Failure to complete the formal documentation in a property transaction does not necessarily mean the deal is invalid.
The Court of Appeal has ruled that even though the formalities were never completed in a 1975 deal, under which a student was to buy out his ex-girlfriends share in their jointly owned home, that did not negate the deal.
Aldous LJ said the couple jointly purchased the property in Fleckney, Leicestershire, in 1974. When they separated in the following year, the man bought out the woman’s share for £1,400.
However, the transfer of the mortgage was never formalised. In 1983 solicitors for the man wrote to the woman asking her to sign a draft conveyance. She refused.
When the property was sold, following repossession by Halifax plc in 1998, the woman sought a share of the remaining £81,000 proceeds of the sale.
Deputy High Court judge, Raymond Jack QC, held her to the 1975 buy-out agreement. Now the Court of Appeal has dismissed her challenge to that decision.
It was argued, on the woman’s behalf, that she was entitled to a half share in the property because the buy-out was not properly completed. It was further argued that the delay in bringing court proceedings estopped the man from seeking to enforce the agreement.
Dismissing the appeal, Aldous LJ said that it would be a miscarriage of justice if, as a result of the delay, the woman became entitled to a half share. He was satisfied that she had disposed of her half share and that the sale was enforceable, despite the fact that the written transfer was not completed.
Frawley v Lindley, Court of Appeal (Swinton Thomas, Aldous and Ward LJJ) 1 March 1999.
Charles Taylor (instructed by Clifford Cowling & Co, of Fleet) appeared for the appellant; Timothy Harry (instructed by Nelsons, of Nottingham) appeared for the respondent.
PLS News 2/3/99
