Earlier this week the government announced a new ‘snitch clause’ which puts pressure on home buyers to inform on sellers who have purposely lowered the valuation of their house in order to save on the new property tax.
Under the new rules, buyers will be obliged to tell the Revenue Commissioners if the previous owners put a dwelling in a band clearly lower than their selling price.
For example, if a home has been valued at €200,000 but then sells for €350,000, the new buyer would be forced into snitching.
Offending vendors will be fined €500 if they refuse to reveal the band declaration to buyers.
The question remains though whether it is fair or not on buyers that they should effectively be roped into becoming watchdogs for the Revenue.
Depending on the interest in a home, it could also sell for above or below the property tax band into which it falls.
It also puts a huge pressure on the purchaser, who has enough on their plate with buying and moving into a new home without having to tell tales on the last owners.
Equally, they could be worried about falling out with their new neighbours if they snitch as the government wants.
The impact of this new clause could have other effects too with Fianna Fáil suggesting it may even impact on the property market, which – like it or not – creates revenue in the economy.
Today we’d like to get your opinion on the new ‘snitch clause’.
Do you think it’s fair that home buyers should have to report the previous owners?
Would you feel comfortable reporting someone?
Let us know and have your say in the comments section below…
