Going 'sale agreed' in 2013 - LPT exemption till 2016?

messinkiapina

I'm trying to get a house sale closed before xmas. My solicitor seems confident we can go sale agreed and get the contracts signed before xmas. I assume that at this stage I'll still have only paid the contract deposit rather than the full amount due.

My question is, will getting to that stage qualify me for the LPT exemption until 2016, or would I need to have the whole thing closed and paid in full before I get the exemption?

johndaman66

Hi messinkiapina, Its the date at which you sign and exchange contracts that this is based. I too am in a somewhat similar situation. Went sale agreed in mid October. Am not drawing down a mortgage as I'm buying from savings but the vendor needs his bank to approve him before he sells as he owes more against the house than figure we went sale agreed at.

Was talking to my solicitor and the Estate Agent today and seemingly they is very poor communication from the vendors solicitor and the vendor himself respectively.

I was told by the Estate Agent though that this relief was being extended into next year. Does anyone know if this is true?

My previous understanding was that this relief was available to all first time buyers of all properties who buy this year and first time buyers of new properties only who buy next year. However the Estate Agent suggested to me that the relief was to be extended to all first time buyers irrespective next year. The house I'm buying was built in 2006 and is still owned by its builder but he has let it out in the meantime. Not sure how I will fare in the property tax if I sign contracts this year versus next year.

Could somebody who knows please shed some light on it. thanks

killers1

johndaman66 wrote: »

Hi messinkiapina, Its the date at which you sign and exchange contracts that this is based. I too am in a somewhat similar situation. Went sale agreed in mid October. Am not drawing down a mortgage as I'm buying from savings but the vendor needs his bank to approve him before he sells as he owes more against the house than figure we went sale agreed at.

Was talking to my solicitor and the Estate Agent today and seemingly they is very poor communication from the vendors solicitor and the vendor himself respectively.

I was told by the Estate Agent though that this relief was being extended into next year. Does anyone know if this is true?

My previous understanding was that this relief was available to all first time buyers of all properties who buy this year and first time buyers of new properties only who buy next year. However the Estate Agent suggested to me that the relief was to be extended to all first time buyers irrespective next year. The house I'm buying was built in 2006 and is still owned by its builder but he has let it out in the meantime. Not sure how I will fare in the property tax if I sign contracts this year versus next year.

Could somebody who knows please shed some light on it. thanks

It's not restricted to first time buyers. Anyone who completes a purchase on a property they will reside in (as opposed to just signing contracts) before 31/12/13 will qualify for the 3 yr property tax exemption. Signing contacts but closing in 2014 is not sufficient, the purchase must complete this year.

Tigger

new houses bought from the builder and not used before qualify till 2016 but if he's been renting it out then the exemption probably won't apply
but just ring revenue lpt as they are always helpful.

http://www.revenue.ie/en/tax/lpt/exemptions.html