Buyer to pay seller back remaining property tax of 10%

[Abcd1234]

Hi guru in this forum,

Just bought a private condo, was asked by seller (via seller's legal) to pay for remaining property tax for year 2012. Seller paid 10% property tax as 'investor mode' to IRAS for year 2012.

This condo will be for my own self stay. I heard 'occupier mode' is just to pay property tax to IRAS of 4% of property annual valuated rental.

My believe is property should be paid or refund via IRAS who really care if property is own-stay or for investment.

Is this seller doing the right thing?

[westman]

Hi guru in this forum,

Just bought a private condo, was asked by seller (via seller's legal) to pay for remaining property tax for year 2012. Seller paid 10% property tax as 'investor mode' to IRAS for year 2012.

This condo will be for my own self stay. I heard 'occupier mode' is just to pay property tax to IRAS of 4% of property annual valuated rental.

My believe is property should be paid or refund via IRAS who really care if property is own-stay or for investment.

Is this seller doing the right thing?

You will pay first, claimed back (if for own stay) later from IRA. Your lawyer will advise you how to claim when you took over the unit.

I did that once before. I claimed back the 2%.

[Abcd1234]

You will pay first, claimed back (if for own stay) later from IRA. Your lawyer will advise you how to claim when you took over the unit.

I did that once before. I claimed back the 2%.


Thanks Westman. How does 2% come about? thought 10-4=6%?

[westman]

Thanks Westman. How does 2% come about? thought 10-4=6%?


Depending when the transaction took place.
For that case, it was Q4.

Anyway, me did not pay much and seller took little from me after offsetting the differences.

You or seller gain/lose nothing at the end. Suggest you move on.