What is a potential risk for buyers in advance payment agreements?

In advance payment agreements, buyers face a significant risk of non-delivery of paid goods. This situation arises because the buyer pays for the goods upfront, which means they have already incurred financial commitment before receiving the product. If the seller fails to deliver the goods for any reason—such as financial instability of the seller, fraud, or logistical issues—the buyer may not only lose the prepaid amount but also face difficulties in recovering those funds. The risk is heightened if there are no appropriate safeguards or guarantees in place, such as customer protection laws, third-party escrow services, or well-defined contracts.

While unexpected taxes and documentation requirements can impact the overall transaction experience, they do not pose the same fundamental risk as the possibility of non-delivery, which can result in a complete loss for the buyer. Similarly, sole ownership does not inherently create a risk for the buyer in this context; it's merely a condition of the purchasing agreement when the transaction is successful.