Buyer's mortgage broker is asking for seller's tax returns

April 21, 2022 2:19 PM

Is this normal? I am selling a rental property and the buyer's mortgage broker has requested our tax returns. If it matters, the mortgage will be for about a fifth of the value of the building and the rents are about 1/2 of the going rents in my city.
posted by InkaLomax to Work & Money (2 answers total)

I've heard of this when it's a rental property, usually to verify what the rental income actually has been. (The more common risk to the buyer being that you've exaggerated the current rents, rather than your case where they'll presumably hike them, but that's beside the point)
posted by Tomorrowful at 2:21 PM on April 21, 2022 [4 favorites]

Best answer: If you don't feel comfortable showing the whole thing, you could ask if they'd accept just your schedule E which has the rental income and expenses on it. I can't see how the rest of your return would be relevant.
posted by Larry David Syndrome at 3:52 PM on April 21, 2022 [11 favorites]