Question

A buyer and seller have written two contracts for one property: a higher contract to submit for a larger loan request and another with a lower actual purchase price because they know the seller is anxious to sell quickly. Which correctly describes this arrangement?

Answer 1

Fraudulent dual contracting

Step-by-step explanation:

Both the buyer and the seller are making two non-neutral contracts (which is illegal), that help each other with their needs, the seller, who needed to sell the house as fast as possible, wins a lot more money, and the buyer buys the house for a price way lower than the original price, so he saves a lot of money.