Private sale of a house between two parties?

J

jwof2006

Registered User
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Hello,

In the case of a private house sale that has been agreed by two parties, can we just notify our solicitors and let them help us with this? Or should an estate agent be involved?

If the solicitor is all that is needed should the fees be relatively similar to if you are buying a house through an estate agent?

Kind regards,

Jack
 
No need for estate agent at all in your case.

Solicitor fees won’t change from the market rate.

Capital Gains/Acquisition needs to be sorted on fair market value, just in case the property price favours either one of you.

,
 
As above. An estate agent's function is help find the buyer who is willing to pay the most. Once that person is identified it's over to the solicitors. If you already have the buyer and are happy with the price, an agent will add nothing but take a large fee.

In terms of the solicitors fees, the presence of an agent in the deal makes no difference, they still have to do all the same due diligence so the fees will be the same.
 
LS400 said:
Capital Gains/Acquisition needs to be sorted on fair market value, just in case the property price favours either one of you.
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My understanding was that this fair market value test only applies where there is a clear relationship between the seller and buyer, e.g. parent to child.

I don't see how you can pick up a bargain off market if it applied to all buy/sell scenarios. Let's say you are a buyer and go sale agreed directly with a homeowner seller. You agreed on a price that is €40k below market value. Surely most sellers would pull the deal if they are obliged to pay CGT on a €40k larger sale price?
 
Bluecup said:
My understanding was that this fair market value test only applies where there is a clear relationship between the seller and buyer, e.g. parent to child.

I don't see how you can pick up a bargain off market if it applied to all buy/sell scenarios. Let's say you are a buyer and go sale agreed directly with a homeowner seller. You agreed on a price that is €40k below market value. Surely most sellers would pull the deal if they are obliged to pay CGT on a €40k larger sale price?
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You are of course correct.

There have been a number of eejits virtue-signalling on Twitter recently that they have sold previously inherited properties "to deserving families" at below full market value. Assuming they're telling the truth, and not pocketing cash on the side, there is no need to apply fair market value to the transaction in such a situation.
 
T McGibney said:
Assuming they're telling the truth, and not pocketing cash on the side, there is no need to apply fair market value to the transaction in such a situation.
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I assume this is a question of degree.

If I sell a €500k house for €400k it wouldn’t attract attention or scrutiny as houses are pretty difficult to value at the best of times.

If I sell a €500k house for €50k to an unconnected third party out of charity are you telling me there are no stamp duty or CAT implications?
 
NoRegretsCoyote said:
If I sell a €500k house for €50k to an unconnected third party out of charity are you telling me there are no stamp duty or CAT implications?
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If you do that, I suspect stamp duty and CAT will be well down the list of concerns of the authorities....
 
T McGibney said:
How could one validly make such an assumption in relation to a transaction like that?
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It’s a thought experiment. Assume everyone is of sound mind and there is no crime involved.

You made a categorical claim as to the tax treatment and now seem to be unwilling to defend it.

So are there zero CAT or stamp duty implications?
 
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