has anybody successfully completed a simultaneous close in ontario? not purchased on afs or anything, just a simple re-direction?

 

[Thomas Beyer]

indeed .. a simultaneous close is very risky !



Another approach is to have an assignment clause in your original AfS contract, i.e. you assign your interest, for a consideration of course, to a 3rd party.



The risk always lies with you, the "middleman", because the ultimate buyer may not close as intended, or the seller doesn't sign documents he is supposed to. So the risk lies with you in the middle in either case !



Hence, as the middleman, always be able to close in case of (common/unexpected) hickups !



Twice I have been on the selling side of simultaneous closings, to a "middleman", both times undisclosed .. and it was harrowing. One deal closed as the middleman was able to flip it successfully .. barely (very profitable to us, btw .. and to the middleman too I assume .. but 18 months later the properties were in receivership) .. and the 2nd didn't close and we ended up in court for 18 months, and it cost the middleman over $500,000 in deposits.



Be aware .. VERY aware as a buyer, seller or middleman ! high risk .. high chance of non-completion !