From good ol' Bing:
"A real estate forward sale and exchange agreement is a type of forward contract that involves the sale and purchase of a real estate property at a specified price on a future date. This type of agreement can be used by real estate developers or owners who want to lock in a price for their property and defer the tax consequences of the sale. It can also be used by investors who want to acquire a property at a fixed price and hedge against market fluctuations.
A real estate forward sale and exchange agreement can be structured as a public offering that is registered with the Securities and Exchange Commission. In this case, the seller enters into a forward contract with an underwriter, who then sells shares of the property to the public. The seller delivers the property to the underwriter on the delivery date, and the underwriter delivers the proceeds to the seller. The seller can also enter into a forward purchase agreement with one or more investors, who agree to buy a certain number of shares of the property at a fixed price on the delivery date.
A real estate forward sale and exchange agreement can also be structured as a 1031 exchange, which is a tax-deferred swap of one investment property for another. In this case, the seller enters into a forward contract with an intermediary, who then sells the property to a buyer. The intermediary holds the proceeds in escrow until the seller identifies and acquires a replacement property within a certain time frame. The intermediary then transfers the replacement property to the seller and completes the exchange. This way, the seller can defer paying capital gains tax on the sale of the original property."
Sounds legit to me. Could be anything from a 1031 exchange to possible shares in a REIT investment, or shared investment on a building in process of construction, perhaps an apartment complex. Hard to tell without seeing the actual contract. Bear in mind that purchase contracts will be/look different state to state.
These are not universally familiar loan documents. IMO, I wouldn't try to package it in our mind as such.
The MV Realty "Benefit Agreement" on the other hand is a complete scam. MV is paying $2,000 cash for the so-called right to sell a customer's home for the next 40 years and it's recorded as a lien on the property. I haven't heard of anything like that in CA, but there's always a first.
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| Messages in this Thread |
|  Forward Sale and Exchange Agreement. - Susan/CA on 5/29/23 1:50pm |
|  Re: Forward Sale and Exchange Agreement. - Stacey R. Martell on 5/29/23 2:43pm |
|  Re: Forward Sale and Exchange Agmt.IT was NOT a 1031 exchang - Susan/CA on 5/29/23 3:10pm |
| Re: Forward Sale and Exchange Agreement. -  JanetK_CA on 5/29/23 3:36pm |
| Is this what you're referring to, JanetK? - Yoli/CA on 5/29/23 3:53pm |
|  Yes! Once again you're top search warrior on this site! :>D - JanetK_CA on 5/29/23 4:16pm |
| Re: Forward Sale and Exchange Agreement. - Doris_CO on 5/29/23 4:17pm |
| Doris..my first thought too n/m - Linda_H/FL on 5/29/23 10:31pm |
 | Re: Forward Sale and Exchange Agreement. - Bear900/CA on 5/29/23 10:59pm |
| Re: Forward Sale and Exchange Agreement. - JanetK_CA on 5/30/23 2:42am |
| Off Topic: MV Realty not a scam, imho - Lee/AR on 5/30/23 8:33am |
| I hope they go to jail! - Bear900/CA on 5/30/23 9:55am |
|  Thanks for add'l info! Yep, now agree, SCAM - Lee/AR on 5/30/23 11:40am |
|  Sad, 3 Attorneys General after them - Bear900/CA on 5/30/23 12:43pm |
|  Yep. OOB long before 40 years has gone by. - Lee/AR on 5/30/23 2:08pm |
|  Re: Yep. OOB long before 40 years has gone by. - JerryhFL on 5/30/23 6:20pm |
| People need to read - PaigeTurner on 6/3/23 2:29pm |
| Not a scam, just predators relying on ignorance - PaigeTurner on 6/2/23 3:47pm |
| Re: Not a scam, just predators relying on ignorance - JanetK_CA on 6/2/23 4:54pm |
| NOT A SCAM - PaigeTurner on 6/3/23 2:23pm |
| Re: NOT A SCAM - JanetK_CA on 6/3/23 5:50pm |
| Re: NOT A SCAM - PaigeTurner on 6/5/23 7:29am |
|  If not a scam, then perhaps "predatory" is a better term n/m - Yoli/CA on 6/5/23 8:58am |
|  100% agree with predatory n/m - PaigeTurner on 6/6/23 1:29pm |
| "It's legal here and not a scam. Signer beware" - Linda_H/FL on 6/5/23 10:18am |
| Re: "It - Yoli/CA on 6/5/23 11:04am |
| Those are the exceptions Yoli - Linda_H/FL on 6/5/23 11:16am |
| Re: Those are the exceptions Yoli - Yoli/CA on 6/5/23 2:09pm |
| This is a contract not a civil judgement - PaigeTurner on 6/6/23 1:28pm |
| Re: NOT A SCAM - James Powell on 6/5/23 2:30pm |
| You don't know SCAM if it bit you - Bear900/CA on 6/7/23 2:42am |
| THANK YOU!!! n/m - JanetK_CA on 6/9/23 7:32pm |
| Re: Forward Sale and Exchange Agreement. - Susan/CA on 5/30/23 6:30pm |
| Re: Forward Sale and Exchange Agreement. - Bear900/CA on 5/31/23 1:55am |
| Thanks, Harv. Waaay over my head. - Lee/AR on 5/31/23 3:32am |
| Re: Thanks, Harv. Waaay over my head. - Susan/CA on 5/31/23 10:41am |
