What happens if purchasers find the seller undervalued the property for LPT?

T McGibney said:

There can't be too many neighbourhoods nowadays where 14 adjoining neighbours know and trust each other sufficiently well to participate in such a conspiracy.

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There was a meeting held amongst many of my neighbours (both in my estate and on the main road outside) prior to valuations being sent in (I didn't attend) and a flyer was sent around all the houses in the estate stating what most people intended to declare. It seemed to me that most were planning on significantly under-declaring the value.

I declared my home significantly above what it seems most others were preparing to declare theirs at. There were no houses sold in the estate in 2013, one in 2014 so far (at €420k) and only 2 in 2012 one for €225k and the other for €391k so getting an average accurate figure is difficult.

T McGibney said:

There can't be too many neighbourhoods nowadays where 14 adjoining neighbours know and trust each other sufficiently well to participate in such a conspiracy.

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When it comes to saving money and sticking it to the man, anything is possible.

Brendan Burgess said:

It's an interesting point.

To the best of my knowledge, the purchaser's liability is to make sure that the seller paid the LPT.

Certainly, in 2020, they won't need to review the 2013 valuations.

The next valuation date is 1 November 2016 I think. (Though I suspect that will be moved to 1 Jan 2017) . That will cover 2017, 2018 and 2019. Not sure if it covers 2020.

I don't think that you will ever by liable for the seller's undervaluation, but you can't buy unless they have paid. Revenue would have to chase the seller.

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Is this actually true though. Does the liability for LPT pass to the new owner or remain with the vendor.


Another question:

If an auctioneer values for sale a property at the top end of the band, the actual band the vendor used for LPT, and the sale price exceeds that by over 10% (my case) which brings it into another band. Is there something I should do. I have the auctioneers estimated value in my contract. And the band I used is the same on the current revenue interactive map, plus I based it on actual sales as per the Property price register. That should be ok I assume. Or should I ask revenue.

You can’t sell a property without revenue clearance that the lpt is up to date

It’s all here

I got no revenue clearance. I was asked to supply my solicitor with proof that I'd paid it for all years. Which I did. So what happens if I put Band 1 when I should have been Band 3 for 2012 (and onwards) ?

you’d need to ask your solicitor, I’m guessing that they got it for you .

You legally can’t sell a house without it

If you undervalued the house under revenue guidelines , you wouldn’t have gotten clearance

As far as I'm concerned I valued it correctly. But I sold it at over 10% more than the band I had declared.

I'll ask my solicitor about the clearance cert next week.

But this is excellent news though. It means then I can't be accused of putting in the wrong Band. And it means I don't have to worry about Revenue looking at it and saying I owe penalties etc.

Bronte said:

As far as I'm concerned I valued it correctly. But I sold it at over 10% more than the band I had declared.

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I think we were 40% above the band declared and there was no problem.

There seems to be a lot of leeway, up to 80% higher than the upper limit of the band declared.

It is very hard to follow and depends if the property is in Dublin or elsewhere and is valued above or below €350,000.

Selling a few years ago, our solicitor said General condition 4.2.2 applied in our case, this was put in the contract, sale went through so buyer solicitor had no issue with it. Presumably today's guidelines are similar to those that applied up to Oct 2021.

https://www.revenue.ie/en/property/documents/lpt/guidelines-sale-or-transfer-sept-2017.pdf