What is a straw man in real estate?

A straw man in real estate refers to a person who is used to facilitate the transfer of property without revealing the true buyer's identity. This practice can be employed for various reasons, such as ensuring privacy for the actual buyer or assisting in circumventing certain regulatory steps. The straw man essentially acts as an intermediary, purchasing the property in their name before transferring it to the actual intended buyer.

This arrangement can be legitimate and used for privacy concerns, but it can also raise legal and ethical issues, particularly if it is used to engage in fraudulent activities or to mislead regulatory bodies. This practice is important to understand because it highlights the complexities involved in property transactions and the importance of transparency in real estate dealings.