A person can ask for anything they want.  Whether they get it or not is another story!

I would say no that's it confidential info that makes no difference. If the buyer is already pre-approved, it's none of the sellers business.

Ask & receive are two different issues.

Of course they can ask for whatever, but getting it is another issue. Don't know if legally they can request certain things and there are issues regarding identity, especially with SS #s on your W-2 and tax forms.

I've had that during leasing a property, but never during a sale. 

If there were owner financing involved, otherwise I don't see the point as long as proof of funds is required for a cash offer.

I suspect that you can ask for whatever you want for proof, and the other side can refuse to provide it as well.

I don't even like having my buyers give a financial statement - once you get a letter from a credible lender I think that is it - I tell the agent to call the lender and talk our offer over - but then if the seller is going to be insistent.... 

That's a little too much to ask for.  

You've gotten some great answers here so far. An addendum is an "ask" and what the other party does with it is up to them. Just like a seller can request the purchase price be raised by $50,000 and all contingencies be removed they can do what you outlined in your question - the buyer, however, is by no means obligated to agree to the addendum. I agree, it doesn't seem right - quite bizarre (its the buyers' lenders job to vet all of those items so a pre-approval and listing agent's conversation with the lender should suffice in most situations)

I am with Susan Emo.

This sounds like going over board. I would not give out this personal information to anyone other then the lender. 

They can say they're requiring it but, the buyer doesn't have to agree to it.  That's crazy!  They do provide proof-of-funds when paying cash but, pay stubs, taxes & W2's is a bit too personal!

Asking is one thing, getting is another - I wouldn't divulge that information to a residential seller but is often required in commercial

DU approval should be sufficient 

I would seek legal advice. Do the sellers want to see this to counter the offer (for example, seeing if they can pay full price or pay their own closing costs)? I would also have a serious discussion with the seller's agent about this. I have clients who would walk if this was a condition of the offer. Maybe the sellers are a little ignorant about the process and think they are covering their bases, and the agent is doing what's been asked?

They can ask, but whether they get is a completely different story. Probably not illegal, but who would give the seller all the information and risk confidentiality. If a loan is involved this info will be provided to the lender.

A seller can ask for anything but these kind of requests will be a turn off for some buyers.

Require?  Doubtful

Ask?  Of, course.

Legal?  Consult an attorney.  

Ask however, you shall not receive.  Looks like that home will be on the market a long, long time

We have a proof of funds form but it does not request tax returns or pay stubs...

Stephanie Leon | Miami Lakes Realtor® - asking and getting are two different things.

This is a sensitive information for buyers - and they may not want to share it with sellers.

Consult legal counsel in your jurisdiction in order to determine the legality.

If it is legal, the seller can require whatever the seller wants, but the buyer can choose not to agree to this condition and thus, the seller may need to find another buyer and/or remove this condition.

You can ask ,but if it was my client we would be walking out the door.

Ask & receive are 2 different things.  I'd respond with a giant, flat out NO --- who's securing/encrypting the transmittal of those documents?  Who's storing them safely or ensuring they're disposed of properly?  

Perhaps offer a counter addendum that states buyer will happily provide all financials if seller accepts all liability that would come as a result of identity theft from mishandling documents for lets say the next 10 years??

Sellers need to get a grip - 95% of them wouldn't even know how to read a tax return when it comes to qualifying for a mortgage.  Hell, half the licensed loan officers out there don't even know how to read a tax return with regard to mortgage qualifying.

I would think this comes under the privacy act, and would only produce a lender letter.

Good Sunday Stephanie,

If the seller is doing owner financing, he would have the right. Otherwise I would say no way Mr. Seller, the buyer is already pre-approved. Now the seller can speak to the buyer's lender and that is if the lender will provide him with any info, which I doubt.

