Montauk - Bernie Madoff's Montauk beach house is in contract according to Joan and Raymond Hegner, the exclusive listing agents at the Corcoran Group's Montauk office handling the sale. The 3,000 square foot contemporary listed at $8.75 million sold for more than the asking price. The sale is a cash deal in accordance with guidelines set by the federal marshals overseeing the sale.

The house was on the market less than three weeks. Skeptics priced the house at $5.5 million while Madoff estimated its value at $3 million when asked to provide information to federal officials. Many brokers predicted the house would sell for $7 million.

The Madoff has 182 feet of oceanfront beach, as well as a seaside swimming pool.

The property was seized by federal marshals who are selling Madoff's assets to recoup some of the estimated $65 billion in restitution for victims of the former Wall Street investor's Ponzi scheme described as one of the largest financial swindles in United States history. The Corcoran Group will not collect a commission on the sale. "We are giving the money to the government so they can help victims who lost money to Madoff," Hegner said.

The veteran broker who began selling real estate in Montauk more than 25 years ago said he was pleasantly surprised by the sale. "It has nothing to do with Bernie Madoff," Hegner said referring to the property's infamous owner. "It was a great piece of oceanfront."

The rustic beach house was designed by Gene Futterman an architect known for his Hamptons Style homes. It was built by David Webb. The house has an open floor plan, vaulted ceilings and a floor to ceiling fireplace made with stones collected from the beach in Montauk.

The four-bedroom, three-bath house sits on a 1.26 acre lot with 182 feet of private oceanfront beach. The house has a seaside swimming pool and an expansive porch as well as spectacular ocean front views from every room.

Ruth and Bernie Madoff bought the house shortly after it was built in 1980 and are the original owners.

Hegner declined to provide additional information concerning the sale when reached on his cell phone on Thursday. "I don't think I am supposed to be talking about this," he said. The house was sold by a broker from another agency limiting Hegner's participation in the sale to that of the listing broker.

When asked who brought the buyer, Hegner declined to answer. "Why should I publicize another broker?" he said, pleased with the outcome.