What happens if the seller does not pay the IBI?

Article by: Alejandra Ros | Last update: April 10, 2022
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What happens if the seller does not pay the IBI? In the event that at the time of the sale the IBI has not been paid by the seller, the two parties must agree on who pays the tax to the town hall and subsequently passes on the amount to the other party.

Who pays the IBI, the buyer or the seller?

The Supreme Court has established as a jurisprudential doctrine that whoever sells has to pay the IBI. Therefore, if there is no agreement to the contrary, the seller must pay the IBI. Although it may affect the buyer in proportion to the time that each of the parties have enjoyed it.

How many years can I claim the IBI?

On the other hand, we find the tax debts, specifically the IBI. Tax debts, as established in article 66 of the General Tax Law, prescribe after four years from the end of the regulatory period to present the due declaration or self-assessment.

What happens if the buyer does not pay the IBI?

In this case, if the City Council decided to claim the payment of the IBI, it could claim it first from the seller and seize accounts, wages or assets, and, later, from the buyer because it is considered that the home is affected by the payment of the tax, that is, it responds of IBI payment.

Who is responsible for IBI debts?

According to the Law of Local Treasury, which regulates the Tax on Real Estate (IBI), in a home purchase, the payment of the IBI is paid to the City Council by the seller of the current year, since in said regulation it is established that the person obliged to payment is whoever is the owner at the time of the accrual of the …

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Who is responsible for the IBI?

The law that regulates this tax (the Local Treasury Law) determines that the accrual of the annual IBI corresponds to the owner at the time the payment is made, which coincides with the first day of the calendar year.

Who pays for the overdue ibis?

The seller has the obligation to pay the IBI in full to the Tax Administration, for being the owner on January 1, which is when it accrues. Next, the seller has the right to pass on to the buyer 363/365 avas parts of the IBI paid, which is obliged to reimburse him.

How many IBI receipts can I claim?

How many late receipts can I claim? In the event that the IBI has been voluntarily or unknowingly not paid for several years, the city council on duty may claim the last four unpaid receipts, in addition to the current one.

How to know if an IBI is prescribed?

To check whether the liquidation is prescribed or not, we will have to take into account that the city council has a period of 4 years to notify us of an IBI liquidation, from the moment the tax is generated.

How to know if a debt has prescribed?

For example, if a particular debt prescribes after 6 years, if during that period no one has recognized that debt and no one has claimed it, we can say that it is a prescribed debt.

When does the 2014 IBI prescribe?

For example, the IBI corresponding to the 2014 tax period accrued on January 1, 2014, so that, in accordance with the provisions of articles 66 and 67 of the LGT, the right of the Tax Administration to determine the corresponding tax debt by liquidation would prescribe on January 1, …

When do the debts of the municipalities prescribe?

All debts of public law in favor of the Administration prescribe after four years, except for interruption of the prescription, as indicated in art. 15 LGP.

Who bears the costs of a sale?

The expenses of granting deeds will be borne by the seller, and those of the first copy and others after the sale will be borne by the buyer, unless otherwise agreed. That is, the expenses of deed in which the signature of the notary is needed must be paid by the seller.

Who pays the writing expenses?

The notarial expenses of deed correspond to 0.54% of the value of the sale. This sum of money is assumed equally between the buyer and the seller.

Who pays the costs of buying a car?

Generally, the one who pays for the transfer of a car, or in other words, the one who pays the fees with the purchase of a second-hand vehicle, is the buyer. There may be an exception if you reach an agreement when making the purchase with an individual or that a fee is included in the price at the dealer.

What happens if I have a debt of more than 5 years?

According to a professor at the Universidad Libre de Derecho de México, if your debt is derived from a security (check or promissory note), the indebtedness will end after three years; If more than 5 years have passed since you went into default, the bank will not be able to seize your assets or properties to collect your debt…

When does an embargo of the City Council prescribe?

So, to the question of when an embargo expires, the answer is that embargoes expire after four years from their registration date and that the cancellation of an embargo due to expiration can be avoided by requesting the extension of the embargo, but for this to be the case, the request must be made before it is…

What happens if I have a debt of more than 10 years?

They expire after three years and the executive action, five years after the expiration of the term to pay said debt, in such a way that if the debt exceeds three years, it could be prescribed and in case it is more than five years old it will be legally Impossible for them to seize their assets.

How to request the prescription of a debt?

For the prescription of debts to occur, you must go to court with the documents that prove that the payment date has already passed and request the prescription. This is called claiming the statute of limitations.

How long does it take to prescribe a debt?

Is it true that there is a law so that debts disappear or prescribe in Colombia? Yes, according to the Civil Code, debts (obligations) prescribe between 3 and 5 years, depending on the type of action that must be carried out to make it effective by judicial means (legal collection).

When does a debt with a financial institution prescribe?

The term to claim a debt is five years.

We find this term in article 1,964 of the Civil Code, which establishes: “Personal actions that do not have a special term prescribe five years from when compliance with the obligation can be demanded.

When does a judicial debt prescribe?

Indeed, there are deadlines to be able to claim debts through the courts. From the time the debt is not paid, there is a general limitation period of 5 years to be able to claim the amount owed, a period that came into force after the Reform of the Civil Code that took place in 2015.

What happens if I am sued and cannot pay?

Once they have sued you and you do not have how to pay the debt, in the absence of payment, they can seize your assets. For this to happen, there must necessarily be a commercial trial. Otherwise, nothing can be seized.

What happens if I don’t pay a credit and I don’t have assets?

In the event that the debt holder does not have assets in his name, the person who receives the obligation to settle the credit is the guarantor or joint and several obligor. Some institutions establish as a requirement at the time of granting a loan, the signing of a guarantee or joint obligation.

When does a garnishment expire?

In the first place, it should be noted that debts in Colombia, such as bank debts or debts with individuals, prescribe in 3 or 5 years, depending on the document or title that supports the debt, a topic developed in the following article.

Stay tuned to Techlyfire for more questions related articles.

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