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Dáil Éireann díospóireacht -
Wednesday, 11 Jun 2003

Vol. 568 No. 2

Written Answers. - Ground Rent.

Seán Crowe

Ceist:

201 Mr. Crowe asked the Minister for Justice, Equality and Law Reform if, in the context of ground rents and in view of the fact that a lease on a domestic dwelling is not a contract within the meaning of the law of contract, the Government will declare such leases null and void; and if not, the reason therefor. [16200/03]

Seán Crowe

Ceist:

202 Mr. Crowe asked the Minister for Justice, Equality and Law Reform his views on whether the ground rent system is outdated and immoral; and the steps he is taking to abolish it. [16203/03]

Seán Crowe

Ceist:

203 Mr. Crowe asked the Minister for Justice, Equality and Law Reform the precise meaning of constitutional difficulties in the context of refusing to abolish ground rents. [16205/03]

Seán Crowe

Ceist:

204 Mr. Crowe asked the Minister for Justice, Equality and Law Reform the action he has taken, or plans to take, to prevent ground rent landlords demanding arrears of ground rent that are statute barred. [16207/03]

Seán Crowe

Ceist:

205 Mr. Crowe asked the Minister for Justice, Equality and Law Reform if his attention has been drawn to the fact that ground rent tenants, when purchasing their homes, had no choice in the matter and were forced to sign contracts under duress; and his views on whether such contracts are invalid and that attempts to collect ground rents fixed in such circumstances are illegal. [16209/03]

Seán Crowe

Ceist:

206 Mr. Crowe asked the Minister for Justice, Equality and Law Reform the action the Government proposes to take regarding to right to private property which is at the heart of the difficulties faced by people paying ground rent here. [16211/03]

Seán Crowe

Ceist:

207 Mr. Crowe asked the Minister for Justice, Equality and Law Reform when he intends to publish the long-awaited Ground Rent Bill; if publication is expected before the end of 2003; the reason for the delay in publishing the Bill; and if he will make a statement on the matter. [16213/03]

I propose to answer Questions Nos. 201 to 207, inclusive, together.

The issue of ground rents is a complex one as indicated by the number of different aspects raised in the Deputy's questions. I confirm that the Government legislative programme makes provision for the publication of a Ground Rents Bill during 2003 with a view to abolishing ground rents. The fact that the Bill is included in the programme is an indication of the Government's intention to act in this matter. As I have stated previously, publication of the Ground Rents Bill is subject to the resolution of possible constitutional, technical and practical difficulties. The constitutional difficulties referred to concern the respective rights of ground rent tenants and landlords. I am sure the Deputy would want the Government to introduce a Bill which is fair and equitable and which will not adversely affect the constitutional rights of any person. We are working to achieve this solution. Consequently, I am not in a position to give a publication date at this stage.

I would like to correct a misapprehension of the Deputy in relation to ground rents. A ground rent is not a lease on a domestic dwelling but rather a rent which is a charge in respect of the soil or ground itself. The relationship between landlord and tenant in such a situation is based on contract and payment is made in the form of a ground rent. I am aware that in many cases demands for ground rents have not been made for a long number of years. In these cases, where a ground rent landlord subsequently makes a demand for payment, the landlord is statute barred from claiming more than six years arrears in the rent. I should also point out that section 27 of the Landlord and Tenant (Ground Rents) Act 1978 provides that a landlord cannot re-enter or take possession of a premises where the tenant is in arrears with a ground rent.

Lest there be any confusion in relation to the current situation on ground rents, the Landlord and Tenant (Ground Rents) Act 1978 already provides a statutory scheme for the acquisition of the fee simple by the owners of dwelling houses Part III of the Act, provides a special procedure, operated at low cost by the Land Registry, whereby owner-occupiers of dwelling houses may acquire readily and relatively inexpensively the fee simple in their property. The purchase price in most cases at present is about 23 times the ground rent. The Act contains provision for the determination of applications for the purchase of the fee simple in cases where the consent of all the necessary parties is not forthcoming. In such cases the Registrar of Titles will determine the application by arbitration. The Act also makes provision for the circumstance that the ground rent landlord cannot be found. There is no obstacle to a tenant negotiating directly with the owner of the ground rent for its purchase without reference to the Act.
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