The Gazette 1973

Lease Map. Indemnities as to roads and services. Certificate under Section 32 of the Registration of Title Act 1964. In the opinion of the Council the charges in respect of these items should be properly borne by the lessor or vendor. The Council disapprove of the imposition on the lessee or purchaser by the Solicitor or the lessor or vendor of charges for postage and petty outlay." Costs on appearance by solicitors on social welfare business The Society were informed that as a result of re- presentations made that the fee to be allowed to solici- tors for appearance before Appeals Officers is to be increased from 3 gns. t o£3. Special extra costs may be allowed by the Appeals Officer where appropriate. Land bonds Members wrote to the Society stating that both the public and the profession are long suffering as they are obliged to accept land bonds at par in payment from the Land Commission. These bonds are now quoted at over 10% below par. Members feel very strongly that the public and solicitors should not be obliged to accept payment in land bonds as this incurs an immediate loss in cash terms. The Council on report of a Com- mittee decided to make representations to the Minister for Lands.

tects fees. Previous opinions namely DR 24, DR 40 and DR 77 contained in the Solicitors Handbook 1968 edi- tion were referred to. The Landlord & Tenant (Ground Rent) Act 1967, Section 32 prevents a lessor from passing on any part of the costs of a lease, but it does not prevent him from making the purchaser pay the cost of showing title as this does not fall within the term "costs of the lease". In May, 1972 (page 131 of the Gazette) the Council published a statement as to Solicitors' costs on a first lease or purchase of a new house and sought to lay down a general code of practice for observance by Solicitors for lessors, builders and lessees. Part of this publication was as follows : "Agreement for the sale of new houses should not unduly restrict the title offered to the purchaser and Ushould provide for the furnishing to the purchaser with- out cost to him of all copy documents and declarations necessary to enable him obtain a loan. In particular the following documents should be furnished to the pur- chaser on application without charge : Gopy documents or book of title including certified copy negative searches. Statutory declaration of identity. Certificate of compliance with building covenant.

Law Commission against Legal Action on Gazumping

buyers should be protected because of the general rule of caveat emptor : let the buyer beware. Possible changes to the law, such as introducing compulsory seller's surveys, bonding options, returning to the simpler Scottish practice, and conditional con- tracts are ruled out. But the Commission does support a Law Society suggestion that would reduce the time between agreeing on a price and exchanging contracts. The Society recommended that sellers should be encour- aged to instruct a solicitor as soon as a house is on the market so that contracts can be prepared quickly. Local searches and inquiries also should be made by the seller's solicitor and made available to the buyer. The commission finally suggests that many sellers are deterred from gazumping by normal considerations. If the law was changed to impose financial liability on a party this "could not fail to give the impression that a seller is entitled to gazump, provided that he offers to pay the buyer's expenses. By lending an air of legal respectability, the restraints imposed by moral pressures would be lost". The Law Commission, Working Paper No. 51, Trans- fer of Land "Subject to Contract" Agreements , 3 July 1973. Stationery Office. The Guardian (31 July 1973) 233

A Law Commission discussion paper has ruled out reform of the law of buying or selling a house to outlaw gazumping. Even the introduction of a liability for expenses on a party to an agreement subject to contract who has unreasonably let the other down is not posi- tively supported. The Commission believes that "the cause of the prob- lem lies outside the law and the practice, and that there are clear dangers in altering a system which has been carefully designed, and which served its purpose well in the vast majority of cases, solely for the reason that in exceptional (and perhaps temporary) circum- stances the system is capable of being used unscrupu- lously". The Attorney-General asked the Commission in December 1971 to consider legislation to prevent either the buyer or the seller withdrawing from an agreement over a house. The Commission hopes to stimulate dis- cussion with these views, and present a final report later. The Commission says it believes that even in the recent sellers' house market many more buyers than sellers have withdrawn from subject to contract agree- ments. The present procedure is designed primarily to protect buyers rather than sellers, and the Commission says that "it is somewhat ironic that buyers should now be complaining of its effects". It endorses the view that