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Have you ever paid or received a house deposit in cash?

Discussion in 'The Buying & Selling Process' started by Bullion Baron, 12th Nov, 2015.

  1. Bullion Baron

    Bullion Baron Well-Known Member

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    Had a discussion on Twitter today about a higher growth rate for $100 notes in circulation, I suggested it might be an increase of foreign buyers using a cash deposit to buy property. A real estate agent called this out as nonsense, said a vendor would take another offer before taking a deposit in cash (too risky). I have read media reports of Chinese investors buying with suitcases full of cash (or perhaps used for the deposit), are such reports just nonsense?

    Have you ever accepted (or paid!) a substantial property deposit (i.e. $10k+) with cash?

    If you are a real estate professional (solicitor / conveyancer/ agent), have you ever or would you refuse to accept cash and take an offer from another party with a lower offer if there was no compromising with the buyer who wanted to pay using this method?
     
    Last edited: 12th Nov, 2015
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    My business doesn't accept cash at all. Personal stuff rarely use cash for anything. I thought it was going extinct? :p

    Always been online banking transfer for the properties I've bought.
     
  3. larrylarry

    larrylarry Well-Known Member

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    A prospective client offered to pay my fees with silver bars (took them out from his bag) and I politely declined. :)
     
  4. samiam

    samiam Well-Known Member

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    if anybody pay my fees with gold bars, I would accept :p
     
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  5. D.T.

    D.T. Adelaide Property Manager Business Member

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    Would you assess their legitimacy? And weigh them?
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    AFAIK any cash transaction over $10k is reportable. Agency has a duty to bank the money by cob next business day.
     
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  7. larrylarry

    larrylarry Well-Known Member

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    For that reason and others, I declined.
     
  8. D.T.

    D.T. Adelaide Property Manager Business Member

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    Yup, this comes under the anti laundering legislation. Even electronic transactions over $10k are looked at as well though.
     
  9. samiam

    samiam Well-Known Member

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    @D.T. my public service fees are free. I don't think anybody would pay in gold bars :D. we can't accept/ not allowed more than $10 gift at work :p
     
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Front or top loader ?

    ta
    rolf
     
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  11. Bullion Baron

    Bullion Baron Well-Known Member

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    Yes it's a TTR, but not like that's going to disadvantage a foreign buyer if they happen to have the cash...
     
  12. Kinnon Bell

    Kinnon Bell Finance Broker

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    Always cheque or bank transfer.

    When I bought my first proper car as a young 'un I used 'cash' as a bargaining tool and I understood cash in the literal sense and not on the context of the car not being financed. So I rocked up to the car dealer with an envelope with $14k in it and handed it over. The car salesman just stared at my not quite knowing what to do with the wad of cash...
     
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  13. Marg4000

    Marg4000 Well-Known Member

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    About three years ago friend sold at on-site auction, $1.6m. Buyer had a bag and paid $160K in cash for the deposit. Took agent nearly half an hour to count, check and receipt.
    Marg
     
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  14. Random Username

    Random Username Well-Known Member

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    Many years ago a friend of mine paid the whole purchase price for a block of land in cash.

    It was $30.

    First one to say that's BS is wrong..........
     
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  15. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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    I've been at auctions where cash was paid as deposits (not our clients though :D) and I heard about the nervousness caused by one poor agent who had to dash and safe-stash until banks opened on Monday.... not a recommended form of payment in this day and age :rolleyes:

    When I sold one of my cars the buyer insisted on paying cash- originally he wanted to meet at a cafe but I insisted on a bank :D

    We've also had many a client pay us in wads of cash but we always ask before we accept... you just never know these days who's around the corner watching...
     
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  16. Xenia

    Xenia Adelaide Property Manager Business Member

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    Yes I have settled a property before by paying $150,000 in cash.
    I needed it settled that day and bank transfers would have caused a delay.

    I put absolutely no emotional attachment to money it does not scare me
     
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  17. Kinnon Bell

    Kinnon Bell Finance Broker

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    The thought of being mugged of my hard earned money (or someone elses) scares me!
     
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  18. skyfall

    skyfall Well-Known Member

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    I paid $90k cash for a condo (smuggled cash in from another country) and also paid $40k cash as a bullet payment on another condo. None of these properties were in Australia though. I couldn't do bank transfer at the time and couldn't find a remitter. I was also having difficulty opening bank accounts in these two countries due to anti money laundering laws but have since managed to do it after bribing some bank officials.
     
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  19. Xenia

    Xenia Adelaide Property Manager Business Member

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    Most people have the same view point as you Kinnon.
    I figure that if someone wants to mug me and was desperate enough they would do it whether I was carrying $150,000 or $10.
     
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  20. Mumbai

    Mumbai Well-Known Member

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    You had that much change lying around? Or checked under the sofa?
     
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