Solicitors Fees Could Increase on Fraud Ruling

Published / Last Updated on 18/05/2018

Two mortgage fraud cases were finally ruled on in the Court of Appeal recently, where property purchasers were defrauded by millions of pounds as proper checks were not done on the vendors (the sellers) of the properties and only being found out when it came time to register the new owners at the land registry after completion.

The Courts ruled that both the buyers and the sellers solicitors were liable, despite in one case the buyers solicitor having to been proved to have not been negligent.

There is a duty of care and trust on all sides to ensure that the vendor is the legal owner and has the legal right to sell the property and buyer has the legal right to buy the property and the funds to do so.

Comment

We think it harsh on a buyer’s solicitor to held liable if they have performed the correct searches and checks given that they are not acting for the seller and not legally allowed to verify the identity and legal position of the seller.  Perhaps the Law Society will introduce new rules forcing both buyers and sellers to be verified by both sets of legal teams.

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