Concurrent Closings Explained

A concurrent closing occurs when two or more real estate transactions depend on each other to close. For example, proceeds from the sale of Property A are needed to fund the purchase of Property B. The first property must fund and record before its proceeds can be used to fund the second transaction. In some cases, the second transaction is not dependent on funds from the first — both simply record back-to-back without delay.

Using the same title and escrow company for all legs of a concurrent closing simplifies the process, since no funds need to move between institutions. However, different companies can be used — in that case, the companies must communicate directly. At the close of the first transaction, instead of routing proceeds back through the original escrow, funds are wired directly to the second title company, saving valuable time.

Communication is the key to a successful concurrent closing. All parties — agents, escrow officers, lenders, and title officers — must be aware of the dependencies and timing requirements. Delays in one leg can cascade and prevent the entire chain from closing. Team Goeglein at Fidelity National Title coordinates concurrent closings across the South Bay, ensuring that funds flow correctly and recording happens on schedule.