Definition
A deceptive transaction where someone buys property on behalf of another person to hide the true buyer's identity—usually illegal and definitely unethical.
Example Usage
The straw purchase scheme was discovered when the real buyer tried to refinance and couldn't produce proof of ownership legitimacy.
Origin
Colloquial term from the idea of using a 'straw man' (a person of little substance) as a front
Fun Fact
Straw purchases are illegal in most circumstances and can result in criminal charges, loan fraud liability, and property seizure.
Source: Real Estate Fraud Terminology
Related Terms
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See “Straw purchase” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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