17 / 364
PAYMENT OF DEPOSITS TO
AUCTIONEERS
The Auctioneers Association has published a notice
to its members advising them that they should not
make unauthorised payments out of deposits received
in connection with the sale of property. Members
were reminded that where an auctioneer receives the
deposit as stakeholder he is bound to preserve it
intact until completion of the sale at which point he
gets authority to' release it to the vendor. If the sale
falls through the auctioneer may be required to
return the deposit to the purchaser or otherwise
dispose of it as the vendor and purchaser mutually
agree or as may be directed by the Court.
It is
pointed out in the notice that if an auctioneer gives
credit to one of the parties to a sale and purchase in
anticipation of being repaid out of the deposit
following a sale of the property it must be regarded
as an ordinary commercial risk and that they cannot
rely on the deposit as a definite source of repayment.
It is pointed out that when an auctioneer is asked to
give credit in such circumstances it will be in his own
interests to address an enquiry to the vendor's
solicitor as to whether or not there will be a surplus
of purchase money on the completion of the sale to
refund any monies due to the auctioneer.
The Council think it advisable to inform members
having regard to such enquiries that they should be
very careful not to give any assurance which could
be regarded as an undertaking without
(a)
obtaining
the definite and irrevocable instructions of the
vendor and
(b)
without ensuring that sufficient
monies will come to their hands as vendor's solicitors
to satisfy the claim. In fact it is difficult to see any
advantage in giving such an assurance and if given
it is suggested that there should be a definite dis–
claimer of any legal or professional liability thereon.
HOUSING LOANS
Members please note that under the Housing
Authorities (Loans for Acquisition or Construction
of Houses) Regulations, 1964 (S.I. No. 130 of
1964):
Clause 3 (i) provides that the amount of a loan
shall not exceed £2,250 or 95% of the value of the
house excluding from that value the amount of any
grant under any other enactment.
Clause 3
(z)
provides that where the borrower
surrenders to the housing authority making the loan
the tenancy of a dwelling provided by the housing
authority under the Housing of the Working Classes
Acts, 1890 to 1958 or under the Labourers Acts,
1883 to 1962 the amount of a loan shall not exceed
£2,250 or 99% of the value of the house excluding
from that value the amount of any grant under any
enactment.
Clause 4 (i)
(a)
provides (inter alia) that in the case
of a house occupied for the first time the amount
which in the opinion of the housing authority
represents the reasonable cost (including all reason–
able incidental expenses) of building the house and
the value of the interest of the borrower in the site
thereof shall be considered as the value of the
house. Clause 4 (i)
(b)
the value in other cases is to
be considered the amount which in the opinion
of the housing authority, the house if sold on the
open market might reasonably be expected to realise
together with so much, if any, of the legal and other
incidental expenses to the acquisition of the owner–
ship of the house as the housing authority may con–
sider proper.
Clause 8 provides that a loan shall be repaid with
interest within a period not exceeding 35 years
from the date of payment of the loan, or, if the loan
is made by instalments, from such date as may be
as determined by the housing authority.
Clause 10 provides that a loan may be repaid
either by equal instalments of principal or by an
annuity of principal and interest combined and all
payments on account of principal or interest shall
be made at a periods not exceeding a half year
may be determined by the housing authority.
Clause 12 sets out the provisions prerequisite to
obtaining a loan. There is a schedule to the in–
struments setting out scale of fees in connection
therewith.
STAMP DUTY
MEANING OF TOWN
Property situate in a County Borough, Borough,
Urban District or town. By section 3 3 of the Finance
Act, 1961, property situated in a County Borough,
Urban District or town is relieved from the 25%
stamp duty and qualifies for the ordinary rate even
when acquired by a non-national.
The statutory
certificate must be included in the deed. A town for
the purpose of this provision is defined by the
Interpretation Act, 1937, No. 38 of 1937, paragraph
32 of the schedule to the Act, as follows :
The word " town " means the area comprised in
a town not being an urban district in which the
Town Improvement (Ireland) Act, 1854,
is
in
operation.
MEDICAL REPORTS
The following extract is taken from the Journal
of the Irish Medical Association, Vol. LIL, No. 309,
March, 1963:
" Statement for the guidance of members on
the subject of reports of medical examinations
as approved by Central Council on loth Jan.,
1963.