Legal Question in Real Estate Law in Illinois

Re: Purchase price

It seems that the buyers are trying to pull a fast one on Uncle Sam - a lower purchase price means less taxes to pay - be careful that you do not participate in fraud -

Re: Purchase price

My hunch is that the purchaser wants a lower amount recorded on the sale for real estate tax purposes. In other words, the tax assessor uses sales data in performing assessments -- the lower the sales prices, i.e., market value of the home, the lower the real estate taxes.

It is permissible to sell your personal property with your home, say, furniture, etc. But, whatever personal property you sell must have some realistic correlation to its market value. Don't sell your Chevy for $150K.

You want to make sure that you are not a participate, i.e., conspirator, in an attempt to defraud the government out of its tax revenues.

Also: What does your real estate lawyer say?

-- Kenneth J. Ashman; www.AshmanLawOffices.com

This communication is intended for informational purposes only and is not intended to create an attorney-client relationship, which, under the policies of Ashman Law Offices, LLC, can only be created by execution of a formal retention agreement.

Re: Purchase price

If you want to have 2 separate agreements to equal a price of $500,000 I suppose this might be okay. The first question that comes to mind is, "Why?"

If you want to go ahead with the sale and the two agreements, I would get both in writing before signing etither one. Also, make sure that if you are not signing at the same time as the other parties, that they sign the agreements first.

Again, this seems like an odd situation without knowing more about it.

Very truly yours,

Thaddeus J. Hunt

DISCLOSURE: The information provided herein is for informational purposes only and should not be construed as legal advice. The response to your question provided herein should not be construed as creating an attorney-client relationship. Purusuant to office policy, such relationship is created only when a signed agreement is enetered into by the firm and potential client.