GAZETTE
P R A C T I C E
N O T E S
NOVEMBER 1993
Revenue Undertakings -
Publican's Licences
In the last two weeks of September the
Society was contacted by a number of
practitioners acting for publicans who
had tax arrears, in connection with a
standard form of undertaking
! furnished to them by the Revenue
Commissioners. The conveyancing
Committee recommended that
solicitors should decline to complete
the undertaking as drafted and this
: view was immediately communicated
to the Revenue Commissioners. The
Committee took the view that a
solicitor could not guarantee
compliance with the undertaking and
drafted a form of conditional
undertaking which could safely be
given by solicitors, but which
| was not acceptable to the Revenue.
The Committee is concerned that
solicitors should be asked by the
Revenue to complete these type of
undertakings as, undoubtedly, there is
immense pressure applied on the
solicitor to facilitate a client who is in
danger of losing his publican's
| licence. Although the immediate
urgency of the situation has passed
with the expiration of the deadline for
giving these undertakings, the
Committee wishes to emphasise the
dangers inherent in giving
undertakings of this nature and to
stress that solicitors should at all
!
j times be satisfied when giving
! undertakings that they can secure
compliance with them.
Conveyancing
Committee
Residential Property
Tax/Probate Tax-
Requisitions on Title
The Conveyancing Committee
recommends that the following
additional requisitions be raised:
(a)
Residential Property Tax
Where the property in the sale
consists in whole or in part of
residential property as defined in
Section 95 of the Finance Act,
1983 and the consideration
exceeds the residential property
tax threshold furnish:-
(i) Certificate of Clearance from
residential property tax (form
RP50A);
(ii) Certificate of Discharge from
residential property tax where
there has been a transfer
between spouses after 17
June, 1993.
(b)
Probate Tax
Where the property in the sale has
passed under a will or intestacy
after 17 June, 1993, furnish
Certificate of Discharge from
Probate Tax in respect of the
property.
Conveyancing
Committee
Local Authority - Shared
Ownership Scheme
Some practitioners have expressed
concern about the Local Authority
Shared Ownership Scheme recently
introduced under the provisions of the
Housing (Miscellaneous Provisions)
Act, 1992. The Scheme provides that
in respect of a purchaser who has been
approved for eligibility under the
Scheme,
(a) the Local Authority purchases
the property,
(b) the purchaser pays £1,000 to
the Local Authority by way of
deposit,
(c) the Local Authority then grants
a lease to the purchaser for 99
years with provision for
payment of a rent calculated by
reference to the Corporation's
"equity" of the house (at
present 5% of the value of the
j
Corporation's share) which
rent is index linked,
(d) At the same time the purchaser
borrows the remainder of the
value of the house from the
Local Authority and enters
into a mortgage for that
amount, charging his interest
as lessee for 99 years.
Practitioners will be aware that the
solicitors for the Local Authority act
in the purchase of the property, and
the lease and mortgage submitted to
the Purchaser for execution cannot be
altered, and accordingly the
purchaser's solicitor is not aware of
the title acquired, nor can they seek to
amend the documentation.
In the circumstances practitioners are
left with no alternative save to advise
clients on the nature of the Scheme
and leave it to the client to decide
whether or not they will proceed with
the purchase. It will be appreciated
that a purchaser in this situation has
virtually no choice in the matter.
If they want the house then they
must buy it on the Local Authority's
terms. Furthermore, the Local
Authority charges a fee for its own
legal services. At the point of
completion, however, if the Law
Agent deems it necessary, the matter
may be referred again for independent
legal advice, for instance, to advise on
the Family Home Protection Act.
Conveyancing Committee
•
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