Hi forumers,
not sure if anyone has any thoughts on this situation but say i had a house…asking price $345K and there’s a buyer’s agent who’s offering to sell it using this strategy:
the buyer will write a cheque for $30k and give it to us then take control over the property during a long settlement ie: 3,6 or 12 months. I still own the property, i still have the mortgage in my name etc but the buyer will pay mortgage and expenses.
Buyers agent says he has done quite a few deals like this and it is always in the vendors favour because if the buyer decided not to settle etc, we’ve still got the $30K upfront………….so what benefit would there be to teh buyer if the buyer is paying the mortgage and expenses yet not have ownership of the property?
Any thoughts on whether this seems all smells a bit fishy ??????
Cheers,
Kim
Kim Anand
[email protected]“Money Can’t Buy you Happiness but it Does Bring you a More Pleasant Form of Misery”
The buyer is probably hoping for an increase in the value of the property before settlement. I suppose it is just like a normal long settlment but they release the deposit and pay your expenses (and probably get the rent).
I am not sure how safe it would be for the buyer. What if the seller were to go bankrupt in the mean time? They probably could demonstrate beneficial ownership, but things could get messy.
Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
