Floor area certificate

Heuston...we have a problem! We have just bought our first home as first time buyers and have completed the (third) snag and are happy enough to go ahead. I have informed our solicitor to go ahead with the closure of the sale and he has recieved the cheque. However on speaking with the builders solicitors they told our solicitor they havnt recieved/been issued with a floor certicicate which leaves myself and my better half eligable for stamp duty! Our solicitor has said this could delay the process by a good few weeks and has told us he will write to the builders solicitors saying that we have kept money by for stamp duty(which we havnt) so to go ahead and close the sale. Can ANYONE please advise me on this as so worried we will now have to stump up €10000 or wont be in our house for another 2months!
Thanks in advance xx

If there is no floor area certificate at the time of purchase I can't see how going ahead on the basis mentioned by your solicitor will work since it would seem that you would still be liable for SD and the solicitor would be obliged to ensure that this is remitted within 30 days or whatever. I would ask the solicitor (and maybe also Revenue - although I doubt that they will do anything other than refer you to the relevant tax legislation) to confirm in writing that going ahead is OK and that you will not be subject to SD once the cert is issued (assuming that it will be!). I would be very wary of proceeding as things stand on the assumption that SD will not be an issue for sure. If it was a case of delaying or taking the chance then I reckon that the former is a more prudent choice.

Sarah said:

Heuston...we have a problem!

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Was the train delayed as well?

Still none the wiser and for some reason the solicitor wont answer my calls...im at the satge where i want to ccall the builders solicitors myself to get it sorted!I mean other people have move in so why are there problems with our house!!Thanks a mill for that though..and oh waht a smart a%$e you are!

You may have a way out depending on price:

1. The general "owner occupier" exemption from stamp duty means that for a house under 125sq. mt. you must have a floor area certificate.

2. However, if the price is less than €317,500.00, then whether it is new or secondhand, you (as a first time buyer) are exempt from stamp duty. The FTP exemption does not rely upon the floor area cert. Also, I think that the €317.5k can probably be measured exclusive of V.A.T. (i.e. gross price €360k).

I haven't had this situation, but the above is my understanding of the law as currently stands, and this is an area of law in which I practice. Obviously you should double check with Revenue.

Hope this helps.

Our solicitor has told us he will hold firm and wait for the Floor Cert(could be long delays though) however he has said if the builders solicitors give the go ahead for us to move in without the cert it will mean them paying the "Stamp duty" which apperantly they hold funds by for and then they can calim back on tax when the floor cert comes through! Either way he seems to have high hopes of having us in by the weekend so he dosnt seem to think there is a big problem at all and it wont effect us!!! Any opinions? Thanks for all your replies and help you guys! xx

Sarah said:

if the builders solicitors give the go ahead for us to move in without the cert it will mean them paying the "Stamp duty" which apperantly they hold funds by for and then they can calim back on tax when the floor cert comes through!

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That sounds implausible to me since the SD liability falls on the buyer and, technically, the builder paying it on your behalf could lead to other tax issues (e.g. gift tax). In addition I am not aware of any circumstances under which SD can be reclaimed. However I am not an expert in this field so perhaps somebody else can comment. On the other hand your solicitor may not be qualified/authorised to give general tax advice either. You should ask him/her. Ask your solicitor to refer you to the relevant section(s) of the tax legislation (e.g. Tax Consolidation Act/TCA reference) so that you can verify that this is actually the case. Ask him/her to put this advice and reference to the TCA in writing if at all possible. As I said before, I personally would be very reluctant to proceed while there remained any uncertainty about the SD issue.