LPT: Deferral pending sale of house in 2 to 3 years time. Will I have to borrow €2k?

Lizard

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I plan to sell my home in 2-3 years time. I have deferred the property tax until then, which will amount to about 3k. But I will not be able to sell the house unless the tax is paid up in full.

The plan was to pay this tax from the sale of the house.

Do I have to borrow this money before the sale, in order to legitimately sell the house, or can I come to an arrangement with Revenue whereby they can take the tax owed to them after the sale?

The 2nd option is the only way I can pay it.

Thanks.
 
In normal circumstances, the purchaser's solicitor would require your solicitor to prove evidence that you have paid any LPT and household charge plus interest due before the sale could be closed.

However, if you inform them that you have deferred the tax, then I would imagine that your solicitor would have to undertake to the purchaser's solicitor that he will pay the LPT plus all interest due to Revenue directly from the proceeds of the sale. So you wouldn't get your hands on the full sale price, but only on the net amount after the LPT due has been paid in full by your solicitor.

You'll need to clarify this with your solicitor when you put the house on the market.
 
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