Selling, buying or transferring a property

Overview

When selling, buying or transferring a property, there are certain obligations on both the seller and the buyer. Local Property Tax (LPT) clearance must be in place prior to:

  • the closing of the sale
  • or
  • the transfer of the property.

The seller and the buyer must make sure that all LPT obligations have been met before completing the sale. This means that all LPT returns must be filed, and LPT payments must be up to date. You can check your LPT record through LPT online.

If you are the liable person for a property on the liability date (1 November), you are liable to pay the LPT for the following year.

  • Example

    Pat is the liable person for a residential property on 1 November 2026. He sells his property in December 2026. Even though he does not own the property in 2027, he remains the liable person for LPT and must pay the full liability for 2027. The buyer becomes the liable person for LPT on 1 November 2027 and must pay LPT for 2028 onwards.

Any unpaid LPT liability forms a charge on the residential property. Any LPT interest charge or penalty applied is also a charge on the property. This charge remains on the property until it is paid in full. Both sellers and buyers must follow the steps advised in this section. This is to ensure that the property is LPT compliant and not subject to an outstanding LPT charge.

Note

Please see Tax and Duty Manual Part 11-01 LPT clearance on the sale or transfer of residential properties, for detailed guidance.

Next: You are selling a property

Published: 05 November 2026 Print this page

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