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05 July 2018 / Gary Blaker KC , Chris de Beneducci
Issue: 7800 / Categories: Features , Fraud , Property
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House trap

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Property imposter fraud: where now for solicitors & estate agents? Gary Blaker QC & Chris de Beneducci investigate

  • Solicitor acting for fraudulent seller now liable for breach of trust.
  • Solicitor acting for innocent purchaser not relieved under s 61 of the Trustee Act 1925.
  • Conveyancing solicitors still benefit from Gran Gelato protection regarding negligence, but warranty of authority is another front of exposure.
  • Estate agents not liable to innocent purchaser in negligence even where no ID checks undertaken.

In P&P Property Ltd v (1) Owen White & Catlin LLP (2) Crownvent Ltd [2018] EWCA Civ 1082, [2018] All ER (D) 124 (May), which was heard alongside Dreamvar (UK) Ltd v (1) Mishcon de Reya (2) Mary Monson Solicitors Ltd earlier this year, the Court of Appeal considered where the loss should fall when a fraudster purports to sell a property which he or she does not own, takes the proceeds upon ‘completion’, and fails to give good title.

The basic facts

On 20 November 2013 Owen White & Catlin

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