Eviction Ban Bill 2022
The Cabinet has approved legislation that will grant a temporary and conditional delay on tenant terminations for the length of the present housing crisis, according to the Minister for Housing, Local Government and Heritage, Darragh O’Brien. No-fault tenancy terminations scheduled for the next winter months will be postponed until 31 March 2023 under the Residential Tenancies (Deferment of Termination Dates of Certain Tenancies) Bill 2022. Exemptions to the termination of residential tenancies are considered to be the following; damage to the property over and above normal wear and tear, anti – social behaviour, non – payment of rent or invalidating insurance. Your termination date will be delayed until after the eviction ban if it comes between 30 October 2022 and 31 March 2023. Depending on how long you’ve been renting and when your lease originally ended, your new termination date will change. Property rights in Ireland are subject to the common good however coming into Winter the government want to make sure people are not fearful that they’re going to be evicted. So, this is a temporary measure insuring a short term solution to potential homelessness this Winter.
The Residential Tenancies Board: what is it?
And when/why should you get in touch? Court is expensive, time-consuming and even before Covid-19, there was a backlog of cases waiting to be seen. In order to avoid court in landlord and tenant disagreements, the Residential Tenancies Board was set up. As in the name, it applies to tenants living in accommodation, as opposed to commercial tenancies like a shop-owner in a unit. The RTB has to: 1. Keep a record of residential tenancies; 2.Offer a dispute resolution service for landlords and tenants; 3. Carry out research into the private rented sector; 4. Provide policy advice to the Government on the private rented sector. The RTB also sets out the obligations of both the landlord and tenant, which is helpful because it may not be clear who is responsible for certain repairs and/or expenses. If you have an issue with your landlord/tenant and you can’t agree it between yourselves, you go to the RTB. Matters can be brought to either adjudication or mediation. A. Adjudication This is where an adjudicator assesses both the landlord and the tenant’s evidence and makes a decision in an informal setting. B. Mediation This is where a mediator listens to both sides and tries to help the landlord and the tenant come to a solution. This gives some flexibility and autonomy to the landlord and the tenant as they get to have a voice in the process. This may not be possible where relations with each other are particularly poor! If the Adjudication or Mediation decision is accepted, this becomes a decision (or “Determination Order” as it is officially known) that the landlord and tenant are both legally bound and then it needs to be enforced by the court if either party do not comply. If a decision is not reached in Mediation or the decision of the Adjudication is appealed, the case can be heard in front of a Tribunal. As above, the decision of the tribunal is called a determination order, is legally binding and cannot be appealed. If you are having issues with either your landlord or your tenant, please don’t hesitate to contact our conveyancing team on 01 485 4563.
Things to consider for first-time buyers
Cost, amenities and what it is you’re looking for 1. Costs This is generally the first thing people think of when they’ve decided to buy property. Apart from the purchase price itself – as well as the booking deposit – there’s a number of costs that you should be aware of. a. Stamp Duty This is usually 1% of the purchase price, but double check with your solicitor. It depends on the type of property you’re purchasing. If the property is a new build the stamp duty is 1% of the VAT exclusive purchase price. b. Professional Fees How much is the solicitor charging you? This will vary from firm to firm, shop around and do your research before making any decisions! Within a solicitor’s quote, they may include the obligatory costs of buying in Ireland. These are not decided by the solicitor but by the relevant governing body. A solicitor will pay them on your behalf and you will be charged for them. i. Searches: Solicitors are obliged to perform online searches to ensure that everything you’re buying and who you’re buying from is above board. The cost of these will depend on the property and the seller. ii. Registration Fees: Land must be registered with either the Registry of Deeds or the Land Registry, depending on what kind of land you are buying, this registration incurs a fee. c. Surveyor’s Fees If you’re getting a mortgage, you should carry out a survey to ensure the structure of the property is sound. These fees are entirely separate to the estate agent and the solicitor. 2. Amenities What are you looking for out of your new home? Do you want to be close to supermarkets, public transport, schools? Be aware of upcoming commuter towns, and urban expansion, these areas are likely to have ongoing construction over the next couple of years. 3. Parking Spaces If you are buying an apartment, a parking space is not guaranteed. If this is important to you, make sure you ask your solicitor/estate agent whether a space, or a right to one, comes with the property! 4. Home Improvement Thinkabout what it is you want out of this new home: do you want to step into a space that’s ready to be filled with furniture or are you ready, willing and able to put some work – and finances – into repairs and renovation? You may pay more upfront for a place that doesn’t require renovations, but it’ll likely save you time and stress in the future. Buying a home doesn’t have to be stressful, as long as you know what it is you’re looking for and your budget. We hope this non-exhaustive list has provided some useful things to consider when you’re looking at buying property. If you have any questions or queries, please don’t hesitate to contact our property team on 01 485 4563.
Switching your mortgage: is it worth it?
