LPT liability 2023

Valentina516

Hi, we're in the process of purchasing a new build. When we put a deposit down in April 2023 to buy the house we were told we'd be in by June, and now it's November and we'll hopefully be getting keys in the next week or so. Another purchaser who got keys on Nov 2nd said the developers solicitors forced them to pay LPT for 2023 even though they closed after Nov 1st which is the cut off date. I'm worried they'll do the same to us, even though we won't be getting keys / closing before Nov 6th at the absolute earliest (and most likely later than that date). Any advice?

Bass Reeves

https://www.boards.ie/discussion/2058320954/lpt-liability-2023

It's unlikely there was PT due for 2023 as you declare a house for PT in December and it must be habitable by May to have to pay PT.

There should be no liability

ballyharpat

I've purchased in December before, sometimes the seller has looked for part of the LPT due for the time I own the property, sometimes they just let it go, not a big deal at the end of the day considering how big a purchase it is.

Valentina516

Turns out the builder managed to get the LPT waived so didn't have to pay for 2023🎉

Gumbo

https://www.boards.ie/discussion/comment/121332099#Comment_121332099

Second hand where LPT was already paid?

Then you’re liable for the pro rata amount.

On a new build it’s different I believe.

db

https://www.boards.ie/discussion/comment/121349627#Comment_121349627

The seller is responsible for paying LPT. See this example from revenue.ie

Pat is the liable person for a residential property on 01 November 2023. He sells his property in December 2023. Even though he does not own the property in 2024, he remains the liable person for LPT and must pay the full liability for 2024. The buyer becomes the liable person for LPT on 01 November 2024 and must pay LPT for 2025 onwards.

Bass Reeves

https://www.boards.ie/discussion/comment/121349627#Comment_121349627

No you are not liable for a pro rata rate. If the house is sold private treaty they can try to include LPT on a pro rata rate generally they do not. Very few are going to have an issue over a LPT bill that is already paid.

Where this done rise it's ugly head is forced sales through auction. As often there is an outstanding LPT bill and the sales process may take time the LPT bill may be pro rata for the year if sale.

I was involved in such a senario the property was being sold by a bank and the LOT bill was being paid out of the proceeds of the sale so undertakings had to be given.

They actually overvalued the property until I bought it to there attention

Gumbo

https://www.boards.ie/discussion/comment/121350053#Comment_121350053

https://www.boards.ie/discussion/comment/121350094#Comment_121350094

I’ve had to pay pro rata on all the properties I bought. And even for it back from buyers when I sold.

I could have ignored mentioned of known!

Bass Reeves

https://www.boards.ie/discussion/comment/121350127#Comment_121350127

It's dependent on the contract especially with private treaty, as I said it was an auction condition on the house I purchased. On a private treaty sale it will depend if it's included in a contract and if you decide that you want that condition removed if the vendor is willing to lose a sale over a few hundred euro. Mind you for the buyer the same scenario unfolds.

If it not included in the contract there is no legal requirement for a buyer to refund part of the years LPT to the seller

ballyharpat

https://www.boards.ie/discussion/comment/121349627#Comment_121349627

You're correct- I recall now, one house I bought/closed in December, the LPT was paid for by the previous owner.

Another house I bought closed in April, they asked me to pay some of the LPT, I did, it didn't bother me in the whole scheme of things, but I guess we are all different.

https://www.boards.ie/discussion/comment/121350094#Comment_121350094

Have to disagree with you there.

Sold a house two years ago and pro rata payment for the LPT was a standard clause in the contract. Not something I asked for, solicitor said it was standard.

Dolbhad

It’s standard for lpt to be apportionment for the year you own it. Usually in the contract.

So if on the 1st November the house is complete enough to trigger lpt, builder will register the house with lpt and pay it but will apportion it to you since your in the house for 2024.

Rita57

Hi folks

does anyone have any experience of applying for help to buy after they have paid LPT? I have called Revenue and asked this but they advised to apply for HTB but when I do am being told I cannot apply as in registered for LPT??