As a lender I would say no. I am in a position of "trust" and that information has no bearing on the deal,especially if I have issued a commitment. I also will tell your seller that he is way "out of bounds" even asking for this. He certainly has no "legal" right to require this information. I have only seen in the past (on multi- million dollar homes) a seller requesting from a lender or an accoutant "proof of funds " to close,which is certainly acceptable on any size deal. The legal term is one must be Ready,Willing and Able to close.

They can ask for whatever they want.  This kind of stuff could offend buyers, especially if they have submitted an offer with a pre-approval letter and the customary financial disclosures. 

I would say a seller can ask for whatever proof they want and it is up to the buyer to decide when it is too much. I was going to show another agent's listing and the agent required a preapproval letter before the showing would be scheduled (it was not a highend proeprty) and it speciafically stated it could not be a 401K. My buyer chose to move on and not see the proeprty.

I do not think that I ever heard of that.

That is an extremely unusual request. But a seller can ask for this. I wouldn't advise the buyer accept. If the request concerns an owner carry contract, I can understand it.

It seems inappropriate unless they are being asked to do owner financing.

Unrealistic and unnecessary.  If the pre-approval or proof of funds letter is not sufficient for this Seller, I would take my Buyer elsewhere.

Michael has a good answer.

I've never seen this.  When I talk to the lender, I ask if they've reviewed that info.  That has been good enough for my sellers.

Like Susan Emo says, they can ask but may not get.  Personally, I would advise my buyers to not give this information to the seller.

I think that is beyond an overreach.  Unless they are providing owner financing there would be no reason that I can think of to entitle themselves to that information and even then terms need to be agreed to by contract before info would be provided.  Sounds like they may have been burned by an unqualified buyer and knee jerk reaction way too far.

it's America....they can make the request but the answer should be NO.... that's what pre approvals are for...

No; that is confidential. A credit report is sufficient and it could be argued that the credit report is customarily sufficient and anything beyond is discriminatory if used to disqualify a prospective buyer/tenant.

"Legal" deals with the law.  Seriously...this is not about legality, it is simply about the seller asking for something that is unnecessary. No law broken.

Every time a seller asks for something that is out of the norm, I find that the request really comes from the listing agent....most sellers don't think up the stuff.

Eve

Of course they can ask for it although I know that none of my customers would subject themselves further.

I agree with Susan Emo .  A

Are you kidding me? All the seller needs to care about is proof of funds for the deposit, and down for a loan, proof of loan, and proof of funds in a cash deal. 

It is not illegal but instead unusual to do so. I would rather have a lender vett

The can ask, but I wouldn't recommend giving to my buyer - unless they really, really, wanted the property and then make sure all the personal information is Hillary Clintoned out!

They can ask and the response would be "what part of NO don't you understand"!

Stephanie Leon | Miami Lakes Realtor® It was common practice to provide a buyer's financial statement to a sell, but not We's, pay stubs, income taxes, etc. Proof of funds should be enough to show they have the down payment.

Susan Emo nailed this one!

W-2, pay stubs and tax returns show the lender the ability to repay the loan. The seller should not be concerned with that. An approval letter shows the seller that the buyer is qualified to make the purchase. That is all the seller needs to know. Tax returns, pay stubs and the W-2 have the buyers SSN which is private information.

Wow, I cannot even imagine that.  Seems overly intrusive to me;  if the buyers want to go forward and the only way is by providing that info, then it's their decision, of course, but I certainly wouldn't.  

Real estate is about negotiations. How bad do you want the home?

A seller can request anything they want. Whether a buyer will give it to them is another thing. If the seller is holding a mortgage, then yes, i recommend. If not a pre qual letter from local and trusted bank is acceptable

You don't get what you deserve, you get what you negotiate.

Someone can ask for anything but the question is does this buyer in this case feel the seller is over steeping their privacy? If they do they can walk away..seller may need to re-think their demands.

I agree with everyone here; but if it was me they could take a hike!

If the buyers want to proceed, make copies, heavily redact to the point of ridiculousness and then make copies of the redacted documents to give to the seller