Buzyizzy

The seller of the house I am hoping to buy in Ireland has just rung me with a suggestion and I'm not if it's either legal/suspect/genuine. I'd appreciate some help.
I am paying €75,000.00 for the house which he bought 10 years ago for €40,000.00. He has spent €30,000.00 so he says and I believe him as I know how expensive things are to do. He has told me that he is going to be stung for CGT as he is selling it for much more than he paid. I'm not sure if this is true as I checked the revenue.ie site and I've asked them to clarify it for me. He has asked that I give him €30,000.00 directly, not through the solicitor, because then he won't have to pay any tax. He has agreed to drop the price €5,000.00 so it would save us both some money. Apparently he also has to pay a tax on it as it wasn't his main residence, which is amounting to about €7,000.00. I'm very reluctant to do any deals outside a solicitor, especially with someone I hardly know and not living in the UK.
What do everyone think? I smell a rat, personally.

Moses2013

Everything sounds wrong and you never buy without a solicitor, be it UK, Ireland etc. If the house is his, then he will have to pay no matter if you use a solicitor or not. Anything could be wrong with the property, be it boundaries, planning. Did you check with local planning department?

mikelincs

I agree, sounds like he is trying to avoid some of the legal fees.

molly1664

We looked at a house through an auctioneer and the vendor wanted to do the same. Decided to avoid it as we knew our solicitor would confirm our fears that the transaction was illegal. The house did sell and from looking on the property register it showed the lower price officially having been put through. It seems to be a common tax avoidance scam. We were surprised that an auctioneer was promoting and endorsing it!

mrhappygolucky

Having a good knowledge of the auctioneering business in Ireland I can tell you this is a common enough business transaction. Yes indeed illegal as it's tax evasion. If you decide to go through this route make sure you don't give him the 30k cash until you have the property registered in your name and you have hold of the Title of Deed. Also make sure he has paid the NPPR charge on the property as if he hasn't there will be over 7k owing now.

scot47

This is illegal and you will create potential CGT problems when the time comes to sell. Do not do it.

Buzyizzy

He's not suggesting I don't use a solicitor, I wouldn't ever go down that route.

Buzyizzy

He's trying to avoid paying CGT, it's actually me who would pay lower legal fees

Buzyizzy

Glad I'm not the only one😊

Buzyizzy

Would a solicitor be able to help me with all this? Obviously I will have my own for the purchase.

Buzyizzy

I won't be paying CGT as it will be my main (and only) residence.