Buyer trying to avoid stamp duty !

Biggie

House has been on the market for a couple of weeks. Though first week was quite busy second week has been dead in terms of viewings.

Anyway house has planning permission to extend 2 bed into 4 bed which is quite desirable in London.

House on the market for £279,950 and one invester has put in a offer of £260. He won't budge from this price I have tried but he's not moving. Anyway this is my minimum threshold but in light of the current market conditions I was thinking of accepting it only to find out from the EA that he wants £250 on paper and 10K in cash :mad: .

He would pay me 10k just before exchange.


- I don't even want to go down this route as 1) it's illegal 2) it leaves me with a risk he may try guzundering last minute.

Anyway just wanted to know your thoughts, what's the dangers of doing this ?

maninthestreet

It's illegal. Don't do it. I doubt your solicitor would touch such a transaction even if you wanted to pursue this.

ManAtHome

Sounds like you have a dodgy EA as well...

Could work out, but a bigger chance of you getting £250k and a "so sue me"...

do_it_today!

Hi
Im surprised the EA has not advised against it, things do slow down around x-mas but usually pick up in spring. unless you are desperate to sell I would hold out and possibly consider another EA too....

missile

A crooked buyer who will probably try a.n.other tricks which will cost you money.

Suggest you reject any offer from this buyer and get another EA. It is not unknown for dodgy EA to arrange secret deals with their "friends".

beachbeth

missile wrote: »

A crooked buyer who will probably try a.n.other tricks which will cost you money.

This is how I feel. What other dodgy tricks will he try during the process of buying your house? I would flatly refuse and say you want the full price. It is also illegal to try to wriggle out of stamp duty in this way. Apparently, the powers that be look out for this sort of thing and come down heavily on people who try to do it and you could both end up in prison.

ragdoll

As you have said you know the risks, I don't see why people are saying your EA is dodgy, he is just passing on to you what the buyer has said. How would you feel if the EA hadn't told you.

Yes you should probably walk away, but a few things to consider first:-
Could you get a couple of £1000 added as fixtures & fittings, then the cash element would be slightly less.
What was the house valued at, did you have other agents value it lower. or did all agents say 279,950?
Look on net house prices and see what similar houses have sold for recently, have others gone for 250k or 270k recently.
How desperate are you to move, if you are buying another one how negotiable are they.
Maybe ask for £5000 before exchange and £5000 after?
Ask for the buyer to come back and discuss it direct and get a feel for how honest you think they are.
Your solicitor would have nothing to do with it and your EA should also be saying you have to agree it direct.

But heres hoping you get another buyer this weekend who is willing to pay the stamp

Good luck

BrandNewDay

Don't do it, obviously.

It may be that your house is not worth more than £250, but the way to find that out is to keep it on the market and see what happens.

Browntoa

who bets his "survey" will find a snag/defect that means he will haggle down the £10,000

Keeping_Positive

Properties sold close to the stamp duty limits are more likley to be looked at. I dont think you can charge 250k and then add for fixtures and fittings.

I would avoid this buyer.

Nenen

ragdoll wrote: »

I don't see why people are saying your EA is dodgy, he is just passing on to you what the buyer has said. How would you feel if the EA hadn't told you.

The EA is dodgy because s/he too is breaking the law! It is illegal for an EA (or solicitor for that matter) to aid/abet a sale thet will knowingly defraud the IR!

When we wanted to offer 250K for a house plus a genuine 3K F&F (range cooker, all new curtains, carpets, conservatory blinds, top quality stand-alone bedroom suite etc) the EA wouldn't even consider it as their agency had a strict policy of not accepting offers for F&F in case they got accused of aiding IR fraud.

As for your suggestion that the OP should "ask for £5000 before exchange and £5000 after" .... words fail me! :eek: :eek: :eek: Once contracts have been exchanged the OP would have no legal leg to stand on should the buyer refuse to hand over the remaining 5K.
Personally, I'd be very tempted to give the tax office a ring and report this crook.