Jonathan Titmuss examines an unusual case where the vendor was made bankrupt mid-way through the sale process. What are the implications for professional advisers in such a situation and could they be open to a claim of professional negligence?
Picture the scene – between exchange and completion of a property purchase, unbeknown to the investor and his legal adviser, the vendor of the property is made bankrupt. Unaware of the position the transaction proceeds to completion and funds are transferred in the normal way.
In this case the transfer was