As part of its ongoing role in monitoring the operation of the new certificate of title system (2009 edition), it has come to the attention of the committee that certain lenders are raising certain requirements with borrowers’ solicitors that are at variance with what was agreed with the lenders as part of the new system.

These include a requirement by AIB set out in its ‘request for funds’ form that the borrower’s solicitor, by signing the request for funds form, certifies to the bank that there has been compliance with the special conditions of the loan approval. The certificate of title agreement with the lenders is that the solicitor is responsible only for special conditions that relate to title. Special conditions in a loan approval might include conditions regarding life assurance, property insurance, matters of valuation of the security, and so on – all of which are not matters of title and do not form any part of the certificate of title system. The committee has taken the matter up with the bank’s legal department and has asked that the bank discontinue this requirement on the basis that it breaches the agreement reached with the lenders under the new certificate of title system. In the meantime, the committee recommends that solicitors should delete the relevant certificate from the bank’s form before lodging the request for funds.

Solicitors previously reported to the committee a requirement by Bank of Scotland (Ireland) Ltd, set out by way of special condition in some letters of offer, that a borrower’s solicitor certify to the bank that all services to a property are in order. The committee is of the view that this is a matter that solicitors should not certify, as ‘services’ to a property could include matters to do with sewage, etc, and that solicitors are not qualified or competent to certify such matters. The committee took the matter up with the bank’s legal department and it has been confirmed by the bank that this requirement will be discontinued.