The Gazette 1993

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,

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

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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