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LPT liability for house purchase

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  • 24-11-2023 3:58am
    #1
    Barti
    Registered Users Posts: 109 ✭✭


    I'm a little confused on liability for LPT after purchasing a house. We went sale agreed in early-mid October, and we had a letter from their solicitor for apportionment and had to send them about €50. Now that we are the owners since October, I assumed we would have to sort LPT for 2024, but when I checked on the LPT Portal it stated that we were not liable. I thought it an error so I contacted through revenue.ie asking about it, and the response was that since we were not the liable owner of the property on 1st Nov, we are not liable for 2024.


    Is this correct? If so, does that mean the previous owners are due to pay LPT for 2024, and we only start paying for 2025 onwards? Or are they mistaken since we were the registered owners by 1st Nov? Or am I not understanding how LPT is calculated or something?

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Answers

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    #2
    cython
    Registered Users Posts: 4,757 ✭✭✭cython


    Maybe I'm missing something, but sale agreed in October to bring the registered owners by now seems impossibly fast? Can you clarify between sale agreed and sale closed, please? If you're just sale agreed and no contracts signed, etc. then the solicitor requesting €50 sounds like they pulled a fast one, did your own solicitor comment on this?

    As to liability, as you noted, the owners on November 1st are liable for the coming year, but typically as part of the sale and conveyancing, the buyers will reimburse for the portion of the year where the house will be in their ownership, but this happens as part of closing and post contracts being signed, as otherwise you'd risk paying them for LPT and the sale falling through......



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    #3
    Barti
    Registered Users Posts: 109 ✭✭Barti


    Sorry, I meant sale closed instead of sale agreed. So we signed contracts and had sent all money to the seller in early October and collected the keys around the second week of October.


    So I would have imagined we would be the registered owner by 1st Nov, which would mean we were liable to pay for 2024 period, but we are not given the option to pay online and the email from revenue claims we were not the registered owner on 1st Nov and are not liable. I read something which said if the sale goes through within two months of the 1st Nov, then it may be that the seller may be on the hook for 2024, but if that was the case I'm not sure why the seller would charge us just €50 for the remainder of 2023, but not make us pay for 2024 as well.



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    #4
    Claw Hammer
    Registered Users Posts: 6,163 ✭✭✭Claw Hammer


    Was the apportionment mentioned in the sale contract? Unless it was, you are not liable.

    Did the letter come to you directly from the vendor's solicitor?



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    #5
    Barti
    Registered Users Posts: 109 ✭✭Barti


    The apportionment was part of the contract, we had to give the €50 to cover the remainder of 2023, and the vendor covered the first 10 months of the year.


    The letter came from their solicitor to our solicitor (the vendor was also their solicitor, they were previously renting the house though it had supposedly been empty for the last 2 years), and our solicitor passed it on to us stating we had to cover that portion of the LPT. I'm just wondering what happens for 2024 now if revenue themselves have stated we were not the liable owners on 1st November despite the fact that I believe we would be considered the owners and therefore liable.



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