Multiple Contracts on One Deed

[MFMont]

If I buy multiple contracts that are on a single deed, will there be anything that I have to consider if at some point I want to break them up to sell some of them?

 

[Sandisw]

There is no such thing. Every contract is it’s own deeded interest and remains it’s own.

If you have the same UY and same owners, they will be part of one membership, but contracts stay indivual.

That means you can sell any or all of them later. But a single contract can never be broken down further by anyone other than DVD if they take it back via ROFR..or other means because that contract no longer exists.

 

[MFMont]

There is no such thing. Every contract is it’s own deeded interest and remains it’s own.

If you have the same UY and same owners, they will be part of one membership, but contracts stay indivual.

That means you can sell any or all of them later. But a single contract can never be broken down further by anyone other than DVD if they take it back via ROFR..or other means because that contract no longer exists.

I re-read the email from the broker and it says they are all on one deed, but proceeds to give me the breakout of all the contracts. This was an answer to my inquiry on the matter. My follow up to that would be will each contract have a separate closing? The broker did say that the closing would cost roughly $500 more than if all was on one contract.

 

[pianomanzano]

I re-read the email from the broker and it says they are all on one deed, but proceeds to give me the breakout of all the contracts. This was an answer to my inquiry on the matter. My follow up to that would be will each contract have a separate closing? The broker did say that the closing would cost roughly $500 more than if all was on one contract.

Agree with @Sandisw , sounds like you're buying multiple contracts from the same seller since multiple contracts on one deed doesn't make sense. In the past some brokers/title companies have allowed combined closing costs if you're purchasing multiple contracts from one seller. I think what the broker is saying that they'd charge more (or perhaps charge closing costs for each contract) if you purchase them all. At least that's how I interpret what you've shared.

 

[Sandisw]

I re-read the email from the broker and it says they are all on one deed, but proceeds to give me the breakout of all the contracts. This was an answer to my inquiry on the matter. My follow up to that would be will each contract have a separate closing? The broker did say that the closing would cost roughly $500 more than if all was on one contract.

They must be wording it wrong. One deed for one contract.

When you see the set up, you will see each as individual.

It may be that they listed them all for sale and did not want to split it as a seller, which is what they could be talking about

But, closing is more for multiple contracts, though some title companies will charge less than if they were all indivual.

 

[RoseGold]

We shorthand deed to mean contract, but it's the same thing. I did a deal with two deeds at once. They had separate numbers and their own paperwork. Closing was a little cheaper than two unrelated deeds, because they are all in the same transactions, but more than one deed.

They probably mean all the deeds are under the same seller membership. They will look like this: number.001, number.002 and so on.

Make sure you have separate paperwork for all of them, obviously. You can break them up and sell them individually, which is a big benefit of buying this way.

 

[MFMont]

Thanks for the answers. Just making sure there are no surprises when I want to downsize years down the road.