Backhander for the auctioneer?

elastico

Anybody heard of this practice, as a couple of people I know reckon they got value out of it.

The buyer gives the auctioneer a backhander to take a lower price for the house.

Say an auctioneer is on 2% and sell price €250K = 5K commission.

Buyer offers 220K and €5000 to auctioneer, who advises seller to take offer or puts other buyers off the property etc.

Buyer saves €25K, auctioneer gets €4400 extra from the sale.

sheesh

elastico wrote: »

Anybody heard of this practice, as a couple of people I know reckon they got value out of it.

The buyer gives the auctioneer a backhander to take a lower price for the house.

Say an auctioneer is on 2% and sell price €250K = 5K commission.

Buyer offers 220K and €5000 to auctioneer, who advises seller to take offer or puts other buyers off the property etc.

Buyer saves €25K, auctioneer gets €4400 extra from the sale.

jesus that could be illegal! Surely it is.

amdublin

If that is not illegal it's definitely unethical.

Seriously do you want to be part of that kind of transaction???

elastico

amdublin wrote: »

If that is not illegal it's definitely unethical.

Seriously do you want to be part of that kind of transaction???

I'd like to know more about whether it goes on or not, whether people would like to be involved in this kind of transaction is irrelevant.

Suppose the seller is a bank or receiver it seems to be a logical course of action to take.

my3cents

No first hand proof but certainly heard of it happening.

johnnyskeleton

sheesh wrote: »

jesus that could be illegal! Surely it is.

Yep. Making a gain or causing a loss by deception s6 theft and fraud act 2001

spin777

Have definitely heard of it, and seen it in practice with a friend who bought a house for €270k, 10k cash for an auctioneer. Extremely shady. You would never see any of the big firms engaging in that kind of practice, they wouldn't risk their reputation. One EA who "closed" recently was renowned for it.

I think it's a disgrace to effectively, as a seller, be paying a "professional" to rip you off.

amdublin

elastico wrote: »

I'd like to know more about whether it goes on or not, whether people would like to be involved in this kind of transaction is irrelevant.

Why do you want to know this?

The_Morrigan

johnnyskeleton wrote: »

Yep. Making a gain or causing a loss by deception s6 theft and fraud act 2001

...and on that note I think this is heading into dangerous territory and I don't want any businesses named here.

Victor

johnnyskeleton wrote: »

Yep. Making a gain or causing a loss by deception s6 theft and fraud act 2001

Possibly also an offence under the Auctioneers and House Agents Act, 1947 to receive money from both sides of a transaction.