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5. Rule
i i
, S.R.G.O., 1884, affecting solicitors’
costs where registered land is acquired under
the exercise or threat o f compulsory powers.
6. Solicitors’ costs of a lease o f registered land
at a rack rent.
1. The scale fee on sales and purchases of
registered land where equities have not been
discharged.
T
h e
costs o f the sale and purchase of registered
land are regulated by the Solicitors’ Remuneration
General Orders, 1884-1947, as modified by the
Land Registration Rules, 1937 to 1949. Where an
undischarged notice o f equities appears on the
folio of registered land, it may be o f the following
kinds :—
{a)
A notice which cannot be cancelled except
after a full investigation o f title prescribed
by Rules 37 and 38 o f the 1937 rules,
or
(
b
) A notice which may be cancelled after the
limited investigation o f title prescribed by
Rules 33 and 36 o f the 1937 Rules.
In the case of a holding which is subject to a notice
o f equities of the kind mentioned in
(a)
above,
Rule 242(1) (i) o f the 1937 Rules prescribes that
the remuneration o f the vendor’s or mortgagor’s
Solicitor shall be on the full commission scale
in Part 1, Schedule 1, S.R.G.O., 1884, as amended.
The remuneration o f the purchaser’s or mortgagee’s
solicitor shall be on the full commission scale, as
aforesaid, provided that an application to cancel
the equity note is made and granted.
I f the
cancellation of the equity note is not applied for
and obtained, the remuneration shall be two-thirds
of the full scale. Where an application is made
to have the equity note cancelled, the remuneration
covers all charges in connection with he cancellation,
of the notice.
The full charges at present authorised for sales,
purchases, and mortgages o f the kind described in
this paragraph, are as follows :—
W
(2)
(
3
)
(
4
)
For the
For the
fourth
For the second and each For each
first
and subsequent subsequent
£1,000
third £1,000 up
£1,000
£1,000 to £10,000
SA LE S AND PURCHASES
V e n d o r ’ s and
P u r c h a s e r ’s £4 per £3 per
£ 1 10s.
13s.
Solicitor
..
£ 100 £100 per £ 10 0
per £100
Mortgagee’s So-
£4
£ 3
£ 1 ics.
15s.
licitor
.. per £100 per £ io o per £
icq
per £100
It will be seen that the rate of commission payable
to Solicitors on sales and purchases where there is
a full investigation o f title drops when the value
of the consideration exceeds £1,000, and that the
drop in the rate becomes more marked according
as the value of the property increases. The wealthy
owner o f a large holding sold for £10,000 pays
his Solicitor only at the rate of 2-05% on the
purchase price, whereas on a sale of a farm for
£1,000 the rate of commission is 4%. The reduction
in the commission rate for solicitors’ work on
the sale and purchase o f holdings is not in
accordance with the fees o f architects and other
professional men who are paid on a commission
basis, nor in accordance with the practice of
auctioneers. Auctioneers in Dublin and throughout
the country who are paid by commission receive
5% on the amount realised on a sale by public
auction payable in respect o f the entire o f the
purchase money. In addition, they receive from
the vendor their entire outlay on advertisements,
posters, printing, and bill-posters, with the added
advantage that they receive back from newspapers
and printers, according to a long-established
custom, a substantial discount believed to be in
the region of 33% o f their accounts. Auctioneers
have the further advantage o f receiving their
commission in cash immediately after the property
has been sold. Solicitors, on the other hand, are
subject to the financial disadvantage o f having to
furnish a bill of costs and wait for payment for
many months, sometimes years, after the work
has been completed. It is submitted that there is
no justification for the reduction in the rate of
commission o f solicitors’ costs on sales and
purchases, and that the costs should be charged
at a uniform rate o f £4 per £100 , where there is
a full investigation of title instead of the present
rate of £4 per £100 , where the value o f the property
does not exceed £1,000 reduced to 15s. per £100
on the portion o f the purchase price exceeding
£10,000.
It is the experience o f solicitors throughout the
country that the average purchaser is quite willing
to pay the auctioneer’s commission at 5% on the
price realised. The services rendered by auctioneers
do not impose on them any responsibility or require
any degree o f skill comparable to the responsibility
accepted and the skill and care required o f solicitors
in the discharge o f their duties. The auctioneer’s
work consists o f advertising the property and
putting it up for sale. The solicitor’s advice is
invariably sought on any difficulty which may
arise in connection with the description or adver
tising o f the property. He is often required to
perform part o f the duties o f the auctioneer , as