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Sale of right to obtain a lease. Costs and
Stamp Duty
T
he
Council considered a report from a Committee
pn queries submitted as to the costs and stamp
duty payable in the following circumstances
A agreed to grant a lease of a site to B for a long
term at a yearly rent of £ 10 . The agreement was
informal. B entered into possession and built a
house before the lease was granted. B subsequently
agreed to sell his interest to C for £3,500. It was
arranged that A should grant the lease direct tQ_
C as B ’s nominee. Member acted for A and B in
connection with the proposed lease and acts for
B in connection with the sale to C. The considera
tion in the lease from A to C will be the yearly
rent o f £ 10 and the lessee’ s -covenants and con
ditions. It was stated that the payment of £3,500
from C to B will not be mentioned in the lease.
The title of the lessor to make the lease will be
deduced direct from A to C. Member asked for
the guidance o f the Council as to
(a)
on what basis
the costs of the two transactions should be paid ;
(b)
who is liable for the costs.
The Council -were o f the opinion that
(i) On the facts stated the payment o f £3,500
from C to B should he stated in the lease
from A to C and is chargeable with stamp
duty.
(ii) The costs (if any) of the uncompleted lease
from A to B are taxable under Schedule 2.
Each party is liable for his own costs of this
work.
(iii) The costs of the completed lease from A to C
are taxable on the higher scale, Schedule 1,
Part 2, S.R.G.O. 1884 as amended.
(iv) Member who acted for both the lessor A and
the builder B is entitled against the lessor
to the lessor’ s commission scale fee on the
rent, and against the builder B to the com
mission scale fee on the premium.
If,
however, the lease from A to C does not
refer to the premium o f
£
3,500 paid to
B
no commission scale fee is chargeable on
this sum. As member acted for both A and
B he is entitled to one set o f charges only
(S.R.G.O. 1884, Schedule x, Part 2, Rule 2).
(v) Incidence of costs of completed lease A to G
B must idemnify A against the costs, and he
pays all the costs of granting the lease charged
on the fine and the rent, to include showing
title. C pays his own solicitor the costs of
completing the lease and investigating title.
GENERAL MEETING OF THE
SOCIETY
"
'
A
G
eneral
Meeting o f the Society was held in the
Society’ s Library on Thursday, 15 th May, 1952.
The President, Mr. Arthur Cox took the Chair.
The following members of the Society signed their
names as being present:—R. J. Nolan, D. M. Martin,
Joseph Barrett, Henry St. J. Blake, Patrick R. Boyd,
John Carrigan, Desmond R. Counahan, Francis J.
Gearty, John R. Halpin, John L. Kealy, John
Maher^Desmond J. Mayne, John B. McCann, John
J . Nash, William J. Norman, James J. O’Connor,
L . E . O’Dea, Gerald J. O’Donnell, George G.
Overend, James R. Quirke, Detmot P. Shaw, John
J. Sheil, Cornelius J. Daly, Joseph P. O’ Connell
T. Desmond McLoughlin,-Desmond Moran, A. E.
Ashton, Reuben J. Dodd, E . J. Kenny, T. G. Kenny
J. P. Smyth, N. A. Peilow, Denzil O’Donnell, Peter
Leon, Ernest Proud.
The notice convening the meeting was by per
mission o f the meeting taken as read. The Minutes
o f the Ordinary General Meeting held on 42nd
November, 1951, were read, confirmed and signed
by the Chairman.
The Chairman announced that he nominated the
following members o f the Society to act as Scrutineers
o f the Ballot for the election o f the Council to be
held on 20th. November, 19 52 :—John R. McC.
Blakeney, Desmond J. Collins, Thomas Jackson,
Brendan P. McCormack, Roderick J. Tierney.
The Chairman addressing the meeting said
“ Ladies-and-Gentlemen, Since-the last meeting
o f our Society death has, as always, taken its toll
o f our members. The Profession is the poorer by
the deaths of the following members of the Society :
Rory Fitzgibbon (Killaloe), Patrick O’Flynn
(Manorhamilton), George M. Meares (Dublin) a
former member o f the Council, Richard^ C. Long
(Dublin), Daniel O’Connell (Dundalk), Joseph
Kearney (Tullamore), Wm. S- Huggard (Ballina),
Wm. J . Baxter (Belfast), John H. Collins (Newry),
Francis A . Gloss (Belfast), Thomas A . Colfer,
(Waterford), James McGuirk (Drogheda), Richard
Connolly (Cashel), James J. Lynch (Kells), Wm. A.
Beers (Dublin), Richard C. Keohane (Strabane),
John C. Garvey (Westport), Cecil Baillie-Gage
(Dublin), Ml. J. Kavanagh (Waterford), Johm G.
Oulton (Dublin), P. J. Ruttledge (Dublin), Stephen
Derkin (Sligo).
O f these, three were ex-Presidents and one was a
former Vice-President of the Society. Mr. Daniel
O’ Connell had so recently occupied that office
that his passing was-a particular sorrow to all those
members o f the Council who had worked with him.
A ll honoured him as a loyal colleague arid friend.
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