‘Given the frequency with which sophisticated fraudsters arrange for the sale of properties which they do not own, it is perhaps surprising that the question of who, amongst the professionals involved, bears the risk when it happens has not been considered sooner and more definitively. In 2010 the question came before the Court in Excel Securities PLC v Masood [2010] Lloyds Rep PN 165, but only on a summary judgment application. HHJ Hegarty QC (sitting as a High Court Judge) held that the question of whether a solicitor purporting to act for the owner of a property warranted the identity of his client could not be answered in the abstract, and was not a suitable matter for summary judgment. A warranty of authority is an implied obligation arising as a matter of contract in particular circumstances, so it is not possible to determine the scope of any such warranty without a detailed consideration of the facts. Generally, however, a solicitor’s warranty extends to the fact that he has the authority of the person who has instructed him, but not as to the identity of that person.’

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Hardwicke Chambers, 31st July 2018

Source: www.hardwicke.co.uk