How Double Closing Works in the Chicago Metro
A double closing is two separate real estate transactions on the same property, usually on the same day. In the first transaction you buy the property from the seller. In the second you resell it to your end buyer, and the proceeds from that resale repay the funding on your purchase.
Because you take title in between, the purchase and resale are documented separately. Separate statements do not remove disclosure duties or guarantee confidentiality. Your wholesale spread is the difference between the two transactions, not a fee line on a single assignment contract.
The A-B and B-C transactions
The first transaction is called A-B: the seller (A) sells to you (B) under your purchase contract. The second is B-C: you (B) sell to your end buyer (C) under a separate contract. Each transaction gets its own settlement statement, its own signatures and its own disbursement.
The two files are coordinated under an agreed purchase and resale sequence. That sequencing is what lets you complete both sides with the requested purchase-side funding, as long as the funding for the A-B side is in place.
How closings run in the Chicago Metro
Ask your Chicago Metro closing office how it will coordinate the purchase and resale files. Each transaction needs its own contract, settlement statement and funding instructions.
Confirm the title, recording and settlement costs for both transactions before closing. The closing office can explain which documents and charges apply to your property.
The paperwork a file usually needs
The title company prepares and confirms exactly what your file requires. Across Chicago Metro double closings, the paperwork includes:
- A signed purchase and sale agreement for each side of the deal
- Title work on the property, ordered by the title company
- A settlement statement for each transaction showing its own price and costs
- Wire instructions and any payoff figures tied to the property
- Entity documents if you are buying through an LLC
- Association, estate or probate documents when the property calls for them
Files with complete paperwork move fastest. Sending everything you have when you submit the deal keeps questions from surfacing at the closing table.
Where transactional funding fits
Transactional funding is requested for the purchase side of a double closing. The file must be reviewed, and any approved funds and repayment instructions must follow the written terms and closing plan.
Funding depends on review of your contracts and closing arrangements. If you are still deciding between structures, the double close vs assignment guide compares the two honestly.
Common questions about the process
Is a double closing legal in the Chicago Metro?
The structure must be reviewed for the actual Illinois or Indiana property and contracts. Ask qualified advisers and the closing office which licensing, disclosure and settlement requirements apply. This guide does not establish that a particular transaction is lawful.
Do both closings have to happen on the same day?
They are typically scheduled back to back on the same day, and transactional funding is priced for that short hold. If the resale side moves to another day, the additional day fee in the published schedule applies for each extra day the funds are out.
Who chooses the title company?
Often the title company your end buyer already uses can run both transactions. What matters most is an office that handles investor double closings regularly and is comfortable coordinating the two files in sequence.
What does the funding fee cover?
The fee covers the use of the funds for your purchase side, and it follows the published schedule based on the funding amount. The full schedule and worked examples are on the transactional funding fees page.
Can I assign the contract instead of double closing?
Sometimes. Assignment works when the contract allows it and everyone is comfortable seeing the fee. The double close vs assignment comparison walks through when each structure tends to fit.
Have a deal ready for funding?
Submit the deal and we will review the numbers. Funding depends on review of your contracts and closing arrangements.
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