The Gazette 1974

ownership is set out in the code in great detail. There is a presumption of condominium for areas or services not shown to be exclusive to the owner, or to one iart of the building as regards gas or electricity; further- more, the plot of ground on which the building stands is in common ownership, and no change can be made save by unanimous consent of all the flat-owners. There is also an interesting scheme of transfer in New York State. The major problems to be considered by the solici- tor's profession are : (1) The attitude of the public who dream of security without responsibility. (2) The attitude of the legal conveyancers, who keep • forgetting the difference between the "letting" and the "sale" of flats. As the sale is usually undertake by lease, the deciding factor will be the size of the fine, corres- ponding to the price of the sale. (3) The unknown future attitude of the Judiciary. It is not possible to predict what decisions the Judges will give in the future in regard to conditions attaching to the ownership of flats, but doubtless eventually we shall be able to rely on some intricate principles enunci- ated by case law. The principle that the expense of any litigation involving common ownership should be a common charge should be accepted. (4) The attitude of the building societies. It is far from clear whether building societies would be pre- pared to make advances towards purchase of flats, particularly if the flat could be forfeited for a trivial breach of over-elaborate covenants. The second lecture was given by Mr. J. Mac D. Broad- head, M.A., F.R.I.C.S, M.I.A.V.I., on "Property Redevelopment" on Saturday afternoon. He emphasised that the basic assets of a nation were its land, and the energy which the people on it displayed in cultivating or using it. As regards land, the total amount of land available cannot be increased, and the prosperity of our community depends so much on agriculture that we cannot afford to waste land. The notion of "develop- ment" must arise from extending around and filling in existing urban communities. The notion of "redevelop- ment" involves demolition of existing buildings and their replacement—it is the constant renewal of indivi- dual structures or entire areas. Single building, or buil- dings in a historical street should be preserved, if the community pay the cost of preservation. If redevelop- ment is desirable, the only replacements acceptable would be those dictated by human motives, and not merely by economics of size and mass production. A Redevelopment Plan is a co-ordination of advice applicable to particular circumstances, supplied by sociologists, builders and technicians. Inevitably appli- cations for permission to redevelop areas of proven commercial, industrial or residential worth will be made; this redevelopment, which may be of national, social and economic necessity, may have to be made by means of persuasion against a given commercial trend. There may be financial inducements but the determin- ing factor which will encourage people to return to the city centre will ultimately be the improvement of the physical environment. In considering development, there are three categories of clients who may be advised in regard to development: (1) The impossibles are the people who do not under- stand what lies ahead.

(2) The possibles include the clients who have the personality to master the technique. (3) The probables include the entrepreneur and the property owner. It is essential for the client to be an unperturbable man of vision, a co-ordinator receptive to advice, and a decision maker who has finance available. The professional team should consist of the property consultant and an architect as well as a quantity surveyor, and if necessary an economist. Of these, the property consultant is most important, as he should always be available to his client. The surveyor should ensure that the scheme is acceptable to potential tenants and supplies the maximum lettable facilities. The sur- veyor and the architect should also be easily available to the client. It is obvious that the property consultant should be the person with the most suitable experience and personality, be he architect or quantity surveyor. If the project is big, it is necessary to establish good public relations in order to satisfy all concerned. Full planning approval, with all relevant documents, should be obtained from the Local Authority in the first instance. A financial analysis involving the whole pro- ject will have to be undertaken at every stage of the development, and more particularly at the proposal stage, during acquisition, at the planning stage and at the tender stage. The title should be a fee-simple one, and it would be wise to estimate the rent which will be current in two years by relating it to the current cost of building. The method of acquiring finance for the pro- ject, be it by means of short term loans, or of ground rents, should be considered. Furthermore all matters of transaction, such as stamp duties and value-added tax will have to be fully considered. It is, however, essential to acquire the premises speedily, even if they have to be let for temporary convenience. The contracts with buil- ders with all its attendant complications have to be considered quickly, as well as the preparation of an agreement for a lease, and of the lease itself. The ser- vice charge insures that the rent received by the land- lord is an absolutely net income, and is normally pay- able quarterly. The lease is often for 35 years, and there is a provision for rent revision every 5 years. Messrs John Buckley, Charles Meredith and Maurice Curran gave respectively expert advice on the methods of transferring property by the sale of shares, as well as dealings with intricate questions of conveyancing work, on Sunday morning. Mr. Buckley emphasised that there had been a great expansion in the purchase of investment properties by financial institutions recently and solicitors working i 11 this field had grown. The notes are guidelines by a solicitor acting for a client who either owns property which is based, or is about to be developed and leased, prior to a sale to an institution. As regards Title, special care should be taken i 11 relation to Title attaching to an investment. Many of these spring from tax avoidance schemes, such as the location of a multilevel leasehold interest in property, with occasional options to purchase the leasehold interests in the case of registered land. Despite the attraction of a substantial saving it 1 stamp duties, financial institutions, which are also pub- lic companies, may hesitate to purchase property by means of the acquisition of all the shares in the owning company, because the owning company, when acquired, will be a wholly-owned subsidiary, and, save in the 100