Source: https://iclg.com/practice-areas/real-estate-laws-and-regulations/ireland
Timestamp: 2020-07-13 20:17:21
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Real Estate 2020 | Laws and Regulations | Ireland | ICLG
Ireland: Real Estate Laws and Regulations 2020
ICLG - Real Estate Laws and Regulations - Ireland covers key topics relating to practical points and commercial terms in leasing, investment, development, and financing in 28 jurisdictions
ICLG.com > Practice Areas > Real Estate > Ireland
Irish law was historically based on old legislation which predated the establishment of the Irish State in 1922, such as the Conveyancing Acts, 1881–1911 (the “Conveyancing Acts”) and the Settled Land Acts, 1882–1890. The Land and Conveyancing Law Reform Act, 2009 (the “2009 Act”) replaced much of the old law, including the pre-1922 statute law, and modernised the law and conveyancing practice. There is modern legislation governing registration of title (the Registration of Title Act, 1964 (the “1964 Act”) which was modified by the Registration of Deeds and Title Act, 2006 (the “2006 Act”)) to facilitate the increasing computerisation of the property registration system in this jurisdiction and succession law (the Succession Act, 1965).
There is extensive statutory protection afforded to family property in particular, which affects conveyancing practice (e.g. the Family Home Protection Act, 1976). This is partly due to the fact that Ireland has a written Constitution enshrining certain fundamental rights which override any other law, including legislation. Thus, it is not uncommon to find legislation declared by the domestic courts to be unconstitutional and, therefore, null and void.
There are no legal restrictions on the ownership of real estate by non-resident persons in this jurisdiction. However, anti-money laundering legislation requires that a number of checks be carried out on a potential buyer; the identity of the buyer, the source of funds and the ability to fund the acquisition of real estate need to be verified.
■ Absolute title.
■ Possessory title.
■ Qualified title.
■ Good Leasehold title.
There is a split between the legal title and the beneficial title of property in Ireland. The 2009 Act provides that the entire beneficial interest in property passes to the buyer on the making of an enforceable contract for the sale or other disposition of land (unless the provisions of the 2009 Act are disapplied). The beneficial interest in property can also be held through a traditional “off-title” trust.
In respect of registered land, the Land Registry does not recognise a split between legal title and beneficial title and only the legal owner of property will be recorded in part 2 (the ownership section) of the folio. A beneficial owner may, however, protect his or her interest in the property by registering a caution or an inhibition against the folio in question. The purpose of a caution is to obtain notice of dealings by the registered owner so that the cautioner has an opportunity to assert his or her unregistered right(s). An inhibition, on the other hand, operates as a restriction on registration that prevents all registrations except those made in compliance with the terms thereof.
There are currently no proposals to change the split between legal title and beneficial title of property in Ireland.
Any unregistered property (property registered in the Registry of Deeds) purchased in the State after 1 June 2011 is subject to compulsory first registration in the Land Registry.
Except as set out in question 4.3, there is no requirement that documents or titles be registered, but it is good conveyancing practice that deeds be registered in either the Registry of Deeds or the Land Registry as appropriate in order to preserve the priority of the deed.
In the case of registered land, there are certain rights which must be registered in the Land Registry to gain protection; otherwise these rights will not be protected against a bona fide buyer for value without notice (e.g. rights of residence, restrictive covenants, leases for a term exceeding 21 years). Section 35 of the 2009 Act provides that an easement shall be acquired at law by prescription only on registration of a court order under section 35. Section 35(4) of the 2009 Act provides that the order shall then be registered in the Registry of Deeds or Land Registry as appropriate. Section 37 Civil Law (Miscellaneous Provisions) Act 2011 amended the 2009 Act and the 1964 Act to enable the PRA to register easements without a court order where there is no disagreement between the parties concerning entitlement to an easement or profit.
■ Absolute title: This is the best type of title to land that can be acquired in Ireland.
■ Possessory title: This category of title is granted where an applicant does not have paper title to land but is in occupation of the land and/or in receipt of the rents and profits issuing from the land.
■ Qualified title: This category of title is granted where an applicant can only establish title for a limited period and/or where the title is subject to reservations.
