Is the price on Property Price Register the actual price?

Suckit

Can somebody sell a house for E.G. €500k but put in the PPR that it was sold for €50k?

If so, why would they do that?

There is a house out my sisters way, we were having lunch beside it and were talking about it, and found out it was sold last year.

There was a lad that overheard us talking and told us some story (not gonna repeat here, as it's long etc.) that there was some dispute over the ownership for a while. It is in a prime location, but was allowed to dilapidate a lot because of that. I would imagine - especially going by current prices it would be worth around €500k (I think there is a tree growing out of it) in the state it is in.

It shows up as sold for €12,500. It has no garden to speak of, so it wouldn't be that. Just curious as to what the reason could be.

L1011

Is it starred as a non full price sale?

Suckit

https://www.boards.ie/discussion/comment/119147851#Comment_119147851

No, I don't think so.

PPR Price:€12,500

VAT Due: No

Full Market Price: Yes

Property Type:Second-Hand

Claw Hammer

The price on the Property Price Register shows the value of the deed of transfer for Stamp Duty purposes. It may be the only a partial interest was sold because one co-owner bought out other co-owner.

It can also be the case that some money was paid in cash and this was not recorded.

Suckit

I believe it was somebody unrelated to the building that bought it. Not one of the families that were disputing it. But IDK any more to it.

I just thought it was weird when we looked it up and saw the price.

I didn't realise somebody could pay/receive cash for the house and that wouldn't be recorded. Or do you mean (copped as I was typing) that they should have recorded it, but didn't - if that was the way the transaction went.

cruizer101

A solicitor would have to be in on it for it to be underdeclared, and they are unlikely to take on that risk.

Sometimes people will sell contents along with the house and use that to reduce the price a bit, but that would be in the region of 10-20k you might get away with not 100k+

lawred2

https://www.boards.ie/discussion/comment/119148838#Comment_119148838

Why would cash sales not be recorded? It isn't a mortgage register.

monkeybutter

https://www.boards.ie/discussion/2058248457/is-the-price-on-property-price-register-the-actual-price

the 500 to 50k would seem like a mistake, simple as that

Claw Hammer

It used to be very common for the contract to have a price on it and the parties agree privately that another sum will be paid separately by the buyer to the vendor. The solicitors wouldn't get involved, at least officially. The two parties would turn up at the closing and when everything was ready aske to be excused. They would return a few minutes later and announce they were ready to proceed.

Claw Hammer

https://www.boards.ie/discussion/comment/119149240#Comment_119149240

It would be part cash and part bank transfer or draft. The cash element would not be reflected in the deed.

lawred2

https://www.boards.ie/discussion/comment/119150536#Comment_119150536

Hmmm I'm not entirely sure about that

Madeoface

It's based on declared value for stamp duty and pulled from revenue stats iirc. Therefore not potentially accurate market value.

mrslancaster

https://www.boards.ie/discussion/comment/119149648#Comment_119149648

Know lots of people who both bought and sold properties over the years and never heard of that happening. Sounds like some dodgy solicitors too.

Suckit

My sister was talking to somebody who told her the local publican bought it from the only person that wasn't a member of the family that were disputing it. 😂

Sound dodgy too, but we don't know any of the story so equally could be legit. I was slagging her P.I. skills. Apparently she was talking to her friend about it, and she had already known that the publican bought it, as it was painted outside for the first time in years. There had been a notice on the door addressed to the person that painted it, so I guess that the dispute is ongoing, but just swapped one person out.

Man with a plan

I'm wondering this also as I'm buying a house at present and I see on the property price register that the house next door to it sold earlier this year for about 20% of its market value and it had two asterisks next to it.

Is there anything to be wary of ?