Yes... probably best to let it drop.  If you want to get involved in these types of transactions, go for it.  I'm not telling you what to do.  I'm just saying that, from a title agents perspective, it is a land flip that most knowledgeable title agents will not want to get involved with.

You clearly do not understand there is substantively no difference between B using the proceeds from C to buy property from A... AND... B borrowing money from YOU to buy the property from A with the requirement that the proceeds from the sale to C must be used to pay YOU.  Clearly, with that kind of requirement the A/B transaction is dependent upon the B/C transaction.  The A/B transaction cannot stand alone because you wouldn't loan the money without the B/C transaction already lined up and ready to go.

You need to re-read your post:

The agreement is that this money is used to fund the A-B and then paid back plus fee in the B-C transaction.  If the B-C transaction falls apart for some reason, the title company nullifies the A-B.

"If the B/C transaction falls apart - the title company nullifies the A/B transaction" - This does not describe a "stand alone transaction."  The A/B transaction necessarily depends on the B/C transaction!  A title agent would have to be nuts to agree to close that transaction.  It is clearly a land flip with all of the badges of fraud that land agents in the middle of federal investigations.  It is precisely the type of transaction that we are trained to spot and avoid. 

You clearly have a dollar signs blinding your vision - you want to loan someone money with a large fee FOR ONE DAY!  Like most get-rich-quick schemes, if it sounds too good to be true, it probably is. 

Clanci was clearly correct, you are taking her statement out of context.  Though, perhaps what she should have said in response to your comment ("no one here has experience...and some people have irrational fears") was "It is not fear that prevents us from not doing these transactions, nor is it a lack of experience.  It is past experiences and the laws that govern our business that we follow.”

I don't know how I could make this any more clear... you just don't want to understand.  Clearly you recognize that "each closing has to stand on it's own."  Then you want to contractually obligate the title agent to "nullify" the first transaction if the second deal falls through.  By your own words, the first transaction is dependent on the second transaction, i.e., it does not stand alone.  Your contract would make the title agent a party to a land flip.  Any agent worth his salt would send you packing.

You said:

I didn't really ask for your opinion, I asked for facts about the title business.  But you guys are having difficulty getting the basic facts of my question straight.

You got what you asked for... "My question is just about the details of this contract between the Title Co and the Trans Lender. How is this done exactly?"  You were told that the way you want to structure this deal meets the definition of a land flip and our professional opinion is that we would not get involved.  It is you that does not understand the "basic facts" of your question.  The facts you presented contemplate that the A/B transaction cannot stand alone, yet you insist that it is a stand alone transaction.  You can't have it both ways!    If the A/B transaction is "nullified" if the B/C transaction falls through, it does not stand alone no matter how many times you call it "a stand alone transaction!" 

I'm sorry you didn't like the answer you got.  You are free to go elsewhere and seek other opinions.  Sooner or later you will find someone who doesn't understand land flips and you will get a more favorable response.  Just don't say you weren't warned.

Best,
Robert A. Franco
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