Outbid by someone bending stamp duty rules

chickmug

MissMotivation wrote: »

I've had this done before Chickmug, completely above board.

This is a mystery to me but I do accept what you say. In the same scenario I have found it refused, through solicitors, as they see it as a way of getting round, therefore, evading Stamp Duty.

Having said that I have been in the middle, more than once, of two solicitors with different views on what is, and what is not, OK with amounts for F&F's.

I guess the rules are not that clearly defined by IR thereby causing this variation?

chickmug

Following from the NAEA Code of Practise

Offers
a) By law you must tell clients as soon as is reasonably possible about all offers that you receive
at any time until contracts have been exchanged (in Scotland, missives have been concluded)
unless the offer is an amount or type which the client has specifically instructed you, in
writing, not to pass on. You must confirm such offers in writing at the earliest opportunity and
keep a written or computerised record of all offers you receive.

b) You must not discriminate, or threaten to discriminate against a prospective purchaser of your client’s property because that person refuses to agree that you will (directly or indirectly) provide services to them. Discrimination includes the following:
• Failing to tell the client of an offer to buy the property.
• Telling the client of an offer less quickly than other offers you have received.
• Misrepresenting the nature of the offer or that of rival offers.
• Giving details of properties for sale first to those who have indicated they are prepared to
let you provide services to them.
• Making it a condition that the person wanting to buy the property must use any other
service provided by you or anyone else.

Complain to the NAEA if they are a member or the Ombudsman.

http://www.tpos.co.uk/contact.php

http://www.naea.co.uk/contact/default.aspx

pmcg01

davenoripcord wrote: »

Hi there,

I'm a newcomer to the forum looking for some help.

I made an offer for a property at the asking price of £249,950 and have been outbid by another party who have offered this + £3000 for fixtures and fittings.

The only problem is there are no fixtures and fittings of any worth. The house is in need of major modernisation, and has 30+ year old carpets, a very old cooker, and rusty old storage heaters. The only unfixed item I could find in the property was a mobility scooter in the garage which can't be worth a couple of grand?!

So basically I've been outbid by someone who is ready to commit tax fraud!

I'm wondering what my position is. I could just grit my teeth and made a higher offer, but I would feel very uneasy from an ethical point of view matching their offer because I don't believe there are £1000 worth of fixtures & fittings, let alone £3000. (I could afford to take the leap into the 3% stamp duty zone and do things "above board" but I'd be stretching myself to do so)

I'd hope the vendor would see the risk in accepting their offer, but you can't really legislate for other people's views on such things.

I hope someone can help!

Cheers,
Dave

It is not fraud. The Government, I think are looking to close the loop-hole, but until they do, it is not fraud, though questions may be asked if the f&f is as bad as you say.

I can only suggest the other bidder has a smarter solicitor than you do.

Thrugelmir

pmcg01 wrote: »

I can only suggest the other bidder has a smarter solicitor than you do.

No conveyancing solicitor would be interested in losing his living for committing such an act.

Its an old loop hole that was addressed many many years ago.

typeractive

If the seller still occupies the property could you go and visit them? Speak to them face to face. Offer them the extra cash (if you want it THAT much). I try to deal with the EA as little as possible - complete jokers.