1. GENERAL
1.1 Main Sources of Law
The main source of Irish real estate law is statute. The key legislative provisions are set out in the Land and Conveyancing Law Reform Act 2009 (the 2009 Act), the Registration of Title Act, 1964 (the 1964 Act), the Registration of Deeds and Title Act, 2006, the Landlord and Tenant Acts, 1967‒2019 (LTA) and the Residential Tenancies Acts, 2004-2021 (the RTA).
The other main source of Irish real estate law is case law, derived from judgments of the Irish courts.
1.2 Main Market Trends and Deals
The focus throughout 2021 was on the recovery of the Irish real estate sector from the impact of COVID-19. Activity in the sector increased quarter on quarter throughout 2021 and surpassed all expectations with over
1.3 Impact of Disruptive Technologies
The most significant obstruction to the use of blockchain technology, decentralised finance,
While blockchain and
1.4 Proposals for Reform
There are no current proposals for reform that would significantly impact real estate investment, ownership or development in
2. SALE AND PURCHASE
2.1 Categories of Property Rights
The categories of property rights that can be acquired in
2.2 Laws Applicable to Transfer of Title
Historically, Irish law was based on legislation predating the establishment of the Irish State. The 2009 Act replaced much of the old law and modernised conveyancing practice. The 2009 Act is the main statute applicable to the transfer of title in
2.3 Effecting Lawful and Proper Transfer of Title
The Land Registry was established in 1892. When ownership of a property is registered in the Land Registry, the deeds are filed with the Land Registry and all relevant particulars concerning the property and its ownership are entered on folios that form the registers maintained by the Land Registry. In conjunction with folios, the Land Registry also maintains maps (referred to as filed plans). Both folios and filed plans are maintained in electronic form.
The Registry of Deeds was established in 1707 to provide a system of voluntary registration for deeds which affect property. The purpose was to give priority to registered deeds over unregistered but “registrable” deeds. There is no statutory obligation to register a deed in the Registry of Deeds but failure to do so may result in a loss of priority.
Title insurance is used in property transactions in
While the use of electronic signatures has become more widespread in
2.4 Real Estate Due Diligence
A buyer's lawyer will investigate the seller's title to the property to ensure a buyer will acquire a good marketable title. The underlying principle is one of caveat emptor (buyer beware). The buyer must satisfy itself as to the seller's title pre-contract.
This contract requires the seller to list the documentation and searches to be provided in relation to the property and incorporates the
The buyer's lawyer also carries out a number of searches against both the seller and the property.
2.5 Typical Representations and Warranties
The principle of caveat emptor is diluted somewhat by the General Conditions, which place a number of warranties and disclosure requirements on the seller. For instance, the General Conditions include numerous warranties relating to matters such as notices, planning compliance, boundaries, easements and identity. These warranties can be excluded or amended by way of special condition by agreement between the parties. In addition to any specific disclosures, sellers often limit the warranty provided in respect of planning and building control compliance by reference to documentation and opinions/certificates of compliance with planning and building regulations in the seller's possession and provided to the buyer. Where the property is being sold in an enforcement scenario (ie, by a receiver, a liquidator or by a mortgagee), it is usual that many of the warranties contained in the General Conditions are expressly excluded or varied/limited by reference to knowledge. While parties are free to negotiate the terms and warranties provided in a Contract for Sale, generally speaking the COVID-19 pandemic has not resulted in new warranties or representations being provided.
There are also implied covenants as to ownership on the part of the seller, which are detailed in the 2009 Act.
A seller can be liable for misrepresentation. General Condition 29 of the General Conditions provides that a buyer shall be entitled to compensation for any loss suffered by the buyer as a res of an error which includes any non-disclosure, misstatement, omission or misrepresentation made in a contract for sale. However, as outlined above, a seller may seek to exclude or vary this condition by inserting an appropriate special condition in the contract for sale, stating that the buyer shall not rely on any representations made by the seller.
Representation and warranty insurance is available in the Irish market; however, it is not frequently used as part of real estate transactions, save where real estate is being acquired by way of a corporate rather than an asset acquisition.
2.6 Important Areas of Law for Investors
An investor should ensure that the title to the property is good and marketable, that the property complies with the Planning and Development Acts 2000-2021 (the Planning Acts) and environmental laws, and that the property has all necessary easements for access and services. Investors will also need to ensure they understand the application of Irish tax law.
2.7 Soil Pollution or Environmental Contamination
The buyer may have secondary liability for soil pollution or environmental contamination. If the person or entity which caused the pollution or contamination cannot be identified, the current owner or occupier of the property could become liable under the applicable environmental legislation for remediation. For this reason, it is important that environmental due diligence is carried out by a buyer where compliance with environmental laws is a concern.
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