DCC & clawback

L

Lizard

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I'm thinking of selling my AH apt. I bought it in 2005, and will probably be in negative equity if I do sell. Will I have to pay the clawback, which is 25% of value of property when I bought it, although I will be selling at a loss? Judging from threads on this subject, the dcc appear to be very difficult to deal with on this issue.
 
HI Lizard,

You should try dealing with Cork City Council. We had an auctioneer with us today to give us a valuation. His projection was the CCC would be entitled to look for the full amount of clawback (ie the full reduciton we got in the property back in 2002 - same reduction % as yourself).
This is where we stand from today.
Original House value 170k
Purchase price 127k
House value - 125k
Outstanding Mortgage - 90k
Possible clawback approx 40k
We are in year 11 of 25 year mortgage.

After this valuation this morning I decided to get legal advice. His uptake too was the Council could look for the full amount of the mortgage plus the clawback !!!!!!! This is totally unacceptable. He is going to look at the Land registry to see if there is a specific calculation of the clawback in relation to selling the house at its current value. The Council could just look for the outstanding mortgage left or look for the full value of the resale. These two options would be acceptable to us but there's no way the council are getting more than what we sell it for. Solicitor said he will have an update in about a week so will update more then.
 
Thanks for that Tired Paul. There is something in the Irish Statute Book on the question of clawback. Another Poster pointed this out (cant find the post now). It appears we dont have to pay the clawback.. well according to this housing provision. I've made a note of it on a scrap of paper at home, must root it out again. Long battle ahead. Dreading it.
 
Found this on another post "if you sell your house for less than you paid for it you owe no clawback: Section 9(3)(d) of the Housing (Miscellaneous Provisions) Act 2002. After trawling through the Irish Statute Book online I did find it, but the wording was unlcear.
 
Thanks Lizard. Will be intresting to see what resposne (if any) I get from the Council when they get a fromal letter regarding this.
 
We finally sold our house last week and have confirmation that there is no Clawback applicable to the sale price.
Even though we achieved more than the asking price, it still falls short of the limits where the Clawback becomes applicable.
Our solicitor had to fight our case to get this info.
 
Congrats on selling the house and getting out of the unfair clawback. So it looks like I'll have to get legal advice after all. More money. Thanks for letting me know - you wont be so Tired Paul anymore!
 
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