Simple English definitions for legal terms
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Term: LAND FLIP
Definition: A land flip is when someone buys a piece of property for a low price and then quickly sells it for a much higher price to trick a bank or future buyer into thinking the property is worth more than it really is. This is not an honest way to do business and can cause problems for everyone involved.
Definition: A land flip is a real estate transaction where a property is bought for a low price and then quickly sold for a much higher price to deceive a lender or future buyer into thinking the property is worth more than it actually is. This is often done by selling the property to a fake buyer or entity.
Example 1: John buys a piece of land for $50,000. He then creates a fake company and sells the land to the fake company for $200,000. John then uses the fake sale to convince a lender to give him a loan for $200,000. This is an example of a land flip.
Example 2: Sarah buys a house for $100,000. She then quickly sells the house to her friend for $300,000, even though the house is not worth that much. Sarah's friend uses the inflated price to get a larger loan from a bank. This is also an example of a land flip.
These examples illustrate how a land flip can be used to deceive lenders or future buyers into thinking a property is worth more than it actually is. This can lead to inflated prices and loans that are not based on the true value of the property.