Second hand Property - never resided in

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Darth Vader

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If I am buying a property whcih is second - hand but no body has lived in it since it was constructed, can I buy it as a new property or does it have to be registered as a second-hand property. Does the fact that nobody lived in it make any difference?
 
The original owner may be able to get a certificate of non occupancy from Revenue in order for this to be sold as a new property but this could have tax implications for them that they would not want to take on. In the absence of this or some other suitable arrangement the property will be sold as second hand and you will be liable for the normal stamp duty (which I presume is the main issue here?).
 
I've never heard of a certificate of non-occupancy before. Is this new? As far as I was aware, if a property is built and sold but not lived in, Revenue consider it to be a second-hand property when it is sold on again as it can only be considered a new property when it is built?
 
Hi,

Did you find out anymore information on your case about buying a second hand property that was never lived in??? I'm in the same situation and am very annoyed that I'm forced to pay Eur10k in stamp duty when the property was never lived and is practically new......

If you found a way around this, I'd be very grateful to hear it.
Please let me know asap!!

Many thanks,
Niamh.
 
Same situation here...Doubt if they are willing to say they (previous occupant!) never lived in it though!!
 
I've been onto solicitors and the revenue about it and can't seem to find a loophole. If anybody atall out there knows a way around this I'd love to know!! I'm sure you would too Lauren....Even if the vendor admits he never lived in it, I don't think we can get out of paying the 3%.
 
Darth Vader said:
I've never heard of a certificate of non-occupancy before. Is this new?
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I don't know the details and am going on some information that was posted in the past here on AAM. Could be completely wrong but there was mention of the possibility of Revenue certifying a previously owned but never lived in property as a new property when sold on - with potential tax implications for the seller though.
 
I've asked both a solicitor and the revenue about a certificate of non-occupancy and they both said 'there's no such thing'...Just can't see a way round it!!
 
Well if anybody knows some smallprint way around it, PLEASE let me know
before I fork out Eur10k to the goverment who are bleeding first time buyers dry!!!!!
 
niamhjones said:
Well if anybody knows some smallprint way around it, PLEASE let me know
before I fork out Eur10k to the goverment who are bleeding first time buyers dry!!!!!
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In fairness, I would assume this property would command a price in or around 10K less than similar properties in the area.

Surely if all those programs claiming that doing up a place adds value to it then the converse should also be the case, that a house with no fancy garden/kitchen/bathroom/nic nacs lying around, should be priced lower. If you feel you've overpaid then that's a different issue.
 
I'd be happy with the purchase price, but to have to pay eur10k stamp duty for absolutely no benefit to me is a scandal!!!
 
niamhjones said:
before I fork out Eur10k to the goverment who are bleeding first time buyers dry!!!!!

I'd be happy with the purchase price, but to have to pay eur10k stamp duty for absolutely no benefit to me is a scandal!!!
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If you don't like the idea of paying this tax then why not shop around until you find a tax exempt (e.g. new property under 125sqm or second hand property under €317,500) property that suits your needs?
 
niamhjones said:
I'd be happy with the purchase price, but to have to pay eur10k stamp duty for absolutely no benefit to me is a scandal!!!
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But is the fact that this property has never been lived, and I would assume have a less finished look to it, mean that it's price is less than the next door neighbour, who has maybe slapped in decking and a herbacious garden?
 
niamhjones said:
Well if anybody knows some smallprint way around it, PLEASE let me know
before I fork out Eur10k to the goverment who are bleeding first time buyers dry!!!!!
Click to expand...
From the details you've given it sounds like the person you are buying from is "flipping" the house. If that's what's happening here then they are the ones bleeding the FTB dry by imposing the double whammy of their comission on the original price plus adding a stamp duty to what is now a second-hand house.

As Clubman said you can always shop around. You should be looking to paying 10 grand less for this house than other comparable new-builds in the area otherwise you're overpaying.
 
you're both right. The vendor bought it for c. Eur340k and is now trying to sell it on for a tidy profit. All other apartments in this complex were bought from the plans!! It's extremely hard to find a decent residence in Dubin that's below Eur317k. Vendor won't accept anything below Eur353k, but is finding it hard to sell as nobody wants to pay the 10k.
 
I followed this up with the Revenue Commissioners and they confirmed that these 'never lived in' properties are deemed second hand. the fact that they have never been lived in makes no difference, they were originally sold as new properties and they can only be classified as new once.
So, im afraid theres no way around it and it makes no difference if anyone lived in it or not. Anyway, It seems that the CGT (at 20%) that the vendor would have to pay on such a property could be quite a bit more than the stamp duty that the purchaser would pay so it is very unlikely any vendor would agree to sell it as a 'never been resided in' property even if it was possible to do so.
 
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