Real Estate transaction bad money?

Question

I'm entering into a simultanious contract and closing with and individual who is purchasing one of my retail properties, should I be concern with the source of his money? In other words, I will be getting certified funds at the closing, but I don't know if he got his money from legal sources, is that my problem and how could it effect the deal?

Answer 1

Money launderers use real estate transactions with private sellers ALL the time. Yeah, I'd be worried. Ask your "buyer" for a disclosure statement and a thorough paper trail to explain his funding sources.

Otherwise, you are now party to a potential investigation from our friends in the FBI.

Answer 2

Have no fear, if they want to use funny money it's not your problem you are getting your funds from the bank "certified funds" how the lender allowed those funds to be deposited in their institution is their concern not yours. Further the title company and or closing office doesnt care either since by law they will be reporting the transaction to the IRS anyway.
The one thing you always want to do is to make sure that an IRS tax lien is not on the property and or on the paties to the transaction and you can order that from the title company prior to the closing.
Enjoy your dinero

Answer 3

That is not your problem. The only way that it could affect the deal is if the authorities were to step in and confiscate the funds prior to closing.

Answer 4

You could ask for documentation or a Prequalified letter from his source of funds.

Answer 5

i would tell you to take the house and put it where the sun does not shine if it was me your asked. i do not do anything illegal (i even hook my seat belt) unless you have proof (than you would all ready called the law) you have no obligation or right to question where the money came from.