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CORRESPONDENCE
LESSOR'S COSTS
The Secretary, Department of Justice,
72-76 St. Stephen's Green. Dublin 2.
6th April 1972
Dear Sir,
I have been directed by the Council to make repre-
sentations to the Minister for Justice that legislation
should be introduced compelling all lending institutions
to bear their own costs in the same manner as lessors
are compelled to bear their costs under Section 32 of
the Landlord and Tenant (Ground Rents) Act, 1967.
The Council noted the recent statement on this sub-
ject by the Minister and support it. They consider that
the rule should apply to all mortgages irrespective of
the nature of the security whether it be for housing,
commercial or other purposes.
The Council also directed that representations should
be made about the present delay in the Land Registry
in effecting first registrations of titles which is the cause
of very considerable inconvenience and expense to the
public and the profession.
They will be obliged for urgent consideration of both
of these matters by the Minister and for a reply to this
letter stating any action proposed on the matters
mentioned.
Yours faithfully,
Eric A. Plunkett
{Secretary).
The Secretary, Department of Justice,
72-76 St. Stephen's Green. Dublin 2.
7th June 1972
Dear Sir,
I have been directed by the Council to state that they
have noted with interest the passage in the speech of
the Minister for Justice on the Departmental estimates
in which he said that he intended to introduce legis-
lation providing that a mortgagee should not be entitled
to pass on the costs of the mortgage to the mortgagor
on the same lines as the principle embodied in regard to
leases under the Act of 1965. This matter had already
been the subject of prolonged discussions at the Council
and they had about the same time decided to advocate
the introduction of such legislation. It should apply
not alone to building societies but also all mortgagees.
The Council are also of the opinion that the practice of
builders and lessors of passing on to lessee/purchasers
incidental costs such as the expenses of producing docu-
ments of title, certificates of compliance with various
statutory requirements and indemnity against roads
charges should also be terminated. Furthermore the
Council take the view that a builder should not be
entitled to charge the person for whom the house is
erected with the builder's costs of the building agree-
ment. In essence the view of the Council is that on a
transaction involving the lease or erection of a new
house with a contemporaneous mortgage each party
should pay the costs of his own solicitor and the only
costs payable by the lessee/purchaser should be the
costs of his own solicitor. I am to request that these
views should be communicated to the Minister.
Yours faithfully,
Eric A. Plunkett
{Secretary).
Department of Justice
72-76 St. Stephen's Green
Dublin 2
4th July 1972
Dear Sir,
I am directed by the Minister for Justice to refer to
your letter of June 7th and previous correspondence
conveying your Council's representations that legisla-
tion should be introduced requiring lending institutions
to bear their own costs in relation to mortgages and also
their representations in relation to delays in first regis-
trations of titles in the Land Registry.
With regard to the costs of mortgages, it may be
noted that the Minister in his recent statement in the
Seanad on the subject dealt with the position of private
house purchasers rather than with the costs of mort-
gages generally. Legislation to make mortgagees liable
for their own costs in the case of all mortgages irres-
pective of the nature of the security could have un-
desirable consequences. Accordingly, the Minister does
not propose to deal with mortgages generally but he
proposes to consider a short Bill to make the mortgagee
liable for his own costs in cases where the mortgage is
to finance private house purchase. In this connection,
you are doubtless aware of the answer given by the
Minister to a recent Parliamentary Question (Dail
Repoit for 25th May 1972, cols. 498-499). The Bill
could include a provision extending to mortgages gener-
ally the simplified form of release for which provision
in relation to building society mortgages is already
made by Section 42 of the Building Societies Act, 1874.
The latter proposal is one that was made by a former
President of your Society, Mr. Eunan McCarron, and
that was brought to the notice of this Department.
The representations of your Council in regard to the
incidence of builders' costs and lessors' costs (apart
from the solicitor's costs of a lease) are being brought
to the notice of the Minister for Industry and Com-
merce* for consideration in connection with the Prices
(Amendment) Bill, 1971.
With regard to the second matter raised in your letter
of 6th April 1972 the position is that over the past two
years there has been a very considerable increase in the
intake of work in the Land Registry which, combined
with certain staffing and organisational difficulties, has
resulted in delays and the accumulation of arrears.
Comprehensive plans have been drawn up to remedy the
situation and a scheme of reorganisation is already in
the process of being implemented affecting one major
area of the Registry's activities, viz. dealings. One of the
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