We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Is this illegal?

h158
h158 Posts: 39 Forumite
Part of the Furniture 10 Posts Combo Breaker
in House buying, renting & selling
Buyer offers us £170k for the house but has it appears he's applied for a mortgage for £195k. He wants to pay us £195k via solicitors etc. but then wants us to transfer £25k back to him. Why? What implications could this have on us? Is this legal?

We sold the house privately so no estate agent was used.

HELP!
«13

Comments

  • lynzpower
    lynzpower Posts: 25,311 Forumite
    10,000 Posts Combo Breaker
    Well the obvious is that you could have the money transferred to you but simply not pay it back!! :j

    I dont think this is illegal, but it certainly sounds like mortgage fraud.

    I think a call to the Law Society should strighten out whether its an acceptable thing to do ( ie under thier T&Cs of practice)
    :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast :beer:
  • Mr_Bear_2
    Mr_Bear_2 Posts: 115 Forumite
    its money laundering and a definite no-no

    sounds very suspicious to me
    Head of Personal Injury for a Law Firm In Manchester
  • robpw2
    robpw2 Posts: 14,044 Forumite
    Part of the Furniture Combo Breaker
    maybe he wants 25k to do up the house ..


    Slimming world start 28/01/2012 starting weight 21st 2.5lb current weight 17st 9-total loss 3st 7.5lb
    Slimmer of the month February , March ,April
  • Badger_Lady
    Badger_Lady Posts: 6,264 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    But if he was getting a larger mortgage to do up the house, the mortgage lender would be able to give him the £25k directly. Sounds dodgy to me - mortgage fraud or money laundering.
    Mortgage | £145,000Unsecured Debt | [strike]£7,000[/strike] £0 Lodgers | |
  • beingjdc
    beingjdc Posts: 1,680 Forumite
    Or he wants to do it up and sell it on but have a nice big number when people check what the house was last sold for!
    Hurrah, now I have more thankings than postings, cheers everyone!
  • Mr_Bear_2
    Mr_Bear_2 Posts: 115 Forumite
    its def money laundering any honest solicitor would not allow it to happen
    Head of Personal Injury for a Law Firm In Manchester
  • dubsey
    dubsey Posts: 357 Forumite
    It sounds like he's told his lender that he's buying the house for £195k, so he can use the excess money on whatever he likes. If he wanted the money to put towards the house then the bank may well have lent it to him anyway. But-if he wants it for other things (holiday/wedding etc) then he would have to apply for a normal loan. So I'm not convinced his motives are outright fraud - but, as others have said I'm sure it is considered money laundering/fraud and you want to make sure that you are not going to end up on the wrong side of law because of it. Just make sure to get legal advice before you do anything.
  • inmypocketnottheirs
    inmypocketnottheirs Posts: 4,745 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    Mr_Bear wrote: »
    its def money laundering any honest solicitor would not allow it to happen

    I would doubt that your solicitor, or his, would allow it.
    Don't lie, thieve, cheat or steal. The Government do not like the competition.
     The Lord Giveth and the Government Taketh Away.
     I'm sorry, I don't apologise. That's just the way I am. Homer (Simpson)
  • dubsey
    dubsey Posts: 357 Forumite
    Doh! Read everything before you post anything lol.

    By outright fraud I meant, I'm sure he doesn't realise that what he's doing is fraud.
  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276 Forumite
    10,000 Posts Combo Breaker
    I agree - I don't see either solicitor going along with this. Refer it to your solicitor - tell him to get his solly to speak to yours .... ;)
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.3K Spending & Discounts
  • 247.1K Work, Benefits & Business
  • 603.7K Mortgages, Homes & Bills
  • 178.3K Life & Family
  • 261.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture