I was a joint owner of a commercial property and in November 2008 the other owner signed across his beneficial interest and share to another individual as part of an out of court settlement between themselves.
I have just purchased this beneficial share and interest from the third party but have also just found out that my original joint owner is entering bankruptcy proceedings (though he thinks they will not proceed and have been applied in error).
Does this mean my transaction is invalid or am i not affected given the previous transfer between him and the third party?
Legal title of the property still remains between myself and the individual going into bankruptcy; though i am supposed to own 100% beneficial share and interest in the property a this point.
This is most of my life savings so please can you help advise me.
the question really lies with the out of court settlement between the origional joint owner and the third party.
If this transaction was carried out at under value ( and the official receiver will definately review this) the OR has the power to reverse these proceedings and put things back tohow they should have been.
If however the they were carried out at true market value then you should be OK, however the joint owner will have some explaining to do.
Firstly may i thank you for your fast reply and advice.
From my understanding no price was agreed specifically althought the third party had an idea of what my co-owners share may be worth. The beneficial share and interest was signed over to the third party along with some other shares as an out of court settlement for a larger sum being claimed.
Im not sure how the OR will view this and does it matter what i subsequently paid the 3rd party for this share?
The OR will be primarily interested in what the 3rd party "purchased" the share for in lieu of other debts owed? Was this at under value or has the 3rd party now forgiven the balance of the debts?
The 3rd party decided not to pursue the full amount of his claim in return for the property equity and some other shares. His full claim was about twice the out of court settlement i believe. Because the settlement was out of court there was no judgement either way though it has been documented by the solicitors involved.
The reason he took the property as part of the settlement is because my co-owner signed a CH1 form which is a land registry legal charge. Neither the 1st charge holder (the mortgage provider) or I were informed and someone else signed where would have normally done so if the form were filled correctly.
The 3rd party then did his sums on the property given outstanding service charges etc and i made him a offer somewhere between valuation and estimated auction price which he accepted for prompt payment. He just wanted out of the situation as did I.
Sorry just to clarify the CH1/charge was part of the original deal between the 3rd party and my co-owner which went sour and led to court proceedings. However the charge was not binding because my co-owner was not legally entitled to do so without the 1st charge holders or my consent.
Hi there,Can you please offer me some advice.
Posted - 17 February 2009 : 05:34:28
