Trust
I pulled up the chat history for the land deal - 678 messages over 40 days, seven participants. I transferred 75% of the land price to the account of the bank that owned the land, with no contract (they didn't want to sign a three-party agreement), holding only a preliminary agreement with its former owner, in order to pay off the debt of the seller who was planning to sell me that land🤯
There was no contract whatsoever between me and the bank. All I had in hand was a WhatsApp chat, with nobody from the bank in it🙈, and a “👍” emoji from a lawyer I'd seen twice.
On the plus side – a good price, and the land was clean, since the bank had taken it as collateral and checked its entire history.
It all started on day two, when I asked the chat:
Nobody answered.
Then the main thing came out: the seller can't sell me anything. Three years ago he couldn't keep up with his loan, and the bank took the land into its own name. We were buying from a man who had no land.
Artem put into words what I was afraid to say out loud:
Yes. We pay first.
I proposed a three-party agreement - me, the seller, the bank. The answer: “The bank isn't ready.” Later the bank's lawyer explained: in this deal, you're the third party.
The realtor, Victoria, explained the scheme to me in Russian and, within twenty lines of each other, wrote two phrases:
After a line like that, of course, I stopped worrying😄. Victoria has been on the island for ten years, and maybe this is just how business is done here.
On day six it came out that the seller is suing the bank. The lawsuit was filed a year ago. The bank won't cancel the documents until the case is withdrawn, and it also needs a decision from the bank's board of directors
Me in the chat:
That really put my mind at ease😜
Artem:
75% of the price sitting in the bank's account, the land with the bank, and me holding a contract with a man who doesn't own it – sounds a little nerve-racking)
Then a message came in:
40 days. The land is ours.
What was the main risk for me: that once I'd paid off the loan, the seller would sell the land not to me but to someone else and get paid twice.
The arguments that this wouldn't happen were weak, but ok)
1. The bank said it would hand the land documents over only to me
2. A lot of people were already involved in the deal, and scamming all of them would be hard
What I took away from this story.
You don't trust people, you trust their interests. The seller needed to climb out of a three-year hole. The lawyer — his fee and his reputation in a small town. The realtor — her next clients. The bank – closing a problem loan.
Have you ever sent serious money with nothing in hand but a chat and the word of someone you'd met a couple of times? How did it end?
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There was no contract whatsoever between me and the bank. All I had in hand was a WhatsApp chat, with nobody from the bank in it🙈, and a “👍” emoji from a lawyer I'd seen twice.
On the plus side – a good price, and the land was clean, since the bank had taken it as collateral and checked its entire history.
It all started on day two, when I asked the chat:
Does anyone actually have any idea how this deal is going to work?
Nobody answered.
Then the main thing came out: the seller can't sell me anything. Three years ago he couldn't keep up with his loan, and the bank took the land into its own name. We were buying from a man who had no land.
Artem put into words what I was afraid to say out loud:
So, we pay before we own the land. Right?
Yes. We pay first.
I proposed a three-party agreement - me, the seller, the bank. The answer: “The bank isn't ready.” Later the bank's lawyer explained: in this deal, you're the third party.
The realtor, Victoria, explained the scheme to me in Russian and, within twenty lines of each other, wrote two phrases:
“It all runs on trust” “Everything is safe for you”
After a line like that, of course, I stopped worrying😄. Victoria has been on the island for ten years, and maybe this is just how business is done here.
On day six it came out that the seller is suing the bank. The lawsuit was filed a year ago. The bank won't cancel the documents until the case is withdrawn, and it also needs a decision from the bank's board of directors
Me in the chat:
a lot of news)
That really put my mind at ease😜
Artem:
We sent the money on Thursday. Today is Tuesday. Has the seller received it? Is the loan paid off? When will the bank prepare the document?
75% of the price sitting in the bank's account, the land with the bank, and me holding a contract with a man who doesn't own it – sounds a little nerve-racking)
Then a message came in:
The Deed of Transfer is registered. Three mortgages have been discharged. I've done my job
40 days. The land is ours.
What was the main risk for me: that once I'd paid off the loan, the seller would sell the land not to me but to someone else and get paid twice.
The arguments that this wouldn't happen were weak, but ok)
1. The bank said it would hand the land documents over only to me
2. A lot of people were already involved in the deal, and scamming all of them would be hard
What I took away from this story.
You don't trust people, you trust their interests. The seller needed to climb out of a three-year hole. The lawyer — his fee and his reputation in a small town. The realtor — her next clients. The bank – closing a problem loan.
Have you ever sent serious money with nothing in hand but a chat and the word of someone you'd met a couple of times? How did it end?