Quote from: h4r13q1n on May 06, 2013, 05:13:09 PM

also, maybe OP might describe in detail how he imagines the deal will be processed.

Quote from: bitcoin_bob on May 06, 2013, 05:04:57 PM

1. buyer makes 'offer to buy'. At the close of this auction, lets take that as the buyers 'offer to buy'.

2. Now this might be the bit that confuses bitcoin users- The buyer and seller, before any money changes hands, sign 'purchase and sale contracts' with their legal names, passports etc and this information is sent to the lawyer in germany. The seller signs a document saying that s/he accepts to sell the property to the buyer for a euro, a bitcoin or a thumbtack. This becomes known as the 'acceptance' and once sold is IRREVOKABLE by the buyer. It is a legal document. I understand that bitcoin is an anonymous currency, and hence when you are buying something with no title that you would want security but property has security of title. Anyway onto step 3.

3. Once the notary has received offer to buy and offer to sell, he will start the property transfer process. Then there are two options, advance purchase and post confirmation purchase.

Advance purchase: buyer pays the money to the seller and the seller issues a certificate of funds received, clearly marked and signed in front of a lawyer that 'all monies are paid and nothing is outstanding' which is sent to the notary. This means you effectively from that day have a 100% titular mortgage on the property which can be put on the act II (encumbrances) register in the german land registry. Advance purchases are not advisable in situations such as denkmalschutz properties, properties with encumberances (mortgages) or properties for which first right purchase can be made (historical properties, properties in an area of redvelopment IE a highway is going through, the government has first right of purchase)

Post confirmation purchase: a post confirmation purchase is where the notary checks all title act I and act II registrations, and pre registers the buyer in the register. The notary then issues a letter to both parties saying 'now is the time for payment' and once seller confirms payment is received, issues again said certificate of funds and the property is transfered.

At any stage after the purchase and sale agreement is signed if the seller 'runs off' with the money (and leaves his house behind, not exactly like you can put it in a bag and take it with you when you run away) the buyer can 'foreclose' on the act II with the purchase and sale agreement. So would become owner anyway. Before said contracts are exchanged, no money changes hands (except for usually a small deposit or something to show the buyer serious so the seller can instruct his lawyer to draw legal documents).

So surely, people, you can see why I am scratching my head to what escrow is going to achieve? NO MONEY CHANGES HANDS BEFORE CONTRACTS ARE SIGNED! So how the hell, am I supposed to scam someone!

These questions coming from a community of people who are without question sending $1000s to pre order miners from BFL.......

OP seems to know his stuff. Still in this model YOU OP could be scammed when the buyer just denies having received any funds. since btc in no legal tender, will blockchain info work as a prove of payment? Have you checked this with your lawyer?

Also, we still have to see an explanation how this purchase should work with an forum-member serving as escrow.

Is there a particular reason OP that you refuse to give the address of the house? Do you fear it to be vandalized or something?