Land Flip


DEFINITION of 'Land Flip'

A fraudulent practice in the real estate business of selling undeveloped land at highly inflated prices. A land flip occurs when a group of dishonest buyers trades the land among its members, increasing the price with each transaction. The group will then finally unload the property onto an unsuspecting outside buyer at a price that the buyer will likely never be able to recoup from its own sale of the land.


Financial institutions face the risk of land flip with any loan made to purchase undeveloped property. They therefore take equity positions by investing directly in the land. Otherwise, they risk taking a loss if the land value decreases.

  1. Real Estate

    Land plus anything on it, including buildings and natural resources.
  2. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  3. Land Trust

    A legal agreement where a trustee is appointed to maintain ownership ...
  4. Real Estate Agent

    A person with a state/provincial license to represent a buyer ...
  5. Land Contract

    An agreement between a buyer and seller of property in which ...
  6. Chattel Mortgage

    A term used to describe a loan arrangement in which an item of ...
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