House Purchase Valuation Probate

[90210]

Can anyone clarify the position on purchasing a house, which is coming out of probate? The house has a market value of €380,000 but the families wish and the previous owner is to sell the property to another family member for a price of €315,000.



They have a valuation on paper set at €315,000, friend of a friend who is an Estate Agent.



Has anyone ever had experience of this and felt the wrath of the Revenue with regards to discrepancies in values ?

 

[ClubMan]

In general it is dodgy to artificially value a property below the real market value (as much as this can be ascertained) especially if this is for the purposes of tax evasion (I am assuming that this valuation is being used to avoid SD). An almost 20% discrepancy which happens to come in just under the FTB/second hand house SD exemption limit might be expected to prick up the ears of Revenue. You should talk to your solicitor about this but it all sounds dodgy to me.

 

[90210]

I know it sounds dodgy but I do not think there is nothing dodgy about it if you can substantiate the valuation and I think we can, ish. The house is very run down, even more since the interior has been pulled out and it has rented accommodation on both sides. Plus the roof needs refurbishment.

The solicitor has told my pal that it is the luck of the draw; it may or may not pass the revenue. I presume that if it were flagged the revenue would want to crack a deal ?