CALL US FOR A FREE CONSULTATION: 0207 459 4037

Conveyancer Misconduct and Negligence: The Serious Breaches Leading to Disqualification

Professional Negligence against Property Conveyancers

Problem: In a notable instance of professional misconduct, two licensed conveyancers, James Marshall and Jeremy Kotze, breached the ethical and legal standards crucial in conveyancing.

Outcome: As a result of their actions, the Council for Licensed Conveyancers (CLC) took decisive action by permanently disqualifying both Marshall and Kotze. Alongside the disqualification, they must pay substantial fines and legal costs, reflecting the severity of their misconduct.

The Investigations and Decision

The Council for Licensed Conveyancers (CLC) described this case as “one of the most serious cases” they have ever seen. The case involving Marshall and Kotze was a complex one, marked by a series of violations against the CLC’s code of conduct and anti-money laundering (AML) rules.

The panel’s investigation revealed that they overcharged clients, participated in questionable Stamp Duty Land Tax (SDLT) avoidance schemes, and actively obstructed a client’s complaint. One of the most concerning aspects was their involvement in a scheme that included obstructing a client’s access to her file, which contained forged signatures. The case also brought to light severe issues with AML compliance, conflicts of interest, and unethical billing practices.

The CLC adjudication panel found them guilty and permanently disqualified them from practising. This decision was reached after a thorough investigation into their conduct as part of Stratega, an alternative business structure that ceased trading in June 2022. The firm had been under the CLC’s scrutiny for a couple of years, operating with around 10 staff from offices in Buckhurst Hill and Cheam.

The panel uncovered a range of serious issues in their conduct, including an unenthusiastic approach to AML compliance with poor client due diligence and wealth checks. In one instance, they transferred £2 million for a Qatari client without proper documentation, and in another case, they accepted insufficient information for a source of funds check.

The panel also highlighted the solicitors’ perception of their firm as low-risk for money laundering despite dealing with high-risk scenarios, such as transactions involving developers and overseas investors. This, according to the panel, demonstrated a lack of understanding of the risks involved.

Conflicts of interest were evident in their dealings, with Marshall supervising an unauthorised caseworker at Stratega who worked for the other side in multiple transactions. The panel questioned Marshall’s comprehension of conflict rules, especially considering Kotze’s dual role as the MLRO, creating a potential conflict of interest.

On billing, the panel revealed that Stratega had planned to charge £1,000 per file but attempted to maximise charges when this plan fell through. The lack of a systematic approach to billing and the absence of evidence for additional work raised further concerns.

In a public statement the CLC stated that:

The panel found that there was no systematic approach to the respondents’ billing of these files, and there was no evidence to support the additional work billed… ‘It concluded that the respondents had planned on being paid £1,000 on each separate file, and when it became clear that was not to happen, they sought to charge as much as they could on the cases on which they had been instructed.'”

Furthermore, the solicitors facilitated SDLT avoidance by allowing subsidiary companies to advise on notional sub-sales to conveyancing clients. The most disturbing aspect involved obstructing a client’s access to her file and lying to her and the CLC about its destruction.

The panel said it “found this conduct to be extremely serious, and very far below the standard expected of licensed conveyancers.”

This client had concerns about an SDLT avoidance scheme and alleged forged signatures in the case files. The panel deemed this conduct extremely serious and below the standard expected of licensed conveyancers:

The property had been bought with her husband and was part of the settlement when they divorced. Having initially been given digital access to the case file, the client raised concerns that she was signed up to an SDLT avoidance scheme about which she had no knowledge and claimed there were at least two forged signatures in the file. She received no response and could not access the digital file when she tried to again later in the year. She was told her file had been destroyed, but the panel found this was not true. The solicitors also lied to the CLC about the matter.”

As a consequence, the panel ordered permanent disqualification for Marshall and Kotze, emphasising the need to protect the public and uphold the profession’s reputation. They were also fined £10,000, and they were collectively ordered to pay costs of £44,000.

Assistance of Regulatory Outcomes in Professional Negligence Claims

A regulatory outcome, like the disqualification imposed by the CLC, can significantly bolster a professional negligence claim against a conveyancer. Such an outcome serves as a powerful piece of evidence, as it is an official recognition of misconduct or failure to adhere to professional standards. It provides a solid foundation for a legal claim, indicating that the professional in question has breached their duty of care. Clients or other affected parties can leverage this outcome to demonstrate negligence in their legal pursuit.

Moreover, a regulatory finding can help in quantifying damages, as it often includes a detailed account of the misconduct and its impact. In essence, a regulatory outcome provides a precedent and factual basis that can streamline and strengthen a professional negligence claim.

This recent case serves as an example of the severe consequences of conveyancer negligence and the importance of maintaining ethical standards in the profession. It highlights how important it is to carry out due diligence when choosing someone to handle life-changing transactions.

