Splitting contract for sale

dubdub2016

Registered User
Messages
3
Hi all,

If one were selling an investment property and it was a forced bank sale could one split the contract putting say €5k for furniture and appliances in order to get back some of what you had invested in the property over the years?
 
Take out the furniture and anything that isn't classified as "fixtures and fittings" and resell.
 
This is one of those circular situations which involves a lot of people going to a lot of trouble for not very much end result.

Presumably, there is very little value in the actual contents? This would be the usual scenario so they won't sell for very much if sold to a third party.

But let's assume they are very valuable so, yes, you could do separate contracts.

Now, get a valuer to value the goods and attach that to the Contract so we are all clear about the value. So when Revenue do a spot check or audit that there is evidence of the actual value. Its only a 50 euro difference in the stamp duty payable by the Purchaser but still..........

Now, we need a cash purchaser or someone with a lot of cash to put in.

Why?

Well, if they are borrowing from a bank, the bank will tie the borrower's solicitor in knots to confirm what the sale price of the property is, how it relates to the amount of the mortgage and they will not lend any funds to buy contents.

So, its beginning to look less likely.

But you could do a secret, separate contract for an amount to be paid, privately, by the Purchaser to the Vendor. Except you can't involve the solicitors because it's fraud on Revenue and the Bank. So you'll have to do it on the Q.T with the purchaser. Except that when they don't pay it, you have no recourse to the Courts because, yes, it's an illegal contract.

mf