Legal Definitions - land flip

Definition: A land flip is a real estatetransaction 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.