Our expert negligence lawyers typically adopt a parallel strategy of pursuing a regulatory complaint and professional negligence claim against the property professional where there are breaches of the regulatory codes, and to protect the public from further wrongdoing by the professional.

Common Examples of Negligence against Conveyancers

Negligence in conveyancing transactions can manifest in several ways, including:

  • Failing to extend period to complete property purchase
  • Failing to provide an accurate surveyor inspection report
  • Failure to correctly advise on the stamp duty tax due (including any failures to make enquiries of any properties owned abroad)
  • Failure to claim relief for Multiple Dwelling Relief (MDR)
  • Failures or errors in drafting the contracts or lease documentation
  • Missing the stamp duty holiday
  • Inadequate AML checks
  • Conflicts of interest
  • Incorrect surveyor inspection report
  • Incorrect/negligent valuations
  • Failing to identify defects and restrictive covenants 
  • Not checking charges and restrictions on leasehold homes
  • Failing to advise on boundary issues
  • Failing to check ‘good title’
  • Failing to identify hazardous materials
  • Failing to provide an adequate report

Case Example – £75,000+ Successful Conveyancer Negligence claim

Our professional negligence lawyers acted for a construction company that purchased the freehold of a property located in London. However, the conveyancing solicitors acting in the property purchase failed to properly alert our client and advise that there were restrictive covenants which significantly affected the freehold reversion value of the property.

Our lawyers were instructed by the construction client and successfully settled the claim during the pre-action phase as the insurer’s solicitors sensibly admitted liability early without court proceedings having to be issued by our client.

The claimant client left the following feedback for our lawyers:

“Very satisfied with the way that Karim and his team took hold of a messy conveyancing professional negligence claim, and progressed it through to an amicable settlement in just over 6 months. Professional, courteous, knowledgeable, and also pragmatic with advice and strategy. I would not hesitate to recommend.”

If you have a professional negligence claim against a property professional that you would like to discuss with our expert negligence solicitors, please do not hesitate to call us for a Free Consultation on 0207 459 4037 or complete our booking form below.

Reviews

Karim Oualnan handled a contractual case to a successful resolution. Karim was very diligent, always providing great, honest advice in which Karim always put my best interests at the forefront of his suggestions during the case. He is very reliable, trustworthy and always on hand to help. I would highly recommend Karim.
I have no hesitation in recommending the services of Karim and his team. I had been banging my head against a brick wall after my bank forced the closure of my accounts and froze a substantial amount of my cash assets. Karim quickly reviewed all of the documentation relating to the matter and issued a letter before claim and formal...
We hired Karim for a commercial dispute, with a UK based entity that breached our P.O. terms. The difficulty with the case was that we have paid a down payment without much leverage to recover it. The supplier misled us forever 2 years and finally decided not to pay our down payment. However, with the support of the lead lawyer...
Very satisfied with the way that Karim Oualnan and his team took hold of a messy conveyancing professional negligence claim, and progressed it all the way through to an amicable settlement in just over 6 months. Professional, courteous, knowledgeable and also pragmatic with advice and strategy. I would not hesitate to recommend.
Karim offered me some advice regarding a lease issue. He was kind , courteous, knowledgable and above all really generous with his time and support . I would recommend Karim in a heartbeat for explaining things so clearly without patronising and for making me feel so at ease.
Karim is wonderful to work with, attentive, calmed and a knowledgeable professional. I appreciate his help a lot, he guided me in a way that not a lot of people does. Reliable and a great motivator.

Choose Excellence in Dispute Resolution

Our Mission

Our litigation solicitors have a proven track record of delivering successful outcomes for clients. Go Legal was founded to make exceptional lawyers accessible and solutions affordable.

Our lawyers and mediators have decades of experience and specialise exclusively in commercial litigation. Our lawyers have been described as “the best litigators in the country” & provide solutions to clients in the following areas of law:

karim sign

Karim Oualnan

Partner and Managing Director

Litigation Lawyer of the Year - Karim Oualnan

Our Story

Having worked more than a decade in law and fuelled by his passion for access to justice, Karim envisaged a different law firm – one that stood as a symbol of hope, fairness, and an unwavering dedication to justice. By providing legal services through a partnership with Go Legal and Spencer West, Karim has been able to create this vision.

Karim did not have a storybook beginning. His childhood echoed with challenges, where he witnessed his family and friends struggle with legal issues. It made him realise that there are individuals and businesses caught up in the complexities of the UK legal system who need reliable, affordable and technically astute lawyers to get results.

Our lawyers make a promise – we will work hard to achieve the best outcome for you. We are here to help!

