The Gazette 1992

MARCH 1992

GAZETTE

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p R A C T 1 C E

"Has a statement that compensation has become payable in respect of the property been registered under Section 9 of the Local Authority (Planning and Development) Act, 1990 in the planning register maintained by the planning authority resulting in development of the property being prohibited under Section 10 of the 1990 Act?".

should they become evident from an inspection. In addition to the actual structure any services relating to the house and, in particular, where there is a septic tank, should also be examined by the expert. Conveyancing Committee

The Doctrine of Caveat Emptor with Regard to the Structure of a Property

It is the view of the Conveyancing Committee that every purchaser of a property should be advised in writing to have the structure of the building checked out either by a qualified engineer or architect. It would be prudent for solicitors not to recommend any one particular architect or engineer but rather that clients should find for themselves the person with the necessary qualifications to give them a satisfactory report. If solicitors fail to give clients such advice and it subsequently transpires that it costs the clients a lot of money to carry out work to the structure that they did not take into account when they decided to buy the house, they may issue proceedings for negligence. Furthermore, if clients query the advice of solicitors to have the house checked out by an engineer or architect and make the point that the house will be inspected in any case on behalf of the Building Society, solicitors have an obligation to point out to them that Building Societies send out their valuers mainly to establish the value of the property in relation to the security which they are taking on it. The Building Societies' surveyors are contractually bound to the Building Society and not to the house purchasers. On the basis of existing Irish court decisions purchasers have no privity of contract with the Building Societies' surveyors and therefore cannot sue them. There is no point in solicitors just verbally advising clients to get such a report done; it is important that it should be put in writing. Obviously, other areas of concern arise i.e. dry rot, dampness etc, but an architect or engineer who is properly qualified will advise that further experts be retained to advise on these areas

Conveyancing Committee

Statement of Payment of Compensation

Finance Act 1991, Sections 80 to 111 - Stamp Duties

Local Government (Planning & Development) Act, 1990 The attention of practitioners is drawn to the provisions of Section 9 of this Act which provides that where compensation exceeding £100,000 has become payable "the Planning Authority shall prepare and retain a statement of that fact, specifying the refusal of permission or grant of permission subject to conditions, or the revocation or modification of permission, the land to which the claim for compensation relates and the amount of the compensation". It then goes on to provide that the planning authority shall enter these particulars on the register kept in pursuance of section 8 of the Principal Act and that every such entry shall be made within fourteen days beginning on the day of preparation of the statement. Section 10 of the Act then provides that no person shall carry out any development to which this section applies on land in respect of which a statement stands registered, whether under S.72 of the Principal Act or under Section 9, until such amount as is recoverable under the section in respect of compensation specified in a statement has been paid or secured to the satisfaction of the planning authority. In the light of the foregoing sections practitioners are advised to raise the following requisition:

The Finance Act, 1991 by sections 88 to 111 introduced very far reaching changes to Stamp Duty Regulations. The majority of the sections came into effect on 1 November, 1991 and members should take very careful note of the result of these sections. This memorandum is not to be regarded as comprehensive, but merely draws attention to the more important aspects of the sections, and each member should read the sections carefully. 1. Stamp Duty is now no longer a voluntary tax. Prior to the passing of the Act, the parties to an instrument were free to decide not to stamp an instrument and there was generally no mechanism available for the Revenue Commissioners to institute legal proceedings against either party to enforce payment. This procedure is now radically changed and Stamp Duty is now compulsory. Section 94 (4) of the Act states that where an instrument chargeable with Stamp Duty is not stamped, or is insufficiently stamped, the accountable person shall be liable for the payment of the Stamp Duty, or where the instrument is insufficiently stamped, then the additional Stamp Duty and the amount of The more important items are as follows:-

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