JennyLuck wrote: » Yep, in the same boat, unfortunately... Been sale agreed for over six months now and everything is moving at a snail's pace. Don't suppose you've had any movement on this? Cheers!
th283 wrote: » No movement yet- well nothing good! The bank contacted me to say the loan offer expires in 6 weeks and the life insurance company has said I’ll have to reapply for cover. Also the price is rising in the area- a house in the same estate went up this week with an asking price 50k above my sale agreed price.
katie275 wrote: » We're in a similar situation, sale agreed at 400k and the vendors haven't produced a tax clearance certificate certificate yet. They bought for 375k in 2016 (checked property price register). Our solicitor told me to read up on the September 2017 LPT guidelines. Apparently they could have possibly registered in the wrong bracket which would mean we end up with a big tax bill if we go ahead with the purchase without this being resolved, obviously we don't want this! Can't get much clarity from the revenue guidance. Hope it doesn't prove to be an issue, we're just dying to move in, contract stage seems to be going on forever and our loan approval expires end of this month! Anyone been through similar?
A €500 fixed penalty may be imposed on a vendor who does not provide information to a purchaser about the chargeable value that he or she has declared to Revenue. A vendor could also be liable to a separate penalty of the amount of the additional LPT that is payable for making a false statement to obtain a reduction in the LPT payable. A purchaser could be liable to a penalty for failure to submit a revised chargeable value where it appears to him or her that the value that was declared to Revenue by the vendor could not reasonably have been arrived at. This penalty would be the amount of the additional tax payable as a result of the correct value being declared, subject to a maximum penalty of €3,000.
katie275 wrote: » Thanks for that! Apparently my solicitors understanding is incorrect so!
stickman1019 wrote: » Does every household in Ireland have property tax?? Are one off builds exempt for some reason
GGTrek wrote: » You should expect a minimum of 4 weeks to get the clearance sorted if there are no additional requests for documentation. So yes it will cause a big delay in a sale. To the best of my understanding there are four conditions for general clearance, if any one of the four can be applied there is no need to ask for special clearance: 1) sale price does NOT exceed € 350,000 2) sale price does not exceed upper limit of LPT valuation band + 80% (for a Dublin property or 50% for a property outside Dublin) 3) total value calculated for condition 2 + value of invoiced improvements to the property is greater or equal to the sale value 4) This is the most difficult due to documentation: provide examples and marketing material of similar properties (in size and amenities) in the same electoral district (Revenue provides a map of these districts) in the 9 months before 1st of May 2013 or before the last date of sale if later.
katie275 wrote: » Am I correct in saying that even in the property was entered into the 200-250k bracket, general clearance would apply under condition 2 (sale price 400k in Dublin)? My solicitor said revenue usually are pretty quick, are you saying 4 weeks from personal experience? Cheers!
Sarah 1111 wrote: » Hope its ok to jump in here - we are having the same problem. We have signed the contract and paid deposit but the vendor needs to register and pay back property taxes before we settle. They have mentioned four weeks but we don't have a definite date yet. The property value is under the threshold of 350,000 so only needs general clearance - not specific clearance. Does general clearance just mean proof of payment, I got the impression from the Revenue website they only need to give us a screenshot of the Revenue page showing the payment. But also looks as though they need to apply for a property ID number and pin in order to pay. Does anyone know how long this might take? Does four weeks seem right or could it be quicker?
Dolbhad wrote: » To close your solicitor needs to see lpt 2013 - 2019 is paid in full - usually transaction history can be printed of. People can forget pins but if there isn’t a property ID number that would indicate it’s never been registered. That will takes weeks to be set up and issue a number. If it’s just a pin that can take a week or two to issues. Has your solicitor received any lpt transaction history. Lpt attaches to the property so if you buy and lpt is outstanding, you for the bill. Since last year interest now accuses when lpt is not paid so it could get hefty. You don’t won’t to be caught with that. If specific clearance is needed than that can take weeks to issue unless sellers want to increase band and pay difference which they won’t want to do.
th283 wrote: » I can only go on my own experience- I went sale agreed in December 17 and didn’t get the keys until the end of June 18. According to the estate agent there was a backlog of paper work and property taxes
Sarah 1111 wrote: » Ok, yes, it appears it was never registered - the vendor is going to register and pay the back tax (so that we, as buyers, pay the one percent stamp duty, otherwise it would be six percent). We only need general clearance not specific clearance as the property is under the threshold price. So we continue to wait.... you would think Revenue or whoever does it would get a move on so that they can get their money... thanks for your answer.
Sunrise_Sunset wrote: » On the Revenue website it says that "You must determine the market value of each property as at the valuation date of 1 May 2013." and "This valuation applies to your property for a seven year period up to and including 2019." We valued our apartment then and have stuck with that valuation each year since then for paying the LPT. We are now selling the apartment. Is this all in order?https://www.revenue.ie/en/property/local-property-tax/valuing-your-property/index.aspx
Dolbhad wrote: » You will have to look at what you are selling it at now. It’s understood value of house was at its lowest in 2013 so that’s why they have general clearance for sale under €350k outside Dublin and €500k for Dublin. If your selling above that and the band doesn’t match, you may have to change it. It’s more an issue if you purposely valued a property at low amount to just pay the cheapest amount. Otherwise if you near enough the actual value at the time, general clearance will kick in.
Sunrise_Sunset wrote: » As at the valuation date in 2013 it was valued at less than 150,000. It has now been valued at 220,000. Do I need to update this? Are am I ok because as per the revenue website it's up til the end of 2019.
Dolbhad wrote: » Do you mind me asking - why would you be paying 6% stamp duty otherwise? I though It’s only 6% for non residential property or land/sites. It’s 1% for a house up to one acre and up to €1 millions.
Dolbhad wrote: » Yep to you are okay as your under the threshold so general clearance applies.
