Dáil debates

Tuesday, 31 January 2006

Registration of Deeds and Title Bill 2004 [Seanad]: Second Stage (Resumed).

 

5:00 pm

James Breen (Clare, Independent)

I welcome the introduction of this long overdue legislation. Review and reform of the system of registration of title is badly needed. Conveyancing and land and property law here are complex and archaic. It is important that our systems are brought up to date in a coherent manner.

According to the Minister, the programme of reform has three stated aims. It proposes to simplify the law in this verbose and confusing area and to make it more easily understandable to both legal practitioners and the public. It also proposes to update the law in this area in the light of changes in social demographic and economic needs and to make conveyancing easier and faster, thereby reducing the sometimes enormous costs associated with the legal service. I hope the Minister succeeds in this, that the process will be easier to understand and that costs of procedures will be reduced.

The legislation will benefit many people, in particular young people trying to buy their first home or new house. They are well acquainted with the substantial costs associated with such a move, not least of which are solicitors' and professional fees. Measured on the recommended scale, these fees are 1% of the total price plus €100. The main outlays are stamp duty, Land Registry fees and fees for searches. However, there is also normally a charge for miscellaneous outlays such as telephone, posters and photocopying. It is important people are treated fairly in this area and I welcome controls that will facilitate this. There is enough pressure on young people today without adding more through the current outdated and complicated system which places a heavy burden on them in terms of cost and time.

I welcome the provisions in the Bill for electronic conveyancing as the conveyancing process is unduly costly and time consuming. Conveyancing practice is, undoubtedly, protected and evidence suggests that it takes a great deal longer than it should or does in other European countries. The one to two-month period involved in the process of buying a house in this country should be reduced and I welcome any measures that bring new efficiency to the process to bring it in line with our counterparts in Europe, especially in this age of technology and instant monetary transfers.

Up to now, solicitors have had a monopoly in conveyancing. Our cumbersome legislation added to their ability to retain that monopoly. It also allowed them to stall and delay in order to charge higher fees, or perhaps this was general incompetence. These delays served to place additional burdens on members of the public who were, for the most part, unable to do anything to speed up the process. Solicitors must realise that their survival may depend on whether they modernise and become more responsible and accessible to a more demanding public. Many firms depend on conveyancing and it forms a significant element of their business.

As the Land Registry becomes more effective in marketing its on-line service, legislation is amended to simplify transactions and becomes more understandable, and consumers become more familiar with on-line transactions, the demand for solicitors will lessen unless they modernise, change their attitude and realise that if they cannot provide a more professional efficient service, consumers will work around them. If they continue as they are, the logjam in the registration system will remain, at least in the short term.

I have some reservations about the Bill and the process of its implementation. Will the Minister indicate how this legislation, if passed, will progress as there appears to be little or no funding in place to progress it? There is not much sense in passing a Bill and not providing funding to operate it. This will be expensive legislation. How will we compulsorily register all land in the country currently not registered unless staff and a proper registration authority are in place in every county? We can talk forever about electronic conveyancing, but if land is not registered, we have no land to convey through electronic conveyancing. The starting point is registration. How can we get the land registered if we do not provide extra staff? Without them the authority will exist as a quango and will not get the work done. It is important the Minister takes on the task of seeing this legislation through to implementation and that he does not allow it to sit on some shelf gathering dust.

I compliment the staff of the Land Registry office. Complex deals that take up considerable time pass through that office and something should be done in this regard, particularly where land is held by different owners. When all but one of the owners have passed away, there should be a provision in place to ensure that owner can acquire the property more quickly. That is not happening and I ask the Minister to examine that situation.

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