Agents Online Real Estate Forums, Discussion, Realtors Marketing Tips

Follow AgentsOnline on TwitterFollow AgentsOnline on Facebook

Click Here to display our logo on your site and link to us!
AgentsOnline Real Estate Discussion Forums Logo

Realtor CommunityA popular online real estate community since 1998!


Advertisements


Sponsored Links
Advertisements
How To Advertise Here
How To Advertise Here

Good Idea!
Realtor Promotion Service

Sponsored Links
(Views)Popular Topics
I MAKE 100 COLD CALLS EVERY DAY & LOVE IT! 28357208
No new orders today 13124365
Stupid MLS comments. 3313041
What do you know about Froy Candelario, top agent in USA 1208693
Stupid QC comments and BPO requirements. 1083405
New HUD Listing Brokers---Any Update? 1043612
Is there religious content in Buffini class? 836609
Let's talk about our cars 682950
Name that Flick. Great movie Lines. 615299
Pay it Forward - BPO/REO Tips & Tricks I & II 604070
Most common items found at an REO 595196
EML 459233
REOTRANS 449501
Main Street 435308
asset val seminar in colorado 415754
assist 2 sell or 1 percent realty? 347343
HOMONYMS - There, Their, and They're 317655
Evalonline 300206
Land America 285053
Mainstreet 261860
Matched Content
Topic Options
Rate This Topic
#460094 - 12/15/17 06:17 AM Buyer offers to pay cash outside of purchase contract
Alwayslearning Offline
Junior Member

Registered: 12/15/17
Posts: 2
Loc: California
Hi,
I have a scenero that i could use your inputs and your opinions.
Seller made a counter offer selling home for $500,000. Buyer's agent said that buyer offers $490,000 and buyer wants to put $450,000 on a purchase contract and pays $40,000 cash. The money will be in escrow and will disburse to seller once escrow is closed. I would like a straight forward transaction black and white, but I want to hear your side if you can help. What is your opinion on this? Does it happen often in real estate? Is it worth the risk of losing the $40,000 or going through the hassels if both parties disagreed on something in the end? Your inputs are appreciated.

Alwayslearning

Top
Advertisements
#460095 - 12/15/17 10:39 AM Re: Buyer offers to pay cash outside of purchase contract [Re: Alwayslearning]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7774
Loc: Vermont's North-East Kingdom
Sounds like he's suggesting a basic violation of RESPA (the 1974 Real Estate Settlement Procedures Act) and if you cooperate, you'll also be conspiring with him to commit a Fraud.

What's his motivation . . . . and what does his Attorney think about it, and what does your Broker think ?

Everything financially associated with the Transaction will have to be shown on the HUD-1. Knowingly signing the HUD Closing Statement when it doesn't represent the entire Transaction would be an act of Perjury which is a Felony in itself.

If your Buyer were a bit more sophisticated, he may not have even proposed this. You should educate yourself on RESPA and maybe you can explain it to him, or better yet . . . . have him pay his Attorney to keep him out of trouble. And he'll probably resent the person who informs him that he's not the wheeler dealer that he thinks he is, so watch out.

I'm not on his "side" !
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"

Top
#460096 - 12/15/17 11:49 AM Re: Buyer offers to pay cash outside of purchase contract [Re: Alwayslearning]
Long Walk Online   content
Member

Registered: 06/27/08
Posts: 206
Loc: New Hampshire
Hi, Alwayslearning -- welcome to the site.

What is the buyer's motivation for putting $40K in escrow, that is outside the contract (if I am understanding you correctly)?

The only possible motivations that I could see would be possibly reducing any transfer taxes and possibly reducing the enrolled assessment by 10%. My understanding of CA real property tax rates is that the rates are low enough for there to be almost no achieved benefit to this, but I could be very wrong.

Am I right in thinking that the buyer is represented by a licensed agent?

All I see is risk to both parties with no benefit to either. And I agree with Vermont's cautions about fraud.

Top
#460099 - 12/15/17 12:31 PM Re: Buyer offers to pay cash outside of purchase contract [Re: Alwayslearning]
Bigtoe Offline
Major Contributor

Registered: 10/14/07
Posts: 2248
Loc: Outer Banks
Is the 40k going to be in small unmarked bills?
_________________________
Your Outer Banks real estate agent. Helping people buy and sell OBX real estate since 1989.

Top
#460167 - 12/22/17 11:20 PM Re: Buyer offers to pay cash outside of purchase contract [Re: Alwayslearning]
Alwayslearning Offline
Junior Member

Registered: 12/15/17
Posts: 2
Loc: California
Thank you everyone for your advice and inputs. As you all have said, I told the homeowners that I was comfortable and advised them not to do it. They listened. Happy holidays everyone.

Warm Regards,
Alwayslearning

Top
#460174 - 12/27/17 09:43 AM Re: Buyer offers to pay cash outside of purchase contract [Re: Alwayslearning]
Long Walk Online   content
Member

Registered: 06/27/08
Posts: 206
Loc: New Hampshire
Good job, Always! Not every agent would have gone to the extra effort to protect their client.

Top






Google Custom Forum Search

This Google Custom search may do a better job of searching the forums for some keywords than the old forum search does. The results do not include threads from the Asset Managers Forum however. To search that forum you will need to be actually in the Asset Managers Forum and you will need to use the old forum search below.
Search

Newest Members
locknmore, cdefgh120303, The Legacy Team, starfish11040, mannycro80
29912 Registered Users
Who's Online
1 registered (Long Walk), 46 Guests and 4 Spiders online.
Key: Admin, Global Mod, Mod
Shout Box

Top Posters (30 Days)
Long Walk 46
Vermont 24
estatereal 21
VABroker 20
Trouble 15
Lucky Leonardo 14
jreal413 9
The Legacy Team 7
MissionJoe 7
sualk54 7
Gamin' Agent 5
Nasser 5
David Hunter 5
Mr. Clean 5
RonnieEmz 4
Featured Member
Registered: 06/27/08
Posts: 206
Facebook

How To Advertise Here


This site presented by RNC Internet Services