■ Good Leasehold title: This category of title applies where the Land Registry has not investigated the title of the lessor to grant the lease to the applicant. Note that if the superior title is already registered, then the lessee will be registered with an absolute title.
Priority is accorded by virtue of the date of registration of an instrument, rather than the date of execution of the instrument. In the Registry of Deeds (which relates to unregistered land), priority is determined by the serial number allocated to the instrument pursuant to the 2006 Act. Registered instruments have legal priority over unregistered instruments or instruments registered later in time. An exception applies where the owner of a registered instrument had actual notice of a prior unregistered or unregistrable instrument.
As regards registered land, the 1964 Act makes provision for two classes of rights or burdens that affect registered property. Section 69 burdens may be registered on a folio and include charges, liens and easements created by express grant. Section 72 burdens, on the other hand, are those which affect registered land without registration, for example, leases for a term less than 21 years and customary rights. Section 69 burdens rank in priority according to their date of registration whilst section 72 burdens rank as of their date of creation. Registered section 69 burdens rank in priority to subsequently created section 72 burdens, while section 72 burdens rank in priority to subsequently registered section 69 burdens. Judgment mortgages are dealt with separately and are subject to any right or incumbrance affecting the judgment debtor’s lands, whether registered or not, at the time of their registration.
Transactions cannot be completed between parties electronically. Once completed, the details of a transaction relating to registered real estate can be submitted to the Land Registry for registration electronically. Once the application has been submitted electronically, the Land Registry will issue a pre-lodged dealing number, which will protect priority for 21 days. However, the original documents must be physically lodged in the Land Registry in order for the dealing number to go live and ultimately to effect the completion of the registration.
■ the Land Registry application form;
■ the transfer instrument; and
■ the appropriate fees.
Lawyers – no standard/fixed price. Fees are normally commensurate with the value of the property/work involved. Irish lawyers are obliged to set out the basis of their charges under section 150 of the Legal Services Regulation Act 2015.
Surveyors – no standard/fixed price. Fees are normally commensurate with the value of the property/work involved.
Investor appetite for Irish real estate has been very strong in 2019, with a particular focus on residential development, purpose-built student accommodation and hotel investment. Non-bank lenders continue to be very active in the Irish market.
The profile of investors looking for opportunities in the Irish market is relatively consistent, led mainly by European institutional buyers; however, Asian investors are continuing to make a mark in this jurisdiction, most notably in the office sector.
The commercial real estate market has been strong in Ireland in 2019. The completion of the sale of Green REIT PLC to Henderson Park for €1.34 billion later this year will also boost investment significantly.
The retail market has also performed relatively well despite concerns about Brexit and the volume of retail sales rose by 1.9% in July 2019. Much of the activity in the retail market at present is heavily concentrated in the convenience, food & beverage, service and leisure sectors.
Investor appetite for residential development and the hotel sector is increasing as noted at question 6.3 above. Approximately €415 million of development land sales were completed in the first half of 2019, comprising 30 land sales. Co-living concepts and PRS/Build to Rent schemes continue to be popular, accounting for 43% of investment spend in the first half of 2019. Major deals in this sector were Greystar’s acquisition of Blocks B and E at the Dublin Landings development in Dublin Docklands for a reported €154.6 million and the off-market sale of 166 apartments at Mount Argus, Harold’s Cross, Dublin 6W for €93 million.
The hotel/licensed market has also been robust this year with the value of hotel deals approximately €206 million to the end of August 2019. Notable disposals include the Portmarnock Hotel and Golf Links, Portmarnock, Co. Dublin; the Central Hotel, Exchequer Street, Dublin; the Heritage Hotel, Killenard, Co. Laois; and the Castle Oaks Hotel, Co. Limerick.
The stamp duty rebate scheme that was introduced in 2018 in respect of land purchased to develop residential property continues to encourage residential development, particularly in the PRS Sector.
The vacant site levy, which aims to promote the development of vacant under-utilised sites in urban areas, also continues to encourage disposals of sites for development.
