Tuesday 16th July 2024
CONVEYANCING AND PROBATE - LACK OF LEGAL FORCE WILL LEAVE RECOMMENDATIONS INEFFECTIVE - IPAV
Responding to the conclusions in the report of the Expert Group on Conveyancing and Probate published today IPAV, the Institute of Professional Auctioneers & Valuers, said while no one could dispute the assessment that ‘there are points of uncertainty, unpredictability, inefficiency and ineffectiveness’ causing ‘significant stress and difficulty for everyone’, the recommendations are not sufficiently strong to tackle the magnitude of the issues, because they lack legal force. They are dependent upon voluntary implementation without any punitive sanction whatsoever.
Pat Davitt, IPAV’s Chief Executive said: “Information and consumer awareness campaigns are all very well and while helpful would be nowhere near effective enough to bring real change to conveyancing which has been dogged by an antiquated process for legally transferring property title from seller to buyer, dating largely from 1881.
“It is simply unfit for the digital age, and our concern is that if the measures recommended in today’s report are not underpinned by legislation, aspiring buyers will continue to see sales fall through, gazumping and mortgage approvals lapsing, among other issues. Today’s recommendations lack teeth.”
He said members of the group deserve credit for their extensive work over a short period of time. However he said it was unfortunate that no licenced practising PSRA member was represented on the group. “Several of the recommendations in today’s report are, in fact, already being implemented by such agents and have been for the last decade,” he said.
Mr Davitt welcomed the recommendation that the Government would control e-conveyancing. “The system as suggested is still a long way off, having already been delayed by several years,” he said. “Even if it was in place today nothing would happen until the myriad of required information to enable solicitors put together contracts for sale was made available. This requires purchasers to have access to information prior to purchasing a property, like contracts, deeds and confirmation of planning. Such issues are the root cause of delays in conveyancing and are not addressed by the report.
“Digitalisation should start immediately for all new residential properties that come up for sale,” he said. “This would become an ongoing digital record of the property into the future and any alterations, upgrades, planning etc would be added to the ‘logbook’ as time passes, saving time, expense and heartache.”
He said other properties could be added as they come up for sale. “If we wait until systems are in place to digitalise all existing properties the problem is growing in magnitude all of the time.”
IPAV has initiated its own Bill, The Sellers Legal Pack for Property Buyers’ Bill 2021, which recently underwent pre-legislative scrutiny in the Dáil. Mr Davitt said this Bill, if passed, would mean purchasers would have additional information up front so that when bidding on a property they would have vital information about the property. This would drive efficiencies like those in public auctions and online sales, a tried and tested process where documentation is provided upfront and sales close within weeks.
A survey of IPAV members found that, among other issues, 32% of properties that go on the market are not actually saleable. The Sellers Legal Pack would prevent those properties going on the market and causing delays and unnecessary costs to prospective buyers.
Ends