LPT: Selling property, unlikely to close until mid May. Ask purchaser to pay portion

mf1

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What do you all think?

Selling a property, unlikely to close until mid May, so current owner is liable even though the sale will close within weeks thereafter.

Is it reasonable/cheeky to ask the purchaser to take an apportionment of the tax?

I'm 50/50 on this.

mf
 
Hi mf1

I assume it would be the same as for rates on a commercial premises.

If the buyer has paid rates of €6,000 on 1 January for 6 months and the sale closes on 1 June, then the buyer pays an extra €1,000 as part of the closing.

If the buyer has not paid the rates, then €5,000 would be deducted from the sale price.

The Law Society should probably issue guidance on this, although at the end of the day it is a matter of negotiation between the seller and the purchaser.

Brendan
 
The situation is the "Liable person" is whoever is the owner on the 01/05/2013. Your solicitor will be following procedure in getting proof that the LPT is paid on closing as they will need to cover themselves. As for apportionment in the case of the LPT I would personally not see myself liable if I was purchasing. I am actually purchasing and the deal will not be closing until late May and as far as I am concerned I will not be paying an apportionment.
 
I'm in this exact position at the moment. All in all we won't have moved out until mid May. However according to our solicitor, as we will still be the owners on the 1st of May then we are responsible for paying the LPT.
No if's, but's and maybe's - if your the owner on the date you have to pay.
 
The liability date is the 1st May. If I did not own a house on tht day I would not accept any portion of the liability. Unless and until the Law Society states otherwise I would not agree to an apportionment.

The exception to this , for me, would be if the sale had an agreed closing date prior to the liability date it might be reasonable to include a special condition to the effect that, if the sale closed after the 1st May due to the delay of the Purchaser then the liability would be apportioned
 
If the buyer is a first time buyer, they are not liable to LPT, so they would not accept any apportionment.

This is for agreement between the buyer and the seller.

Someone, for example, the Law Society, should set out the practice, and then it's up to the contracting parties to accept that or adjust it as they see fit.

Brendan
 
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