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buyer financing

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John Mann

Junior Member
What is the name of your state? AZ

I own an industrial property that is for sale. A buyer has made an offer on the property and he has obtained an appraisal and has gone to a lender to secure financing. He will put 150K in an escrow account with a title company and at closing 100K will be taken out by him to do construction on the property. He agreed to our negotiated price but will borrow money based on a higher appraisal. If the sale goes through, am I at risk for fraud or something illegal if he takes out the 100K to construct and does not use it to buy the property? ********************************************************..John
 


pojo2

Senior Member
John Mann said:
What is the name of your state? AZ

I own an industrial property that is for sale. A buyer has made an offer on the property and he has obtained an appraisal and has gone to a lender to secure financing. He will put 150K in an escrow account with a title company and at closing 100K will be taken out by him to do construction on the property. He agreed to our negotiated price but will borrow money based on a higher appraisal. If the sale goes through, am I at risk for fraud or something illegal if he takes out the 100K to construct and does not use it to buy the property? ********************************************************..John
Sounds like fraud on someones part and I do not even understand that escrow account!!
 

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