Joan Burton (Dublin West, Labour)
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Question 431: To ask the Minister for Justice, Equality and Law Reform if, in view of the recent cases of solicitors firms collapsing arising from apparent misuse of property title deeds and the registration of mortgages and charges, he has proposals to issue guidance or amend legislation; and if he will make a statement on the matter. [26947/07]

Joan Burton (Dublin West, Labour)
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Question 442: To ask the Minister for Justice, Equality and Law Reform his proposals to review conveyancing arrangements whereby a buyer's solicitor is allowed to check and register the legal title of a property for both the lender and borrower, in view of the recent collapses of a number of solicitors firms arising from irregularities in respect of conveyancing and registration of mortgages on properties; and if he will make a statement on the matter. [26948/07]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 431 and 442 together.

The Deputy will appreciate that I cannot comment on individual cases especially as the issues raised are linked to matters which are before the courts at present.

In relation to the process whereby a purchaser's solicitor may act for both the purchaser and a lending institution, I would point out that this system, which was agreed between the legal profession and the banking sector, has been in operation for around 20 years. The process is designed to benefit people transacting residential conveyancing in that by allowing the purchaser's solicitor to act also on behalf of the lending institution, costs are reduced to the benefit of consumers and the length of time taken to complete the conveyance is also reduced. I would also point out that it was never intended that the process would be used for commercial purposes nor was it intended that the process should be used where the applicant was the lodging solicitor.

As part of the process, in so far as it applies, the purchasers' solicitor will usually give an undertaking to a financial institution to the effect that he or she will ensure that the purchaser has a good marketable title to the property, that the documents are executed and that all the title deeds are stamped, registered and lodged with the institution. In addition, the solicitor will generally, pending lodgement of the title deeds with the bank or building society, undertake to hold the deeds in trust for the lending institution. In that context, it is important to note that where a solicitor fails to honour an undertaking given, it is considered to be professional misconduct and, as a result, the solicitor is rendered liable to the Law Society's disciplinary procedures and to investigation by the Solicitors Disciplinary Tribunal. Depending on the particular circumstances of a case the criminal law may also apply to it.

Mortgage lending is primarily a matter for the financial institutions involved and in so far as the system of banking and making loans available to clients is concerned, the Deputy will appreciate that I have no function. The Financial Regulator is responsible for the prudential supervision of Irish-licensed financial institutions and is independent in matters of day-to-day supervision. I understand that the Regulator has consistently conveyed to lending institutions that mortgage lending policies and practices should be prudent and responsible.

I have already indicated to the House that it is in everybody's interest that the best practices that clearly exist are followed in the area of solicitors' undertakings. I have also stated that in so far as there are any matters to be reviewed or issues to be addressed on the Government side the Deputy can be assured that the responsible Ministers will do so.