Oireachtas Joint and Select Committees

Tuesday, 2 July 2024

Joint Oireachtas Committee on Justice, Defence and Equality

Seller’s Legal Pack for Property Buyers Bill 2021: Discussion

4:00 pm

Photo of Aidan DavittAidan Davitt (Fianna Fail) | Oireachtas source

I welcome everybody to the meeting. It has been informative. I would be relatively aware of the Bill that has been brought forward by IPAV. I am relatively aware of the situation in which Mr. Garrett and Ms McKiernan are. I read a little ditty in yesterday's Irish Independent that the Law Society of Ireland, the Royal Institution of Chartered Surveyors, RICS, and whoever else seemed to have jointly released, according to the newspaper.

I am curious. Mr. Garrett outlined six measures that are required but they are all to do with everything apart from the Law Society of Ireland. He talked about local government and tax, the Government itself and all these other complications. I have a background in the property sector. I would say that 90% of sales that are held up are held up by the legal process. That is not always due to the solicitors but a lot of it can be because they sit on stuff or are not as efficient as they should be or whatever else. I cannot see where the complication is. If IPAV, through this Bill, is requesting stuff that is not requested legally, we can amend the Bill and take that stuff out. I am sure IPAV will be reasonable and will look at that reasonably. I am sure it would not have a big problem if that is the biggest problem we have with the Bill. However, that does not seem to be the biggest problem. It seems that something else is ingrained here and for some reason, the Law Society of Ireland does not want to see this legislation progress. It is progressive legislation and I cannot see where the solicitors would have a problem. People who are thinking about selling their houses have to get a building energy rating, BER, certificate. That is the only real requirement. They have to sign a contract with the selling agent. They also need the deeds and whatever else. If the solicitor does that in advance and gets paid to do it, I cannot see why the legal professionals have a problem. That seems to be a no-brainer. Even if the person in question does not sell the house, the solicitors will get paid because they are doing all the work in advance. It is ready to pop then, so if the seller gets a customer and the house is sold, everything is ready to roll and there is no need for waiting.

Problems could be flagged way in advance. Mr. Garrett mentioned his six problems but they could all be flagged way in advance before the sale is transacted. Mr. Garrett mentioned problems with rights of way, lanes and the tax implications. All of that would be done way in advance without the seller finding a buyer, approaching a solicitor and realising there is a problem. We have been running the cart before the horse for a long time in Irish property and it has made it one of the slowest countries in the world to have transactions in. That is my general experience of property deals throughout the world. In most places, Spain or wherever else, contracts are nearly given on the day. If there was some reason I could see whereby it would make sense for the solicitors or the Bar of Ireland not to be behind the Bill, I would understand but I do not know why they are not behind it. Solicitors will be the first ports of call. They will do a little work and get paid for it. We are all in business. We will all move on and it will be great. I do not see why the solicitors do not think this is a good idea. Mr. Garrett listed many complications but the solicitors will be paid to ensure they are sorted out beforehand. Solicitors are the only people who are going to tie up taxes, roads, rights of way and Irish Water. Those were some of the examples he listed. I apologise that I do not have my notes with me. Solicitors will be co-ordinating the work to ensure it is done. They will have everything in order. They will be paid first and everything will be ready to go. As soon as there is a buyer, a seller is ready to go. The solicitor can instruct that there are no problems with the property and the sellers are free to sell.

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