fbpx

Don't Even Think About Doing a Property Deal Without Legal Advice

12th September 2019 By Arman Khosravi

Property purchases are, for the majority of people, the highest-value deals they ever enter into and that is why they should never be undertaken in haste or without expert legal advice. A case in which an amateurish, home-made agreement led to years of costly strife between family members illustrates the point effectively.

Due to concerns that the opportunity to purchase a property might otherwise be lost, the sale agreement was created in a hurry, without the assistance of a solicitor. It stated that a woman had put £150,000 towards the purchase of the house by her stepson and his wife, that the money was not an interest-free loan and that she would have a share in the property to reflect the value of her contribution.

After a family rift developed, the woman launched proceedings. A judge rejected the couple’s claim that the agreement was a forgery and ruled that she was entitled to a 37.5 per cent stake in the house. He ordered that the property be sold and the woman be paid her share from the net proceeds of the sale. Responsibility for discharging the mortgage on the property fell on the couple alone.

In challenging that outcome, the couple argued that the woman’s claim should have been dismissed in its entirety because she had not come to court with ‘clean hands’. She had confessed during the trial that she had forged her deceased husband’s will, appointing herself as his executor and beneficiary. He had in fact died intestate, with the result that most of the money she had contributed to the house purchase did not belong to her but to the estate.

The High Court acknowledged, in the form of a declaration, that the woman held that part of her stake in the property attributable to her purported inheritance from her husband on trust for his estate. However, in dismissing the couple’s appeal, the Court noted that the stepson held his interest in his father’s estate in a different capacity to his interest in the property.

The woman had also put some of her own money towards the purchase, and the estate, rather than her stepson, was the principal victim of her act of forgery. The agreement accurately stated the amount of her contribution and it was not rendered unenforceable by the fact that not all of that money belonged to her. Neither the judge’s division of the sale proceeds nor his order that the couple pay 70 per cent of the legal costs of the case could be criticised.

Source: Concious

Latest News

Removal of Guttering Leads to Costly Court Battle

7th May, 2024 By

Disagreements between neighbours over where the boundary between their properties lies can ultimately lead to litigation costs far exceeding the value of the land in question. In a widely reported case, the removal of guttering that allegedly overhung a neighbouring property resulted in a court appearance. A couple claimed that their neighbour had ripped out guttering at their home. They brought legal action against her, claiming that she had trespassed onto their land, and are seeking nearly £2,000 for repairs. They argue that the guttering was wholly on their own...

Retired Businessman's Final Will Ruled Invalid

2nd May, 2024 By

Having your will drawn up professionally by a qualified solicitor is always a sensible precaution, especially in later life. In a recent case, the High Court ruled that a retired businessman lacked testamentary capacity when he made a will less than three and a half years before he died at the age of 87. The man and his first wife were married for nearly 40 years and had four children. After her death he married again. In October 2015 he made a new will, revoking in most respects a will...

Company Owner's Negligible Value Claim Unsuccessful

29th April, 2024 By

When an asset falls in value to the point that it is almost worthless, it may be possible to make a negligible value claim under Section 24 of the Taxation of Chargeable Gains Act 1992. The asset will then be treated as if it had been sold and immediately acquired again, so that the loss can be set off against other income. For a claim to succeed, however, the asset must have become of negligible value during the time the claimant owned it. On 30 September 2017, a woman who...

Court Sanctions Leg Amputation for Man Lacking Mental Capacity

24th April, 2024 By

The courts are often called upon to sanction treatment for patients whose ability to make decisions for themselves is impaired. In a recent case on point, the Court of Protection had to decide whether it was in the best interests of a man with mental health issues to have his right leg amputated above the knee. The man, aged 60, was taken to hospital by his niece. He was found to have an ulcerated leg. He had a history of paranoid schizophrenia, and believed that the sores on his leg...