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I just sold my house, and part of what I had to sign was a paper that basically made me swear that I hadn't given the buyer any money that was not listed in the closing documentation (for example, we paid some of their closing costs). The closing agent made it clear and asked directly, "Did you give the buyers any money directly? Or any gifts? Are you leaving anything of value in te house for the buyer?"
She is trying to find ways to circumvent laws and asking how to do so on a public board. What licensee is really going to risk having their license revoked because they advocated she "employ the buyer as a contractor to clean my garage for $20000" to complete a sale? What other advice would you really expect to receive?
I just sold my house, and part of what I had to sign was a paper that basically made me swear that I hadn't given the buyer any money that was not listed in the closing documentation (for example, we paid some of their closing costs). The closing agent made it clear and asked directly, "Did you give the buyers any money directly? Or any gifts? Are you leaving anything of value in te house for the buyer?"
Just because you were given a document to sign stating you didn't provide funds to your buyer doesn't mean you were not permitted to do so. I once did provide funds and was presented a confirmation document. The lender wanted to be sure the funds were not a loan that would have to be paid back and thereby increasing the borrower's debt obligations. I don't think these things are forbidden, the lender just needs to make sure the borrower doesn't have financial obligations that inhibit the lending/income/dept ratio that they require.
She is trying to find ways to circumvent laws and asking how to do so on a public board. What licensee is really going to risk having their license revoked because they advocated she "employ the buyer as a contractor to clean my garage for $20000" to complete a sale? What other advice would you really expect to receive?
That is not what the OP is doing at all. If you read their post, they asked in all caps if there was a LEGAL WAY to do what they were asking. Not how to get around the laws. Not everyone is a lawyer and knows exactly what all the laws say. Sometimes there is a perfectly legal way to do what you want to do, that the common person doesn't know if they don't ask.
For example on this question. I believe it is legal to give anyone money at any time. If I wanted to give someone money, I could walk up to them and hand them cash or a check, or whatever. However, there might be tax penalties for doing this. That doesn't make it illegal. However, a buyer wouldn't be able to use that money to get a mortgage, unless it was much later.
The question needs to be "Legal way to give a buyer money they can use for a down payment".
I can't think of anything right off for that, but a thought is that sellers often pay some or all of a buyer's closing costs. Points can be a closing cost. Could you pay a point or two to buy down their loan, thus making their payment less, perhaps allowing them to qualify for more?
I assumed that there was no way to legally reinforce a contract by offering the buyer money or property to buy. However, this is a common circumvented practice in many other areas of the business world. Sometimes they call it bribes, which is clearly illegal. Other times they call it finder's fees and all kinds of other ways to get around the law.
The comment about the 20,000K to do the garage cleaning was humor. I'm sorry that the supposed real estate agent could not see the sarcasm, but to make insulting remarks when you disagree with someone is certainly not in good taste nor is it germaine to an otherwise very civil forum.
The comment about the 20,000K to do the garage cleaning was humor. I'm sorry that the supposed real estate agent could not see the sarcasm, but to make insulting remarks when you disagree with someone is certainly not in good taste nor is it germaine to an otherwise very civil forum.
Yeah and you wonder why most people don't trust or think highly of Real Estate folks, if I was living close enough to this poster I would have searched for him and reported him to his board. Living on commission is a tough life but insulting people, even if they are really idiots, is not going to gain him any business. Good luck with the sale of your home.
For example on this question. I believe it is legal to give anyone money at any time. If I wanted to give someone money, I could walk up to them and hand them cash or a check, or whatever. However, there might be tax penalties for doing this. That doesn't make it illegal. However, a buyer wouldn't be able to use that money to get a mortgage, unless it was much later.
The question needs to be "Legal way to give a buyer money they can use for a down payment".
I can't think of anything right off for that, but a thought is that sellers often pay some or all of a buyer's closing costs. Points can be a closing cost. Could you pay a point or two to buy down their loan, thus making their payment less, perhaps allowing them to qualify for more?
We have already offered that publicly. We have also offered to add specific big ticket items to the house after the sale in an escrow account. I know that brokers locally have offered to pay for the first 6 months of the mortgage by putting the money up in escrow---perfectly legally.
So there really are legal ways to give the buyer money.
We have already offered that publicly. We have also offered to add specific big ticket items to the house after the sale in an escrow account. I know that brokers locally have offered to pay for the first 6 months of the mortgage by putting the money up in escrow---perfectly legally.
So there really are legal ways to give the buyer money.
Most states allow rebates through the RE companies. Lenders don't allow the seller to give the buyer down payments though.
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Good luck with the sale of your home.
