Cash Payments

I have bought off plan through Atlas and am about to complete.    My final 'liquidation'  costs include 7% IVA to be paid in cash to the builder.       Any thoughts on why this payment is made in cash?

Also, I am being told to allow a further 4% of the total cost of the property for conveyancing, paid up front on day of completion, again in cash, and when the Deeds are finalised I will be refunded any costs not incurred.    Is this normal practice?

Thought I'd resurrect this thread as I too have an uneasy feeling about dealing in "cash".

I am completing next week and have been asked to divide into different amounts including a "cash" amount of 3,750 euro, which isn't the IVA as it's not high enough. The figures all add up ok but who in their right mind is going to carry around 000's in cash.

Maria (or anyone else) I transferred whole amount plus extra as some figs were estimated to my own solicitor. Can I insist the developer accepts this from solicitor and divides it up themselves? I'm not happy about cash at all, and if I'm not happy I'm not signing.

You can refuse as it is illegal to pay anything in black. Its not illegal to pay cash providing there is proof of where it is going.

It may be the agnets fee asked for in cash where they have given an invoice but cant wait for a cheque to clear. You can issue an al portador cheque, which is as good as cash as the holder takes it to the bank with his/her id and cashes it and avoids holding actual cash.

Check with your lawyer and once they have the final fugures in order to issue the cheuqes, just say all in cheque and dont take no for an answer.

Good luck.

From experience it may well be illegal but if you don't agree to complete with black money involved, the developer generally just ignores you & your solicitor & then you're in quite a situation with flights arranged,  hotel for a few nights arranged, money arranged, insurances arranged, animals booked into cattery/kennels & that's just if you plan to be non residents. If you're moving permanently you have schools & removals, UK house sale etc as well. It causes so much chaos. It happened to us. We said no black money but that didn't prevent it happening. With 100,000 € already in our builder's pocket & same waiting to be paid how can you not go down that road ? We completed almost three years ago & I sincerely trust it is better now  for new buyers as notaries are watching paperwork more. I somehow doubt it though. How do you protect yourselves ?

Edited to say I meant we'd already paid 100,000€ in stage payments which builder would've kept hold of if we continued to refuse to "comply" with the black money route. Think we paid almost 46,000€ in black money. Rumour at the time said "a certain percentage was acceptable" (before the builder was in sh*t with authorities) which, of course, it wasn't but it really was a case of pay it or lose sale.By the time you've got to that stage you are stuffed. Don't say you need a good solicitor as we know that but it doesn't mean you "win". Our friends sat on their completion for months with solicitor trying to sort it & in the end they had to decide to complete. No one can just lose so much money.

Sandra,

We completed in October 2007 and were told exactly how much money was due before we went to sign. There was a cash amount due of 400 euros to cover electricity set up and valia tax.

4% seems high, our final amount was 2.8% and that included 2,255.00 for legal fees, 1,500.00 for Notary and %Deed Tax 2,311.00 and this also covered making our Spanish wills.

It would be worth asking for a breakdown of costs before you agree to sign. Carrying large amounts of cash out of a bank is never a good idea.

In the end as More. says it is a hard decision when you are poised ready to get on with organising your new house.