The introduction of tax reforms in 2016 which negatively impacted Irish regulated funds focused on Irish property (so-called Irish Real Estate Funds or “IREFs”), has led to a decline in the popularity of such structures. There are now fewer tax advantages to larger non-Irish investors which has, together with the recovery of the domestic investor sector, led to an increase in the number of Irish-based buyers of Irish property.
■ Contains a memorandum of the agreed terms of the sale (parties, price, description of property, and completion date).
■ Lists the documentation and searches to be provided by the seller.
■ Incorporates the Law Society of Ireland General Conditions of Sale (the “General Conditions”). The General Conditions make a number of assumptions about the property and place certain disclosure obligations on a seller, which the seller can only exclude by inserting special conditions. This way, the buyer is on notice of any deviations from the standard contract. The General Conditions were updated in 2019 for use in respect of transactions commencing on or after 1 January 2019.
■ The seller’s title.
■ The identity and condition of property.
■ The disclosure of notices.
■ Planning and development.
■ Completion of the sale, completion notices and interest due if completion is delayed.
■ Rescission of the contract.
■ Forfeiture of deposit and resale.
■ Risk.
■ Boilerplate issues such as apportionment, time limits, notices and arbitration.
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 and the existence of any other interest in the relevant property. These warranties can be excluded or amended by agreement between the buyer and the seller. In addition to any specific disclosures, sellers often limit the warranty provided in respect of planning compliance by reference to documentation and opinions/certificates of compliance in the seller’s possession and produced to the buyer. Where the property is being sold in an enforcement scenario (by a receiver, liquidator or mortgagee), it is usual that many of the warranties contained in the General Conditions are excluded or limited by reference to the limited knowledge of the receiver, liquidator or mortgagee regarding the property. The 2019 General Conditions require the buyer to investigate and satisfy itself as to the title to the property pre-contract.
Yes, 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 in respect of the sale as a result of an error which includes any omission, non-disclosure, misstatement or misrepresentation made in the contract. However, as outlined above, a seller may attempt to exclude/vary this condition by inserting a special condition in the contract for sale stating that the buyer shall not rely on any representations made.
As noted at question 7.2, by virtue of the General Conditions the seller gives various contractual warranties in respect of the property for sale. It is typical for a seller to limit the scope of warranties through the careful drafting of Special Conditions in the Contract for Sale, in particular for commercial property. Despite the existence of warranties, a prudent seller (or his legal advisers) will still carry out his own due diligence of the property as the principle of caveat emptor is at the heart of commercial property transactions.
■ Stamp duty.
■ Surveyor/Architects’ fees.
■ Legal fees.
■ VAT (if applicable).
■ Registration fees.
■ Commissioner for Oaths’ fees.
■ Search fees.
■ Local Property Tax (if applicable) (apportioned).
■ Asset Covered Securities Acts, 2001 and 2007.
■ Agricultural Credit Acts, 1978–1992.
■ Bills of Sale (Ireland) Act, 1879.
■ Central Bank Acts, 1942–2018.
■ Central Bank Consumer Protection Code, 2012.
■ Central Bank Reform Act, 2010.
■ Central Bank (Supervision and Enforcement) Act, 2013.
■ Central Bank and Credit Institutions (Resolution) Act, 2011.
■ Central Bank (Supervision and Enforcement) Act 2013 (section 48) Lending to Small and Medium-Sized Enterprises Regulations 2015.
■ Companies Act, 2014.
■ Consumer Credit Act, 1995.
■ Conveyancing Acts, 1881–1911, the Land and Conveyancing Law Reform Acts, 2009 and 2013.
■ Credit Union Act, 1997.
■ Credit Union and Co-operation with Overseas Regulators Act, 2012.
■ Credit Institutions (Stabilisation) Act, 2010.
■ Criminal Justice (Money Laundering) Act, 2010.
■ Code of Conduct on Mortgage Arrears, 2013.
■ European Communities (Consumer Credit Agreements) Regulations, 2010.
■ European Communities (Unfair Terms in Consumer Contracts) Regulations, 1995.
■ European Union (Bank Recovery and Resolution) Regulations, 2015.
■ European Union (Consumer Mortgage Credit Agreements) Regulations, 2016.
■ European Union (Financial Collateral Arrangements) Regulations, 2010.
