In Dreamvar the purchaser’s solicitor was found liable for fraud by the ‘vendor’. Timothy Polli argues the logic of the decision ‘The effect of the decision is that the integrity of the conveyancing process (prior to registration of title) is underwritten by the conveyancing profession.’The case of Dreamvar (UK) Ltd v Mishcon de Reya [2016] …
Continue reading "Conveyancing: A nightmare scenario?"
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Should a vendor’s solicitor be under the same scrutiny as those representing the purchaser? Mary Young and Ben Hillman discuss ‘The Law Society Property and Registration Fraud Practice Note asserts the need for caution, as criminals will always attempt to exploit weaknesses in lending and conveyancing systems.’ Victims of identity theft or modern scams frequently …
Continue reading "Fraud: Who is on the hook?"
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Paul Marshall discusses a case which explores relief from liability for breach of trust under the Trustee Act 1925 ‘Where a vendor’s solicitor has not complied with the requirements of the AML Regulations it will be difficult to escape strict liability for the consequences of breach of trust where their client is a fraudster, however …
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Wills & Trusts Law Reports | July/August 2016 #161The claim arose from a purported sale of a property to the claimant by a fraudster who purported to be, but was not in fact, the registered owner of the property. By the time the fraud was discovered the whole of the purchase price had been paid by the claimant to the second defendant (the claimant’s conveyancer), by the second defendant to the first defendant (the fraudster’s solicitor) and by the first defendant to an account in Dubai upon the fraudster’s instructions.
The fraudster’s instructions to the first defendant were that the property had been given to him by his father,...
Property fraud is on the up, and recent cases highlight the importance of vigilance by solicitors, especially when dealing with vulnerable clients. Jayne Elkins and Karen McGinley investigate ‘Generally, there is less risk of fraud with registered land than with unregistered property, as although the registers are open, there are various steps a registered proprietor …
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Wills & Trusts Law Reports | June 2014 #140Abbey National Building Society (now Santander UK PLC) (A) agreed to lend £150,000 to an individual (V) for the purpose of purchasing a property subject to taking a first legal charge. RA Legal Solicitors (R) conducted the conveyancing, acting for both V and A. The vendor’s solicitors (S) were a real firm but acted dishonestly, falsely representing that they acted for the vendor. On 17 July 2009 A transferred £150,000 (plus fees) to RA’s bank account. S notified an account to which the completion monies should be sent and on 28 July 2009 S purported to exchange and complete and RA arrang...
Wills & Trusts Law Reports | April 2014 #138Abbey National Building Society (now Santander UK PLC) (A) agreed to lend £150,000 to an individual (V) for the purpose of purchasing a property subject to taking a first legal charge. RA Legal Solicitors (R) conducted the conveyancing, acting for both V and A. The vendor’s solicitors (S) were a real firm but acted dishonestly falsely representing that they acted for the vendor. On 17 July 2009 A transferred £150,000 (plus fees) to RA’s bank account. S notified an account to which the completion monies should be sent and on 28 July 2009 S purported to exchange and complete and RA arrange...
Wills & Trusts Law Reports | October 2013 #133In 2006, Drs Ravindra and Salma Sondhi applied to the claimant (AIB) for a loan of £3.3m, to be secured against their private home, in order to provide finance for their business. The application stated that the Sondhis’ home was worth £4.5m but was subject to an existing mortgage in favour of Barclays Bank to secure an outstanding loan of £1.5m. AIB agreed to the loan but required security over the Sondhis’ home in the form of first legal charge. AIB instructed the defendant (MRC) to act for it in connection with the remortgage and provided MRC with a facility letter which s...
Wills & Trusts Law Reports | April 2013 #128The claimant (Nationwide) offered on 12 December 2008 to lend Mr Patel £187,500 to enable him to buy 61 Avery Road, West Midlands (the property) for £249,995. Both Nationwide and Mr Patel instructed the defendant (Davisons) as solicitor on the basis of the Council of Mortgage Lenders Handbook (CML Handbook).
Paragraph 10.3.4 of the CML Handbook required Davisons to hold the loan money on trust for Nationwide until completion. On 30 January 2009, Davisons were informed by a letter sent from the offices of Rothschild in Small Heath that Rothschild were ac...
