Legal Question in Real Estate Law in Indiana
A question about buying and selling homes
The investor will first go into contract to buy a property at a lower price which the investor has negotiated with the seller. The investor then resales the home
to a buyer.
The investor guides the buyer to his mortgage broker for loan approval. The investor then will have the seller and buyer go into a final contract. The investor will also
have the seller sign a release agreement with him so he will earn the profit between what the investor originally bought the home for and what the investor
has now resold the home for. The earnest money given to the investor by the buyer is turned over to the title closer along with the one final contract between the homeowner and the buyer. The investor gets paid at closing. Is this legal in Indiana?
1 Answer from Attorneys
Re: A question about buying and selling homes
Take this question, with a bag of money, and cheerfully pay a lawyer who is experienced in both real estate and securities law for a consultation. I think you may have devised an "investment contract" as defined by the Indiana Securities Law, and as such you have to make sure it is either registered or entitled to an exemption from registration from state and federal regulators. Otherwise you face imprisonment and severe civil sanctions. Good luck.
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