Construction chair David Pfeffer is quoted in Brick Underground’s article, “Closing credits: What are they and why would you negotiate for them?” The article explores the many risks associated with transactions that involve closing credits, which as the article explains, is a sum of money the seller pays the buyer at the closing, helps to reduce the actual price of a property while allowing for a higher recorded selling price. David explains, “If you misrepresent the price in a closing document, that would be a fraud.”
In addition, David also disputed whether closing credits are helpful when the transaction involves a resale, noting, “Both parties are going to want to show a lower sales price, the seller—because it reduces the transfer tax, and the buyer—because taxes are based on sales price—is going to want to be sure that the tax records reflect the lower price rather than the higher price.”
Read the full article.
|Pfeffer, David J. Partner and Chair of Construction Group||Partner and Chair of Construction Group||212.216.8075|