We have previously written about a number of cases involving
fraudsters who sell residential property they do not own (see our
Real Estate Bulletin - Summer 2016).
The case of Dreamvar UK Limited v (1) Mischon de Reya (2)
Mary Monson Solicitors Limited [2016] EWHC 3316 ch should
serve as a warning to all parties dealing in residential property.
The claim against two different firms of solicitors arose out of
the purported sale of a property by a fraudster. The judgment
(which is proceeding to an appeal) has wide-ranging implications in
both the property and insurance markets and for estate agents.
The facts
The Claimant, Dreamvar UK Limited ("Dreamvar") was a
small property development company. The managing director of
Dreamvar instructed Mishcon de Reya (MdR) to advise on the purchase
of a residential property in Earls Court ("the
Property"). Mr David Haeems was the registered owner of the
Property. In September 2014 a fraudster purporting to be Mr Haeems
("the
