160 / 448
GAZETTE
P R A C T I C E
N O T E S
JUNE 1996
w
I
Homebond Protection -
Stage Payments
The Conveyancing Committee is
concerned to note that the practice of
Builders requiring stage payments to be
made for the purchase of the new estate
type houses still persists in a number of
areas.
In general, the Committee disapproves
of the stage payment purchase practice
and is making representations to the
Construction Industry Federation for its
discontinuance.
While the increased and extended
protection afforded by the Home B o nd
Stage Payment Bond is we l c ome, it, of
itself, cannot protect purchasers from
the considerable difficulties and
problems which would arise if a
Developer were to b e c ome insolvent
after stage payments had been made and
before a transfer of title had been
executed in their favour.
Accordingly, for so long as the stage
payment purchase practice persists, the
Committee emphatically advises
practitioners that in order to protect
their purchaser clients they should
ensure that title to the site should pass
from the Developer to their clients on
the occasion of the making of the first
stage payment.
In issuing its foregoing recommenda-
tion, the Committee wishes to state that
it is not intended to apply to purchasers
of once-off new houses which it
considers will be matters of contracts to
be negotiated by the parties involved.
Conveyancing
Committee
obtained from the Revenue
Commissioners, Capital Taxes Branch
when a property is being transferred
from one spouse to the other.
Section 110 A ( 9) of the Finance Act
1983 provides that any residential
property tax and interest due and
outstanding on the date of a transfer of
property from one spouse to the other
shall be and remain a charge on the
property for twelve years.
Form RP54 is the application form for a
Certificate of Discharge from
Residential Property Tax (transfer of
spouse) and provided that the tax has
been discharged a Certificate will be
issued promptly by the Revenue
Commissioners that there is no
outstanding charge for Residential
Property Tax in relation to the transfer.
It should also be noted that if the couple
own t wo or more properties which are
available for their use, RPT Clearance
Certificates should be obtained even if
the value of each of the properties is
below the market exemption limit.
Practitioners are also reminded that a
Particulars Delivered stamp must be
impressed on all Transfers/
Conveyances/Assignments including
voluntary dispositions in compliance
with the 1995 stamp duty (P.D)
Regulations however the regulations do
not apply to any transaction creating a
joint tenancy in the family home
between spouses.
Family Law and Civil Legal Aid
Committee
D
Residential Property Tax -
Clearance Certificates
Practice
Management
Do
You..
•
. . . . have an outline strategy
covering the services you wish
to offer, the client groups you wish to serve
and how services are to be provided . . . so
that you can review the practice's
performance and take decisions about its
future.
Law Society Practice Management
Guidelines, Section A1.
Practitioners are reminded that a
Clearance Certificate in respect of
Residential Property Tax should be
144