Assisting a private individual in connection with issues arising out of a freehold purchase

Mark Steggles and Grace King recently assisted a private freeholder in relation to the purchase of their freehold property.

The client took occupation of the property on completion. Following completion the remaining common areas of the estate were transferred to the relevant management company. This transfer was registered at the Land Registry prior to the registration of the client’s transfer.

The transfer of the property to the client had not been registered by the client’s previous solicitors within the relevant priority period. As a result of this, the property was transferred to the management company along with the common areas. As a result the management company was the registered proprietor of the property. The management company was then dissolved via compulsory strike-off.

Based on the evidence provided, Mark issued a Letter of Claim against the insured firm acting for the previous solicitors. The insured firm agreed that there had been a failure to complete the client’s transfer at the Land Registry within the relevant period, and that the property had subsequently been transferred to the management company as a result. Further, there had been a failure to register the client’s lender’s charges against the property.

The insured accepted that they were in breach of their duties owed to the client and confirmed that they were willing to consider the client’s claim for mitigation costs.