is it legal to have a cash real estate transaction where the buyer pays above the asking price and receives the cash back from the seller at closing?

Asked on June 14, 2009 under Real Estate Law, Michigan


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Why? Doesn't make sense.  So a buyer pays $100,000.00 cash for a house actually selling for $90,000.00 and gets $10,000.00 back? It doesn't make sense unless you are doing it as a non-cash transaction -- like a lender is involved -- then it is completely illegal.

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