ᐅ Is it common to buy land and pay part of the price in cash?
Created on: 14 Feb 2018 12:53
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Vanyleon87
Hello,
I’m not sure if this is the right place, but we need some help. Here’s the situation: we found a piece of land privately where we want to build. However, the owner wants to do it so that only part of the amount is stated in the official purchase contract, and we would pay the rest in cash. (She mentioned maybe in an envelope in the notary’s waiting room, so she doesn’t have to pay tax on the full amount.)
We are very uncertain and find it strange that she wants to handle it this way. What do you think about that? We’re not sure if this could be considered tax evasion, which of course is completely unacceptable!
Thank you very much for your help.
I’m not sure if this is the right place, but we need some help. Here’s the situation: we found a piece of land privately where we want to build. However, the owner wants to do it so that only part of the amount is stated in the official purchase contract, and we would pay the rest in cash. (She mentioned maybe in an envelope in the notary’s waiting room, so she doesn’t have to pay tax on the full amount.)
We are very uncertain and find it strange that she wants to handle it this way. What do you think about that? We’re not sure if this could be considered tax evasion, which of course is completely unacceptable!
Thank you very much for your help.
T
toxicmolotof14 Feb 2018 19:54Well, partial payment in cash is certainly possible, but the notary should include this in the contract, and the handover must take place in the presence of the notary to ensure everything is proper and legal.
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chand198614 Feb 2018 21:23jansens schrieb:
Do you offer that, of course only after signing with the notary. Then proceed as in the example.Some suggestions just leave you shaking your head.
Garten2 schrieb:
Friends sold a plot of land to their neighbors in a similar way 25 years ago.
However, the remaining payment was supposed to be handed over in cash the next day during a meeting. This did not happen.
When asked, the buyer was quite surprised and said: "Why should I owe you any more money? We settled everything through the notary."
To this day, the two families are bitterly hostile to each other.This idea just came to mind for me as well.
It would actually be a completely legal way to get this/a plot of land very cheaply and to get back at the lady a bit.
Later on, she can't really complain – everything was properly handled through the notary.
Let’s consider what would happen if she reported it...
By doing so, she would effectively incriminate herself, due to the principle of legality.
She probably wouldn’t do this, as it would lead to her entire business dealings being scrutinized...
So: Buy! Buy at an official bargain price with a notary of your choice.
That’s neither one thing nor the other. Either I keep everything clean and don’t participate at all, or I take part and want my advantage, which means I take the risk, become liable to prosecution, and go with the cash-under-the-table option. What good does cash in the presence of a notary do? If the notary sees that 120,000 euros are involved, they cannot certify only 77,000 euros. They will certify the full 120,000 euros, so who benefits from this except the original poster if they have large amounts of cash hidden and need to launder their money? However, that does not seem to be the case. Karsten