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NPPR excemption for sale of home

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  • 14-08-2015 11:35am
    #1
    BoJack Horseman
    Registered Users Posts: 12,248 ✭✭✭✭


    My parents are in the process of selling their home.

    The buyers lawyer is holding the process up demanding a 'certificate of primary residence'.

    Is this normal?
    They have lived there every day for 14 years, and have never let it out.

    They are being asked to provide utility bills for the last 6 years, which is proving tough.


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    #2
    castle2012
    Registered Users Posts: 1,014 ✭✭✭castle2012


    BoJack Horseman wrote: »
    My parents are in the process of selling their home.

    The buyers lawyer is holding the process up demanding a 'certificate of primary residence'.

    Is this normal?
    They have lived there every day for 14 years, and have never let it out.

    They are being asked to provide utility bills for the last 6 years, which is proving tough.

    I had the same issue selling recently. It seems to be the norm . Your solicitor needs to write to the council for a cert of exemption


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    #3
    Jen44
    Registered Users Posts: 455 ✭✭Jen44


    Im buying a house at the moment and it was one of the things our solicitor had on the list for the vendors solicitor to supply


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    #4
    CreepingDeath
    Closed Accounts Posts: 8,015 ✭✭✭CreepingDeath


    BoJack Horseman wrote: »
    My parents are in the process of selling their home.

    The buyers lawyer is holding the process up demanding a 'certificate of primary residence'.

    Is this normal?

    Yes, and a certificate of clearance for the household charge and property tax too. And if your house is outside of the property tax band for 2013, eg. if it went from band 3 (€150-€200k) to band 5 (€250-300k) then they'll want an explanation if they think you undervalued it in 2013.
    You can get away with one band jump typically, not 2.


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    #5
    Rew
    Moderators, Sports Moderators Posts: 8,679 Mod ✭✭✭✭Rew


    Yeah I had to get one selling mine, don't hang around on it as it takes a couple of weeks (depending on your CC). Also sorting out LPT as CreepingDeath says is important, Revenue quoted me 6 weeks to give me a clearance cert, luckily it came in 2 weeks but def wouldn't hang around on it.


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    #6
    Penny Dreadful
    Registered Users Posts: 3,041 ✭✭✭Penny Dreadful


    I sold my house a few years ago (3 actually). Paid property tax and the sale went through.
    The house has since been sold on and I got a call from my solicitor and the estate agent recently asking me to sign a NPPR release form.
    I don't quite understand why this has anything to do with me at this stage but apparently not having such a form is holding up the sale for the new people.
    The house was my primary residence at the time too.
    I said if they get a form to me I'll sign it to say this but I'm not doing any donkey work on this as I don't think it has anything to do with me really now.


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    #7
    PetuniaT
    Registered Users Posts: 17 ✭PetuniaT


    The reason they look for the nppr exemption cert is because the charge stays with the property not the vendor if it turns out to have not been exempt. All solicitors are now requesting this cert so sales can go through. The LPT and household charge follows the vendor in the case of "underdeclaring" and doesn't attach to the deeds. Getting the utility companies to send you a statement of account for the qualifying years is not actually that difficult


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    #8
    April 73
    Registered Users Posts: 846 ✭✭✭April 73


    We sold our house in April this year. We had to show that the Household Charge & LPT had been paid. I got a clearance form back from Revenue within a fortnight on the LPT as our house value was up more than the exempted amount since 2013.
    I wasn't asked for household bills for six years to prove residency. I've changed suppliers enough times in six years that I would have found six years of bills difficult to supply.


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    #9
    contrary_mary
    Registered Users Posts: 334 ✭✭contrary_mary


    We had to ring suppliers and get them to send us copies of utility bills for the years in question which was a right pain. Our CC wouldn't accept P60s, bank statements, or a letter/signed affadavit from the solicitor - it had to be utility bills. In fairness to them, once I emailed them in they issued it immediately.

    I didn't realise the LPT exemption could take so long - we just sent off our form last week. We went with the Revenue valuation of the house at the time the LPT was charged so hopefully there won't be any issues.


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    #10
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    From what I recall, it took about 4 weeks for Revenue to process my LPT exemption application. Though I got a phone call when it was done to let me know that it was on the way.


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    #11
    April 73
    Registered Users Posts: 846 ✭✭✭April 73


    Going by Revenue's valuation at the time may not be enough to justify a big increase & get a clearance.
    You may need some extra evidence. I used printouts from the PPR showing comparable properties in 2013 & sales prices in 2015. I also sent clipping of reports showing the house price increases in Dublin & surrounding counties.
    Seemed to be enough.


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    #12
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    In reality Revenue are not looking to catch anyone out. If you can show them that your valuation was arrived at honestly and reasonably, that's all they want. They'll only reject your exemption if you plucked a number from the air, or deliberately undervalued your house to sneak into a lower bracket.

    In my case I told them that no properties equivalent to mine had sold in the local area during the 12 months either before or after the valuation date. And that was true.

    So I provided them with a calculation using the CSO's property price index. Based on the price that I bought it, I indexed that price against the valuation date (down by 60% :eek:). It snuck me in €3k below Revenue's band. And Revenue accepted my valuation because it was honestly and reasonably arrived at.


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    #13
    Rew
    Moderators, Sports Moderators Posts: 8,679 Mod ✭✭✭✭Rew


    April 73 wrote: »
    Going by Revenue's valuation at the time may not be enough to justify a big increase & get a clearance.
    You may need some extra evidence. I used printouts from the PPR showing comparable properties in 2013 & sales prices in 2015. I also sent clipping of reports showing the house price increases in Dublin & surrounding counties.
    Seemed to be enough.

    Yeah I did the same (PPR). I submitted everything by email as well instead of post.


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    #14
    Rew
    Moderators, Sports Moderators Posts: 8,679 Mod ✭✭✭✭Rew


    Worth noting that the NPPR exemption varies from CC to CC mine (Meath) asked for a sworn affidavit but no actual prof (bills). I believe (but could be wrong) that Kildare just ask for a form to be filled in with no proof or affidavit. Other require proof in the form of some sample bills covering the period. If I were selling again id be doing NPPR in advance of any sale agreed (LPT they ask what the agreed sale price is so probably cant but you could be lined up prepared to do it)


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    #15
    contrary_mary
    Registered Users Posts: 334 ✭✭contrary_mary


    April 73 wrote: »
    Going by Revenue's valuation at the time may not be enough to justify a big increase & get a clearance.
    You may need some extra evidence. I used printouts from the PPR showing comparable properties in 2013 & sales prices in 2015. I also sent clipping of reports showing the house price increases in Dublin & surrounding counties.
    Seemed to be enough.

    You've reminded me I took screenshots from the PPR at the time - I'll get those off to the solicitor this evening


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    #16
    CreepingDeath
    Closed Accounts Posts: 8,015 ✭✭✭CreepingDeath


    seamus wrote: »
    From what I recall, it took about 4 weeks for Revenue to process my LPT exemption application. Though I got a phone call when it was done to let me know that it was on the way.

    I e-mailed the revenue an inquiry on Friday and the rang me this morning.
    Said that it takes about 10 days to process an LPT5 form.

    Re: the NPPR exemption, they e-mailed me a form and I just have to get the solicitor to stamp it. (South Dublin council)


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