Boland Regulations

Schuhart

http://www.independent.ie/opinion/analysis/solicitors-crash-sheds-harsh-light-on-bankers-1203462.html

When the Boland regulations -- which allow a buyer's solicitor to check and register the legal title of a property for both the lender and borrower -- were introduced, solicitors warned of a conveyancing time-bomb.

Does anyone know exactly what these 'Boland regulations' are and who makes them? Are they a Law Society thing or a Government thing?

Hobart

I presume "Boland" refers to Minister John Boland who was minister for the environment in the 80's. The Boland regulations must refer to some bill he was involved with.

Have a look at http://www.irishstatutebook.ie/ , and that may help your search.

Jo King

The following is a link to the Boland Regulations oficcially known as
S.I. No. 27/1987: BUILDING SOCIETIES REGULATIONS, 1987.


http://www.bailii.org/ie/legis/num_reg/1987/ZZSI27Y1987.html

See Part iv of the First Schedule. Before this a mortgagor had to pay his own solicitor to investigate title and then pay the Building Society's solicitor to do the same thing.

Schuhart

Jo King wrote: »

http://www.bailii.org/ie/legis/num_reg/1987/ZZSI27Y1987.html

See Part iv of the First Schedule. Before this a mortgagor had to pay his own solicitor to investigate title and then pay the Building Society's solicitor to do the same thing.

Thanking you - I like to be able to see the actual 'thing' at issue in these cases. The relevant extract seems to be

Any costs incurred by the Society in respect of, arising from or in connection with the legal investigation of title to any property offered as security by a member shall be paid by the Society and shall not be recoverable from the member either as a fee specifically stated to be in respect of such costs or as part of any fee charged in respect of the loan.

Is this just prohibiting a charge by building societies, and not banks? Or is the assumption that no bank will be able to charge for its own search, as this would make it potentially uncompetitive versus EBS/INBS? Plus, presumably its not necessarily preventing a lender from carrying out its own search - its just making it hard to pass the cost on to the borrower. (although presumably, ultimately, there's no way for a 'Society' to pay for such a search without the borrower having to fork out in some way.)

Jo King

I do not think banks are comprehended by this section, I do not think they are/were regulated in the same way as building societies. At the time these regulations were promulgated, the banks were not players in the residential mortgage market to any significant extent. Arising out of these regulations, the Law Society and the Building Societies, agreed, that the solicitor acting for the borrower, could certify title to the building society, provided the solicitor had professional indemnity insurance. The banks started to become much more involved in mortgage lending in the late 1980's. They had to compete with the Building Societies so were not going to add to the costs of the borrower or themselves

Schuhart

Thanks - very clear explanation.