The Gazette 1961 - 64

in connection with building development schemes and have directed that the statement on the question, of advertisements which was published in the Society's GAZETTE for July, 1954, be republished for the guidance of members. The statement reads, as follows : The Council have decided to publish their considered view that it is unprofessional for a solicitor acting for a lessor or builder to act also for the purchaser or lessee if the advertisements published can reasonably be regarded as suggest ing that the lessee or purchaser should retain the lessor's or builder's solicitor. It is also unpro fessional for a solicitor acting for a lessor or builder to permit a client to use his name in any advertisement which contains a reference to costs. The Council further consider that where an advertisement which is objectionable for any of the above reasons is published by a lessor or builder it is the duty of the solicitor acting for either on becoming aware of the advertisement to request that it should be discontinued or corrected and to intimate that he would be obliged to refuse to act unless this is done. The same principle applies to all clauses and conditions in any agreement signed by a prospective purchaser or lessee of a building site. The Society has no objection in principle to the builder or lessor accepting responsibility for the costs of granting the lease provided that the lessee or purchaser is not given to understand that these costs will be paid for him only if he employs the solicitor acting for the builder or lessor. Any arrangement of that kind would be objectionable. If the builder is willing to pay the purchaser-mortgagor's solicitors costs of obtaining a loan the Society has no objection to this provided it is made clear by the builder, or the builder's solicitor if he is consulted by themortgagor, that the mortgagor is free to employ the services of any solicitor of his own choice and that the builder would pay that solicitor. Any suggestion to the effect that such costs would be paid by the builder only if the mortgagor employs the builder's solicitor would, in the opinion of Council, infringe the Professional Practice Regulation prohibiting unfair attraction of business. PARTICULARS DELIVERED STAMP Members are referred to a statement appearing under the above heading in the GAZETTE for May, 1962, at page 2. In the final sentence it was stated that in view of the provisions of the statutes it appeared that the Particulars Delivered stamp should be impressed in all cases whether required by the Revenue Commissioners or not and that the solicitor 90

Land Commission costs and procedure The Secretary reported that it appeared that the new rules on Land Commission costs and procedure have not yet been drafted as no word concerning the rules has been had by the Society from the department. The Secretary was directed to take the matter up with the department again. Solicitors acting for building development companies. Furnishing of title A member wrote to the Society with reference to the current practice in building development schemes where a builder either grants leases directly to the purchasers of houses, or has an agreement with the owner of the land upon which the houses are built whereby the owner grants leases to the persons nominated by the builder. The purchaser in turn contracts with the builder for the construction of the house and in most cases he is seeking a loan from either an insurance company or bank. In many cases the lease to the purchaser is granted to him before the house is built and the question of the title supplied by the lessor arises when the purchaser has to raise a loan and offer the completed house as security or where he sells his house at a later date. Member stated that in very many cases the title offered to prospective purchasers is insufficient and is not a good marketable title and he asked for the opinion of the Council on the duties of a solicitor acting for a lessor or builder especially where the prospective purchaser is not represented by a solicitor. It was also suggested tha.t the solicitor acting for the lessor should give a proper marketable title to all lessees who do not have a solicitor acting for them. The Council on a report from a committee stated that (i) where a solicitor acts for both lessor and lessee he is under a professional duty to take all necessary steps and give all necessary advice to protect the interest of the lessee. This includes either furnishing the lessee with all necessary documents of title on payment by him of the usual scrivenery charges, to enable him to sell or obtain a mortgage on the security of the premises and make tide for a subsequent purchaser's mortgage, or, at least, advising him that his interests would be prejudiced if he did not obtain the necessary evidence of title. (2) If a solicitor acts for a lessor and deals with a lessee who is not professionally represented he should inform the lessee that he is not protecting his interests. Building development contracts and building development advertisements The Council have considered the general question of the contracts and advertisements used by builders