Glossary

Dual Contract

The illegal or unethical practice of providing two different contracts for the same transaction. Example: Abel wants to purchase a home from a builder for $144.000 but has no cash for the downpayment. The builder suggests that they prepare a fictitious contract for $160,000 and try to borrow 90% of $ 160,000. The bank’s attorney discusses the dual contract and explains that they could be guilty of attempted fraud.