The Gazette 1972

CORRESPONDENCE

LESSOR'S COSTS The Secretary, Department of Justice, 72-76 St. Stephen's Green. Dublin 2.

house with a contemporaneous mortgage each party should pay the costs of his own solicitor and the only costs payable by the lessee/purchaser should be the costs of his own solicitor. I am to request that these views should be communicated to the Minister. Yours faithfully, Eric A. Plunkett {Secretary).

6th April 1972

Dear Sir, I have been directed by the Council to make repre- sentations to the Minister for Justice that legislation should be introduced compelling all lending institutions to bear their own costs in the same manner as lessors are compelled to bear their costs under Section 32 of the Landlord and Tenant (Ground Rents) Act, 1967. The Council noted the recent statement on this sub- ject by the Minister and support it. They consider that the rule should apply to all mortgages irrespective of the nature of the security whether it be for housing, commercial or other purposes. The Council also directed that representations should be made about the present delay in the Land Registry in effecting first registrations of titles which is the cause of very considerable inconvenience and expense to the public and the profession. They will be obliged for urgent consideration of both of these matters by the Minister and for a reply to this letter stating any action proposed on the matters mentioned. Yours faithfully, Eric A. Plunkett {Secretary). Dear Sir, I have been directed by the Council to state that they have noted with interest the passage in the speech of the Minister for Justice on the Departmental estimates in which he said that he intended to introduce legis- lation providing that a mortgagee should not be entitled to pass on the costs of the mortgage to the mortgagor on the same lines as the principle embodied in regard to leases under the Act of 1965. This matter had already been the subject of prolonged discussions at the Council and they had about the same time decided to advocate the introduction of such legislation. It should apply not alone to building societies but also all mortgagees. The Council are also of the opinion that the practice of builders and lessors of passing on to lessee/purchasers incidental costs such as the expenses of producing docu- ments of title, certificates of compliance with various statutory requirements and indemnity against roads charges should also be terminated. Furthermore the Council take the view that a builder should not be entitled to charge the person for whom the house is erected with the builder's costs of the building agree- ment. In essence the view of the Council is that on a transaction involving the lease or erection of a new The Secretary, Department of Justice, 72-76 St. Stephen's Green. Dublin 2. 7th June 1972

Department of Justice 72-76 St. Stephen's Green Dublin 2 4th July 1972

Dear Sir, I am directed by the Minister for Justice to refer to your letter of June 7th and previous correspondence conveying your Council's representations that legisla- tion should be introduced requiring lending institutions to bear their own costs in relation to mortgages and also their representations in relation to delays in first regis- trations of titles in the Land Registry. With regard to the costs of mortgages, it may be noted that the Minister in his recent statement in the Seanad on the subject dealt with the position of private house purchasers rather than with the costs of mort- gages generally. Legislation to make mortgagees liable for their own costs in the case of all mortgages irres- pective of the nature of the security could have un- desirable consequences. Accordingly, the Minister does not propose to deal with mortgages generally but he proposes to consider a short Bill to make the mortgagee liable for his own costs in cases where the mortgage is to finance private house purchase. In this connection, you are doubtless aware of the answer given by the Minister to a recent Parliamentary Question (Dail Repoit for 25th May 1972, cols. 498-499). The Bill could include a provision extending to mortgages gener- ally the simplified form of release for which provision in relation to building society mortgages is already made by Section 42 of the Building Societies Act, 1874. The latter proposal is one that was made by a former President of your Society, Mr. Eunan McCarron, and that was brought to the notice of this Department. The representations of your Council in regard to the incidence of builders' costs and lessors' costs (apart from the solicitor's costs of a lease) are being brought to the notice of the Minister for Industry and Com- merce* for consideration in connection with the Prices (Amendment) Bill, 1971. With regard to the second matter raised in your letter of 6th April 1972 the position is that over the past two years there has been a very considerable increase in the intake of work in the Land Registry which, combined with certain staffing and organisational difficulties, has resulted in delays and the accumulation of arrears. Comprehensive plans have been drawn up to remedy the situation and a scheme of reorganisation is already in the process of being implemented affecting one major area of the Registry's activities, viz. dealings. One of the - 2 3 8