Kick backs

[ebrian]

Hello,

I have a question to ask. Let's say someone is acquiring some
property, and through negotiations the buyer manages to convince the
seller that they need 50k discount for mandatory repairs to the
property. However instead of reducing the final sales price by 50k,
the seller keeps the sales price but instead offers the buyer 50k on
the side of the deal.

Is this legal? I've been told it's a grey area.

Also -- are there any further implications if say, the buyer is a non-
profit organization? In which case the side deal is then a "donation"
which the seller can then get a tax refund for?


Thanks