Reduction in apt price in cash

carveone

We've agreed a sale price for an apartment but the buyers baulked at the management fees, which are quite high at the moment due to remedial works. So we offered a few grand off the purchase.

They've accepted but want the reduction in "cash back", leaving the purchase price as is. I'm guessing they've got their mortgage from the bank and don't want to have to give any if it back!

I'm not going to ask if it's legal because that's our solicitors job but I did wonder if anyone else has seen this? Obviously we'd need a receipt for Revenue CGT but it might look odd.

ted1

Just say no.. especially if there's going to be CGT.

they clearly are in a position to draw down the mortgage.

carveone

Thanks ted1. I'm beginning to think it's dubious behaviour. For them to hand over the purchase price in one step, and then get money back in the next step smacks of possible fraud and put us (my parents actually) in a position of having to explain odd CGT calculations to Revenue. It's not like they're buying a banana and asking for cash back!

Kaisr Sose

As per @ted1 , dont do it. The actual sales price should be the price on the contract. I would say the buyers bank would not be too keen on the complexities being proposed either.

carveone

I'd say the buyer's bank is unaware of any of this! Thus the cash under the table aspect.

My parents' solicitor came back and said that people are doing this kind of thing but he advised caution where revenue are concerned as they aren't big fans of dicking about.