You should be exempt until 2016 , the legislation was intended to be for first time buyers only , but it looks like anyone who bought this year will be exempt
Hi. My daughter’s house sale was completed in June 2013. It is her PPR. The Local Property tax had been already paid by the Vendor before the sale could go through. Daughter 's solicitor billed her for it. He said it had to be refunded to the Vendor. Is she due a refund? From whom does she claim it back ie the Revenue or the Vendor?
Another question. Have other recent buyers had to pay their portion of the charge? She has discussed this with some other people who bought. The charge was apportioned by vendor and buyer in some cases and no charge to the buyer in others (as “Conflicted” states above). Does it depend on your solicitor whether he apportions the charge or not?. Thank You
This seems very dodgy to me.
I downsized and bought a smaller house in june 2013 also. The liability date for 2013 was May 1. So i paid it for my house before i sold it. As for the house i purchased, the fellow i bought off paid his as he owned it on may 1st.
I think your daughter was ripped off. She in no way had to give the LPT back to the vendor - i’d also be very interested to see if the vendor actually received it…
Daisy
PS Yes! - FINALLY a government feck-up that benefits me
Thank you all for your replies. “Daisy”. My daughter did query her solicitor about having to refund the vendor the tax as it was not mentioned on Revenue.ie. ( It clearly stated that Vendor was responsible for payment). He sent her an email with guidelines which he got from the Law Society when tax was introduced. Extract as follows. “The Vendor shall discharge all local property tax relating to the Subject Property in advance of the completion of the Sale and furnish the Purchaser with confirmation of payment on completion of the Sale. The amount paid by the Vendor in respect of local property tax relating to the Subject Property shall be APPORTIONED as between the Vendor and the Purchaser in accordance with the provisions of General Condition 27. General Condition 8(c) and General Condition 27 are amended accordingly.” Typical lawyer speak.
Yes, this appears to be a standard law society thing, that a lot of solicitors are aware of. A bit hard to understand, seeing as you have no legal responsibility to pay the vendors property tax and would be within your rights to tell them to go stuff themselves. However, I presume it smoothes over certain problems such as impreciseness over exact closing dates etc. if there isn’t a hard deadline to worry about for LPT. Being discussed in a number of threads on askaboutmoney.com, you might want to check over there.
This kind of thing is done with management fees and makes a certain amount of sense. You’d account for the remaining motor tax on a car when you’re buying it and you’d certainly seek a discount on the purchase price of something if there was an outstanding liability that transferred to you upon purchase so why not a rebate from the purchasers when there’s effectively a positive balance.
Thanks. Had another look and it does indeed looks like I should be exempt for 2years. I won’t count my chickens just yet but it looks like ill reduce my tax bill a bit
Thanks for replying. That’s good to know. It never came up with me and my chain. In fact, i wouldn’t even have thought of possibly messing up my chain arguing over a few hundred. Then again, i got the house for €15,000 less than the last advertised price and €30,000 less than original asking price 8 months before.
Also, i am now in the lowest bracket and my last house was in the 2nd lowest so we are probably not talking the high brackets Dubliners have to pay.
It’s a standard clause in the “general conditions” of the contract as taken from the law society. However, you can always negotiate a clause in the “special conditions” of the contract which would override this. E.g., as a purchaser in 2013, you could state that you are exempt from the property tax for three years and therefore don’t consent to paying the vendor the portion that he “hasn’t used” by vacating the house before the end of 2013. Up to the vendor then whether he wants to agree to it.