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tects fees. Previous opinions namely DR 24, DR 40 and
DR 77 contained in the Solicitors Handbook 1968 edi-
tion were referred to.
The Landlord & Tenant (Ground Rent) Act 1967,
Section 32 prevents a lessor from passing on any part
of the costs of a lease, but it does not prevent him from
making the purchaser pay the cost of showing title as
this does not fall within the term "costs of the lease".
In May, 1972 (page 131 of the Gazette) the Council
published a statement as to Solicitors' costs on a first
lease or purchase of a new house and sought to lay
down a general code of practice for observance by
Solicitors for lessors, builders and lessees. Part of this
publication was as follows :
"Agreement for the sale of new houses should not
unduly restrict the title offered to the purchaser and
Ushould provide for the furnishing to the purchaser with-
out cost to him of all copy documents and declarations
necessary to enable him obtain a loan. In particular the
following documents should be furnished to the pur-
chaser on application without charge :
Gopy documents or book of title including certified
copy negative searches.
Statutory declaration of identity.
Certificate of compliance with building covenant.
Lease Map.
Indemnities as to roads and services.
Certificate under Section 32 of the Registration of
Title Act 1964.
In the opinion of the Council the charges in respect
of these items should be properly borne by the lessor
or vendor. The Council disapprove of the imposition
on the lessee or purchaser by the Solicitor or the lessor
or vendor of charges for postage and petty outlay."
Costs on appearance by solicitors on social welfare
business
The Society were informed that as a result of re-
presentations made that the fee to be allowed to solici-
tors for appearance before Appeals Officers is to be
increased from 3 gns. t o£3. Special extra costs may be
allowed by the Appeals Officer where appropriate.
Land bonds
Members wrote to the Society stating that both the
public and the profession are long suffering as they are
obliged to accept land bonds at par in payment from
the Land Commission. These bonds are now quoted at
over 10% below par. Members feel very strongly that
the public and solicitors should not be obliged to accept
payment in land bonds as this incurs an immediate
loss in cash terms. The Council on report of a Com-
mittee decided to make representations to the Minister
for Lands.
Law Commission against Legal Action
on Gazumping
A Law Commission discussion paper has ruled out
reform of the law of buying or selling a house to outlaw
gazumping. Even the introduction of a liability for
expenses on a party to an agreement subject to contract
who has unreasonably let the other down is not posi-
tively supported.
The Commission believes that "the cause of the prob-
lem lies outside the law and the practice, and that
there are clear dangers in altering a system which has
been carefully designed, and which served its purpose
well in the vast majority of cases, solely for the reason
that in exceptional (and perhaps temporary) circum-
stances the system is capable of being used unscrupu-
lously".
The Attorney-General asked the Commission in
December 1971 to consider legislation to prevent either
the buyer or the seller withdrawing from an agreement
over a house. The Commission hopes to stimulate dis-
cussion with these views, and present a final report later.
The Commission says it believes that even in the
recent sellers' house market many more buyers than
sellers have withdrawn from subject to contract agree-
ments. The present procedure is designed primarily to
protect buyers rather than sellers, and the Commission
says that "it is somewhat ironic that buyers should now
be complaining of its effects". It endorses the view that
buyers should be protected because of the general rule
of caveat emptor : let the buyer beware.
Possible changes to the law, such as introducing
compulsory seller's surveys, bonding options, returning
to the simpler Scottish practice, and conditional con-
tracts are ruled out. But the Commission does support
a Law Society suggestion that would reduce the time
between agreeing on a price and exchanging contracts.
The Society recommended that sellers should be encour-
aged to instruct a solicitor as soon as a house is on the
market so that contracts can be prepared quickly.
Local searches and inquiries also should be made by the
seller's solicitor and made available to the buyer.
The commission finally suggests that many sellers are
deterred from gazumping by normal considerations. If
the law was changed to impose financial liability on a
party this "could not fail to give the impression that a
seller is entitled to gazump, provided that he offers to
pay the buyer's expenses. By lending an air of legal
respectability, the restraints imposed by moral pressures
would be lost".
The Law Commission, Working Paper No. 51,
Trans-
fer of Land "Subject to Contract" Agreements
,
3 July
1973. Stationery Office.
The Guardian
(31 July 1973)
233