The Gazette 1993

GAZETTE

NOVEMBER 1993

P R A C T I C E

N O T E S

additional requisitions be raised:

(b) the purchaser pays £1,000 to the Local Authority by way of deposit, (c) the Local Authority then grants a lease to the purchaser for 99 years with provision for payment of a rent calculated by reference to the Corporation's "equity" of the house (at present 5% of the value of the j Corporation's share) which rent is index linked, (d) At the same time the purchaser

Revenue Undertakings - Publican's Licences

(a) Residential Property Tax

Where the property in the sale consists in whole or in part of residential property as defined in Section 95 of the Finance Act, 1983 and the consideration exceeds the residential property tax threshold furnish:- (i) Certificate of Clearance from residential property tax (form RP50A);

In the last two weeks of September the Society was contacted by a number of practitioners acting for publicans who had tax arrears, in connection with a standard form of undertaking ! furnished to them by the Revenue Commissioners. The conveyancing Committee recommended that solicitors should decline to complete the undertaking as drafted and this : view was immediately communicated to the Revenue Commissioners. The Committee took the view that a solicitor could not guarantee compliance with the undertaking and drafted a form of conditional undertaking which could safely be given by solicitors, but which | was not acceptable to the Revenue. The Committee is concerned that solicitors should be asked by the Revenue to complete these type of undertakings as, undoubtedly, there is immense pressure applied on the solicitor to facilitate a client who is in danger of losing his publican's | licence. Although the immediate urgency of the situation has passed with the expiration of the deadline for giving these undertakings, the Committee wishes to emphasise the dangers inherent in giving undertakings of this nature and to stress that solicitors should at all ! j times be satisfied when giving ! undertakings that they can secure compliance with them. Conveyancing Committee

borrows the remainder of the value of the house from the Local Authority and enters into a mortgage for that amount, charging his interest as lessee for 99 years.

(ii) Certificate of Discharge from residential property tax where

there has been a transfer between spouses after 17 June, 1993.

Practitioners will be aware that the solicitors for the Local Authority act in the purchase of the property, and the lease and mortgage submitted to the Purchaser for execution cannot be altered, and accordingly the purchaser's solicitor is not aware of the title acquired, nor can they seek to amend the documentation. In the circumstances practitioners are left with no alternative save to advise clients on the nature of the Scheme and leave it to the client to decide whether or not they will proceed with the purchase. It will be appreciated that a purchaser in this situation has virtually no choice in the matter. If they want the house then they must buy it on the Local Authority's terms. Furthermore, the Local Authority charges a fee for its own legal services. At the point of completion, however, if the Law Agent deems it necessary, the matter may be referred again for independent legal advice, for instance, to advise on the Family Home Protection Act.

(b) Probate Tax

Where the property in the sale has passed under a will or intestacy after 17 June, 1993, furnish Certificate of Discharge from Probate Tax in respect of the property.

Conveyancing

Committee

Local Authority - Shared Ownership Scheme

Some practitioners have expressed concern about the Local Authority Shared Ownership Scheme recently introduced under the provisions of the Housing (Miscellaneous Provisions) Act, 1992. The Scheme provides that in respect of a purchaser who has been approved for eligibility under the Scheme,

Residential Property Tax/Probate Tax- Requisitions on Title

(a) the Local Authority purchases the property,

The Conveyancing Committee recommends that the following

Conveyancing Committee

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