What is a straw party? Why would a developer use a straw party as part of the development process?

What will be an ideal response?


A straw party is someone who stands in the shoes of the developer to purchase and take title to the realty. The straw party keeps the identity of the developer confidential. A straw party is used in order to prevent landowners from inflating the price of their land if they think a developer is "snatching up" the land. A straw party may also be used when there is negative community sentiment toward the developer and/or the development.

Legal Studies & Paralegal

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