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Repossessed homes and property tax

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  • 08-03-2013 9:37am
    #1
    snaps
    Registered Users Posts: 7,138 ✭✭✭


    If a home is repossessed by the bank, I assume that makes the bank the owner and liable to pay the property tax? Would this sound correct?


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    #2
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    IF a home has been reposessed then I would think so yes. Given that county counciles are lible to pay the tax on council houses.

    HOWEVER a house in the process of reposessin is still libel for the tax by the person who owns it. Furthermore revenue takes precedent over every other creditor including the bank so in that scenario the property tax must still be paid.


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    #3
    Kosseegan
    Banned (with Prison Access) Posts: 987 ✭✭✭Kosseegan


    The repossessing bank will have to pay any tax due. A purchaser from them will want a receipt before closing. The bank will not want an interest bill accruing and reducing the value of the property.


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    #4
    Villa05
    Registered Users Posts: 4,613 ✭✭✭Villa05


    sean200 wrote: »
    FG are as bad as the brits were
    They are going to put people out of their homes so that they can get a TAX just like the brits did and then they are going to parade ENDA the queen about just like the brits did with their queen during the famine
    Scum or what running this country???
    Your poost makes no sense


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    #5
    Gillo
    Registered Users Posts: 5,566 ✭✭✭Gillo


    Villa05 wrote: »
    Your poost makes no sense
    It sounds like the general "oh another chance to moan about the government" post.


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    #6
    snaps
    Registered Users Posts: 7,138 ✭✭✭snaps


    Gillo wrote: »
    It sounds like the general "oh another chance to moan about the government" post.

    Or about "The Brits" from time gone by, even still that bit makes no sense either.


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    #7
    gaius c
    Registered Users Posts: 3,528 ✭✭✭gaius c


    sean200 wrote: »
    FG are as bad as the brits were
    They are going to put people out of their homes so that they can get a TAX just like the brits did and then they are going to parade ENDA the queen about just like the brits did with their queen during the famine
    Scum or what running this country???

    Welcome to boards.ie Jack O'Connor!


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    #8
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Anyone else who wants to rant and rave- please take it to the ranting and raving forum........


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    #9
    hfallada
    Closed Accounts Posts: 4,180 ✭✭✭hfallada


    The banks haven't really start repossing. In the news this week 23,500 that are over 720 days in an arrears that should be repossessed but haven't.

    So to answer your question the very few houses that have repossessed I seriously doubt as they are auctioned off or should


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    #10
    shalom
    Registered Users Posts: 197 ✭✭shalom


    Hi, can anyone give a definite answer with regard a house being in the process of being repossessed. It is in the court system at the moment. Who is liable for the property tax. ? Thank you


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    #11
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    shalom wrote: »
    Hi, can anyone give a definite answer with regard a house being in the process of being repossessed. It is in the court system at the moment. Who is liable for the property tax. ? Thank you

    I answered this already above. You are still responsible for the tax.


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    #12
    Phoebas
    Registered Users Posts: 9,371 ✭✭✭Phoebas


    shalom wrote: »
    Hi, can anyone give a definite answer with regard a house being in the process of being repossessed. It is in the court system at the moment. Who is liable for the property tax. ? Thank you

    I can't be definitive, but looking at the Revenue information, it would seem that you are liable until the repossession is finalised.

    http://www.revenue.ie/en/tax/lpt/faqs/liable-persons.html
    http://www.revenue.ie/en/tax/lpt/liable-persons.html


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    #13
    Marcusm
    Registered Users Posts: 10,325 ✭✭✭✭Marcusm


    D3PO wrote: »
    IF a home has been reposessed then I would think so yes. Given that county counciles are lible to pay the tax on council houses.

    HOWEVER a house in the process of reposessin is still libel for the tax by the person who owns it. Furthermore revenue takes precedent over every other creditor including the bank so in that scenario the property tax must still be paid.

    Can you let us know which law disturbs a bank's mortgage over the property to give the Revenue precedence?


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    #14
    Phoebas
    Registered Users Posts: 9,371 ✭✭✭Phoebas


    Marcusm wrote: »
    Can you let us know which law disturbs a bank's mortgage over the property to give the Revenue precedence?

    Revenue are a preferred creditor.
    http://en.wikipedia.org/wiki/Preferential_creditor

    Not sure exactly what legislation covers it - probably somewhere in the Taxes Consolidation Act


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    #15
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    Marcusm wrote: »
    Can you let us know which law disturbs a bank's mortgage over the property to give the Revenue precedence?

    section 1002 finance act 1988 there is detail in the taxes consolidation act 1997 somewhere aswell I think.


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    #16
    Marcusm
    Registered Users Posts: 10,325 ✭✭✭✭Marcusm


    D3PO wrote: »
    section 1002 finance act 1988 there is detail in the taxes consolidation act 1997 somewhere aswell I think.

    You have edited at least once but in fact the chargeon the property arises by virtue of section 123 Finance (Local Property Tax) Act 2012 which does not accord it any preference! Charges are generally satisfied on a time recorded basis so on a property in negative equity, it would not have legal preference/precedence. In practice, however, the mortgagee in possession is likely to payoff the tax and have the charge released in order to make the property saleable.


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