zed real estate. At the centre of it all is the definition of market value with its element of proper exposure to market conditions. Imagine a purchaser that convinces a seller to accept an offer of, say, $300,000 for a single family detached house with completion in three months and a $15,000 dWhat most people loosely refer to as ‘real estate flipping’ these days is no flipping at all – it is reselling for a profit. This is so because most market participants finalize the transaction before reselling their newly acquired interest in land for a mark-up. The implication is that they actually use their own money to complete - a classic real estate investment. The true fine art of ‘flipping’ houses or other real assets, on the other hand, consists in reselling an interest prior to closing. A Buyer of a subjects-free contract of purchase and sale will find another Buyer for the same interest ready, willing and able to purchase prior to the first Buyer completing the deal. The implication is that the first Buyer merely puts the deposit out of his own funds - a classic real estate speculation.

True real estate flipping, albeit not an illegal practice per se, will get you in trouble more often than not and notwithstanding anything Donald Trump will have to say on the subject. In fact, it’s gotten him in trouble as well. It is also a practice not favorably looked upon by many Boards and professional associations within organized real estate. At the centre of it all is the definition of market value with its element of proper exposure to market conditions. Imagine a purchaser that convinces a seller to accept an offer of, say, $300,000 for a single family detached house with completion in three months and a $15,000 de

tion is that they actually use their own money to complete - a classic real estate investment. The true fine art of ‘flipping’ houses or other real assets, on the other hand, consists in reselling an interest prior to closing. A Buyer of a subjects-free contract of purchase and sale will find another Buyer for the same interest ready, willing and able to purchase prior to the first Buyer completing the deal. The implication is that the first Buyer merely puts the deposit out of his own funds - a classic real estate speculation.

True real estate flipping, albeit not an illegal practice per se, will get you in trouble more often than not and notwithstanding anything Donald Trump will have to say on the subject. In fact, it’s gotten him in trouble as well. It is also a practice not favorably looked upon by many Boards and professional associations within organized real estate. At the centre of it all is the definition of market value with its element of proper exposure to market conditions. Imagine a purchaser that convinces a seller to accept an offer of, say, $300,000 for a single family detached house with completion in three months and a $15,000 d

will find another Buyer for the same interest ready, willing and able to purchase prior to the first Buyer completing the deal. The implication is that the first Buyer merely puts the deposit out of his own funds - a classic real estate speculation.

True real estate flipping, albeit not an illegal practice per se, will get you in trouble more often than not and notwithstanding anything Donald Trump will have to say on the subject. In fact, it’s gotten him in trouble as well. It is also a practice not favorably looked upon by many Boards and professional associations within organized real estate. At the centre of it all is the definition of market value with its element of proper exposure to market conditions. Imagine a purchaser that convinces a seller to accept an offer of, say, $300,000 for a single family detached house with completion in three months and a $15,000 d

n illegal practice per se, will get you in trouble more often than not and notwithstanding anything Donald Trump will have to say on the subject. In fact, it’s gotten him in trouble as well. It is also a practice not favorably looked upon by many Boards and professional associations within organized real estate. At the centre of it all is the definition of market value with its element of proper exposure to market conditions. Imagine a purchaser that convinces a seller to accept an offer of, say, $300,000 for a single family detached house with completion in three months and a $15,000 dzed real estate. At the centre of it all is the definition of market value with its element of proper exposure to market conditions. Imagine a purchaser that convinces a seller to accept an offer of, say, $300,000 for a single family detached house with completion in three months and a $15,000 deposit. Then, about half a way through the purchaser finds a second buyer willing to pay $350,000 for the same interest and to complete on the same day as the first contract. Come completion date the original purchaser will close on the second contract first. As it takes at least one day for documents to be couriered to the respective conveyancers and about a month (in British Columbia) for the transfer of ownership to be recorded and the new title registered at the Land Title Office, this little trick will allow the original Buyer to walk away with a neat $50,000 in his pockets, without having used his own money practically at all. As market value is, by definition, the price that a real property is reasonably expected to fetch after adequate time and exposure to market conditions, a real question arises as to whether or not the Seller in this example has received full market value for his property.

Flipping potentially encompasses an element of negligent misrepresentation, at the very least, all the more so if someone with special skills and knowledge – such as a Realtor – is involved. But even if no real estate professional is involved, the Courts have long sin