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committee were referred to
Wilkinson v. Grant
(1856,
18 CB 319) in which it was held that a proposed mort-
gagee's solicitor has no claim for his charges against the
proposed mortgagor where the negotiation for the mort-
gagee goes off through default of the latter. He must
look to the party who retains him leaving that person
to his remedy if any against the party who occasioned
the fruitless expense. The committee were also referred
to Fisher and Lightwood
Law of Mortgages,
eighth
edition, page 518. The Council on a report from a
committee expressed the view that the mortgagees soli-
citor is not entitled to make any charge against the
mortgagor and is not entitled to retain the documents.
Note
—The
above statement is published in substi-
tution for the statement which appeared at page 161
of the Society's
Gazette
in June 1972 in which the
word "purchaser"' was inadvertently printed for "party"
in the fourteenth line.
SOLICITOR 'S COSTS OF F IRST LEASE
OR PURCHASE OF NEW HOUSE
Statement by the Council
The total legal costs incurred by the purchaser/
mortgagor of a new house has been the subject of
considerable adverse comment in the press and else-
where. In the view of the Council the adverse comment
is occasioned by three factors :
1. The imposition on the mortgagor of the mort-
gagee's solicitor's costs.
2. The imposition on the purchaser of the vendor's
lessor's or builder's costs by means of the imposition on
hi; l of charges lor copy documents of title, declarations
of identity and other documents which are necessary to
enable him to obtain a mortgage.
3. The lack of uniformity in the costs charged to the
purchaser/mortgagor particularly where the sale is by
way of building agreement and agreements for lease.
The Council propose to make representations to
building societies and other lending institutions with a
view to having the mortgagee's solicitor's costs added to
the amount of the advance or alternatively to have the
lending institutions bear their own costs.
The Council have passed the following resolutions to
deal with the other two factors :
1. Agreements for the sale of new houses should not
unduly restrict the title offered to the purchaser and
should provide for the furnishing to the purchaser with-
out cost to him of all copy documents and declarations
necessary to enable him to obtain a loan. In particular
the following documents should be furnished to the
purchaser where applicable without charge :
Copy documents of 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 72 of the Registration of
Title Act, 1964.
In the opinion of the Council the charges in respect
of these items should properly be borne by the lessor or
vendor.
The Council disapprove of the imposition on the
lessee or purchaser by the solicitor for the lessor or
vendor of charges for postage and petty outlay.
2. The Council recommend the following basis of
charging the first^ lessee or purchaser of a new house
including cases in which the transatcion is carried out
by way of building agreement and agreement for lease,
and regardless of whether the lessor's or vendor's title
is registered or unregistered : In the case of houses
costing not less than £5,000 and not more than £10,000
a charge of 2 per cent where there is a mortgage con-
temporaneous with the mortgage and a charge of
per cent where there is no contemporaneous mortgage.
Where the purchase price is less than £5,000 a charge
of not more than £80 should be made. No recommen-
dation is made in respect of transactions for more than
£10,000. The recommended charges are exclusive of
disbursements.
Recommended fee
Purchase price
Purchase
Purchase with
without mortgage contemporaneous
mortgage
£5,000
£75
£100
£6,000
£90
£120
£7,000
£105
£140
£8,000
£120
£160
£9,000
£135
£180
£10,000
£150
£200
Over £10,000
no recommendation
Where the price does not exceed £5,000 the fee
should not exceed £80 in any case.
3. The Council are of the opinion that the costs of a
vendor lessor or builder of a new house should not be
charged to lessee purchaser or employer.
SOLICITORS SEMINAR IN KILLARNEY
The sixteenth seminar organised jointly by the Society
of young Solicitors and the Provincial Solicitors Asso-
ciation will be held in the Great Southern Hotel,
Killarney, Co. Kerry, on Saturday, 31 March and on
Sunday, 1 April 1973.
Special train fares have been obtained subject to the
Society guaranteeing a minimum number of 120
travelling.
The timetable and subjects for the seminar will be
as follows :
(1) Saturday, March 31, 10.30 a.m. :
The Legal Effects
of Takeovers, Amalgamations
and
Reconstruc-
tions
by Senator Alexis Fitzgerald, Solicitor.
(2) Saturday, 31 March, 2.30 p.m. :
Liquidations
and
Receiverships
— Non-Legal
Aspects
by John
Stakelum, Chartered Accountant;
Legal Aspects
by Oliver Fry, Solicitor.
(3) Sunday, April 1, 11.00 a.m. :
Social and Economic
Complications of Takeovers
by Martin Rafferty,
Chairman, Joshua Uatson Ltd.
(4) Sunday, April 1, 2.30 p.m. :
Redundancy
Act
Procedure
by John Gleeson, Solicitor, Chairman
of the Redundancy Appeals Tribunal.
Special hotel rates : Friday night to Sunday lunch :
£7.50; Saturday lunch to Sunday lunch : £5.00.
The script of the lecture by Mr. Robert Barr, S.C.,
on
High Court Practice in Family Law in the Irish
Republic
—together
with full discussion may be obtained
from Mr. Spendlove, 94 Grafton Street, Dublin 2, for
90p, by post £1.
54