Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Private sale query

Options
  • 29-06-2016 10:59pm
    #1
    Berserker
    Closed Accounts Posts: 9,046 ✭✭✭


    Looking to get some information on a purchase that one of my family members is entering into. She has asked me for my opinion on the matter but I have no interest in the property game, so I am posting here in the hope of getting the information that I need.

    Anyway, the family member in question has been renting a property for many years and she has settled into the residence and has become quite friendly with her neighbours, who own the property. She has reached a point in her life where she wants to move from being a renter to a home owner. On mentioning this to her landlords/neighbours, they told her that they would be willing to sell the house she is renting to her and they agreed a price. The price agreed is well below the going rate in there area, for the record. The elderly couple, have no children and they are happy to sell the house to someone they know, who is going to be a good neighbour etc. Anyway, are there any gotchas that she needs to be careful of with a purchase like this? She has mortgage approval for the purchase price and them some. What are the tax implications for the couple selling the house, as a matter of interest?


Comments

  • Options
    #2
    Geuze
    Registered Users Posts: 13,439 ✭✭✭✭Geuze


    If the sellers have made a gain on the sale, then they may be liable to CGT.

    Also, if the sell the house for well below market value, then they are giving a gift to the buyer.

    The buyer may be liable to CAT on the gift.


  • Options
    #3
    Geuze
    Registered Users Posts: 13,439 ✭✭✭✭Geuze


    Obviously, both sides will employ solicitors, who will advise on CAT and CGT.


  • Options
    #4
    Jen44
    Registered Users Posts: 455 ✭✭Jen44


    I bought my house like this, the daughter of the lady who's house we bought lives next door to my parents and we had mentioned to her when her mam passed away that we would love to buy it if she was putting it on the market. She didnt put it on the market and sold it directly to us. We had no problems both solicitors dealt with the sale so it wasnt awkward between us at all. I now live around the corner from the daughter in her old family home!


  • Options
    #5
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,712 Mod ✭✭✭✭Henry Ford III


    Geuze wrote: »
    If the sellers have made a gain on the sale, then they may be liable to CGT.

    Also, if the sell the house for well below market value, then they are giving a gift to the buyer.

    The buyer may be liable to CAT on the gift.

    The amount would need to be substantially below market value to even appear on the CAT radar.


Advertisement