Question:
I’m selling a waterfront acreage that is split into 4 parcels. For financing purposes the buyer would like 4 separate offers with two of them being in the amount of $1. In reality, each of the four lots are of equal value. Are there any issues with doing this?
Answer:
There are several issues with valuation and the allocation among the 4 lots. The issues involve taxation, capital gains, exemptions and financing. It’s easy to assist with “paperwork” which represents (or misrepresents) the true nature of the transaction.
Make sure that each contract refers to it being conditional upon the simultaneous conveyance of the other three lots. This way from a Seller’s perspective everything is up front and nothing concealed. This avoids later problems concerning collusion, misrepresentation, concealment, fraud and tax evasion.
Brian Madigan LL.B., Broker