Is it legal to indicate on paper for your buyers that they purchased your property for $5,000 more than they actually did. How would that impact the?

Mary
Home Seller
Washington, DC

seller as it relate to sales taxes

Answers (4)
Arthur Hardy
Agent
District of Columbia

The short answer is no. The HUD-1 is the form required for settlement transactions and if the information on that form is not the actual transaction you, the buyer and the settlement attorney are all party to have committed fraud and all could be prosecuted. If you want to have the $5,000 added to the transaction so that the buyer can take cash away that also is no longer permitted. I would strongly urge you to speak to a settlement attorney and an honest realtor.
This is not the sort of buyer you want to do business with if you want to ensure you are not caught up in both local and or federal charges that carry stiff fines and prison terms.

Arthur Hardy, Realtor
W.C. & A.N. Miller Realtors
4910 Massachusetts Ave NW
Suite 119
Washington DC 20016
(202) 362-1300 office
(202) 362-3164 fax
(202) 895-2860 direct
web arthurhardyjr.com
email arthurhardy@LNF.com

Know of anyone thinking of buying or selling a home? Referrals are greatly appreciated.

Licensed in the District of Columbia, Maryland and Virginia

Sat Oct 24 2009, 12:14
Brubaker & Asso...
Agent
District of Columbia

Hello Mary, If you have to ask 'the question' , that gives you time to pause and ponder the truthfulness of the action. Tell the truth has always been the model....keeps you out of any jam. Cheers! Brubaker & Associates

Sat Oct 24 2009, 10:13
Kim Shelton
Agent
Columbus, OH

Without professing to be a legal professional or tax accountant, rather simply sharing with you practical information I've learned as a licensed real estate broker in the State of Ohio, ALL TERMS OF A REAL ESTATE TRANSACTION MUST BE DISCLOSED. Any other approach is either illegal, unethical, or both and could come back to bite the participants at some point in the future.

Kim

Sat Oct 24 2009, 09:54
FIRST ANSWER

What paper r u talking about?
On the contract?
Let me interpret what u r asking.
Ur buyer wants to put on the sales oprice $5k more than what u r selling it for.
How r they taking that $5k.
If it is on HuD-1 and approved by Lender, lender may have a reason to approve(like closing cost credit).

This is something ur agent , settlement attorney or ur own attorney can answer after looking at ther papers u r going to sign off.
Please don't get into these things, w/o professional help.
rgds,
Ramesh Chandra,
703 635 8209
mepcigroup@gmail.com

Sat Oct 24 2009, 09:46

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