Legal Question in Real Estate Law in Illinois

Cash back at closing
I have recently seen several offers involving selling of condos in which developers or owners are offering hugh cash back amounts. One specific deal that I have seen pitched was promising $35,000 one week after closing.
My question is, I have thought such deals were illegal. Is there anyway in which getting $35,000 back from the seller one week after closing is legal.

Asked on 1/26/08, 9:03 pm

3 Answers from Attorneys

Thomas Moens Moens Law Offices, Chartered

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Re: Cash back at closing

If there is a lender involved, it must be disclosed on your HUD-1 Settlement Statement. If it is a cash transaction, it is not illegal. If there is a lender, and the seller kickback is not disclosed on the settlement statement, it is without question illegal.

Answered on 1/29/08, 12:26 pm

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Nicholas Chrisos Nicholas G. Chrisos Attorney at Law

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Re: Cash back at closing

If it's disclosed on the RESPA or HUD-1 form, it's legal unless there is some other reason why not. My question is, why do you have to wait until a week after the closing, why isn't it available at the closing?

Answered on 1/28/08, 10:54 am

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