Negligence for Failing to Register Legal Charge
In the case of Gosden and another v Halliwell Landau and another [2021] EWHC 159 (Comm), the Court of Appeal found that the defendant solicitors were negligent in failing to register a legal charge at HM Land Registry to protect the interest in the property of the beneficiaries. The claimant clients were awarded just under £1 million in damages plus recovery of their legal costs.
If you have a professional negligence claim, please call us for a Free Consultation today. Our lawyers have an excellent track recover of recovering compensation on behalf of clients for conveyancer professional negligence.
What is a Legal Charge?
A legal charge allows a lender or beneficiary to protect and secure their interest in property. It is a legal document which must be registered against the property at HM Land Registry to alert any potential buyer or other creditors of the existence of the debt. That secured lender or beneficiary will have priority over other unsecured creditors if the owner defaults or becomes bankrupt i.e. it will get paid before any unsecured creditors. The charge holders’ interest will appear in the charges register within the Official Copy at the Land Registry.
Negligence Claim against Conveyancers for Failing to Register Legal Charge
The claimant clients started a professional negligence claim against the defendant solicitors, Halliwell Landau for failing to register a legal charge at HM Land Registry.
The claimant clients instructed the defendant solicitors in respect of a tax mitigation scheme known as an Estate Protection Scheme (“EPS”), by which it had been intended that a property owned by Dr Jean Mary Weddell Deceased (“Deceased”) would pass on her death to the claimants. This in effect would benefit the claimants as they would pay substantially less than if the Property had been disposed of by will. Their instructions expressed that their interest in the property would be protected by way of a legal charge.
The property remained registered in the sole name of the Deceased but was part of a trust; the claimants and Deceased were trustees of that trust. In 2010, the property was sold by the Deceased for £875,000 in breach of trust without the knowledge or consent of either claimant.
Successful Negligence Claim for Failing to Register Restriction
The Court concluded that the defendant solicitors were negligent by failing to register the restriction at the Land Registry to protect the interest in the property for the beneficiaries.
It was common ground that the claimants were entitled to recover the value of the Property by way of damages. The issue was the date at which the Property’s value should be assessed.
The Court concluded that the value of the property should be assessed at the date of Deceased death. The Claimants were also able to recover the inheritance tax liability to HMRC from the defendant solicitors together with interest and legal costs.
Common Examples of Conveyancer and Property Negligence
There are several common examples of professional negligence against property professionals such as:
- 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
- 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
Expert Professional Negligence Claim Solicitors in London
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 negligence 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.”
Our expert negligence lawyers in London have significant experience in obtaining and negotiating successful outcomes for our clients in professional negligence claims against lawyers, property and finance professionals.
How can I start a Professional Negligence Claim for Property Negligence?
The first step is for you to get in touch with our professional negligence lawyers so that we can assess and investigate your potential claim. You can call us for a Free Consultation on 0207 459 4037.
How can I fund my Professional Negligence Claim against a property professional?
We often get asked whether we can accept instructions on a “no win no fee” basis such as a Conditional Fee Agreement (“CFA”) or a Damages Based Agreement (“DBA”).
We consider each claim on a case-by-case basis and we will discuss the different funding options with you to assess what type of funding arrangement would be in your best interest including whether you have an existing insurance policy in place which may provide a contribution towards your legal costs.
We also have relationships with litigation funds and after-the-event insurers that may be able to provide funding at discounted rates for your claim based on our opinion of your claim.
If your professional negligence claim is successful, we have an excellent track record of being able to recover the majority of your legal costs from the professional (and their insurer).
If you think you have suffered a loss because of an error, mistake, or bad service by a professional, it is important to act quickly and seek independent legal advice on your negligence claim. For more information on funding arrangements, please see our Funding Options page.
Winning Approach to Property Professional Negligence Claims
Our lawyers have dealt with negligence claims ranging from £50,000 to claims of up to £15m. We pride ourselves on our client-centric and results-driven approach, tailoring our litigation strategies and funding solutions to meet the unique commercial needs of each client.
Our professional negligence lawyers are recognised among the best lawyers in England & Wales, and have regularly been asked and featured to write authoritative articles in the Financial Times, Law Society and LexisNexis and have been quoted in City AM, the New Law Journal, Law Society Gazette and Litigation Futures.
Our specialist professional negligence team is Partner-led to provide straightforward, honest and strategic advice. We also have a strong legal network of solicitors, barristers and forensic accountant experts to call upon and advise you throughout to ensure you get the best result.
Our unique approach to property professional negligence claims means that we will:
- Arrange a Free Consultation with you & a qualified lawyer to discuss your property negligence claim
- Arrange a WhatsApp group with you & your legal team
- Investigate the merits of your claim & devise a strategy for success at the outset
- Work with our in-house accountants to report all losses
- Send documents easily through our secure client portal, Go Transfer
- Advise you on any judgments & tactics that have proved successful in other property negligence cases
- Assess the amount you may be able to recover from the negligent professional
- 24/7 chat feature with a qualified lawyer
- Fixed fees and “no win no fee” arrangements so that you have peace of mind
- Work hard to recover adequate compensation
Our professional negligence lawyers offer regulated, independent & confidential legal advice and are dedicated members of the Professional Negligence Lawyers Association, the London Solicitors’ Litigation Association, the Association of Cost Lawyers, the Insolvency Lawyers Association and the Commercial Litigation Association.
No Win No Fee Professional Negligence Lawyers in London
Our lawyers can act on a no win no fee basis. We consider each claim on a case-by-case basis and we will discuss the different funding options with you to assess what type of funding arrangement would be in your best interest including whether you have an existing insurance policy in place which may provide a contribution towards your legal costs.
If you wish to find out more information about property negligence claims, please see our dedicated page on professional negligence against property professionals here.
If you think you have suffered a loss because of an error, mistake, or bad service by a professional, it is important to act quickly and seek independent legal advice on your potential negligence claim. Please call us on 0207 459 4037 for a Free Consultation today.