The implementation of the 2009 Act repealed certain of the old statutory provisions that had applied prior to 1 December 2009 (most notably parts of the Conveyancing Acts and the 1964 Act). The belief was that the rights and powers conferred on the existing mortgagees by these statutory provisions had already been “acquired, accrued or incurred” by mortgagees by virtue of the provisions of the Interpretation Act, 2005 and therefore the existing mortgagees could continue to rely upon those provisions. A number of high-profile decisions by the Irish courts resulted in a concern in the market that, in essence, the statutory rights which were appealed could not have been “acquired” by existing mortgagees. The Land and Conveyancing Law Reform Act, 2013 was implemented to fill this lacuna by confirming that certain provisions of the Conveyancing Acts and the 1964 Act will continue to apply to mortgages which predate the enactment of the 2009 Act and therefore remove the uncertainty in the market.
The usual practice is for the terms of a property loan to be recorded in a formal agreement. For big-ticket transactions, institutions will usually adapt a suitable Loan Market Association (“LMA”) precedent for the transaction. Use of an LMA precedent makes the negotiation of terms more efficient. However, lenders, including banks, continue to use bespoke loan agreements for smaller transactions.
If a company has created a charge over real estate, to perfect the security, a relevant filing must be lodged with the Irish Companies Registration Office (“CRO”) within 21 days of the creation of the security. This typically takes the form of a Form C1. If not registered within this time frame, the security will generally be void against any liquidator or third-party creditor.
The Companies Act, 2014 (the “2014 Act”) introduced changes to the procedure in relation to the registration of charges: the one-stage procedure; and the two-stage procedure. The one-stage procedure is similar to the previous regime under the Companies Act, 1963 (the “1963 Act”), while the two-stage procedure involves filing an initial notice of a company’s intention to register a charge, followed by a second filing within 21 days of receipt of the first by the CRO, confirming the creation of the charge. The purpose of the latter procedure is to remove the “blind spot” which exists for 21 days after a charge has been created, during which it may not appear on CRO searches. Under the 2014 Act, priority of registration speaks from the date of registration at the CRO and not the date of creation of the charge itself, as was previously the case under the 1963 Act.
A charge created by an individual or partnership may be set aside if it constitutes a fraud on its creditors and in this regard the test is the same as applies to corporate security – namely whether the transaction is an improper transfer of assets to the deprivation of creditors. Where an individual or partnership creates non-possessory security over chattels, this must be registered in accordance with the Bills of Sale legislation – the requirements of which are problematic.
1. European Communities (Unfair Terms in Consumer Contracts) Regulations 1995 and 2000
If a term of the relevant security is heavily weighted against the mortgagor, it will be considered “unfair” and in violation of the Unfair Terms in Consumer Contracts Regulations. This will affect the value of all or part of the lender’s security.
2. European Communities (Distance Marketing of Consumer Financial Services) Regulations 2004 (as amended)
3. Protection of the Family Home
As noted in question 1.1, extensive statutory protection is afforded to family property in Ireland which renders the enforcement of security over family homes or shared homes more difficult for lenders. Under Irish law, a family home is a dwelling in which a married couple ordinarily resides and a shared home is a dwelling in which civil partners reside. Under the Family Home Protection Act 1976 (as amended) and the Civil Partnership and Certain Rights of and Obligations of Cohabitants Act 2010, a spouse or civil partner who does not own the family home/shared home must give prior written consent to any disposal of an interest in the family home, including by way of mortgage. If this consent has not been given or was ineffective, any transaction disposing of the family home/shared home is at risk of being set aside at the instance of the non-owning spouse/civil partner within certain time limits.
(a) demonstrating that the instrument appointing a receiver has not been executed in accordance with the security deed;
(b) where the party enforcing the security has purchased the secured debt from an original lender, challenging the title of that person;
(c) proving that the lender has not complied with the procedural requirements of the MARP process (see below); and
The Code of Conduct on Mortgage Arrears 2013 (“CCMA”) is particularly relevant when it comes to the enforcement of residential security. Under this statutory code, lenders must operate a four-stage Mortgage Arrears Resolution Process (“MARP”) when dealing with customers in arrears or pre-arrears. The four steps are: 1) communication; 2) financial information; 3) assessment; and 4) resolution. Mortgagors must be afforded considerable support from the lender as regards the repayment of their security and offered a variety of alternative repayment options. Lenders’ compliance with the CCMA will be taken into consideration by the court in determining whether to grant a request to repossess. This code requires a high standard of behaviour from lenders and may frustrate attempts to enforce their security.
