Will it effect our house purchase if the house was previously sold undervalue?

GDB2222

Ath_Wat said:

user1977 said:

Ath_Wat said:

user1977 said:

gingercordial said:

Could there be a risk that the nephew had power of attorney over the uncle (if the uncle is in care), and has abused that power to put through the sale to himself to the uncle's detriment?  So similar to eddddy's first example but done to benefit the nephew not the uncle.  Likewise I would think if so there's a danger the first sale could be voided, and hence the second sale could not happen.

It would be a valid claim against the nephew, but I don't think that gives anybody the right to unravel a transaction with a third party (acting in good faith), otherwise lots of transactions would never get done.

Unravel, no, but the person you are responding to is suggesting that it might not get as far as the second sale happening.

No, they're talking about it being voided ie after it completes. 

"  Likewise I would think if so there's a danger the first sale could be voided, and hence the second sale could not happen."

The danger is that the sale proceeds and the op hands over his money, and THEN the first transaction gets voided. A lawyer's field day!

Thrugelmir

GDB2222 said:

Ath_Wat said:

user1977 said:

Ath_Wat said:

user1977 said:

gingercordial said:

Could there be a risk that the nephew had power of attorney over the uncle (if the uncle is in care), and has abused that power to put through the sale to himself to the uncle's detriment?  So similar to eddddy's first example but done to benefit the nephew not the uncle.  Likewise I would think if so there's a danger the first sale could be voided, and hence the second sale could not happen.

It would be a valid claim against the nephew, but I don't think that gives anybody the right to unravel a transaction with a third party (acting in good faith), otherwise lots of transactions would never get done.

Unravel, no, but the person you are responding to is suggesting that it might not get as far as the second sale happening.

No, they're talking about it being voided ie after it completes. 

"  Likewise I would think if so there's a danger the first sale could be voided, and hence the second sale could not happen."

The danger is that the sale proceeds and the op hands over his money, and THEN the first transaction gets voided. A lawyer's field day!

Mortgage lenders are risk adverse. Their money. Their choice. 

GDB2222

Thrugelmir said:

GDB2222 said:

Ath_Wat said:

user1977 said:

Ath_Wat said:

user1977 said:

gingercordial said:

Could there be a risk that the nephew had power of attorney over the uncle (if the uncle is in care), and has abused that power to put through the sale to himself to the uncle's detriment?  So similar to eddddy's first example but done to benefit the nephew not the uncle.  Likewise I would think if so there's a danger the first sale could be voided, and hence the second sale could not happen.

It would be a valid claim against the nephew, but I don't think that gives anybody the right to unravel a transaction with a third party (acting in good faith), otherwise lots of transactions would never get done.

Unravel, no, but the person you are responding to is suggesting that it might not get as far as the second sale happening.

No, they're talking about it being voided ie after it completes. 

"  Likewise I would think if so there's a danger the first sale could be voided, and hence the second sale could not happen."

The danger is that the sale proceeds and the op hands over his money, and THEN the first transaction gets voided. A lawyer's field day!

Mortgage lenders are risk adverse. Their money. Their choice. 

Actually, I was thinking about the op, not the lender.

user1977

GDB2222 said:

Ath_Wat said:

user1977 said:

Ath_Wat said:

user1977 said:

gingercordial said:

Could there be a risk that the nephew had power of attorney over the uncle (if the uncle is in care), and has abused that power to put through the sale to himself to the uncle's detriment?  So similar to eddddy's first example but done to benefit the nephew not the uncle.  Likewise I would think if so there's a danger the first sale could be voided, and hence the second sale could not happen.

It would be a valid claim against the nephew, but I don't think that gives anybody the right to unravel a transaction with a third party (acting in good faith), otherwise lots of transactions would never get done.

Unravel, no, but the person you are responding to is suggesting that it might not get as far as the second sale happening.

No, they're talking about it being voided ie after it completes. 

"  Likewise I would think if so there's a danger the first sale could be voided, and hence the second sale could not happen."

The danger is that the sale proceeds and the op hands over his money, and THEN the first transaction gets voided. A lawyer's field day!

But like I said, I'm pretty sure that a third party buyer is safe in that sort of scenario. Otherwise nobody would ever proceed with a transaction which involves a POA.

Slinky

There was that chap in Luton who had his house sold by scammers and it appeared that the buyers having bought it in good faith were able to hang onto it. Would this work the same way?

https://www.bbc.co.uk/news/uk-england-essex-59069662

user1977

Slinky said:

There was that chap in Luton who had his house sold by scammers and it appeared that the buyers having bought it in good faith were able to hang onto it. Would this work the same way?

https://www.bbc.co.uk/news/uk-england-essex-59069662

A registered title is pretty much bulletproof, that's part of the point of land registers - you don't need to delve into the previous transactions to check for anything suspicious having gone on. Potentially there may be a monetary claim against the Land Registry, but the sale doesn't get undone.

But even if registration hasn't been completed, I think the general principle is that third parties are entitled to assume an attorney is acting within the powers granted to them by the POA.

Ath_Wat

GDB2222 said:

Ath_Wat said:

user1977 said:

Ath_Wat said:

user1977 said:

gingercordial said:

Could there be a risk that the nephew had power of attorney over the uncle (if the uncle is in care), and has abused that power to put through the sale to himself to the uncle's detriment?  So similar to eddddy's first example but done to benefit the nephew not the uncle.  Likewise I would think if so there's a danger the first sale could be voided, and hence the second sale could not happen.

It would be a valid claim against the nephew, but I don't think that gives anybody the right to unravel a transaction with a third party (acting in good faith), otherwise lots of transactions would never get done.

Unravel, no, but the person you are responding to is suggesting that it might not get as far as the second sale happening.

No, they're talking about it being voided ie after it completes. 

"  Likewise I would think if so there's a danger the first sale could be voided, and hence the second sale could not happen."

The danger is that the sale proceeds and the op hands over his money, and THEN the first transaction gets voided. A lawyer's field day!

That is a danger, but not what the person that was originally quoted was talking about.  Their post was saying that if the first transaction gets voided before the OP buys the house, their sale won't be able to happen.