NPPR Exemption Certificate

LauraT

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I purchased my home in June 2012 and I am now selling it and it has come to my attention that the Vendor's Solicitors failed to advise their clients to apply for an NPPR Exemption Certificate for the period when it was their principal private residence, namely 2009 to June 2012 and they have left the country. I contacted they Council who told me that they can't issue an Exemption Certificate for that period because I was not the owner. Has anyone experienced this dilemma and found a way around it as I have a buyer but I can't close the sale without the certificate and the sale will fall through.
 

NoRegretsCoyote

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namely 2009 to June 2012
The 2009 liability expired on 31 July 2021. The same will happen for 2010 on 31 July 2022 and so on, but this is not much use to you. So you have to worry only about 2010, 2011, and 2012.

and they have left the country.
Put as much effort as you can into finding them and asking (even paying) them to help you to get an exemption certificate. They will need to dig up old utility bills from the period to prove it was their PPR and deal with the local authority directly.

Has anyone experienced this dilemma and found a way around it as I have a buyer but I can't close the sale without the certificate and the sale will fall through.
If all else fails you can simply pay the NPPR and late fees yourself which will come in at a bit under €6,000 I think. This might be better than letting the sale fall through and going back on the market and you will only have the same problem with a new buyer.
 

Sunny

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Think this came up recently on another thread if you do a search. It's a pain.
 

NoRegretsCoyote

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Addendum: if you take off the market, put it on in a few years and close the sale after July 2024 this won't be a problem as the charge will have expired.
 

Baby boomer

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The 2009 liability expired on 31 July 2021.
Correct.
The same will happen for 2010 on 31 July 2022 and so on,
Better still, the 2010 charge expires on 31st March 2022 and on 31st March 2023 for the 2011 change and so on. So the OP is nearly there for 2010 and it's only 2011 and 2012 that are in play.

but this is not much use to you. So you have to worry only about 2010, 2011, and 2012.


Put as much effort as you can into finding them and asking (even paying) them to help you to get an exemption certificate. They will need to dig up old utility bills from the period to prove it was their PPR and deal with the local authority directly.


If all else fails you can simply pay the NPPR and late fees yourself which will come in at a bit under €6,000 I think. This might be better than letting the sale fall through and going back on the market and you will only have the same problem with a new buyer.
I wonder would the purchaser accept an undertaking from your solicitor to hold the amount of the 2011/12 charge in trust, to be used to discharge the nppr if necessary, and to remit to you after 31st March 2024 when all charges will have expired.
 

NoRegretsCoyote

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Better still, the 2010 charge expires on 31st March 2022 and on 31st March 2023 for the 2011 change and so on. So the OP is nearly there for 2010 and it's only 2011 and 2012 that are in play.
Thank you - I didn't realise!

@LauraT - you should chase this up with your solicitor who handled the purchase for you. Not ensuring this (or advising you of the consequences) was negligent in my view.
 

Sunny

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I wonder would the purchaser accept an undertaking from your solicitor to hold the amount of the 2011/12 charge in trust, to be used to discharge the nppr if necessary, and to remit to you after 31st March 2024 when all charges will have expired.

It doesn't work like that. You are either exempt from the NPPR liability or the NPPR liability needs to be cleared at the point of sale. No solicitor will let it go through otherwise.
 

Baby boomer

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It doesn't work like that. You are either exempt from the NPPR liability or the NPPR liability needs to be cleared at the point of sale. No solicitor will let it go through otherwise.
I'm not so sure. I've known at least one case where a judgment mortgage (which was in dispute) on the vendor's property was dealt with in this way. The vendors solicitor undertook to hold back an amount equal to the judgment mortgage, plus a few thousand for miscellaneous costs, pending resolution of issues around the JM. Everyone was happy and the vendor had a bit more leverage to resolve matters with the Judgment creditor.

As an unpaid nppr acts as a charge on the property (akin to a mortgage) it seems like a similar arrangement should work.

It's also the case that local authorities have more or less given up on the nppr. The 2010 charge is still liable.to be paid (at least for the next week or so) but if you tried to pay it, they won't let you. Good riddance, I say, it was a horrible and unjust tax.
 

NoRegretsCoyote

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As an unpaid nppr acts as a charge on the property (akin to a mortgage) it seems like a similar arrangement should work.
I am not sure it's that simple.

Section 8A(4) of the Local Government (Charges) Act 2009 (as inserted by section 19(1) (j) of the 2011 act) introduced a requirement that a vendor furnish either a Certificate of Exemption or Discharge on the sale of a property to which the legislation applied in respect of each year in which a liability date fell since the date of the last sale of the property.

So there is a legal obligation on the vendor to supply the certificate. There could be some professional obligation on either party's solicitor to ensure compliance (am speculating).

Good riddance, I say, it was a horrible and unjust tax.
I fully agree. It was put together in a blind panic when the public finances were in freefall. It imposes impossible obligations on innocent parties like the OP. I'm glad it will be history soon.
 

jpd

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In all fairness, this should have been sorted out when the OP bought the house in 2012
 

dubdub123

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You should confirm with solicitor that dealt with purchase that house is actually exempt. Did they receive anything to confirm this? Or should payment have been made. Check closing statement provided at time of purchase.

If all else fails, you could try submit an application..
Looking at the application form for dublin, looks like it needs a signature of seller OR agent. I wonder if estate agent that dealt with sale, could apply for this?

Do you have the meter readings? If not just create a throwaway email address and email npprrequests@esb.ie requesting readings and sign off as previous owner. They email those across and you need readings for the application to local council. You will need to know name of person who was on the bill.
 

Rasputin

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So there is a legal obligation on the vendor to supply the certificate. There could be some professional obligation on either party's solicitor to ensure compliance (am speculating).

Was a real issue for a few years post crash if you bought a property at auction, and it was being sold by a financial institution and the previous owner has no interest in engaging, for obvious reasons. The council will provide a discharge certificate if it has been paid no problem and for free, but if it was an exemption cert you needed, it would be very difficult.
 

NoRegretsCoyote

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Do you have the meter readings? If not just create a throwaway email address and email npprrequests@esb.ie requesting readings and sign off as previous owner. They email those across and you need readings for the application to local council. You will need to know name of person who was on the bill.
I've had this with a few bodies recently when asking for documents via email for an elderly relative.

Them: "We can't provide to a third party...something something.....GDPR".
Me: "so if the email request comes from an address with some version of the person's name you'll deal with it?"
Them: "yeah no problem......"
 
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