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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (12724)	10/3/2004 11:56:27 PM
From: S. maltophilia	Respond to of 116555

Cool! Our very own Credit Anstalt, right here in Alpharetta, Georgia.

To: mishedlo who wrote (12724)	10/4/2004 5:00:12 AM
From: Elroy Jetson	Respond to of 116555

Those Realtors in Atlanta dealing with a home sale, dependent on three other sales, should be glad they don't do business in England. Property escrows in some areas of England often involved 15 or even 30 homes in a chain of escrow which must close simultaneously. In England the buyer frequently occupies the home to be purchased prior to the close of escrow under a lease agreement made part of the purchase agreement. Though it may be hard to imagine, these chains of escrow often take several years to close. In these circumstances, it is not uncommon for some families to be transferred and need to sell the home they have been living in - prior to the time that their purchase is finalized. The new buyer merely takes the position of the previous buyer (now the seller) with perhaps the addition of a cash-out to the buyer-now-seller when the escrow closes. There can be an added complication, especially in London, where a home is built on leased-property, typically for a 99 year term. Near the end of the land-lease, the value of the property can change dramatically depending upon the terms negotiated for the land-lease renewal. This, plus changes in market conditions, can lead to both buyers and sellers asking for a change in the price before they are willing to finally close the escrow. This nonsense is known as Gazumping and Gazundering. It can be very ugly and quickly set the chain of escrow into disarray or a free for all.