Purchase Price Change At Closign
I was selling a property, and a buyer wanted to give me a contract with an assignment clause. (Perfectly normal) but at closing he wants to change the purchase price to the amount he agreed with his buyers (assignee). In the HUD it shows the new purchase price (not agreed by me) it was negotiated between the assignor and assignee, and on the sellers side (my side of the hud) there is a fee for the difference between my original purchase price and the assign purchase price.
My questions are:
1) Is this the only way to do an assignment?
2) Can I just keep my initial contract price on the HUD and put the assignment fee on the buyer’s side instead (would the lender like that) and if yes how much is a cap for that kind of fee (this fee was High in my case)
3) If I go through the transaction the way they wanted do I expose myself to higher tax liability because the selling price is higher? Or do I have any way to prove that the fees even thought I sold for higher price it was not part of my income?
4) If this deal is not 100% kosher do I look like I agree to a higher purchase price to increase the assignor position in the deal?
5) Is there any other way to sell a property with an assignment contract and not modify the sellers purchase price on the HUD….
Please I will appreciate any comments or suggestions.
The key word here is MOTIVATED SELLERS.
Rule #1 = You make your money when you buy.
This is a numbers game. You have to look at X number of houses on the MLS to find a deal with a realtor. You have to look at X number of FSBOs to find a deal. You have to look at X number of REOs to find a deal. You have to look at X number of listings in your newspaper classifieds, or ebay, or pennysaver to find a deal.
The alternative would be to advertise and let deals come to you. Check out the marketing forum for info that will get you more deals by advertising for motivated sellers.
yes Panic,
fabprefab and livemodern are good forums.
is it realistic to have a builder be able to close in 15 days if they get a good wholesale price?
What amt of earnest money should i ask for w/ the PA? i got the property for 450 and selling for 550