Posted on: 16th Jun, 2009 02:54 pm
i buy a house.then sell it at a discount to a friend for quick profit.is it fraud.is it arms length.is the equity a gift.
Hi,
Welcome to our forum.
If you sellout you current house & you have get paid for that how it will be the fraud.
Thanks & Regards.
Welcome to our forum.
If you sellout you current house & you have get paid for that how it will be the fraud.
Thanks & Regards.
Hi
I don't think it will be considered as 'fraud'. But the transaction might be deemed as invalid. When you are selling a piece of property, the transaction should be at an arm's length. The parties involved should not be related to each other and the price at which the house is sold should not be too different from the actual market value of the house. If you give your friend too much of discount and the price you sell the house at is too lower than its fair market value, questions might be raised over the validity of the sale. You should consult a real estate professional before you sell it to your friend. He or she would be the best person to guide you on how you can sell the property for quick profit without it being considered as an invalid transaction.
I don't think it will be considered as 'fraud'. But the transaction might be deemed as invalid. When you are selling a piece of property, the transaction should be at an arm's length. The parties involved should not be related to each other and the price at which the house is sold should not be too different from the actual market value of the house. If you give your friend too much of discount and the price you sell the house at is too lower than its fair market value, questions might be raised over the validity of the sale. You should consult a real estate professional before you sell it to your friend. He or she would be the best person to guide you on how you can sell the property for quick profit without it being considered as an invalid transaction.
