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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