Updated almost 9 years ago on . Most recent reply
Purchase Agreement- purchase price differs / escrow is less
I signed a purchase agreement to sell a property for 490,000. It was written that my total proceed would be 250,000 less any taxes etc. Buyer stated that he needed to state the higher number so the hard money lender would finance.
-Will I be taxed for the 450,000 (3.3 rule) before escrow releases funds?
-What may be other reasons for the differing sales price to my "proceeds"
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#1 Foreclosures Contributor
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#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
I'd have an attorney review that, it doesn't really make sense. A HML isn't going to make a loan based on just some random sales price, they will do their own valuation/appraisal, along with verifying the buyers funds for the balance .....so the reasoning for the higher price doesn't jive. I'm not sure what else the game could be here, but I'd be suspicious. It wouldn't affect your gain but it would also affect any transfer tax payable by you.
@John Thedford any ideas?