https://www.thelandsite.co.uk/files/articles/e627fba68bb711e99218024b03131eda/iStock-864106820.jpg 250

Thinking of Doing a Property Deal Without Legal Advice? Think Again!

Published by Robinson Allfree on 9th December 2019 -

title

Entering into property transactions without expert legal advice is always a hostage to fortune. A restaurateur found that out after he was dishonestly induced to enter into an illegal sub-lease of commercial premises by a businessman whom he trusted as a friend.

Following a series of informal meetings, the restaurateur agreed to take a sub-lease of the premises from the businessman. A written agreement was drafted, although not by a qualified solicitor. There were two somewhat different versions of the agreement in existence, one of them signed, the other not. The signed version was replete with handwritten additions, sowing further confusion as to what had in fact been agreed.

The restaurateur launched proceedings against the businessman after the landlord found out that the premises had been illegally sublet and took possession of them. In upholding his claim, the High Court found that he had been induced to enter into the agreement by the businessman’s deliberate misrepresentation that he had obtained the landlord’s consent to subletting the premises.

The businessman had also falsely led the restaurateur to believe that the underlying lease, which was due to expire in under five years, had 16 years to run. The Court found that, had he known that the businessman’s representations were untrue, the restaurateur would have walked away and never entered into the agreement. The businessman was ordered to pay him £91,532 in damages, that sum representing the full extent of his losses and expenses arising from the agreement.


Laura Maltby

Kent-based law firm offering commercial property and land development services for investors, developers, landlords and tenants. We deal with business sales and purchases, land development, business leases, landlord & tenant matters and commercial lending.

Link to Robinson Allfree business profile

27th March 2020
COVID-19 & electronic signatures

Can we sign documents electronically and are these e-signed documents legally binding? 

Read more
16th March 2020
Risks involved for private landlords who rely on letting agents!

Residential landlords who fail to meet their extensive legal obligations put themselves at risk of severe financial consequences and reliance on the advice of professional letting agents is no defence. 

Read more
9th March 2020
Considering buying a share of freehold?

Are you considering buying a share of freehold in your block of flats? Dont shout too loud about it! 

Read more

This site uses some unobtrusive cookies to store information on your computer. By using our site you accept our Terms And Conditions and Privacy Policy.

×