The Gazette 1978

GAZETTE

MARCH 1978

Lending Institutions to Reject Leases of Dwellinghouses after Passing of Ground Rents Act A meeting of the solicitors acting for Lending Institutions in Dublin has considered the effect of Section 2 of the Landlord and Tenant (Ground Rents) (1) Bill 1977, having regard to the practice of leases of dwellinghouses on building estates being executed by all parties well in advance of the completion of the houses, and being held in escrow by the lessors solicitors, usually to enable stamp duty on the lease to be assessed and impressed prior to completion. It was the unanimous view of the solicitors present that such a lease even though dated prior to the date of coming into force of the Act would be void under the Act if it were held in escrow at the date of the passing of the Act and delivered to the purchasers afterwards. The meeting further considered the difficulties which would face a Lending Institution solicitor presented, shortly after the passing of the Act, with a lease dated prior to the date of passing of the Act, of deciding whether such lease were void because it had been held in escrow or valid because it had been delivered prior to the passing of the Act. The view of the meeting was that a Lending Institution solicitor could not undertake the burden of making such a decision. The meeting noted that the provisions of Section 2, Sub-section (4), of the Bill which protected the position of a purchaser of a leasehold interest deemed void under Section 2, Sub-section (1), did not extend to a mortgagee and accordingly agreed that the solicitors acting for Lending Institutions would not be able to accept leases of dwellinghouses after the date of coming into force of the Act even though the leases might have been dated prior to the passing of the Act. Following this meeting the Society made representations to the Department of Justice asking for amendments to be made to the Bill to protect the interests of purchasers under such leases but it is not anticipated that the required amendments will in fact be made in the Act. Accordingly, solicitors acting for vendors or purchasers of new dwellinghouses or those in course of construction which it was intended should be let on leases should immediately make arrangements to avoid the use of such leases which will not be acceptable to Lending Institution solicitors after the passing of the Act.

Orders (Sections 10, 11, 12) Under the Act, the Minister for Industry and Commerce has certain order-making powers, as follows: (a) Marking Orders whereby the Minister may order that goods should be marked with certain information such as "washing instructions". (b) Advertising Orders whereby the Minister may order traders or manufacturers to include certain infor- mation in their advertisements to help a consumer make a more informed choice between competing products. (c) Definition Orders whereby the Minister may define as a matter of law precisely what phrases mean, such as "shrink proof' or "waterproof'. Where the Minister makes these Orders and traders or manufacturers fail to obey them, an offence is committed under the Act. Enforcement (Sections 9, 16) The primary responsibility for enforcing the Act will rest with the Director of Consumer Affairs. He will be backed with a staff of inspectors who will have powers to search and make enquiries to assist the Director in his task of prosecuting offencers. Penalties (Section 17) Summary conviction fines are up to £500. Conviction on indictment may lead to fines up to £10,000 and/or imprisonment. There is a provision whereby a judge may order compensation to a consumer injured by an offence committed under the Act. The amount of the compen- sation will be deducted from the fine imposed on the offender. Defences (Section 22) The Act narrows the scope of some of the defences provided by the Merchandise Marks Acts but provides the defence that a trader will not be liable if he acts on information supplied by another person, provided that trader takes all reasonable care to see that the information he provides to the public is correct. Onus of Proof (Section 20) Section 20 provides: Where in any procedures under the Acts involving a trade description or under this Act, the truth of any indication direct or indirect and by whatever means given (a) by a manufacturer, producer or supplier thereof with respect to goods or the price of goods, or (b) by any person providing services, accommo- dation or facilities with respect to services, accommodation or facilities or the charges for the services, accommodation or facilities, is an issue, and the person who gave the indication does not establish that on the balance of probabilities the indication is true, it shall be presumed to be untrue. The Act anticipates many of the provisions of the draft proposal of the Commission of the EEC on misleading advertising and provides by its scope a wide measure of protection to consumers. It is by no means a panacea for consumer ills, but it is an important first step by Mrs. Máire Geoghan Quinn and her Department in developing a body of laws which give the consumer a bit of fair play.

Law Agent Limerick Corporation Salary: £7,737 — £8,909* Entry above the minimum possible.

Essential: Admission and enrolment as a Solicitor in the State and eight years experience including experience of Court work. For application forms and further details write to: The Secretary, Local Appointments Commis- sion, 1 Lower Grand Canal Street, Dublin 2. Closing Date: 25th May 1978 *Not including first phase increase of the National Agreement 1978.

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