Is this legal? Question from prospective new homebuyer

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D Test

• March 06, 2022 17:58

Hi,

I currently rent a home and approached the homeowner to ask about purchasing. He says the price is 450K, he also said he'll reduce the price to 400K if I agree to directly pay him 25K outside of closing. I am planning on financing through conventional financing, not through the homeowner. 

I've never heard of this... I assume he is avoiding paying income tax on the 25K. Is this legal for me? If it is legal for me how would I protect myself? 

Thanks in advance!

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  Will Leach

  • March 06, 2022 18:57

  Ask of your real estate attorney, period! 

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