Tips for Navigating Concurrent Closings

What is a Concurrent Closing?

A concurrent closing happens when a homeowner is selling their current home to buy a new one, usually on the same day. In other words, the seller is using the proceeds from their home sale to fund the purchase of another home, creating a situation where one transaction depends on the successful completion of the other.

This type of transaction is very common. Emily Grant, Attorney and Member at Bluegrass Land Title, says, “I’d guess that at least half of our residential closings at Bluegrass Land Title are concurrent closings.”

Some real estate professionals call these domino closings because of how one transaction affects another in sequence: if the first closing doesn't happen, none of the subsequent closings can occur. As Grant explains, "If they're not able to sell today, then they're also not able to buy today, which means that their seller on the next transaction is also going to be impacted.” 

Potential Challenges to Concurrent Closings

While concurrent closings are common in real estate transactions, they come with their own set of challenges that require careful planning and coordination. These challenges primarily fall into three categories: funding, coordination, and timing.

Funding Challenges

The biggest challenge in concurrent closings is managing the flow of funds between transactions. When you're selling one home to buy another on the same day, you need your seller proceeds immediately to purchase your next property.

To ensure a smooth closing day, arrange for fund transfers well ahead of time, not at the closing table. Direct communication between both title companies is crucial so they can coordinate the wire transfer efficiently.

Be aware of Bluegrass Land Title's policy regarding seller proceeds: For amounts over $100,000, funds must be wired directly from your selling title company to Bluegrass Land Title. BLT will accept a check from regional title companies for proceeds under $100,000.

Coordination Challenges

Concurrent closings involve multiple parties - potentially two sets of agents, two lenders, and two title companies - requiring extensive communication and coordination. Each party has its own timeline and priorities, creating a complex transaction that requires careful management.

If a homeowner is using different title companies for each transaction, coordination becomes even more complicated. Coordinating mobile notaries or remote signings if any party is out of town, adds another layer of complexity. Scheduling movers, utilities, and other service providers around both closings requires precise timing as well.

Timing Challenges

The "domino effect" is a significant concern in concurrent closings: one delayed transaction will impact the subsequent transaction. For example, if the morning closing runs long or encounters issues, it could delay the afternoon purchase closing. 

Last-minute document corrections can also cause significant delays, especially if they require new signatures or approvals from multiple parties who may no longer be in the same location.

Tips for Real Estate Agents in Concurrent Closings

Real estate agents play an important role in helping concurrent closings run smoothly. With multiple moving parts and interconnected transactions, your expertise and attention to detail can make the difference between a stressful experience and a seamless transaction for your clients.

Communicate Early and Often

Communication is key to any successful closing, but it’s especially important in concurrent transactions. Always make sure to let the title company know that you’re scheduling a concurrent closing as soon as possible so your escrow team can coordinate with all parties involved.

Beyond the initial notification, sharing contact information for all involved parties, including any other title companies, allows for direct communication and prevents delays caused by message relays. And it’s equally important to update the title company immediately about any changes to either transaction, as even small modifications can have significant ripple effects.

As you communicate with the title companies involved, be sure to provide realistic expectations to your clients about potential timing challenges. Taking time to help them understand the interconnected nature of concurrent closings will better prepare them for possible delays.

Be Prepared

Preparation and proactive action are essential when managing concurrent closings. Grant emphasizes the importance of making sure that you are “clear to close” before scheduling related closings. “Don’t schedule your closing until you get the final clear to close from both the lender and the title company,” she explains.

Once you’ve confirmed the clear to close status, be thoughtful about scheduling your closings. Don’t forget to schedule the sale before the purchase, and always make sure to include adequate buffer time between transactions.

For example, if your sale closing is at 10:00 AM in Louisville, avoid scheduling your purchase closing at 11:00 AM across town. Instead, plan for a 1:00 PM purchase closing, allowing time for the sale to complete, funds to be processed, and transportation between locations. This buffer also accommodates unexpected delays such as traffic, closing paperwork taking longer than anticipated, or wire transfers requiring extra processing time. 

Meanwhile, be sure that payoffs and funds are properly arranged ahead of time. Confirm that seller authorizations for payoff information are submitted on time, and make sure that clients have sufficient funds in the appropriate format. 

In addition to these preparations, it’s wise to develop contingency plans for potential delays, such as temporary housing options if closings must be rescheduled. Furthermore, double-check that all inspections and repairs have been completed before closing day to avoid last-minute negotiations that could derail your timeline. 

Remember the Basics

While managing the complexities of concurrent closings, don’t overlook the fundamentals that apply to all transactions:

• Verify that all parties have a valid, unexpired photo ID 
• Confirm attendance for everyone who needs to be present at closing
• Make sure clients are on time at the right location for their closing
• Review the settlement statement with clients before closing to address any questions or concerns in advance
• Bring all property-related items to closing, including keys, garage door openers, and access codes 

Real estate agents play an important role in helping concurrent closings go smoothly by proactively communicating with all parties involved and setting realistic expectations about timing and potential challenges. Your expertise in coordinating with title companies, maintaining clear communication channels, and ensuring all documentation is complete and accurate well before closing day can transform what could be a stressful experience into a seamless transition for your clients.

Tips for Homeowners Navigating Concurrent Closings

Navigating a concurrent closing as a homeowner requires preparation, responsiveness, and patience. Understanding your role in the process can help ensure both your sale and purchase transactions proceed smoothly.

