by Tim O’Dwyer M.A., LL.B
Last week I received this email:
I was wondering if you could help me with a strange clause. A woman wants to purchase a property for $500,000. She wants to get extra money from the banks to cover deposit, so this is what she proposes:
Contract Price: $670,000
30% deposit (deposit is not physically paid, but sellers acknowledge that the deposit has been)
Then at settlement, she pays the $500,000.
This means that the property appears to have sold for $170,000 more.
My question is whether this is legal as it seems to be misrepresenting the true contract price?
With no questions asked, my reply was short and sweet:
“Mate, people have gone to jail for this sort of fraudulent conduct.”