Floor area cert

L

LFC Murphy

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A friend recently bought a house and builder refused to apply for a floor area cert. Now she has to pay stamp duty.
Anyone know where she stands?
And what reasons does the builder have for not getting one, i.e. tax issues?

Just sick and tired of it at this point as she was gasumpted on a house six months ago.

Thanks
 
A builder does need a tax clearance cert in order to get a floor area cert as far as I know. What did your friend's solicitor recommend?

Update: see here (Word doc) for the DoE floor area cert application form to be completed and submitted by the vendor:

http://www.environ.ie/DOEI/DOEIPol.nsf/0/35d32b901ee51d3d80256f0f003bc83e/$FILE/FLOOR%20AREA%20COMPLIANCE%28FACC%29%20APP.doc (Application for floor Area Certificate)
 
Ya I think there was a referance to a tax clearence cert........ just annoyed really. His answer was he can sell it in the morning to an investor who doesn't need the cert, so take it or leave it.

There is no way around it is there?
 
Just get the solicitor to demand it. If your friend has bought the house Im not sure why this is an issue now.
 
Im sorta lost on this. I take it your friend has agreed to buy the house - signed a contract - and is waiting for the house to be completed. Is that correct?

If its her first house then she is exempt from paying stamp duty. In order for her to prove the exemption she needs a floor area cert from the builder. Now all of this is run of the mill stuff for your friends solicitor to include in the contract.

If it hasn't been included then I would strongly suggest that your friend go back to the solicitor and demand an explaination and then head off to another solicitor or the law society if she feels that her solicitor was negligent in carrying out the duties
 
"Now all of this is run of the mill stuff for your friends solicitor to include in the contract."

I am sorry to disagree, but it isn't. The norm in the sale of new houses is that the contracts are drawn up by the Builders solicitors, and they are usually very slow to allow any changes.

It is also the norm for a builder to supply a floor area certificate, but it has never been normal practice for the supply of the certificate to be a standard contractual obligation. It can become a contractual obligation depending on what is laid out in the 'Booklet of Title' documents which usually accompany the contracts for the sale of a new house, but it is not contained in the standard Law Society contract.

It could be argued that this is a gap in the standard terms and conditions of sale, and no doubt the Conveyancing Committee of the Law Society will take a look at this sometime with a view to beefing up the standard conditions. The reality here is that the law in this area has changed several times in the past few years, and it is difficult for solicitors to keep abreast of all the changes.

The house was only recently bought. For all we know, the buyers solicitor spotted the issue and raised it immediately, only to be told 'take it or leave it'. What more would you have this solicitor do?
 
MOB said:
The house was only recently bought. For all we know, the buyers solicitor spotted the issue and raised it immediately, only to be told 'take it or leave it'. What more would you have this solicitor do?
Click to expand...
I would have them carry out their duties which is first and foremost to protect their client
 
Isn't their job to advise the client but the client ultimately, for better or worse, makes the decisions?
 
You're not clear whether she has already signed contracts.

Did her solicitor advise her of the stamp duty situation before she signed contracts. If the solicitor did not - has the solicitor failed to protect the client?

If you have not signed contracts I would advise you to walk away.

Also, does the new house have a Home bond guarantee?
 
Hi

As an owner occupier her Solicitor should have advised her of the consequences of not having a floor cert. If he did not, she should report the Solictor to the Law Society.

Is the property in Malahide by any chance ?
 
MOB said:
"

The house was only recently bought. For all we know, the buyers solicitor spotted the issue and raised it immediately, only to be told 'take it or leave it'. What more would you have this solicitor do?
Click to expand...

This is exactly what happened. The law is on the side of the builder. He does not have to supply this cert. So the buyer is screwed on what they are by law entitled to.
To me this is a double standards and should be addressed. And don't even talk to me about gasumping.

House is in Galway.

And just to clarify, she was advised of this issue with the floor cert when she was about to sign contracts, the solicitor is a friend of hers so everything was looked at. The builder had stalled for 3 months saying he was applying for the cert and then all of a sudden stated that he was not gonna proceed with getting it. To me this sounds suss, which leads me to think there are tax issues on his side. (Also the stamp comes to a cool 6K)
 
Im even more confused now. Your friend was advised of this by her solicitor and she choose to proceed with signing the contract. Did her solicitor advise her of the consequences?
 
Yes she was advised, she is a singal mum, who is moving across country. As I stated she was gasumped on the first house, then found this house which is more expensive. Her hands were tied and the builder knew it. So it was either payup or forget about the new life for the two of them.
In the end she agreed to pay up.
 
Sounds like there's not much that she can do so other than pay the relevant SD charges. If there is a suspicion that the builder won't supply this cert because they would not get a tax clearance cert then Revenue might be interested. However there doesn't seem to be any hard evidence that the developer is actually evading tax.
 
The builder may need to have all his tax affairs in order to close. Ran into that problem buying my own place, sherrifs office had a lean on the property so he was unable to sell until it was cleared up.
Leo
 
If anybody who was suggesting that the solicitor should be sued\reported to the Law Society\hung from the nearest pole now wants to acknowledge the error of their ways, I will happily accept small gifts and tokens, c\o the moderators.
 
LFC Murphy said:
Yes she was advised, she is a singal mum, who is moving across country. As I stated she was gasumped on the first house, then found this house which is more expensive. Her hands were tied and the builder knew it. So it was either payup or forget about the new life for the two of them.
In the end she agreed to pay up.
Click to expand...


It is rarely that black and white-home ownership is not the be all and end all-what's to stop her from renting?

Unless by 'her hands are tied' you mean that she had signed contracts and paid a non-refundable deposit?
 
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