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GAZETTE
P R A C T I C E
N O T E S
JULY 1995
Di s cha r ge of Ve ndo r s'
Mo r t g a g es on Comp l e t i on
of Sales
The Conveyancing Committee
recommends that where Vendors'
Solicitors desire their clients to avoid
the expense of bridging loan finance to
provide funds to discharge any
Mortgage affecting their title, they
should insert a Special Condition in
Contracts for Sale requiring that
payment of the balance of the purchase
money be provided by the Purchasers
in the form of two Bank Drafts - one to
effect redemption of the Mortgages
affecting Vendor's title and the other
covering the balance of the purchase
price. It is not acceptable for the
Vendor's solicitor to simply undertake
to discharge the Mortgages from the
proceeds of sale.
In this regard attention is again drawn to
previous recommendations at pages
11.4 and 11.13 of the Conveyancing
Handbook.
Conveyancing Committee
Fixed Ch a r ge on Book Deb ts -
Notices to Revenue
Commi s s i on e rs
Arising from the amendment to Section
115 of the Finance Act, 1986 by Section
174 of the Finance Act, 1995 as
summarised in the notes on the Finance
Act included with this issue of the
Gazette, practitioners should note the
necessity when taking a fixed charge
over book debts for a lender to consider
whether notice of the creation of the
charge should be served on the Revenue
Commissioners. The effect of such a
notice will be to limit the secondary
liability of the charge holder to the
amount of VAT/PA Y E which the
chargeor company has failed to pay
after notification to the charge holder
from the Revenue Commissioners of
any liability arising. If such a notice is
to be served it must be served within
twenty one days of the date of creation
of the charge and is effected by
furnishing the Revenue Commissioners
with a copy of the Form 47 in respect of
the charge to the Office of the Collector
General of the Revenue Commissioners
at Sarsfield House, Limerick, Attn. Mr.
Brian Jones.
Company and Commercial Law
Committee
Law Society of Ireland
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