Discussing UK law. Links: swarb.co.uk | law-index | Acts | Members Image galleries

Court order for action by a released liquidator

Court order for action by a released liquidator

Postby nina » Wed Nov 11, 2015 10:21 pm

I hope someone can help.
We bought a freehold property 18 months ago from liquidators and to date still do not have legal title. Our solicitors forgot for 12 months then after I found out they did the work but land registry rejected the TR2 as the Power of Sale was invalid. For the last 6 months there have been various attempts by the liquidators solicitor (who acted for them on the liquidation and the sale) to get the original court order amended to be a valid power of sale. Last month on application by the liquidators solicitor (at the time of the sale) the court did order a 999 year lease to be granted to the liquidator by the property owner to transfer on to me. My question is this - the liquidators were released by the court 6 months ago, can the court make an order in favour of them? On that matter - could the court hearing have been validly requested and held in the name of the liquidator when the liquidator does not actually exist?
nina
 
Posts: 43
Joined: Wed Nov 11, 2015 10:17 pm

Re: Court order for action by a released liquidator

Postby atticus » Wed Nov 11, 2015 10:40 pm

Ouch.

I share your concern.

What do your solicitors say? If they messed up, they need to put it right. This may mean you making a claim against them with a view to their insurers telling them a few facts of life.

Did you buy with a mortgage?

Do you have legal expenses insurance, eg with a home or motoring policy?
User avatar
atticus
 
Posts: 19434
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Court order for action by a released liquidator

Postby nina » Wed Nov 11, 2015 10:49 pm

When I found out they initially referred to the pre purchase advice I sought from them referring to the sentence which said that the liquidators power of sale was not registered on the title document so the purchase would be difficult. I had at the time discussed that with them and all that was needed was the power of sale, which was provided to them, so I was quite taken back that first response was to "accuse" me as though I should never have purchased it. He did howver then say sorry and would immediately resolve it. I have bit my tongue as I want it resolved rather than to get on a bad footing now.

I used the equity from my home via a remortgage to purchase for cash.

I do have legal insurnace on my home policy but the property is an investment and I doubt whether it covers investment purchases. I will have a look anyway but doubt it.

Do you think the new court (October 15) order giving the 999 year lease rather than power of sale is valid even though the liquidator ceased to exist (April 15)?
nina
 
Posts: 43
Joined: Wed Nov 11, 2015 10:17 pm

Re: Court order for action by a released liquidator

Postby atticus » Wed Nov 11, 2015 10:58 pm

I could not answer that question without understanding the full facts, seeing documents etc.

But why query a court order? Will the Land Registry now register your title? Isn't that what you need to achieve?
User avatar
atticus
 
Posts: 19434
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Court order for action by a released liquidator

Postby nina » Wed Nov 11, 2015 11:25 pm

The property is a commercial property and was owned personally by a director. It was secured to pay the company debts .
My concern is on the error made by the solicitor in getting the original court order to sell or rather lack of it. I am now wary of everything.

Also the application to the judge for a hearing on the matter was made by the solicitor in the name of the original parties ( the liquidator vs the owner). I do not understand how that can happen. I therefore think the judge was not aware that the liquidator has been released by the court.

The lease will now need to be drawn up giving the luquidator a 999 year lease and somehow transferred to me even though the liquidator can't transfer it as they don't exist.
nina
 
Posts: 43
Joined: Wed Nov 11, 2015 10:17 pm

Re: Court order for action by a released liquidator

Postby dls » Thu Nov 12, 2015 6:25 am

You did not buy a 999 years lease, and should not be asked to accept one.

I freely confess that I do not understand exactly what has gone wrong or where you now are, but I think you need independent advice from someone who can take a look at all the paperwork. Has not your solicitor advised you that you may take independent advice.

The solicitors will be insured, and you should be able to find a solicitor who will take this on on a no win no fee basis.

The system should work on the basis that your solicitor only allows you to exchange contracts when he is absolutely sure that you will get what you have agreed - a freehold title.

Before exchange/completion he sends you a report on title which is his warranty to you that what you describe will not happen. If he has any doubt, there is a process (requisition on title) where he puts the vendor to proof of the title before you pay up. If the vendor feels unable to offer the necessary guarantees, then the vendor has the choice of withdrawing and giving you your deposit back (this is before you complete).

If you buy from someone who does not have a right to sell, you have bought nothing ('nemo dat quod non habet').

The questions include:
what has to happen to achieve what you need
can that be done
by whom
have they agreed to do it
at whose cost
when

Do not underestimate the possible complexity of all this.

Why should a court grant a power of sale to someone who does not have it?
David Swarbrick (Admin) dswarb@gmail.com - 0795 457 9992
User avatar
dls
Site Admin
 
Posts: 12085
Joined: Thu Nov 01, 2012 1:35 pm
Location: Brighouse, West Yorkshire

Re: Court order for action by a released liquidator

Postby nina » Thu Nov 12, 2015 7:21 am

Thank you so much for your responses. I will get the independent advice. It is complicated. There was a court stamped power of sale document giving the liquidators the right to sell but it was missing required wording to make it valid enough for land registry (reference to lpa is required). If it had been resolved quickly then I would have had resource under contract or perhaps courts would have amended documents under a court application. But it wasn't and 18 months on I am stuck because of the time delay. I am hoping the court order at least granting a lease does at least give 999 year lease ownership but I have not had a proper response to my questions on validity from the solicitor and I have not seen a lease emerge for a further month so was now worried that the judges order to grant the lease was void as the liquidator cannot actually take the lease then transfer it to me as the liquidator does not even exist.

Such a mess!
One final question please - under Undue enrichment, I am assuming the legal owner (who almost went bankrupt but used our money to pay his debts via the liquidator) cannot then claim the property back because of this? He benefitted from the sale to us and walked away with the remaining cash. He can't possibly end up with that benefit and then also retaining legal title could he?
nina
 
Posts: 43
Joined: Wed Nov 11, 2015 10:17 pm

Re: Court order for action by a released liquidator

Postby atticus » Thu Nov 12, 2015 7:37 am

Beyond saying "that seems unlikely ", that is another question that cannot possibly be answered on the limited information that can be posted here.

You should take professional advice.
User avatar
atticus
 
Posts: 19434
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Court order for action by a released liquidator

Postby nina » Thu Nov 12, 2015 9:00 am

Thank you so much for your time. It's very very much appreciated.
nina
 
Posts: 43
Joined: Wed Nov 11, 2015 10:17 pm


Return to Insolvency

Who is online

Users browsing this forum: No registered users and 1 guest