Loan made to buyer

[vlar]

Hi

I was wondering if anyone could give me some advice please?

A family member is trying to sell their house and to try and speed things up they have made an interest free loan to the potential buyer. They didn't seek any legal advice and have written up their own agreement.

What I was hoping someone could help me with is firstly is this is actually allowed/is this legal more importantly. And if not is it likely to have any ramifications with the sale going forwards?

Personally I think they have been scammed and I doubt the sale will go through, but on the off chance it does proceed I would ve grateful for any insight.

Thanks

[Stuart Phillips]

Yeah, my first reaction would be one of surprise if the deal goes through and they see that money again. It should have been handled by the lawyer and its unlikely a home made contract will hold up in any legal proceedings.

The buyers will also have to disclose this to their lender, who will usually deduct any cash incentives from the purchase price, which leaves the gift quite redundant in a lot of cases.