What's the scam?

Herzlos

I'm assuming it's because the funds for the purchase are somehow fraudulent (identity theft maybe).

Or it'll turn into a request for the refund earlier once you're committed.

I can't think of any genuine reason for it, because they'd be paying more stamp duty than just offering £620k.

I'm guessing this hasn't come through an estate agent or solicitor?

GaryBC

Herzlos said:

I'm assuming it's because the funds for the purchase are somehow fraudulent (identity theft maybe).

Or it'll turn into a request for the refund earlier once you're committed.

I can't think of any genuine reason for it, because they'd be paying more stamp duty than just offering £620k.

I'm guessing this hasn't come through an estate agent or solicitor?

It came through an estate agent without question (which is worrying as I feel he should have stamped on it at source!). 
I put it to our conveyancing solicitors and they told me they'd have nothing to do with it - so I'm not going to. 

DullGreyGuy

There are lots of prior threads on this but cannot see any where it was a cash buyer, when a mortgage is involved the access to low interest money is an obvious. 

Money laundering or tax evasion are obvious options, the later particularly if its an investment property rather than their future home. Alternatively they could be trying to fleece someone else if there is a behind the scenes partner thats stumping up a large chunk of the cash

For you it's higher estate agency fees and possibly implicating yourself in some illegal activity. 

GaryBC

DullGreyGuy said:

There are lots of prior threads on this but cannot see any where it was a cash buyer, when a mortgage is involved the access to low interest money is an obvious. 

Money laundering or tax evasion are obvious options, the later particularly if its an investment property rather than their future home. Alternatively they could be trying to fleece someone else if there is a behind the scenes partner thats stumping up a large chunk of the cash

For you it's higher estate agency fees and possibly implicating yourself in some illegal activity. 

It's a cash sale. £650k then we refund him £30k on completion. (Only we won't be! 😊)
The difference in estate agent fees is minimal - 1% of £30k - I'm far more concerned about the legality of the transaction.
It's a property developer rather than a family so yes, tax evasion and/or asset value falsification sound most likely to me. 

RHemmings

In this situation I would ask the property developer to explain in detail their reason for wanting to overpay and get a refund. I wouldn't believe what they said, but I would want to hear it. 

GaryBC

This is the email the developer sent to the agent 

GaryBC

RHemmings said:

In this situation I would ask the property developer to explain in detail their reason for wanting to overpay and get a refund. I wouldn't believe what they said, but I would want to hear it. 

I've attached a pic of the email the developer sent to the agent.
I've never attached a pic to it thread here so I don't know if it'll work! 😊😊

RHemmings

GaryBC said:

RHemmings said:

In this situation I would ask the property developer to explain in detail their reason for wanting to overpay and get a refund. I wouldn't believe what they said, but I would want to hear it. 

I've attached a pic of the email the developer sent to the agent.
I've never attached a pic to it thread here so I don't know if it'll work! 😊😊

I can read it fine. It's just the offer. Is your EA a well known agent, that is a member of TPOS or TPRS. (They should all be.)  Again, if I was in your position I would reply to the agent asking them to explain this offer further. I wouldn't sell it to the 'buyer', but what I get back from the EA may tell me something about them. 

user1977

Herzlos said:

I can't think of any genuine reason for it, because they'd be paying more stamp duty than just offering £620k.

SDLT is on the net consideration so (unless they're also lying in their SDLT return!) it shouldn't increase what they're paying.

Different in ye olde Stamp Duty days when it was based on the headline figure on the deed, and ignored any cashback deal.

GaryBC

RHemmings said:

GaryBC said:

RHemmings said:

In this situation I would ask the property developer to explain in detail their reason for wanting to overpay and get a refund. I wouldn't believe what they said, but I would want to hear it. 

I've attached a pic of the email the developer sent to the agent.
I've never attached a pic to it thread here so I don't know if it'll work! 😊😊

I can read it fine. It's just the offer. Is your EA a well known agent, that is a member of TPOS or TPRS. (They should all be.)  Again, if I was in your position I would reply to the agent asking them to explain this offer further. I wouldn't sell it to the 'buyer', but what I get back from the EA may tell me something about them. 

The agent seems kosher and he doesn't seem overly put out by the offer. 
I've told him I don't mind selling to the guy, but NOT on the sale/refund basis being proposed. It's got to be a 'conventional' sale, or not at all.