Residential Propery Tax clearance Cert

[runner]

Possibly one for the legal eagles!

The Revenue site stipulates that if buying a property of value in excess of a treashold (currently I think 1.4M), one needs to get a clearance cert from Revenue that the old Property Tax ( now defunct) was paid on this property, or exemption allowed , back when the property tax was in place.
Does anyone know if this cert is a definite requirement when transacting a purchase,and that if cert not available, then the purchaser must deduct and remit 1.5% x 5 computed on the difference between the purchase price and the (say 1.4M), and return this to the revenue?
Is this a definite requirement?

Looking at a property that may have this issue.

 

[mf1]

Why would the Cert. not be available? If it is an issue and if all comes to call, then returns have to be made to Revenue by Vendor and Cert. will issue. I assume that if there is money due, it can come from sale proceeds? Anyway, its not your problem, its the vendors. Tell me please that there is no suggestion here that people might overlook it?

mf

 

[runner]

Thanks Mf1,
My understanding is that no returns were made at the time. They apparently never got any demand from Revenue, and coupled with the fact that they believed they were under the income treashold, never bothered to apply and do a return (whereas they should have sought an application and returned it anyway, even if nothing was due).
Its not really my problem as you say, but these things if not in place could hold up the transaction, should I proceed in due course. Im only sniffing at the property currently, as its not formally on the market, but heard it will be soon and is local to where I live.

1) You have answered the main issue I think, in that they could do returns in advance of sale, have these figures agreed with Revenue,and if any monies due, then these could be taken and paid to revenue from the proceeds of the sale as part of the closing process?
2)I was also wondering that given there is probably no liability anyway, is the certificatiion necessary, ie is this a legal requirement as part of closing
process?
3) Wondering as a curiosity if there were non-disclosure issues/penalties here, in addition to arrears payment and simple interest addition?

thanks
Runner.

 

[mf1]

I was also wondering that given there is probably no liability anyway, is the certificatiion necessary, ie is this a legal requirement as part of closing
process?


It may be. There may be exceptions/ explanatory circumstances.

Like I say the rest is for the vendors to worry about. If in doubt, contact your own solicitor for advice.


mf

 

[runner]

Thanks for your much appreciated comments Mf.
Yes, will talk to my own solicitor if going any further, but its useful to have a second opinion as well! Cheers.
Runner