Our Values

Our firm’s values ensure that we consistently exceed client expectations. We are:

  • Honest: Our lawyers are trusted by many clients
  • Generous: We are technically astute lawyers with compassion, & a genuine desire to help
  • Dedication: Our lawyers tackle each case with relentless dedication & work tirelessly to achieve a successful outcome
  • Innovative: We have access to technology & strategies not used by other law firms
  • Guardians: Our lawyers will guide you through every legal step, ensuring clarity & understanding at all stages

200+

Lawyers*

95%+

Success

20

Offices*

*through our exclusive partnership with Spencer West LLP

Our lawyers are regulated and members of:

Why instruct Go Legal

why-icon-6-6

Expertise

Our team of award-winning legal experts are renowned for their technical expertise, honesty and dependability. We prioritise customer satisfaction by providing personalised attention and ensuring that we consistently exceed our clients' expectations throughout.

why icon 2

Rapid Response​

We understand the urgency of legal matters and offer 24/7 support to clients. Whether you require immediate assistance with legal advice or representation, our team is always available to provide prompt and reliable support. We will create a Whatsapp group with you and your legal team once instructed if you have any out of hours questions throughout your litigation and dispute resolution case.

why icon 3

Fair and Transparent pricing

We provide honest estimates for our legal services at the very outset. We are often instructed on an hourly rate basis, but we can offer discounted fixed fee packages, and no-win no fee agreements. For further information, please see our Funding page which sets out some of the packages we may be able to offer clients.

fast litigation and dispute resolution lawyers

Fast & Reliable

Efficiency and dedication to our clients’ needs are the cornerstones of our practice. We have earned the appreciation and praise of clients and even our opponents by consistently meeting high standards and delivering exceptional results.

why icon 5

Qualified and Regulated

Our team consists of highly qualified and regulated legal professionals who possess extensive knowledge and experience in dispute resolution. You can trust that your legal matter will be handled by specialist and experienced lawyers who provide the highest level of service to achieve the best result for your case.

why icon 1

Customer Satisfaction Guarantee

We are so confident in our ability that we give our clients a service level guarantee. If you are not happy with the service we provide on your case, you can request a 10% discount on our invoice(s) no questions asked.

1. Book Free Consultation

2. Our Lawyers will call you

3. We will represent your best interests to success

Schedule a Free Consultation

Select Date & Time below
Maximum file size: 10 MB
error: Content is protected !!
Search
go-legal-white-logo

How can we help?

Resolving Payment Disputes: A Legal Guide for the UK Construction Sector

We are here to help you. Call us for your Free Consultation: 0207 459 4037

The Ultimate Guide to Construction Project Management: Legal Tips & Best Practices

We are here to help you. Call us for your Free Consultation: 0207 459 4037

The Complete Guide to Litigation Funding in England & Wales

We are here to help you. Call us for your Free Consultation: 0207 459 4037

The Essential Guide to Intellectual Property Protection in the UK

We are here to help you. Call us for your Free Consultation: 0207 459 4037

Understanding Defamation: A Comprehensive Guide

We are here to help you. Call us for your Free Consultation: 0207 459 4037

A Comprehensive Guide to Preventing and Resolving Partnership Disputes

We are here to help you. Call us for your Free Consultation: 0207 459 4037

Navigating Partnership Disputes: A Step-by-Step Guide

We are here to help you. Call us for your Free Consultation: 0207 459 4037

Understanding Your Rights: A Guide to Financial Services Disputes in the UK

We are here to help you. Call us for your Free Consultation: 0207 459 4037

The Essential Guide to Resolving Financial Services Disputes in the UK

We are here to help you. Call us for your Free Consultation: 0207 459 4037

Understanding Professional Negligence: An Introductory Guide

We are here to help you. Call us for your Free Consultation: 0207 459 4037

Guide to starting a Professional Negligence Claim

We are here to help you. Call us for your free consultation: 0207 459 4037

Appealing HMRC Decisions: Your Rights and Procedures

We are here to help you. Call us for your Free Consultation: 0207 459 4037

A Guide to Alternative Dispute Resolution (ADR) in HMRC Disputes

We are here to help you. Call us for your Free Consultation: 0207 459 4037

Best Practices to Minimise Bad Debts

We are here to help you. Call us for your Free Consultation: 0207 459 4037

How to start a Debt Claim

We are here to help you. Call us for your Free Consultation: 0207 459 4037

A Guide to Creditors' Rights in Insolvency Proceedings

We are here to help you. Call us for your Free Consultation: 0207 459 4037

Crypto Recovery Group: Overview of Cryptocurrency Recovery& Fraud

We are here to help you. Call us for your Free Consultation: 0207 459 4037

Cryptocurrency Tax Disputes: Navigating the Grey Areas

We are here to help you. Call us for your Free Consultation: 0207 459 4037

Avoiding Insolvency: Early Warning Signs and Remedial Actions

We are here to help you. Call us for your Free Consultation: 0207 459 4037

Navigating Corporate Insolvency: A Step-by-Step Guide

We are here to help you. Call us for your Free Consultation: 0207 459 4037

Preventing Shareholder Disputes: A Proactive Approach

We are here to help you. Call us for your Free Consultation: 0207 459 4037

The Legal Implications of Deadlock in 50/50 Owned Companies

We are here to help you. Call us for your Free Consultation: 0207 459 4037