In general, where a bank encounters financial difficulty, the Central Bank of Ireland (“CBI”) may apply to court for special measures to come into effect which are designed to preserve the business carried on by the bank (if possible), protect depositors and manage in an orderly fashion the bank’s liabilities to bondholders and other creditors. These measures are taken pursuant to the European Union (Bank Recovery and Resolution Regulations 2015 (“BRRD”)). If the bank is licensed by the CBI and is incapable of rescue then it will be wound up pursuant to the Credit Institutions (Stabilisation) Act 2010 (“CISA 2010”) and the 2014 Act. This will entail the High Court appointing a liquidator to the bank. Whether the bank is subject to reconstruction or resolution pursuant to BRRD, or is in liquidation pursuant to CISA 2010/the 2014 Act, the insolvency officer will treat the loan as an asset of the bank and will seek to enforce the bank’s rights against the borrower and any persons providing security for the loan. Accordingly, insolvency or corporate rehabilitation of the lender will not, in principle, have any impact on the liabilities of the borrower and security providers.
Where the lender is not subject to BRRD and CISA 2010/the 2014 Act, it could go into corporate rehabilitation under Ireland’s “examinership” regime under the 2014 Act, or be subject to the appointment of a liquidator under the 2014 Act. In either case, the result is the same as above: the loan and its related security will be treated as an asset of the company and the company or its liquidator will look to recover/enforce in the usual way.
In an event of default, a lender will usually proceed to appoint a receiver and manager over the borrower’s assets. The receiver and manager is typically appointed pursuant to the terms of the charge; however, the 2009 Act also provides for the appointment of a receiver by a mortgagee. The receiver will market the property and sale proceeds will be used to discharge the borrower’s indebtedness.
The usual method of enforcing security over shares is for the lender to appoint a receiver. The power to appoint a receiver will be contained in a well-drafted security which will set out the receiver’s powers – albeit where the chargor is an Irish company the receiver’s powers will be implied by the 2014 Act also. It is unusual for a lender to step in and sell charged shares: appointing a receiver (who is technically deemed to be an agent of the chargor) is invariably the preferred method because this insulates the lender from liability arising from how the charged assets are dealt with in an enforcement scenario. Most receivers will be specialist insolvency practitioners from a major accountancy firm in Ireland.
The remedy of foreclosure was abolished in Ireland pursuant to the 2009 Act. Where the transaction is governed by the European Union (Financial Collateral Arrangements) Regulations 2016 (“EUFCR”), the collateral taker may agree with the collateral provider that the former may appropriate the collateral provided this is clearly agreed and the method for valuation of the collateral is also agreed. Real estate security would not be within the scope of the EUFCR albeit that “credit claims” comprising a loan portfolio secured on real estate could constitute collateral under the EUFCR.
Ireland imposes stamp duty on transfers of Irish real estate and certain other property. The stamp duty is charged on the consideration payable for the property, or the market value in certain instances. Stamp duty is generally payable by the buyer, although in certain transactions, such as voluntary transfers, both parties to a contract can be technically liable. There are provisions which apply to contracts to acquire land, as opposed to actual transfer documents, in cases where there is a “resting on contract” position.
The rate of stamp duty on transfers of residential property is 1% on consideration up to €1 million and 2% on consideration over this threshold.
In order to process a stamp duty return a tax reference number is required for both the seller and the buyer.
However, the gains or profits on the disposal of Irish real estate by an individual may be subject to Irish capital gains tax. The current rate is 33%. An exemption from capital gains tax is available for individuals on the sale of the individual’s principal private residence, subject to certain conditions.
The sale of Irish real estate may be subject to Value Added Tax (“VAT”). As there are many variations and exemptions under the current Irish VAT regime, the VAT treatment should be addressed by the appropriate professional advisor’s pre-contract with the final agreed position reflected in the contract.
