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?
1 Answer from Attorneys
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.