Purchaser looking for "cashback"

paddyodoors said:
My thoughts exactly Delboy - in Tyrellstown, they were offering to pay the first 6 months of the mortgage - maybe I am being niave, but I thought I could just aligning myself to that strategy in order to encourage a sale? (although I was only thinking to do 2 months).
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Presumably the developers offering free cars or mortgage payments are offering these enticements openly. On that basis if you and your purchaser disclose the "cashback" deal to your solicitors and lender respectively, there should be no ethical difficulty.
 
ubiquitous said:
Presumably the developers offering free cars or mortgage payments are offering these enticements openly. On that basis if you and your purchaser disclose the "cashback" deal to your solicitors and lender respectively, there should be no ethical difficulty.
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the banks are very quick to give a lot of (way too much) leeway and flexibility to bigger companies (builders, solicitors etc.), whereas the same sort of "give" wouldn't be allowed for a normal person.

Truth be told, it's far from the dodgiest thing done over the past few years to close a deal. I've seen offers on daft.ie that sellers will pay the stamp for 2nd time buyers or investors if they buy the property - no one seemed bothered by that... I viewed a development 2 weeks ago and they promised to give me 5k (ironic similarity - but true) towards the fit out if I put down the deposit within 3 weeks or something. Does that mean anyone who didn't avail of that now has a 100%+ 5k mortgage??? - NO

It's up to the purchaser to justify figures with their bank - not you... If thats the way they want to conclude the deal and it costs you nothing and you haven't received any other offers - don't pass up a good opportunity!
 
As ubiquitous points out, if you do everything above board and openly, then there really is no issue - unless the lender has an issue with it.

If I buy a house for 300K and the developer gives me a car, I am still only going to be borrowing a % of the 300K from the lender.

If, however, I tell the lender that I am paying 310K and I am not then I am lying to the lender.

The big issue here is that this purchaser can't buy unless they involve a keen vendor in a lying exercise. The vendor is keen - he wants to sell this property but all the signs are screaming that this is going to be a disaster.

As regards other mechanisms...much will depend on the deal struck - but there are such significant stamp duty, gift tax, CGT, implications that the solicitor needs to be very careful as to how it is structured so that if it ever becomes necessary to sue on the deal, that the contract will not be thrown out of court because its fraudulent.

"If thats the way they want to conclude the deal and it costs you nothing and you haven't received any other offers - don't pass up a good opportunity!"

And if they can't complete, and he sues on the Contract, and the Court throws the Contract out...................

mf
 
"And if they can't complete............"

Specific performance of the alleged contract

mf
 
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