Water charges –new obligations on solicitors under Environment (Miscellaneous Provisions) Act, 2015
The Environment (Miscellaneous Provisions) Act, 2015 (Act) was signed into law on the 27th July 2015. Section 48 of the Act, which came into effect on 1st January 2016, imposes new obligations on solicitors when selling a residential property.
Section 48 of the Act provides that, prior to the completion of a sale of the property, a vendor must pay to Irish Water any water charge owing on the property and must provide his/her solicitor with either a certificate of discharge in relation to water charges or a statement confirming that the vendor has no liability to Irish Water. Where the vendor fails to provide either of these, the vendor’s solicitor must request a statement from Irish Water setting out the amount due to Irish Water.
Section 48(5) of the Act provides that the vendor’s solicitor must withhold from the net proceeds of sale of the property any amount owing to Irish Water and must remit the amount owed to Irish Water within 20 days of the completion of the sale of the property. The net proceeds of sale are the proceeds of sale less all mortgages and other liabilities relating to the sale of the property.
Irish Water will then provide the vendor’s solicitor with a receipt in relation to the amount remitted to it. This receipt shall be in full and final settlement of any obligation imposed on the vendor’s solicitor under section 48.
