The Gazette 1980

GAZETTE

MARCH/APRIL

1980

Conveyancing Notes CONTRACT CLOSING DATE

bridging finance unless he is satisfied that all conditions in the loan approval have been, or can be complied with. Yours faithfully, Thomas P. O'Connor.

Because of the complete reversal of the old fashioned concept of getting the money first and then the house, and the additional "para-title" matters introduced by both legislation and practice and procedure, over the past 20 years, such as Bridging Finance, Letters of undertaking, Planning and bye-Law Approvals, Certificates in relation to Planning, Bye-Laws, Taxation, Identity, Mortgages, Debentures, Family Home Protection Act and Mortgages be they Local Authority, Building Society or Bank; the inevitable delay because of the increased volume of work in the Land Registry, Registry of Deeds and Adjudica- tion Office, the correctness of the "standard" four week closing inserted in the Conditions of Sale for a private dwellinghouse (invariably inserted in Auction sales) must be called in question. Because Conveyancing at one time consisted solely of the transfer of ownership in consideration of cash it was possible to close a sale in four weeks. As the Purchaser began to borrow to buy the house extra work was naturally incurred but Vendors' Solicitors insisted on closing in four weeks and so the idea of Bridging Finance was introduced and became widely accepted as "the way out". When Bridging Finance was recently curtailed it finally came home to Conveyancers and their clients that it was not possible or practical to close the average house purchase in four weeks and the insistence of the Vendor's Solicitor on this time limit has caused concern to many practitioners, because of the heavy interest incurred by way of penalty for failure to close. Having reviewed the position it is the view of the Conveyancing Committee that it is unreasonable to expect to close the average private house purchase, which takes place with the aid of a loan, in four weeks and accordingly a minimum period of six weeks should be encouraged. The Solicitors for the Vendor and Purchaser should negotiate agreed dates for the application and receipt of the loan sanction, and the closing date, and the trend towards three-way-closings is commendable. Therefore the Committee does not recommend the practice of inserting in Contracts for the sale of private houses a clause compelling the Purchasers to close the sale within a period of obtaining loan sanction if that period is within six weeks of the signature of the Contract.

33 Raglan Road, Ballsbridge, Dublin 4.

The Editor, Law Society Gazette, Incorporated Law Society of Ireland, Blackhall Place, Dublin 7.

11 March, 1980

Dear Sir, I had occasion recently to contact a considerable number of the profession in relation to my action challenging the constitutionality of the Rent Restrictions Acts. May I, through your columns, express my sincere thanks and appreciation to all the colleagues who gave me invaluable assistance and support. I always felt that the distinguishing mark of a profession was the support offered to all others by the members. This support and help I got in great measure. It will be of interest to the profession to know that Judge McWilliams reserved judgment. He will give his decision on April 18. Yours sincerely, Patrick J. Madigan. IRISH BUILDING SOCIETIES ASSOCIATION JOINT COMMITTEE WITH LAW SOCIETY Following on the approaches made by the then President Gerald Hickey the Society met the Building Societies Association in Blackhall Place on the 26th November, 1979 to discuss ways and means of over- coming delays in completing conveyancing transactions in the private house market and the problems posed by the scarcity of bridging finance. After a wide ranging discussion it was agreed that a Joint Committee representative of the Societys' Conveyancing Committee and of the Law Agents of the Building Societies Association should be established to isolate and deal with those difficulties which seemed to be slowing up conveyancing work. The Committee will issue recommendations on reasonable standards on matters of conveyancing practice and if necessary will arbitrate on differences which may arise between practitioners on such matters. The Building Societies Association agreed to direct their law agents to abide by decisions of the joint committee. The first such meeting was held on 6th February, 1980, when a number of problems were dealt with and others were listed for further study. A further meeting was arranged for the 5th March, 1980. All agreed guidelines will be published in the Gazette in due course. Members or Bar Associations wishing to have points considered by the Joint Committee should forward details of the problems to the Conveyancing Committee.

Independent Actuarial Advice regarding Interests in Settled Property and Claims for Damages BACON & WOODROW

Consulting Actuaries 58 Fitzwilliam Square Dublin 2 (Telephone 762031)

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