Kalidor 0 Report post Posted November 5, 2009 (edited) Hi, my friend was asking me about this... She's looking to buy a resale flat and the total asking price by the seller is 550K (520K + 30K COV), but the seller's agent has told her that its a negative sale by the seller and is asking her to declare the actual transaction price as 542K and then the seller's agent will collect the remaining 8K (which is part of the seller's agent comm) from her. She got a couple of questions about this situation. 1. Is it illegal? 2. Will anyone get into trouble? 3. What is a negative sale? 4. What difference does declaring a lower value make in this case? 5. Any other important things that she should take note of or ask before going ahead with this arrangement?? Thank you on behalf of my friend... Edited November 5, 2009 by Kalidor Share this post Link to post Share on other sites
yoongf 11 Report post Posted November 5, 2009 http://www.asiaone.com/Business/My+Money/P...0305-52747.html Don't play this game if not familar. Share this post Link to post Share on other sites
coldflamez 0 Report post Posted November 5, 2009 Declaring the wrong value of the transaction is illegal and could land your friend in serious trouble. The seller should pay his agent himself. He should have enough cash since he is pocketing a tidy sum of 30k in COV.... The agent should not even have proposed this in the first place! Another case of unethical housing agents running around... Hope MND comes down hard on them with the proposed legislation of the industry... Would be good if your friend can report this to IEA or SAEA, let's try to weed out all these unethical agents! Share this post Link to post Share on other sites
coldflamez 0 Report post Posted November 5, 2009 Declaring the wrong value of the transaction is illegal and could land your friend in serious trouble. The seller should pay his agent himself. He should have enough cash since he is pocketing a tidy sum of 30k in COV.... The agent should not even have proposed this in the first place! Another case of unethical housing agents running around... Hope MND comes down hard on them with the proposed legislation of the industry... Would be good if your friend can report this to IEA or SAEA, let's try to weed out all these unethical agents! Oh, another possibility is that the agent is doing this behind the seller's back and pocketing the extra cash himself while also collecting commission from the seller... I have read too many horror stories, so a bit paranoid already... Share this post Link to post Share on other sites
therat 18 Report post Posted November 5, 2009 1. Is it illegal? ==> illegal. Police caught. Got real lift example, Jail term 2. Will anyone get into trouble? --> yes. Everyone that get involve in this. Agent, seller, buyer. lawyer if they knew abt this arrangement. 3. What is a negative sale? --> Seller don't earn $$ 4. What difference does declaring a lower value make in this case? ==> under table, cash back. False declaration, Police case. 5. Any other important things that she should take note of or ask before going ahead with this arrangement?? ==> Don't agree. If the agent insist. drop the sale. Forget about this unit. Complain to IEA, file police report (i think can), HDB One word, DON'T Do it. By under declaring the value. U are cheating on stamp duty too -- Government will come after u Share this post Link to post Share on other sites
asoon88 0 Report post Posted November 6, 2009 Hi, my friend was asking me about this... She's looking to buy a resale flat and the total asking price by the seller is 550K (520K + 30K COV), but the seller's agent has told her that its a negative sale by the seller and is asking her to declare the actual transaction price as 542K and then the seller's agent will collect the remaining 8K (which is part of the seller's agent comm) from her. She got a couple of questions about this situation. 1. Is it illegal? 2. Will anyone get into trouble? 3. What is a negative sale? 4. What difference does declaring a lower value make in this case? 5. Any other important things that she should take note of or ask before going ahead with this arrangement?? Thank you on behalf of my friend... Your friend is very rich ! $520K + $30K COV and she can afford it ? These are the people driving HDB flat prices through the roof. Go ahead do the "under table thing". She can afford to pay the fine if caught anyway. Share this post Link to post Share on other sites
Kalidor 0 Report post Posted November 6, 2009 Your friend is very rich ! $520K + $30K COV and she can afford it ? These are the people driving HDB flat prices through the roof. Go ahead do the "under table thing". She can afford to pay the fine if caught anyway. Hubby can afford mah... anyway.... after I told her about what I read here, she decided against going ahead with something illegal... So... all's good... Thanks a bunch for your help guys... Share this post Link to post Share on other sites
JustMortgage 0 Report post Posted November 6, 2009 Hubby can afford mah... anyway.... after I told her about what I read here, she decided against going ahead with something illegal... So... all's good... Thanks a bunch for your help guys... When in doubt always ask. Plenty of scams going around in an unregulated market. Hopefully the MND consultation paper will change things in the future. Share this post Link to post Share on other sites
