Real Estate Bulletin - August 2017

Welcome to the August 2017 edition of the Real Estate Bulletin

In this edition we update you on recent decisions and legal developments affecting the property industry:

A decision in the High Court is a salient reminder of the dangers posed by an imposter fraudulently adopting a registered owner's identity to sell their property without their knowledge. All developers and agents should be aware of this increasing threat! A housebuilder is, on this occasion, successful in obtaining the discharge of a restrictive covenant prohibiting development An important County Court decision has determined that the presence of Japanese knotweed can be an actionable nuisance even before it has caused physical damage to neighbouring land because of its effect on the amenity value of the property This Court of Appeal decision serves as a useful reminder of the importance of ensuring that notices are served, in this case using the most up-to-date address available A Court of Appeal decision considers whether works undertaken by the landlord were obligatory repairs or discretionary improvements and whether the costs were recoverable as service charges Landlords who do not carry out the terminal works of repair but nevertheless claim their former tenant should have done so run a significant risk that they may be unsuccessful in a diminution in value claim Even a contrived 'charade' may satisfy ground (f) of the Landlord and Tenant Act 1954 and prevent a tenant from renewing their lease IDENTITY FRAUD ALERT!

We have previously written about a number of cases involving fraudsters who sell residential property they do not own (see our Real Estate Bulletin - Summer 2016).

The case of Dreamvar UK Limited v (1) Mischon de Reya (2) Mary Monson Solicitors Limited [2016] EWHC 3316 ch should serve as a warning to all parties dealing in residential property. The claim against two different firms of solicitors arose out of the purported sale of a property by a fraudster. The judgment (which is proceeding to an appeal) has wide-ranging implications in both the property and insurance markets and for estate agents.

The facts

The Claimant, Dreamvar UK Limited ("Dreamvar") was a small property development company. The managing director of Dreamvar instructed Mishcon de Reya (MdR) to advise on the purchase of a residential property in Earls Court ("the Property"). Mr David Haeems was the registered owner of the Property. In September 2014 a fraudster purporting to be Mr Haeems...