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Closing Procedures for Creative Transactions

13 minPRO
2/6

Key Takeaways

  • Subject-to closings: instruct title company NOT to pay off existing mortgage.
  • Seller financing: recorded liens, notes, and required disclosures.
  • Third-party servicing recommended for all creative payment management.
  • Ongoing management extends well beyond closing.
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Test Your Knowledge

1.What is the critical instruction for a title company in a subject-to closing?

2.What is the recommended approach for managing seller financing payments?

3.Why must the seller's lien be recorded in a seller financing transaction?