{"id":310,"date":"2017-02-06T05:32:53","date_gmt":"2017-02-06T05:32:53","guid":{"rendered":"http:\/\/dominiclevent.com\/blog\/?p=310"},"modified":"2019-04-17T17:19:48","modified_gmt":"2019-04-17T17:19:48","slug":"law-society-may-intervene-in-landmark-fraud-case","status":"publish","type":"post","link":"https:\/\/dominiclevent.com\/blog\/law-society-may-intervene-in-landmark-fraud-case\/","title":{"rendered":"Law Society may intervene in landmark fraud case"},"content":{"rendered":"


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The Court of Appeal will be tasked with offering landmark guidance on the liability of professionals where property is purchased through an ID fraud. The Gazette<\/em> exclusively revealed last week that City firm Mishcon de Reya faced a \u00a31m payout after its client Dreamvar was duped into buying a London property from a tenant posing as the owner.<\/p>\n

The case has sparked widespread confusion over the scope of a solicitor\u2019s liabilities and what reasonable checks they can make during the buying process.<\/p>\n

The High Court has since granted leave to appeal and the case<\/a> is likely to be heard at the end of this year \u2013 possibly conjoined with a similar case (P&P Property Ltd v Owen White & Catlin LLP & Anor<\/em>).<\/p>\n

A statement from Mishcons said the judgment<\/a> had been \u2018unequivocal\u2019 in finding no allegation of negligence or dishonesty. The firm said the ruling, which is stayed pending the appeal, has consequences for the wider profession.<\/p>\n

\u2018This judgment has major implications for solicitors and for the professional indemnity market,\u2019 said the firm. \u2018This goes beyond real estate and the result will impact on all transactional lawyers.\u2019<\/p>\n

The Law Society is considering whether to intervene in the appeal. Additional guidance may also be issued to practitioners on how to protect themselves from ID fraud.<\/p>\n

Solicitors have told the Gazette<\/em> they are \u2018baffled\u2019 by the current rules on liability for what is widely acknowledged to be a growing problem. Tim Prior, a director of Bristol risk and compliance firm PNCR Legal, said the judgment will have property lawyers and their insurers \u2018running for cover\u2019.<\/p>\n

A spokeswoman for Land Registry said solicitors and their clients can minimise the risk of fraud by making sure the property is registered. Land Registry has prevented frauds on 204 applications representing properties valued at more than \u00a392m.<\/p>\n<\/div>\n


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