The Gazette 1952-1955

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

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

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