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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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MOVERS & SHAKERS

Signature Litigation—Catherine Naylor

Signature Litigation—Catherine Naylor

International fraud and asset recovery offering boosted by partner hire

Stevens & Bolton—Alexa Payet

Stevens & Bolton—Alexa Payet

Private wealth disputes team adds contentious probate specialist

Morgan Lewis—Paul Feldberg

Morgan Lewis—Paul Feldberg

Firm strengthens investigations and sanctions capabilities with London partner hire

NEWS
Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, has been overturned by the Supreme Court
The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
Two district judges and a tribunal judge have been sanctioned for delays in delivering judgments and orders
Private equity (PE) investment into UK law firms halved to £250m last year, but deal volume rose, according to research by Acquira Professional Services’ Momentum private equity market tracker
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