Cash Side deal with offer on house

Hi, would like some opinions on this scenario please: after years of looking, we are about to make an offer on a house, we are mortgage approved and ready to go. The EA mentioned that the vendor would be interested in “doing a cash deal on the side” :wink:
I know that there would be Stamp Duty fraud on our side and goodness knows what else, the whole suggestion makes me nervous. Is this sort of tax evading / under the books thing alive and well and I am just too naive to think otherwise ???

No, no and just no. If your solicitor is worth his salt he/she will also say absolutely no.

Cutehoorism will always be alive and well. Get the EA on a recording and send it off to the Revenue…

People that lie have a great tendency to bring you with them on the way down.

A decent solicitor generally wont want to work with a liar. Its not worth it to them.

Could you not make an offer on the house subject to you being allowed tobuy all the furniture with it :slight_smile: … oh those curtains are fabulous

If there is a bank involved in the sale, then you would want to be really careful - we had a similar proposal when buying and our solicitor made it clear we could be charged with conspiracy to defraud the bank.

From a practical point of view. when do you hand over the cash? before closing? what happens if the sale falls through at the last minute because a judgement mortgage shows up on the closing search? your cash will be gone without a trace…after closing? how will the seller force you at that point to pay it?..It really is a minefield, but plenty are happy to do it in Ireland…

This sort of thing seems to be very common in Galway, with a number of Estate Agents having a reputation for it… if only we had some investigative journalists…

Good to know that the property database will be of no use over in Galway.

Report the EA to the NPSRA. Let’s see if they have any teeth.

Buy it and leave the side cash out on closing as you decided not to buy the furniture.
Look for specific perfomance if there is any issue on closing day.

Blow the money on something totally wasteful and leave it somewhere visible or the vendor to see.
Choices for 20K:

Peter Bacon perfoming his act in your front garden for four days (1M p.a.)
David McWilliams hosting a global economic forum for two hours (90K a day)
Seanie Fitz as CEO for 44 seconds (based on Anglo losses over his 20 year reign)

Donno about that. It would show a lower documented price. 8DD

Lol :slight_smile:

I am not recommending or countenancing this sort of thing, but I understand that the mechanism always was: don’t mention officially to the solicitor. Request that the closing happen in person. Solicitor steps out for 5 mins to powder their nose, and what changes hands changes hands.

It’s all a bit post soviet fall Russia in here and still mad! :angry:

And try not to think about the fact that you and your counterparty’s tax and/or bank fraud is coming out of the pockets of the rest of us.

Oh yeah it’s despicable, just probably not very difficult. As I commented in the DB thread I wonder how long until a developer with a big unsold estate offers cash back in this way to the first couple of purchasers in order to inflate the sales prices recorded in the db.

There is nothing in this for you well nothing good that is, cash deal, you save 1 or 3% on stamp for a lot of risk, are they knocking 2 x the cash off the price so you save the same amount as the cash, if you both bank with the same back they will see it a mile off, make an on the books offer only

Is the ‘cash deal on the side’ being presented as a couple of grand on the side for ‘carpets and curtains’ to bring the vendor under a tax threshold of some sort that s/he would otherwise be on the wrong side of? Or is it a significant percentage of the purchase price? Have you any idea what the reasoning from the vendor side is?

I believe these are happening now becasue the “official” sale money goes to the bank, not the owner.

A vendor like that cannot be trusted. You could be tried for fraud to deceive the creditors.

I think that might be a bit of a stretch, legally. You would have had to have intent. In other words, you would have to think the seller was doing it to defraud the bank. If the seller spins you a credible yarn, how could they prove you didn’t believe it?

It’s illegal and immoral, but I suspect that in practice the worst you’ll get is penalties + interest for evading stamp duty. NOT that I am advocating or defending it, but it’s white-collar crime in Ireland so…

A friend of mine tells a great story about buying his retirement pad in Italy.

450k price, 250 contract, 200 cash. Wires the funds over to a bank there. Arrives in a bit apprehensive to ask for 200 in cash. Man smiles and asks, oh, your’re buying a house? Gets a bag full of notes. Goes to completion and the vendor’s solicitor inspects the wads and he and the vendor decide it looks ok without counting it properly. Then he goes for a vino rosso with the vendor who after a while goes for a whizz and asks my friend to look after the bag.