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LPT and Property Management Fees liability when selling a property.

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  • 08-01-2015 9:43am
    #1
    Drop the Ball
    Registered Users Posts: 80 ✭✭



    A couple of quick questions regardingLPT and management fees liability when selling a property.

    If you are selling a propertyand the Local Property Tax has been paid in full for the year, is the sellerentitles to a Pro-rata refund from when the property is sold to the end of theyear & is the buyer liable for the proportion of the tax from when theytook possession of the property to the end of the year?

    Similar question regardingProperty Management Fees, if they are paid in full for the year, is the seller entitlesto a Pro-rata refund of the property management fees from when the property issold to the end of the year? Is the buyer liable for the proportion of the Managementfees from when they took possession of the property to the end of the year?


    Thanks…


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    #2
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    No, in both cases. It works pretty much exactly like motor tax.

    Whoever owns the property on the 1st of November is liable for LPT for the following year. Management Fees likewise are payable on the property and the person who owns the property when the fees become due is the one who pays.

    Refunds/pro-rating of either of these is something between the buyer and seller, neither revenue nor the management company have any obligation to refund the previous owner for a part-year.


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    #3
    Drop the Ball
    Registered Users Posts: 80 ✭✭Drop the Ball


    Thanks Seamus for the clarification.

    I know someone who had to pay part of the LPT (Pro-Rata) through his solicitor after signing for the property late last year, I guess this was something they agreed upon during the sale through their solicitors.


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    #4
    Clive
    Registered Users Posts: 1,799 ✭✭✭Clive


    Drop the Ball wrote: »
    Thanks Seamus for the clarification.

    I know someone who had to pay part of the LPT (Pro-Rata) through his solicitor after signing for the property late last year, I guess this was something they agreed upon during the sale through their solicitors.

    As Seamus said, the owner as at 1st November the previous year is liable for the LPT for the next year from a Revenue point of view.

    However, the Law Society recommend apportioning it i.e. purchaser refunds vendor pro rata, which is put in as a special condition in the contract.


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    #5
    Victor
    Registered Users Posts: 78,298 ✭✭✭✭Victor


    I understand contracts typically have conditions dealing with these issues. It is a matter between vendor and buyer.


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