Buying a house part cash

emmcc

i've just had an offer accepted on a house, which is great. However the seller wants to take part of the payment in cash (under the table) and put a certain amount through the books. So i'm telling the bank that the house is sold for x amount, but i'm also giving more on top, unbeknownst to them. Does anyone have any experience of this? Everything seems above board, but i can't help but feel a little uncomfortable - any advice would be great, thanks.

caff

Speak to your solicitor.

L1011

Guaranteed attempt at fraud by vendor. Run.

Victor

This may be an attempt to defraud their bank. If you knowingly cooperate, you could be convicted of fraud also.

If the treatment of principal private residences are ever changed for capital gain purposes, you'll end up with a large tax bill.

Put everything above board or walk away.

chris85

emmcc wrote: »

i've just had an offer accepted on a house, which is great. However the seller wants to take part of the payment in cash (under the table) and put a certain amount through the books. So i'm telling the bank that the house is sold for x amount, but i'm also giving more on top, unbeknownst to them. Does anyone have any experience of this? Everything seems above board, but i can't help but feel a little uncomfortable - any advice would be great, thanks.

How does everything seem above board? He is looking to get some cash under the table perhaps to avoid handing it over to his bank or to avoid a tax bill.

Its the biggest financial transaction most people will make in their lifes, dont do it fraudulently.

enricoh

My friend bought a site part cash n part on the books n he' s still living there anyway! Talk to your solicitor- I' ve no doubt it wont be his first

khards

Probably a forced sale by the bank where the vendor is trying to defraud the bank and do a runner.
A friend was asked to put cash under the table when buying a site, because he wouldn't take part in the fraud the Farmer attached some unfavorable conditions to the sale of the site.

Sconsey

emmcc wrote: »

i've just had an offer accepted on a house, which is great. However the seller wants to take part of the payment in cash (under the table) and put a certain amount through the books. So i'm telling the bank that the house is sold for x amount, but i'm also giving more on top, unbeknownst to them. Does anyone have any experience of this? Everything seems above board, but i can't help but feel a little uncomfortable - any advice would be great, thanks.

How much stamp duty do you intend to pay?

• 1% of the declared sale amount (you'd be defrauding the revenue)
• 1% of the declared sale amount plus 1% of the cash value (if the revenue are on the ball they will spot the inconsisteny and nail the guy selling the house)

It's lose/lose for you, why should you lie for this guy.

killers1

Your solicitor should run a mile too if you tell them you are going down this road....

Marcusm

Evil be to him who practises evil; consider accepting and then only pay the contract amount.

Bluegrass1

Marcusm wrote: »

Evil be to him who practises evil; consider accepting and then only pay the contract amount.

The vendor will only sign the contract when the cash is handed over.

Tigger

id be scared that the ppr exemption on cgt would go
you should be getting a discount of 50% of the cash value to make it worthwhile
ie if its 100k then you could pay 55 + 30 cash
while it is quite common its probably a bad idea

StillWaters

Tigger wrote: »

while it is quite common its probably a bad idea

it's not common at all. When there used to be high stamp duty and a big step between bands, there were some deals with cash for 'furniture and fittings', but Revenue copped on.
I would be shocked if either Solicitor facilitated this. So is he looking for cash not going through solicitors?
You would be CRAZY to entertain this.

December2012

It's not common, even in boomtime.

Don't do it OP.

hardCopy

If revenue decide the house is worth more than you declare you could get hit for Stamp Duty at the full value, plus Capital Acquisitions Tax on the difference as this would be seen as a gift. If there is a delay in them spotting it you'll be hit for interest and penalties as well. Run away

Pawwed Rig

December2012 wrote: »

It's not common, even in boomtime.

It was common. Once you had houses clustered around the stamp duty bands there was often cash transactions. When I was buying in 2005/6 100% of the estate agents I dealt with mentioned a cash top up (I dealt with 6 different agents in the period*).

However just because it was common did not make it any less illegal.

emmcc, you are involving yourself in a fraudulent transaction. You should bear in mind that any contract where Revenue is defrauded is not a legal contract under Irish law. There is no benefit for you to do this other than saving 1% stamp duty on the cash amount.



*I told one of them afterwards that I worked for Revenue (which I don't) and he nearly s*** bricks

richballs

emmcc wrote: »

i've just had an offer accepted on a house, which is great. However the seller wants to take part of the payment in cash (under the table) and put a certain amount through the books. So i'm telling the bank that the house is sold for x amount, but i'm also giving more on top, unbeknownst to them. Does anyone have any experience of this? Everything seems above board, but i can't help but feel a little uncomfortable - any advice would be great, thanks.

Hi I'm after going sale agreed with an agent and he says the vendor is looking for part cash how did your sale go

khards

richballs wrote: »

Hi I'm after going sale agreed with an agent and he says the vendor is looking for part cash how did your sale go

He is serving 6 months for fraud

GetWithIt

It's like 2007 - 2013 never happened.

Forest Demon

It is still common and it is messing up the property price register as estate agents are claiming that it was the register price + some cash. I am (frustratingly) trying to buy a house at the moment and two or three estate agents in different parts of the country have floated this by me. They were not even offering me a discount from the asking. No benefit to me for the risk and would only benefit the seller in defrauding the bank. When I refused in one case my offer of the asking was refused. I guess they are holding back for some cash.

I am finding that most people will not entertain an offer below asking even when the property is on the market ages. Its a pain going to see places that suit and making fair offers just below asking and getting turned down time and time again. Estate agents don't even try and sell the properties to you or ring you back. Some just follow you round with their hands in their pockets.

Its still 2006 as far as most estate agents I have dealt with are concerned. The corner is well and truly turned and prices are shooting up as far as they are concerned :rolleyes:

I am not looking in Dublin but in rural places. There are loads of properties for sale and nothing is shifting but they are all of a sudden not entertaining decent offers.

A receivership estate I know of has upped their prices by 20k in the last week and sent deposits back to some recent buyers (on technicalities) so that they can hold out for more :mad:. They were priced right and selling but now they will sit there and rot and will be lucky to get what people are offering at the moment again. Some people never learn.

Mrs OBumble

Forest Demon wrote: »

I am not looking in Dublin but in rural places. There are loads of properties for sale officially on the market and nothing is shifting but they are all of a sudden not entertaining decent offers.

Fixed that for ya. Small but subtle difference.

TheDriver

Forest, I am experiencing the exact same as yourself. Asking price is usually taken as a starting point and I would expect to end up at roughly 10% below that. What I am noticing is the price drops on a property that has been on the market for ages doesn't set a new price in reality where the owners still expect the same initial figure they are expecting. Also offering the asking price still gets a no is frustrating. And don't get me started on someone who obviously doesn't want to sell.
It is clear to me that people with a price drop on their house isn't really a price drop unless they actually want to sell which is another issue in itself. I have also seem EAs getting frustrated with vendors not accepting reasonable offers which they haven't received in a year. A good number of vendors also seem to be holding out for golden offers of a new boom time which may come soon.....
Although I have not experienced the cash offer lark yet.........