Legal Question in Real Estate Law in Texas

cash transfers from real estate broker to buyer

is it legal for a real estate company / broker / agent to transfers funds (cash transaction) into a ''potential clients (buyer)'' bank account - so that a Lending Institution who is considering the buyers loan application - would see sufficient cash reserves in the ''buyers'' bank account (for down payment, closing, etc) - to help facilitate the loan approval.... then after the loan has been approved, the buyer transfers (cash transaction) the funds back to the real estate company / broker / agent.... is this legal?


Asked on 5/27/03, 1:15 am

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: cash transfers from real estate broker to buyer

No. It is fraud. The fraud police for real estate transactions is the FBI. I know people who have gone to jail for transactions such as these.

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Answered on 5/27/03, 9:08 am


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