Land Contract Details

maryt

Registered User
Messages
21
Could anyone answer these two queries for me please?
We are trying to buy a piece of land to move our business (at the moment we are only renting and we're desperate to move). The land is being offered at a good price but the landowner is a shady character. So we asked a friend to do the 'talking' - i.e. it was he who was buying the land and not us. He has agreed to sell to our 'friend', but wants 20k over the original selling price. We agreed to this, through our friend, but now he has come back and wants three quarters of it in 'cash'. We're not happy with this and want all of it to go through our books as we want everything above board on our side but we're afraid that he won't do this. My query is 1) if we give him the three quarters in cash but put the full amount through our books (therefore we will pay stamp duty on the total amount) how, when the contracts are drawn up, do we avoid putting the full amount on the contract (it's his problem then for not declaring) and 2) can we put our friends name on the contract and change it at a later stage (will this mean we incur further charges) or could we put our names on the 2nd page of the contract and not disclose this to the vendor at the time of him signing?
 
what you are trying to do is illegal and will only get you into trouble at a later stage. If the land is for sale at price A, how can he ask for 20K over that price? is there an auctioneer involved or is it a private sale?
 
It's a private sale. Like I said we want everything legal and above board, he doesn't. It leaves us in a quandry as we really do need this piece of land. I wish there was an auctioneer involved, it would make things simpler.
 
we really do need this piece of land.
If you need it badly, then you really need to do it right - you can't afford to do anything that will backfire on you. Get a solicitor, and put a straight offer on the table.
 
Your right. I think that if he doesn't want to do things the right way then we should just blow him out and look elsewhere. He could cause more problems down the line.
 
Back
Top