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GAZETTE
MARCH/APRIL
1980
bridging finance unless he is satisfied that all conditions in
the loan approval have been, or can be complied with.
Yours faithfully,
Thomas P. O'Connor.
33 Raglan Road,
Ballsbridge,
Dublin 4.
The Editor,
Law Society Gazette,
Incorporated Law Society of Ireland,
Blackhall Place,
Dublin 7.
11 March, 1980
Dear Sir,
I had occasion recently to contact a considerable
number of the profession in relation to my action
challenging the constitutionality of the Rent Restrictions
Acts.
May I, through your columns, express my sincere
thanks and appreciation to all the colleagues who gave me
invaluable assistance and support.
I always felt that the distinguishing mark of a
profession was the support offered to all others by the
members. This support and help I got in great measure.
It will be of interest to the profession to know that
Judge McWilliams reserved judgment. He will give his
decision on April 18.
Yours sincerely,
Patrick J. Madigan.
IRISH BUILDING SOCIETIES ASSOCIATION
JOINT COMMITTEE WITH LAW SOCIETY
Following on the approaches made by the then
President Gerald Hickey the Society met the Building
Societies Association in Blackhall Place on the 26th
November, 1979 to discuss ways and means of over-
coming delays in completing conveyancing transactions
in the private house market and the problems posed by
the scarcity of bridging finance. After a wide ranging
discussion it was agreed that a Joint Committee
representative of the Societys' Conveyancing Committee
and of the Law Agents of the Building Societies
Association should be established to isolate and deal with
those difficulties which seemed to be slowing up
conveyancing work. The Committee will issue
recommendations on reasonable standards on matters of
conveyancing practice and if necessary will arbitrate on
differences which may arise between practitioners on such
matters. The Building Societies Association agreed to
direct their law agents to abide by decisions of the joint
committee.
The first such meeting was held on 6th February,
1980, when a number of problems were dealt with and
others were listed for further study. A further meeting was
arranged for the 5th March, 1980. All agreed guidelines
will be published in the
Gazette
in due course. Members
or Bar Associations wishing to have points considered by
the Joint Committee should forward details of the
problems to the Conveyancing Committee.
Conveyancing Notes
CONTRACT CLOSING DATE
Because of the complete reversal of the old fashioned
concept of getting the money first and then the house, and
the additional "para-title" matters introduced by both
legislation and practice and procedure, over the past 20
years, such as Bridging Finance, Letters of undertaking,
Planning and bye-Law Approvals, Certificates in relation
to Planning, Bye-Laws, Taxation, Identity, Mortgages,
Debentures, Family Home Protection Act and Mortgages
be they Local Authority, Building Society or Bank; the
inevitable delay because of the increased volume of work
in the Land Registry, Registry of Deeds and Adjudica-
tion Office, the correctness of the "standard" four week
closing inserted in the Conditions of Sale for a private
dwellinghouse (invariably inserted in Auction sales) must
be called in question.
Because Conveyancing at one time consisted solely of
the transfer of ownership in consideration of cash it was
possible to close a sale in four weeks. As the Purchaser
began to borrow to buy the house extra work was
naturally incurred but Vendors' Solicitors insisted on
closing in four weeks and so the idea of Bridging Finance
was introduced and became widely accepted as "the way
out".
When Bridging Finance was recently curtailed it finally
came home to Conveyancers and their clients that it was
not possible or practical to close the average house
purchase in four weeks and the insistence of the Vendor's
Solicitor on this time limit has caused concern to many
practitioners, because of the heavy interest incurred by
way of penalty for failure to close.
Having reviewed the position it is the view of the
Conveyancing Committee that it is unreasonable to
expect to close the average private house purchase, which
takes place with the aid of a loan, in four weeks and
accordingly a minimum period of six weeks should be
encouraged. The Solicitors for the Vendor and Purchaser
should negotiate agreed dates for the application and
receipt of the loan sanction, and the closing date, and the
trend towards three-way-closings is commendable.
Therefore the Committee does not recommend the
practice of inserting in Contracts for the sale of private
houses a clause compelling the Purchasers to close the
sale within a period of obtaining loan sanction if that
period is within six weeks of the signature of the Contract.
Independent Actuarial Advice regarding
Interests in Settled Property
and
Claims for Damages
BACON & WOODROW
Consulting Actuaries
58 Fitzwilliam Square
Dublin 2
(Telephone 762031)
4 0