Strange situation - buyer wants to overpay...

ilikewatch

Have encountered a strange situation and wondered what others thoughts are...
House to be sold is one of 6 in a small close, EA valuations have all been around 145K - 155K. 4 of the other houses in the close are all owned by a local landlord who approached after spotting an EA visiting and suggested he would like to buy the property and would be happy to proceed without EA involvement to save on fees.
The problem is that he has made an unusual proposition, he has offered £150K (an acceptable figure) but on the condition that he actually pays £220K, and £70K is returned to him after the sale, he has made it clear that this would be governed by a contract drawn up between solicitors.
The whole situation seems dodgy as hell to me - he says that his reasons for doing this are to manipulate the value of the other properties on the street. Although this certainly seems immoral, I am unsure of the legality of it? Any opinions? Specifically, if the vendor accepted his offer would the vendor be commiting any offence?
A bit of background - none of the houses have re-sold since they were built in the early 80's, potential buyer owns 4 of them and his brother owns the remaining one.

grandma247

It sounds to me like it may be a form of money laundering. It certainly does not sound right.

immoral_angeluk

Sounds seriously suspect to me especially as he doesn't want EAs etc involved. I'd steer well clear!

LittleMissKitty

Oh hell no, I'd not even entertain the idea. Definitely has the smell of money laundering to it.

hollydays

Which solicitors is he planning for you to use..?? Perhaps you could ask him that question? Dont know any solicitor that would advise this transaction,I think he's a timewaster,and whatever he is actually doing,he will not want to pay you £150 K
I expect this person is well known to estate agents,deal at your peril.

Stan_Here

Check it out with your solicitor and if he is happy with it, tell the bloke that you will do it but the fee is £20K.

ilikewatch

hollydays wrote: »

Which solicitors is he planning for you to use..??

This has already been discussed with the potential buyer - the property is in a small town with only one firm of solicitors, the potential buyer told me that they would not agree to act for both parties, and so one of us would have to find another firm to act for them - he said the vendor could choose whether they wanted to use the local firm or find someone else- if the vendor wishes to use the local firm then he would find another firm to handle his side of it.

Money laundering or mortgage fraud were my 2 main worries, but the potential buyer brushed these concerns aside - he says he will be paying in cash and is happy to provide a letter from his bank confirming his ability to proceed. As regards money laundering he pointed out that if this was the case he would be trying to arrange this without the involvement of solicitors and electronic transfers "as he wouldn't want to leave a paper trail".

hollydays

Ring the local solicitor he names and quiz them.
If thats not sufficient,ring his bank and ask their opinion on the legalities of their involvement..
Dont you think it rather odd that he is keen for one of you to use that solicitor?

Emmzi

surely if he thinks the houses in the street should go for £70k more, he should pay £70k more?! Can't have it both ways!

ognum

Don't do it, the inside of HMP is not a great place!!!!

Wyndham

It's an awful lot of money. If he wanted £10K added to inflate prices, then I could maybe see his point of view (even though I think it would be morally very suspect). But £70K?

Sounds very dodgy to me, and I'd say no, or at least talk to a solicitor about it.