What is this one called:
Guy offers to sell a Texan some land he does not own. Sets up a real estate contract, for 60k.
He does not own it.
As soon as he has contract, he goes to the owner, (that he vaguely knows), and offers to buy it for 30k, and winds up getting it for 40k.
Then, goes and fulfills his contract with the Texan.
I don't think it's ethical, to offer to sell what you don't own. But, have you heard of this, and what's this called?
Thank you,
Nate
Flipping an option to purchase?
He leads buyer to believe he's the owner.
N
Real estate brokers can promise most anything as long as they don't go on the ground and show the buyers that the land they are buying goes beyond the actual boundaries.
That is a fraud.
Wouldn't there be plenty of other instances where something is sold while the seller doesn't own it, like car dealers say taking payment for a car then ordering it from the manufacturer. At some point the dealer would "own" the car when it pays the wholesale price to the manufacturer.
Wouldn't there be plenty of other instances where something is sold while the seller doesn't own it, like car dealers say taking payment for a car then ordering it from the manufacturer. At some point the dealer would "own" the car when it pays the wholesale price to the manufacturer.
In the case of the car, the dealer probably has a contract with the manufacturer to obtain all the cars they need, or in some cases may be working as an agent of the manufacturer.
That's a lot different from selling something you have no ownership, contract, or option on and might not even be able to buy if the owner is stubborn.
I have seen the equivalent sort of deal with livestock many times over the years.?ÿ The first fellow says he is interested in purchasing a certain type, quantity, etc. of animal.?ÿ Second guy says he might just be able to help him out and asks how much he would pay.?ÿ Once he knows that number he uses his contacts to find just what the first fellow wants then contacts him and says I have what you want but at this price, are you still interested.?ÿ If so, he buys the animals from guy number three and delivers them to the first fellow, netting a known profit for his effort.
I achieved the same goal years ago by buying oats from another farmer's bin to sell to a third party.?ÿ Everyone was happy in the end.
The real estate deal probably has no real downfall as the "seller" will practically never get sued for reneging on the contract if he moves quickly.
I have seen real estate agents negotiate with a buyer for a specific type of house and then hit up the owner of that same type of house shortly thereafter to list his house for sale with him at a certain price.?ÿ Later the same day he contacts the buyer and sets up a tour.?ÿ Boom.?ÿ A quick percentage if the first guy buys it and a much slower percentage if he backs out and it stays listed for some time.?ÿ As long as the seller is the one deciding on the selling price this is not an issue.?ÿ Usually everyone walks away smiling.
Futures Trading ???
You didn't state that the seller claimed he owned it.
In general it is legal to enter a contract to sell anything whether you own it or not.
If the seller fails to perform, the buyer may sue for breach and non-performance.
The only caveat may be individual state real estate laws.
I once had a realtor try to sell me land I already owned.
@rundatline No, I did not. I am not too familiar with the whole subject matter. Some folks seem to sit around and dream up scams. I am posting out of ignorance. It's the second time I have found this story, (basically same scam) It never occured to me to sell something I did not own... And make a profit, in this manner. Sorry.
N
I buy a survey instrument and sign the dealer's contract. He goes back to his office and orders it from the factory. In 2 weeks the factory delivers to him, and next day I get my instrument. So it goes.