![]() ![]() They should also act in accordance with best or reasonable practice to maximise their prospects of obtaining s.61 relief in order to avoid liability for breach of trust. Solicitors should carry out due diligence and adopt a risk-based approach to assess whether a transaction is lawful. There are hurdles to be overcome for solicitors who part with completion monies without obtaining completion to prove that they acted reasonably for s.61 relief to apply. Solicitors, including those acting for a vendor, must be vigilant of fraud and have regard to all circumstances of a sale and respond to warning signs. The case shows clearly that the threshold of reasonableness under s.61 is the same for both seller's and buyer's solicitors in relation to purchase monies. This is the first reported case which concerns a claim for relief by a vendor's solicitor. Whilst there was no suggestion of dishonesty or fraud on their part, neither professional was entitled to relief under the Trustee Act 1925 s.61 as they had not acted reasonably, the same standard of reasonableness applying to both. In a case which raises a novel point of law, the High Court has ruled that the vendor's solicitor was equally liable with a property purchaser's conveyancer for loss caused to the purchaser when the purchase monies were released to the fraudster vendor in breach of trust. ![]() Published 23 mayo 2016 Hurry Narain Purrunsing v A’Court & Co and (2) House Owners Conveyancers Limited EWHC 789 (14 April 2016) Vendor's solicitor jointly liable to purchaser in novel breach of trust case ![]()
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