Derek McDowell (Labour)

This group comprises a number of amendments to the 1964 Act that are designed to improve registration procedures and, therefore, assist the new authority in promoting and extending the registration of title. Amendment No. 37 introduces a new subsection to section 51 of the 1964 Act to make it easier to register long-term leases in registered freehold properties. In the case of a registered freehold property, any lease of the property or parts of it is deemed under current law to confer an unregistered leasehold interest. Before such an interest can be registered, it is necessary for the lessee to apply for what is called first registration.

Having examined the issue, the current law should be amended to provide that a leasehold folio can be opened without the need for an application for first registration of such cases. This can be done by means of the amendment to section 51, which provides that the word "transfer" shall include a lease, which will go far in simplifying the registration of units, in particular in multiunit apartment blocks which have become more popular in recent years.

Amendment No. 40 involves the substitution of a new text for section 90 of the 1964 Act, which deals with the powers of a person entitled to be registered as first owner of a land or charge. Where such a person wishes to transfer the land or charge before he or she is registered as owner, he or she may do so subject to any rights affecting his or her interest. However, a person who is entitled to be registered as owner, having obtained ownership by way of a lease, is not entitled to deal with the property in the same manner as a person who is entitled under a transfer.

This is not appropriate in modern conditions and, therefore, I am amending the section to allow for this measure. In reviewing the section, it also became clear to me that the wording in the 1964 Act was open to a number of interpretations. In order to remedy the situation, we substituted a revised text of the section for the benefit of interested parties, particularly practitioners.

Amendment No. 41 substitutes a new wording for section 104 of the 1964 Act. The Land Registry identified section 104, which relates to stamp duty, as a section that causes difficulties for it in its day-to-day operations. My Department has discussed the operation of section 104 with the Land Registry and the Revenue Commissioners and an agreement has been reached on the revised wording of the section, which is the subject of this amendment. In future, the Land Registry will not proceed with a registration where it has reasonable grounds for suspecting that the correct amount of stamp duty has not been paid.

Amendment No. 42 substitutes a new wording for section 108 of the 1964 Act. Currently, that section allows the registrar to make an entry in the register granting priority to an intending purchaser or lender where a solicitor certifies that the applicant has entered into a contract to purchase all or part of a registered portfolio or has contracted to lend money on the security of a charge on the property. The effect is to inhibit all dealings on the folio for a period of 14 days. While it is possible to apply for further inhibitions on the expiration of the 14-day period, the Land Registry considers the time limit in this section is too inflexible. Therefore, we are increasing the 14-day inhibition period to 21 days.

I am also aware that business and conveyancing practices are changing and I am anxious to introduce some flexibility into the arrangements. Accordingly, I have made provision that the time period may be changed by means of general rules without reverting to the Oireachtas. This will allow the rules committee, with the consent of the Minister, to extend the period to 21 days to accord with existing conveyancing practice. Amendment No. 44 updates the penalties for offences under section 119 of the 1964 Act by bringing them into line with the penalties set out in section 40 of this Bill in respect of the registry of deeds.