Irish capital gains tax is subject to a withholding procedure. The buyer must generally withhold 15% of the consideration and pay this amount to Revenue unless the seller provides a tax clearance certificate from Revenue. A clearance certificate is automatically available on application to Revenue if the seller is resident in Ireland for tax purposes. A non-resident seller will need to agree and discharge its capital gains tax liability in order to obtain a clearance certificate. This withholding procedure only applies to a buyer where the consideration payable to the seller exceeds the relevant threshold current at the date of the transfer agreement (currently €500,000 or €1 million if the asset disposed of is residential property).
Transfers of corporate entities (such as Irish and non-Irish companies) and partnerships can be subject to 7.5% duty where the entity derives over 50% of its value from Irish land which is intended for development, held as trading stock, or held with the sole or main object of realising a gain on disposal. This provision is subject to a number of conditions, including that the transfer is one which transfers control of the land. Minority holdings may not be impacted.
Historically, Ireland has had special legislation governing the relationship between landlords and tenants, e.g., the Landlord and Tenant Law Amendment Act, 1860 (commonly referred to as Deasy’s Act).
Stamp Duty is incurred by the tenant on business leases. Stamp Duty is currently levied at 1% of the average annual rent (for commercial/business leases not exceeding a term of 35 years) with an additional fixed charge of €12.50 if the commercial/business lease contains a rent review clause. There is also an additional Stamp Duty charge of €12.50 for each counterpart of the business/commercial lease.
It is standard practice for a business lease to contain a re-entry clause, entitling a landlord to forfeit the lease for breach of an obligation by the tenant. The procedure in the case of the non-payment of rent (and other payments for this reason usually reserved as rent, e.g. service charges and insurance premiums) is straightforward, but rather more complicated (including service of notice on the tenant) in the case of breach of the other covenants in the lease. Re-entry can, however, be effected without a court order, if done peaceably; forcible re-entry is, on the other hand, a criminal offence. If the tenant is still in occupation and resists re-entry, the landlord must seek an ejectment order from the court. The tenant, any sub-tenants and third parties like mortgagees can apply to the court for relief against forfeiture, which will only be granted on terms designed to correct the default inducing the forfeiture and to protect the landlord’s interest in the future.
On the assignment of a lease with the landlord’s consent, the assignor has no further responsibility for complying with the lease and its liability ceases completely. In contrast with the UK, there is no practice in Ireland requiring an assignor to enter into an authorised guarantee agreement guaranteeing the performance of the new tenant under the lease.
Co-working spaces are on the rise in Ireland with companies such as Iconic Offices, TCube Dublin, WeWork and DoSpace CoWorking offering such facilities in Dublin city centre. Co-working spaces appear to be particularly popular with start-up companies finding their feet. It is expected that the total flexible office space will increase to almost 2 million square feet by end 2019 which would represent an 80% increase in three years.
The Residential Tenancies Acts 2004–2019 (the “RTA”) is the primary legislation governing leases of residential premises in Ireland (not exceeding a term of 35 years). Rented properties must also meet the standard prescribed under the Housing (Standards for Rented Houses) Regulations 2017 as regards the conditions thereof and the facilities available.
A fundamental provision of the original RTA 2004 is that a landlord may not set rent at an amount greater than the market rent for the tenancy in question at the time. “Market Rent” is defined as the rent which a willing tenant not already in occupation would give and a willing landlord would take for the dwelling on the basis of vacant possession and having regard to: (i) the other terms of the tenancy; and (ii) the letting values of dwellings of a similar size, type and character to the dwelling and situated in a comparable area. In late December 2016, rent predictability measures were enacted under the Planning and Development (Housing) and Residential Tenancies Act 2016 in an effort to control the rise in rents in the parts of the country including Dublin, Cork and Galway) where rents are highest and rising and where households have greatest difficulties in finding accommodation they can afford. In these areas, known as “Rent Pressure Zones”, rents will only be able to rise according to a prescribed formula which equates to about 4% of the current rent, subject to certain limited exclusions. The measures regarding Rent Pressure Zones apply for a fixed period and are currently in force until December 2021 but may be extended. The restriction applies to both new and existing tenancies and are at all times subject to the aforementioned overriding principle that rents may not be set at a level higher than the prevailing market rate. The Residential Tenancies (Greater Security of Tenure and Rent Certainty) Bill 2018 is currently before the Government for consideration and if enacted, all administrative areas in the State, that are not at present designated as such, will be deemed to be Rent Pressure Zones, for a three-year period. In addition, under the proposed legislation, annual increases in rent will be limited to increases in the annual rate of inflation, as measured by the All Items Consumer Price Index published by the Central Statistics Office.