It is if you want to save money and trust your solicitor and broker to get you there. Switching a mortgage may sound like a hassle but if you have a good broker, and an efficient solicitor the process is straightforward and will save you money long into the future. We can recommend a top class broker who can provide a seamless switch. We don’t offer advice on the loan offer but your broker/bank can and will be happy to do so. We write to your original lender to request Title Deeds, once we get the Title Deeds we carry out due diligence on the title to ensure all is in order for the new lenders. You put your Life and Home Insurance in place. We return all documents to the lender and request your funds. Depending on the day you have chosen; your new mortgage terms will come into force. It is usually the day we drawdown the loan funds of the following month. i.e. if we draw funds on the 1st of January, your first mortgage payment will be the 1st of February. We then repay your old lender the redemption funds, the same day we drawdown your new loan funds. If there is money left on Account we deduct our fee from same and send you any balance. Finally, we proceed to request the old lender to remove their legal charge from your title and we make an application to have your new charge registered on title and we send you updated title and send all the title deeds to your new lender. This whole process takes no more than 4 to 6 weeks. Please do not hesitate to contact our property team should you have any queries in relation to any of the above. Image by Nattanan Kanchanaprat from Pixabay
It’s Complicated: when unmarried couples cohabit
What are your legal rights when you own together but aren’t married or in a civil partnership? Couples who aren’t married or civil partners have no legal rights, unless one of you is economically dependent on the other, you’ve been living together in an intimate and committed relationship for five years or more (or two years if you have dependent children), and the richer one of you dies. In that case, the survivor – the economically dependent one – can apply to the courts for (but won’t necessarily get) assets from the richer partner’s estate. Apart from that, you have to decide what your legal relationship should be in relation to your home, and establish the necessary legal framework. The question to be asked is: do you own the home jointly? There are two ways you can own a home: as joint tenants or tenants in common. If you are joint tenants, when one of you dies, the other automatically inherits the whole property, as surviving co-owner. If you are tenants in common, each of you owns a part share in your home – for example, you might have agreed to own it 50:50. When a tenant in common dies, their proportion doesn’t automatically go to the other, but is part of their estate, to be distributed in accordance with the deceased’s Will. So the surviving co-owner only gets the deceased’s share in the property if the deceased’s Will says they do – but if it says their share goes to someone else, then the survivor has to share the property with that new co-owner. If only one of you owns the home you live in, the other has no rights in it (except, on death, as discussed above). The owner can ask the non-owner to leave at any time, and sell the property without asking the non-owner’s permission. If the owner dies, the non-owner only gets the property (or a sharein it) if the owner has left it to them in their Will, or if the exception mentioned above applies. One way a non-owner cohabitant can prove they have rights in the home they share with the owner is to show there was an express agreement (either in writing or agreed orally) that they should have such rights. It’s much easier to prove there was an express agreement if it’s recorded in writing and signed. To make sure it’s valid, this agreement should be drafted by a solicitor and is called a co-ownership agreement. If there is no express agreement the non-owner has to prove that an agreement should be inferred from the way they and the owner behaved towards each other, and what that agreement was. That can be extremely difficult, which could lead to contentious litigation. The non-owner may be able to argue that they contributed some of the purchase price, shared the mortgage repayments or paid for substantive improvement to the property, as evidence of an agreement that they should have rights in the property. Then they have to argue what those rights are. It can all get very uncertain, and be expensive. The clear lesson is that, before co-habiting, make sure you agree: If you are to co-own your property, whether you do so as joint tenants or tenants in common. If you co-own as tenants in common, what your respective shares in the property will be. If only one of you owns the property, what rights the other cohabitant will have in it (if any). Generally, consider the other implications of co-habiting too, and write down what you have agreed over those too. In every case, formally record what you have agreed in writing. As you can see, it’s complicated, so legal advice is strongly recommended. Please do not hesitate to contact our property team should you have any queries in relation to any of the above.
Lease or a licence? The Court will decide
What’s the difference and why does it matter? Whether you are the landlord or the tenant, it is important to know whether your arrangement is a lease or a licence as the rights and responsibilities for both vary depending on which it is. If there is a dispute as to whether it is a lease or a licence, the Court will decide based on the realities of the situation. In a recent case, there was an agreement described as a licence, but in fact, it was a lease. What’s the difference? Licence: Does not give the tenant a legal interest in the property itself. It’s just a contract giving the tenant permission to use the property. Lease: Does give the tenant a legal interest in the property, giving the tenant exclusive possession. If you are the tenant, this means you can exclude anyone else from the premises, even the landlord! The Court will consider the parties intentions to decide whether it is a licence or lease. It asks what a reasonable person would think once presented with the objective facts? The Court also considers the power dynamic of the parties, and will try to help the tenants where possible. In the case above, the court decided that the business was availing of a lease. The case highlights the importance of getting legal advice if there is any doubt about whether an agreement is a lease or a licence. Photo Credit: by Unknown Author is licensed under CC BY-SA
Buying and selling property in Ireland: what taxes are you liable for?
What are they and will you have to pay them? 1. NPPR, Non-Principal Private Residence Set up in 2009, to generate more funds during the Recession, the NPPR lasted until 2013 and taxed people who owned more than one property. The property either has a Certificate of Discharge, which acknowledges that the NPPR has been paid, or a Certificate of Exemption, which says the property was exempt from the NPPR as it was the occupant’s primary residence. This applies to new builds, second hand dwellings and apartments. The NPPR tax is retroactive. 2. LPT, Local Property Tax The LPT has been in effect since 2013 and is paid annually. The LPT applies to anyone who owns a property, whether that be a second-hand home or an apartment. For those with new builds, the LPT won’t have to be paid until November of the following year. On purchasing either a second-hand dwelling or an apartment the LPT will be apportioned so that the vendor (person selling) pays the full amount for the year and the purchaser will repay what they owe from the date they move in. For example, Mary buys a house from John and the transaction closes on 20th June. John will pay the full LPT for the year. The amount, which ranges depending on the property value, will be divided so that Mary pays from 20th June onwards and John pays for the time preceding that. 3. Service Charge A service charge is a charge payable on either apartments or new builds with a common area. The charge will pay for things like cleaning and maintenance of the area and general upkeep. It is paid once a year to a management company. 4. Stamp Duty Stamp Duty is payable on every house in Ireland to the Revenue. On second-hand buildings and apartments, the stamp duty is 1% of the purchase price. For new builds, it is slightly less than 1% as there is no VAT on the stamp duty for a new build.
