For Sale – No strings attached
P&P Property Limited v (1) Owen White & Catlin LLP
and (2) Crownvent Limited t/a Winkworth [2016] EWHC 2276 (Ch)
("P&P")
Summary
In this case a legitimate and unfortunate purchaser was unable
to recover its losses resulting from a fraudulent transaction where
the fraudster had disappeared with the money.
The Court found that neither the seller's solicitors nor the
estate agents were liable as they had not given an express warranty
as to the identity of the seller. It also refused to impose a duty
of care on estate agents in respect of purchasers.
The case gives a useful insight on warranties of authority and
their application to solicitors and estate agents. It also
considers the extent to which solicitors and estate agents are
liable to ascertain the true identities of their clients. It should
sound a warning note for anyone who is considering purchasing
property to ensure that these checks are carried out and to
consider
