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New property bought - who pays property tax?

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  • 30-11-2013 10:40am
    #1
    cmssjone
    Registered Users Posts: 355 ✭✭


    Hi all,

    the wife and I are in the process of buying a house, and our closing date has now been shifted to late January. Now, technically the vendors are liable for 2014 PTax as they are still in possession of the house this month, but should we be expected to pay them back when the sale closes? Obviously, we'd rather not.

    Our solicitor says this new situation is a grey area, and we need to decide what to do. By agreeing to a later closing date, we are missing out on that loophole of being exempted from the property tax till 2016, but we have been flexible with the vendors when we were told the closing of their new property isn't till late Jan.

    Thanks for any advice.


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    #2
    Ogham
    Registered Users Posts: 1,844 ✭✭✭Ogham


    It's just another area of negotiation. Legally they have to pay the 2014 LPT - they can't sell until it's paid.
    Whether you agree to pay more for the house to cover their spend on the LPt is up to you - It's the same the same as agreeing to pay for carpets/curtains etc. Not worth losing a house over but part of the negotiation.


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    #3
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    What would the position be if you purchased the property on the 1st of May instead? Would you still be liable or would you assume the vendor to be liable- or would there be an apportioned liability- or (like bank cards)- would you both have to pay the selfsame tax in full.

    Your solicitor needs to get their head out of the sand and ask a tax expert what the situation is.

    Btw- 1st of January is when the tax is due from. So- whoever holds title deed at this point in time- is liable. However- is it like car tax- where you can reclaim for that portion that you are not the holder- or the vehicle is officially off the road (recently revised)?

    I don't know the answer to your question- but I would suggest its your solicitor's duty to find out for you.


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    #4
    ezra_pound
    Registered Users Posts: 2,497 ✭✭✭ezra_pound


    The_Conductor wrote: »
    What would the position be if you purchased the property on the 1st of May instead? Would you still be liable or would you assume the vendor to be liable- or would there be an apportioned liability- or (like bank cards)- would you both have to pay the selfsame tax in full.

    Your solicitor needs to get their head out of the sand and ask a tax expert what the situation is.

    Btw- 1st of January is when the tax is due from. So- whoever holds title deed at this point in time- is liable. However- is it like car tax- where you can reclaim for that portion that you are not the holder- or the vehicle is officially off the road (recently revised)?

    I don't know the answer to your question- but I would suggest its your solicitor's duty to find out for you.

    1st January is NOT the liability date. The correct date is 1st Nov 2013.


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