Be Responsive

First and foremost, respond promptly to all communications from your title company, lender, and real estate agent. Quick responses keep your transactions moving forward without unnecessary delays. Along with prompt responses, complete and return any required documentation as soon as you receive it. 

Additionally, set up email notifications or check your email frequently during the closing process to catch important updates or requests. Remember to keep your phone charged and with you during closing day for any last-minute communications that might affect either transaction. To facilitate this accessibility, make sure your title company has your accurate contact information. 

Be Prepared

It’s always smart to be prepared for your real estate closings, but it’s especially important if you have concurrent closings. Make sure you have a valid, unexpired form of photo identification, and keep important documents such as powers of attorney organized and accessible throughout the process. 

Before closing day, take time to understand your settlement statement so you're not surprised by any figures when it's time to sign. Meanwhile, arrange for certified funds or wire transfers well before closing day to avoid delays.

Beyond financial preparations, make arrangements for moving logistics that allow for possible delays. Additionally, have a contingency plan for temporary housing if unexpected issues arise with either transaction.

Listen to Expert Advice

The title and closing process for concurrent closings, so it’s always wise to heed the guidance of your real estate agent and lender: their experience can help you avoid common closing pitfalls. Make sure to follow their recommendations and take their deadlines seriously, as timing is especially critical in these connected transactions.

Moreover, be open to flexible closing options if they’re offered or suggested. For instance, Remote Online Notarization (RON) might help simplify closing day for you. “Remote Online Notarization is a great option for sellers because it can be done within a 24-hour window and offers a little more flexibility,” Grant explains. 

Avoid Actions That Could Delay Closing

Finally, be careful to avoid actions that could derail your transactions. On the financial side, avoid making major purchases, changing jobs, or applying for new lines of credit before completing both transactions. 

Failure to satisfy contingencies in a timely manner is one of the most common causes of closing delays. Buyers also need to be sure that all contractual contingencies, such as home inspections, appraisals, and financing requirements, are addressed and resolved well before the closing date. Work closely with your agent to track these deadlines and promptly address any issues to keep your transaction on schedule. 

Regarding timing, avoid scheduling travel around closing dates without flexibility. Furthermore, don’t assume that both closings will happen exactly on schedule; it’s always wise to build in buffer time. Similarly, avoid scheduling movers for exact times that depend on closing completion. 

By staying responsive, prepared, and careful throughout the process, you can help ensure that your concurrent closings proceed as smoothly as possible, allowing you to move from your current home to your new one with minimal stress.

How BLT Helps Streamline Concurrent Closings

At Bluegrass Land Title, we understand the complexity of concurrent closings and have developed systems to make these transactions as smooth as possible for our clients. Our team's expertise in coordinating the intricate timing and funding requirements of same-day selling and buying puts us in a unique position to help you navigate these challenging transactions with confidence. 

When you’re working with two different title companies, communication between them is essential. Bluegrass Land Title actively coordinates with other title companies to ensure a smooth transfer of funds. “It’s easier and more efficient for everyone if their title company works directly with us rather than the buyer having to serve as the middleman,” Grant explains. 

To accommodate tight timelines, Bluegrass Land Title also offers several flexible closing options:

• Remote Online Notarization (RON) provides a convenient 24-hour signing window
• Mobile closing agents can travel to your location
• Split closings allow participants to sign at different locations or times

Your escrow officer can help you determine if one of these options is a good fit for your closing and manage the coordination and setup.

Buyers may be surprised to learn that title insurance itself plays a role in facilitating smooth concurrent transactions. “Title insurance renders title to your property marketable, even if there’s a title defect,” notes Grant. Title insurance addresses issues that might otherwise delay or prevent closing. 

Throughout the entire title and closing process, Bluegrass Land Title is committed to clear, honest, and straightforward communication. We offer regular status updates on your transaction, alert all parties if potential issues arise that could affect timing, and explain complex processes in terms that are easy to understand. 

Key Things to Remember for Your Concurrent Closing

If you find yourself navigating a concurrent closing, keep these key points in mind:

1. Schedule strategically: Always schedule your sale closing before your purchase closing to ensure funds are available for your new home. Build in buffer time between transactions—at least a few hours—to allow for unexpected delays or documentation issues. Attempting to buy before selling can result in a "dry closing," where documents are signed but funds cannot be disbursed.
2. Communication is critical: Keep all parties (agents, lenders, title companies) informed about both transactions to prevent delays and ensure smooth coordination. Let your title company know early that you're handling concurrent closings so they can prepare accordingly and coordinate with other closing entities.
3. Understand fund transfer requirements: For proceeds over $100,000, Bluegrass Land Title requires wire transfers rather than checks from other title companies. These transfers must be arranged in advance of your purchase closing to ensure funds are available when needed.
4. Prepare for contingencies: Have backup plans for temporary housing and moving logistics in case one transaction experiences delays. The interconnected nature of concurrent closings means that issues with your sale can directly impact your purchase timeline, so flexibility is essential.

To successfully navigate concurrent closings, preparation and partnership with experienced professionals are your strongest allies. While the logistics of selling one home and buying another on the same day present real challenges, having knowledgeable real estate agents and title professionals on your team makes all the difference. 

At Bluegrass Land Title, we understand the unique demands of concurrent closings and offer the flexibility, expertise, and personalized service needed to guide you through this complex process. Our team works diligently to coordinate every detail, communicate proactively, and ensure your transactions close as smoothly as possible.