Property tax

ElitesTeam

Hi,

I am going drawdown at the end of the month and I got the closing balance. I though the property tax would be paid for this year or does the buyer always pay when its transferred to them?

Spanish Eyes

It is pro rata. Seller pays up to date of departure, then you take over. Your solicitor will make sure it works that way.

brisan

Spanish Eyes wrote: »

It is pro rata. Seller pays up to date of departure, then you take over. Your solicitor will make sure it works that way.

Are you sure
I thought whoever owns the property on the 1st November is legally responsible for the bill
https://www.revenue.ie/en/property/local-property-tax/is-your-property-liable-lpt/what-are-the-key-dates-for-lpt.aspx

DubCount

Whoever owns the property at 1 November is liable for the bill. However, the parties usually agree to pro-rate the bill.

brisan

DubCount wrote: »

Whoever owns the property at 1 November is liable for the bill. However, the parties usually agree to pro-rate the bill.

Usually but don't have to
Legally whoever owns the house on 1st Nov has to pay the LPT
So its not pro rata

ElitesTeam

brisan wrote: »

Usually but don't have to
Legally whoever owns the house on 1st Nov has to pay the LPT
So its not pro rata

So should I ask why solitor why I am paying more than half if it should have been paid by them

brisan

ElitesTeam wrote: »

So should I ask why solitor why I am paying more than half if it should have been paid by them

They are legally responsible to pay every penny of the LPT for 2021 if they owned the property on 1st November
I am surprised your solicitor has not flagged this
The sellers are pulling a fast one

ElitesTeam

brisan wrote: »

They are legally responsible to pay every penny of the LPT for 2021 if they owned the property on 1st November
I am surprised your solicitor has not flagged this
The sellers are pulling a fast one

Solicitor just got back to me and said its pro rata

Sesame

Check the contract, mine says we are splitting it for the year of sale but next year I will be paying it, even though we haven't closed sale yet. So I expect to pay for last 6 or so weeks of this year from the closing date and all of next year.

brisan

ElitesTeam wrote: »

Solicitor just got back to me and said its pro rata

Only if you agree ,you do not have to
However in the general scheme of things its not a lot
If that is your only unplanned expense you will be doing very well
Good luck with the new house

DM1983

Its always pro-rata. This is standard among solicitors.

There might be one or two exceptions if someone decides they want to risk a deal over a few hundred quid.

dev_ire

I would be wary of "being right" but losing a house over potentially very little money in the scheme of property costs. Pick your battles.

kravmaga

ElitesTeam wrote: »

Hi,

I am going drawdown at the end of the month and I got the closing balance. I though the property tax would be paid for this year or does the buyer always pay when its transferred to them?

I think you have 2 posts on this question on LPT.

Good point to make, I rang Revenue today on this very matter as Im Sale Agreed on a property I own, I got my LPT for 2021. Revenue stated that whoever is in the property on 1st November has to pay for the next years LPT.

So as Im not Sold yet I have to pay the LPT for 2021 for the property I am selling.

I hope this helps and clarifies the matter, your seller should have paid the LPT on the property you are buying.

paul71

dev_ire wrote: »

I would be wary of "being right" but losing a house over potentially very little money in the scheme of property costs. Pick your battles.

Especially given that today is the 6th November and you are talking about 6/365 pro rata payment.

joeysoap

Apologies if this has been asked previously. Property bought feb 2013. Tax was paid by previous owner for 2013=. Exempt for 3 years property tax in lieu of martage relief being abolished .(14,15,16) extended by another 3 ( 17, 18, 19) extended by1 year (20)then by another year (21) I can’t believe my good luck.

Question I have ( assuming above is correct) do the revenue contact me before 2022 or do I have to contact them?

punisher5112

joeysoap wrote: »

Apologies if this has been asked previously. Property bought feb 2013. Tax was paid by previous owner for 2013=. Exempt for 3 years property tax in lieu of martage relief being abolished .(14,15,16) extended by another 3 ( 17, 18, 19) extended by1 year (20)then by another year (21) I can’t believe my good luck.

Question I have ( assuming above is correct) do the revenue contact me before 2022 or do I have to contact them?

They will most likely contact you as per change, you will be able to log in and if eligible to pay you can do so in full or set up direct debit.

joeysoap

Thanks. I am concerned they won’t/don’t contact me and I end up in arrears. They have not contacted me since buying the house. But I can see it on the price property website. And my solicitor was informed before buying (by them) that all taxes were paid up to date. 2013 was an odd year in that the tax was paid before I bought and it was for a half year or something like that.

Geuze

Log into your Revenue account, and look at the LPT records.