Part 4 of the RTA 2004 gave tenants the right to stay in rented accommodation for up to four years in total, following an initial six-month period. The term of tenure has recently been increased to a total of six years in respect of tenancies created from 24 December 2016. These security of tenure provisions are commonly known as “Part 4 tenancies”. After the first Part 4 tenancy has passed, a new Part 4 tenancy begins entitling the tenant to remain in the dwelling for a further six-year term. Where a tenant is in occupation under a fixed-term contractual tenancy, the tenant can notify the landlord that it is availing of the security of tenure provisions and is claiming a Part 4 tenancy prior to the expiry of the contractual term.
(d) Tenant’s Contribution/Obligation to the Property “Costs”
Under the RTA, it is generally the landlord’s responsibility to effect and maintain insurance in respect of the structure of the dwelling. The tenant is not obliged to contribute to insurance costs under the RTA, save where the premium payable under such policy of insurance has been increased as a result of any act of the tenant or any act of another occupier or visitor to the dwelling which the tenant has permitted, in which case the tenant is obliged to pay the landlord an amount equal to the amount of the increase in premium.
The cost of repairs is also generally the landlord’s responsibility under the RTA, save where the tenant has caused deterioration to the dwelling that is beyond normal wear and tear. In these instances the tenant is obliged to make good such damage at his or her own cost.
Where the tenant is in occupation under a contractual tenancy or lease, the tenancy can only be terminated where the tenant is in breach of the terms of the tenancy, where there is a break clause in the tenancy agreement or where both parties agree to terminate the tenancy. Where the tenant has exercised its security of tenure under Part 4 of the RTA and claimed a Part 4 tenancy, termination by the landlord will then only be permissible in the following circumstances:
(b) the dwelling is no longer suitable to the accommodation needs of the tenant;
(c) the landlord intends, within nine months after the termination of the tenancy, to sell the property (a statutory declaration providing specific details must be included with a notice of termination on this ground);
(d) the landlord requires the dwelling or the property containing the dwelling for his or her own occupation or for occupation by a member of his or her family (a statutory declaration providing specific details must be included with a notice of termination on this ground);
(e) the landlord intends to carry out a significant refurbishment of the property (a certificate of a registered professional stating that the proposed refurbishment would pose a threat to the health and safety of the occupants of the property and should not proceed while the property is occupied and specify the period of time the risk shall exist for (which period should not be less than three weeks) must be included with a notice of termination on this ground); or
(f) the landlord intends to change the use of the dwelling or the property containing the dwelling to some other use (a statement setting out the intended use of the property must be included with a notice of termination on this ground).
If termination of the tenancy by the landlord is permissible under the RTA, a valid notice of termination must be served on the tenant in order for the landlord to achieve vacant possession. The minimum notice period required will depend on the duration of the tenant’s occupation. In order to be valid, the notice must:
■ be in writing;
■ be signed by the landlord or his or her authorised agent;
■ specify the date of service of the notice;
■ state the reason for the termination (where the tenancy has lasted for more than six months or is a fixed-term tenancy);
■ specify the termination date and also that the tenant has the whole of the 24 hours of this date to vacate possession of the dwelling; and
■ state that any issue as to the validity of the notice or the right of the landlord to serve it must be referred to the residential tenancies board within 28 days from the receipt of the notice.
The landlord must provide a copy of any notice of termination to the Residential Tenancies Board not later than 28 days after the expiration of the notice period provided in the notice.
