jacob greenf…, Home Buyer in Pleasant Valley, NY

Cash TO SELLER at closing

Asked by jacob greenfield, Pleasant Valley, NY Thu May 10, 2012

I have been negotiating a price for a house I'd like to buy. After going back and forth a few times, the seller finally asked for $320,000 and I agreed to it so long as he includes the appliances. I thought it was a done deal. Now the seller has asked that I pay $315,000 for the house (on the books) and give him $5000 in cash at closing. I'm not sure why he would want to do this (other than he must be hurting for money), but it seems sketchy. Could it be for tax reasons or something? Although the cost to me is the same, I want to be sure there are no ramifications in the long run. Is there a reason why I should or shouldn't agree to it?

Help the community by answering this question:

Answers

6
It's best to consult your attorney about this issue. After all, attorneys are there to protect you especially when signing a contract.

Best of luck!
0 votes Thank Flag Link Tue Mar 10, 2015
saabchick78,

This is definitely an attorney issue. I have seen it done before. But see what your attorney advises.

Eileen Contreras
Associate Broker
Houlihan Lawrence
econtreras@houlihanlawrence.com
Lagrangeville, NY
0 votes Thank Flag Link Fri May 11, 2012
If you are getting a mortgage, your lender is basing their decision to loan you the money based upon your qualifications to afford a certain amount and the presumed amount of debt you will be carrying. The bank is also likely looking at your cash reserves. Witholding this info from the bank MAY *MAY* be construed as fraud. Please check with your attorney.

Also, the amount of the sale will be recorded at the lower price. This will impact the sales value of homes in the area when reviewed by appraisers, etc...

If you are actually - really - purchasing personal property (i.e. furniture, loan mowers, etc...) not included in a real estate contract, that is an entirely different matter. But it doesn't sound like this is the case.

-Tammy
0 votes Thank Flag Link Fri May 11, 2012
Hi saabchick78,

You need to consult with your Realtor or an Attorney. However, if you are purchasing a short sale, you will have to sign paperwork for the seller's bank stating the seller is receiving NO money. The seller is not allowed to receive ANY cash from the buyer in a short sale (since the bank is taking a lose, they want all the money).

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Thu May 10, 2012
It seems that he is trying to do something off the books. Depending on what he is trying to do, there could be consequences for you.
0 votes Thank Flag Link Thu May 10, 2012
What is your agent and or attorney advising, consider a consultation.....
0 votes Thank Flag Link Thu May 10, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer