Real Estate

Friends asked to make a shill bid on the home

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  • Nov 11th, 2017 11:22 am
Deal Addict
Sep 12, 2017
2483 posts
284 upvotes

Friends asked to make a shill bid on the home

Hi Folks,

Have some friends which asked if I can put a shill bid on their home. Guess the idea is that an agent will be able to say there is a bid on the home. I have no real intention on buying the home though. I'm not entirely comfortable with the process. What do you guys think about this?

Cheers,
68 replies
Deal Fanatic
Jun 29, 2007
6041 posts
2750 upvotes
Vancouver
reggyDeal wrote: Hi Folks,

Have some friends which asked if I can put a shill bid on their home. Guess the idea is that an agent will be able to say there is a bid on the home. I have no real intention on buying the home though. I'm not entirely comfortable with the process. What do you guys think about this?

Cheers,
I wouldn't do it. At the very least, it's unethical.
Deal Fanatic
May 31, 2007
5018 posts
2175 upvotes
Yes that would be fraud, ask your friend if the agent suggested doing this and please report their name here so we can give to authorities,

Thanks
Last edited by Jungle on Nov 4th, 2017 12:48 pm, edited 1 time in total.
Deal Addict
May 9, 2017
1261 posts
1393 upvotes
reggyDeal wrote: Hi Folks,

Have some friends which asked if I can put a shill bid on their home. Guess the idea is that an agent will be able to say there is a bid on the home. I have no real intention on buying the home though. I'm not entirely comfortable with the process. What do you guys think about this?

Cheers,
You not being comfortable with the idea should guide your decision.
Deal Addict
Sep 12, 2017
2483 posts
284 upvotes
Jungle wrote: Yes that would be fraud, ask your friend if the agent suggested doing this and please report their name here so we can give to authorities,
Thanks
Nope believe it's the friends idea, the agent is not aware of it.
Buggy166 wrote: Gut instinct. Stick to it.
Yeah I'd prefer not going there.

Do you actually have to put a downpayment for the bid to be official? They've just bought a house, went to many viewings. Believe they saw how much money realtors make and how untransparent the whole transactions are. Probably experiencing some shady outbids themselves. It seems it's part of the industry.
Deal Fanatic
Jan 15, 2017
5750 posts
6123 upvotes
Ottawa
Time to look for new friends. Your friends are asking that you commit a fraudulent act in order that they may potentially better themselves financially. So, you commit the crime, you take the risk and deal with the potential fall out while they reap the financial rewards. They are also deceiving their realtor in this process and anyone else who may also be interested in their home. These are not your friends - not in any shape or form are these your friends. These are deceitful and dangerous people who are looking for their scapegoat.
Deal Fanatic
Jul 3, 2011
6517 posts
3798 upvotes
Thornhill
I feel for the honest buyer who is up against such crookedness.
Deal Expert
User avatar
Sep 21, 2010
15185 posts
4647 upvotes
Montréal
skeet50 wrote: Time to look for new friends. Your friends are asking that you commit a fraudulent act in order that they may potentially better themselves financially. So, you commit the crime, you take the risk and deal with the potential fall out while they reap the financial rewards. They are also deceiving their realtor in this process and anyone else who may also be interested in their home. These are not your friends - not in any shape or form are these your friends. These are deceitful and dangerous people who are looking for their scapegoat.
Was gonna say that. Scary what schemes go on in some unscrupulous ppl's minds.
Hard work, inheritance, interest on interest accumulating, and stock and real estate speculation. It's all good.
Deal Expert
Oct 7, 2010
15536 posts
5790 upvotes
OP friend is quite an idiot. Asking a friend to commit fraud is no friend.
Deal Expert
User avatar
Apr 21, 2004
58648 posts
24637 upvotes
Would would they ask you when they can do shill bids on their own?
Sr. Member
User avatar
Oct 19, 2016
650 posts
208 upvotes
Toronto
what if you ended up being the highest bidder and your friend decides to force you to buy ?

it could end bad for you... unless you really trust your friend.

reggyDeal wrote: Hi Folks,

Have some friends which asked if I can put a shill bid on their home. Guess the idea is that an agent will be able to say there is a bid on the home. I have no real intention on buying the home though. I'm not entirely comfortable with the process. What do you guys think about this?

Cheers,
Deal Addict
Jan 17, 2006
2496 posts
2740 upvotes
Toronto
When must a deposit be paid?

In Ontario, the standard real estate contract gives the buyer two choices; you can pay the deposit immediately when you make an offer, or you can agree to pay it within twenty four hours after the seller accepts it. Most buyers prefer the second option. If you are in a bidding war, you will be encouraged to come up with the deposit immediately, to show good faith to the seller.

Can the buyer get out of a deal by refusing to pay the deposit?

No. Once the deal is accepted, you can’t change your mind. If you do, the seller can sell the property again and if he gets less money than you were going to pay the seller can sue you for the difference, plus legal fees.
Deal Addict
User avatar
Jul 8, 2010
1459 posts
1176 upvotes
Ontario
I do not agree with the proposed approach. But, if it is must and you want to help him, you can go with an offer with lots on conditions. And be sure that one is not possible. Definitely not ethical, but same time is not fraudulent.
Banned
Aug 28, 2017
301 posts
366 upvotes
Do it.

Put in a small bid and problem solved.
Member
Jun 12, 2017
377 posts
377 upvotes
Rocko24 wrote: Do it.

Put in a small bid and problem solved.
It is still fraud, and is intended to force the buyer to pay more (the buyer does not have to be told what the bid was.. just that there is a bid, to make them think that they are in a bidding war).

It would still be dumb for the buyer to pay more than they would have otherwise ofcourse, but that does not make this fraudulent behaviour OK IMO.
Banned
Aug 28, 2017
301 posts
366 upvotes
trekkie500 wrote: It is still fraud, and is intended to force the buyer to pay more (the buyer does not have to be told what the bid was.. just that there is a bid, to make them think that they are in a bidding war).

It would still be dumb for the buyer to pay more than they would have otherwise ofcourse, but that does not make this fraudulent behaviour OK IMO.
Never said it wasn't wrong...was just telling OP how to do it if he wants to do it.
Deal Addict
Mar 14, 2006
2290 posts
2343 upvotes
Toronto
That would be total dishonesty!! This is not the type of agent that I would even recommend....your friend should fire the agent!!

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