What legal statute is applicable with an illegal side-agreement to prove fraud?

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I didn’t have room for the full question…so I’ll reprint it here:

“Our realtor had us, has sellers sign a ’side agreement’, in which we were to give the buyers $2,000 cash at closing for repairs to be done after the closing on the property? This side agreement stated it was not part of the contract to sell, it was not given to title company for disclosure, does not showing on the HUD-1 and as far as we know, was not given to the buyers lender. The loan amount of the buyer remained constant…no
reduction is selling price of our home to compensate for repairs to be done post closing.

By the way, we did not pay $2,000 to the buyers at closing. They are taking us to small claims court in attempt to get the court to award them $2,000 from us. After some research and reading that a ’side agreement’ is illegal and a form of fraud, that cash cannot be passed between buyers and sellers at closing. What legal statute is applicable with an illegal “side-agreement to prove fraud? “

First, the real estate agent is the “creator” of the fraud, so you’ll want to counter sue naming the sellers and the agent, the agents broker, and the franchise real estate parent company. Naming all those parties and seeking damages in excess of your state’s small claims court limits usually $5,000, will elevate the case up to district court meaning everyone will need to obtain a lawyer…including you.

This is actually great because now all parties are involved and the most likely outcome will be the real estate agent, the broker and the company wanting to avoid embarrassment, will cajole the sellers into dropping the suit. The other named parties will pay them the $2,000 and get them off your back.

When you asked me this question a few weeks back I instructed you to contact all the agents including the agents broker and threaten to report them to the State Real Estate Commission since they produced the side-agreement for you to sign. My guess is you didn’t do that or you wouldn’t be back asking this question…am I right?

Leave me a comment below if I am…

Good Luck