Home Buying in Gautier>Question Details

Ch, Home Buyer in Gautier, MS

Is the buyer protected when the seller won't grant access to the appraiser?

Asked by Ch, Gautier, MS Thu Aug 4, 2011

3 days after the contract to purchase was signed, seller wanted to change contract amount to a lower value and "pay the difference on the side" to avoid taxes. When I told the seller this wasn't possible, they won't return any further calls, and told the appraiser they didn't know when they would be back to the house to allow appraisal. It appears they want to default on the contract, but don't want to officially say so, so that they aren't considered the one in default. This property is For Sale by Owner.

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Oh, we realize the dangers. At this point, I would be more than happy for them to just return the deposit and pay the expenses incurred thus far. In my way of thinking, they have already proven to be dishonest, but I won't be the one in default.
0 votes Thank Flag Link Thu Aug 4, 2011
The SELLER wanted to lower the sales price and pay the difference to avoid taxes:
They must have owned it for some time, because they have equity and are going to have to pay income taxes.
But if they've owned it that long, they would be taxed as Capital gains. But if they are buying another House with the profit, there won't be any taxes. (This is just thinking out loud, and I may be wrong.)

Ok, I think I've got it: And there are so many RED FLAGS on this, why would you want to continue?

And you do not have Realtors involved to protect your interests.

This is fraught with danger.

Good luck and may God bless
0 votes Thank Flag Link Thu Aug 4, 2011
The signed contract is a legal document that binds both parties. So if you really want the house, get yourself a real estate attorney to present the facts to the seller who can be in breach of contract if he refuses to allow certain action items to proceed.

What he wants to do --- "pay the difference on the side" --- is intent to defraud.

Bad news all around.
0 votes Thank Flag Link Thu Aug 4, 2011
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