The Planning and Development Acts 2000–2019 (the “Planning Acts”) govern planning and zoning matters. The Planning Acts regulate the zoning of areas through a variety of development, sustainability, landscape conservation and special amenity plans. Most of the functions reserved by the Planning Acts are exercised by the local authority in the area where the relevant property is situated. There are currently 31 local authorities in Ireland, each a planning authority for the purposes of the Planning Acts, responsible for monitoring and enforcing compliance with planning laws in relation to property in its area and responsible for making decisions regarding applications for planning permission. Where suitable grounds for appeal exist, the decision of the planning authority, including conditions imposed, may be appealed by the applicant to An Bord Pleanála (the Planning Appeals Board).
■ The Planning Acts.
■ The Housing Acts, 1966–2014.
■ The Environment (Miscellaneous Provisions) Act, 2015.
■ The Environmental Protection Agency Acts, 1992–2011.
■ The Waste Management Acts, 1996–2011.
■ European Union (Environmental Impact Assessment) Regulations.
■ The Water Services Acts, 2007–2017.
■ The Air Pollution Acts, 1987 and 2011.
■ The Building Control Acts, 1990–2014.
■ The Building Regulations, 1997–2014.
■ The Building Control Regulations, 1997–2018.
■ The Wildlife Acts, 1976–2018.
■ Petroleum (Exploration and Extraction) Safety Act, 2010.
■ The Finance (Local Property Tax) (Amendment) Act, 2015.
■ The Climate Action and Low Carbon Development Act, 2015.
Section 16 of the Industrial Development Act, 1986 (the “IDA Act”) enables the Industrial Development Agency (the “IDA”) to acquire lands either compulsorily or by agreement for the purpose of industrial development. A large part of the IDA’s role, under legislation, is acquiring land for development and, as a result, the IDA’s power to compulsorily acquire land was considered broad. However, in a recent decision of the Supreme Court delivered in November 2015, this view was somewhat curtailed. The IDA sought to compulsorily acquire land for which it had no immediate use so that if and when a particular undertaking should seek to develop the land, it would be immediately available at such time. The court, considering the constitutional protection given to property rights and applying the appropriate principles of construction, held that the IDA Act does not confer any power on the IDA to acquire lands not required for immediate use, but which might be utilised at some future time.
Generally, the Building Control Regulations require a commencement notice to be lodged with the local authority prior to commencing works, together with plans and specifications, a preliminary inspection plan and various certificates and notices. It is an offence not to submit a Commencement Notice and failure to submit a Commencement Notice cannot be regularised at a later date. A Certificate of Compliance on Completion must be submitted to and registered by the local authority before the building or works may be opened, occupied or used.
In addition, certain licences may be required depending on the specific type of property and the type of development proposed. These include licences issued under the Environmental Protection Agency Acts 1992 to 2011 (the “EPA Acts”), the Water Services Acts 2007 to 2017 (the “Water Services Act”), the Air Pollution Acts 1987 and 2011, and the Waste Management Acts 1996 to 2011 (the “WMA”).
Planning permission is generally required for any development. However, a limited number of exemptions exist, e.g. public works, certain internal works, works to improve a private road and other specific exemptions. In addition, where a local authority fails to make a decision on a planning application within a specific time limit, default planning permission is deemed to have been granted pursuant to section 34 of the Planning and Development Act 2000 (as amended).
Where development occurs without planning permission having been obtained, a party can make an application for retention permission save for developments within the scope of the environmental impact assessment regime. If unauthorised development has taken place and the Planning Authority has not issued enforcement proceedings within seven years, it is prevented from doing so at a later date. Exceptions to this are contained in sections 157 and 160 of the Planning and Development Act 2000 (as amended) in respect of developments involving quarries and peat extraction.
Currently, local authorities maintain a Record of Protected Structures (the “RPS”). Inclusion of these structures in the RPS means that they are legally protected from harm and all future changes to the structure are controlled and managed through the local development control process. Structures which are listed on the RPS are subject to more restrictive development conditions; therefore, types of work, which in another building would be considered exempted development, may not be exempted where the building is a protected structure. The local authority may issue a declaration under the Planning Acts determining the proposed works would be considered exempt from the requirement to obtain planning permission. However, a declaration cannot exempt any works which would otherwise require planning permission.