Legal Question in Real Estate Law in Illinois

I'm negotiating a condo sale the seller wants to do a purchase order separately for the appliances and other fixtures. In this transaction I would be purchasing over-market value for 25K cash, about 6% of total deal. Am I putting myself at risk if I proceed with this deal?

Asked on 5/16/13, 11:37 am

2 Answers from Attorneys

Thomas Moens Moens Law Offices, Chartered

Not sure I understand the scheme entirely, but I can say that:

1. If you are paying $25K more than the property is worth, you are at risk.

2. If you are trying to defraud or trick anyone (county, IRS, your lender, the seller's lender, etc.), you are at risk.

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Answered on 5/16/13, 11:41 am

I agree w/ Mr. Moens. The seller is trying to be "cute" and is putting both him and you at risk over what is a relatively minimal amount of transfer tax. That being said I have had deals where the seller excluded a fridge, washer/dryer and some specialty fixtures (such as a dining room light fixture) but either agreed to replace the items as part of the deal or sell them separately, but that is relatively rare. And certainly never for anything "attached" and never for anything close to $25000.00. For the amount of transfer taxes involved, the risk is not worth it and frankly, the buyer side risk is higher.

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Answered on 5/16/13, 1:41 pm

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