If you are stuck in such a situation, here is what to do.
Ms. Amelia Sharma is currently navigating a complex divorce from her estranged husband, Mr. David Jones. Before their separation, they decided to purchase an investment property, a flat in Bristol. They jointly paid a significant deposit, and the balance was funded by a private loan from a friend of Mr. Jones, a Mr. Chen. The conveyancing was handled by a firm, Apex Legal Services, appointed by Mr. Jones. Throughout the process, all documentation, including the crucial TR1 Land Transfer form, was prepared in both their names, and Ms. Sharma distinctly remembers signing this joint document. However, a recent search has revealed a shocking discrepancy: while the legal charge (the loan agreement) is correctly registered in both their names, the property’s title deed at HM Land Registry is solely in Mr. Jones’s name. It appears he submitted a different, second TR1 form to the solicitors without her knowledge. Ms. Sharma is now in a precarious position, legally liable for the entire debt on the property without any formal ownership rights. The solicitors claim this was an administrative error by a junior employee but state it cannot be rectified. Mr. Jones is refusing to either add her to the deeds or have her removed from the charge, stating he wants to keep her liable as she is more financially secure. He also maintains that she has no right to any rental income and will not cooperate in selling the property. This has left Ms. Sharma facing significant financial risk and uncertainty, especially as this issue intertwines with their ongoing divorce proceedings.
Advice in such cases
Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of 100 GBP to 400 GBP depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored.
Establish Beneficial Interest: Even if your name is not on the legal title, your financial contributions and the original intention for the property to be jointly owned create a ‘beneficial interest’ or ‘equitable interest’. The law, particularly through the concept of a trust, can recognise you as a part-owner.
Gather All Evidence: Collate every piece of documentation you have. This includes bank statements showing your contribution to the deposit or loan repayments, copies of the initial TR1 form you signed, emails or messages discussing the joint purchase, and the loan agreement itself.
Address the Issue within Divorce Proceedings: This property is a matrimonial asset, regardless of the name on the title. It must be fully disclosed and considered by the court during the financial settlement to ensure a fair distribution of the marital pot.
Protect the Asset: You can apply to HM Land Registry for a ‘restriction’ to be placed on the property title. This would prevent the legal owner from selling, transferring, or taking out further loans against the property without your knowledge or consent.
Applicable Sections of Law
Matrimonial Causes Act 1973: This is the primary legislation governing financial settlements on divorce in England and Wales. The court has broad powers to make orders for the division of property to achieve a fair outcome. It can order the property to be sold or transferred, overriding what the title deeds say, to account for all matrimonial assets.
Trusts of Land and Appointment of Trustees Act 1996 (TOLATA): This Act is crucial for co-ownership disputes. It allows a person with a beneficial interest in a property (like Ms. Sharma) to apply to the court for an order to determine the extent of their share and can be used to force a sale of the property.
Land Registration Act 2002: This Act governs the land register. Schedule 4 allows for the ‘alteration’ or ‘rectification’ of the register to correct a mistake. If it can be proven that the property was registered in one name by mistake or due to fraud, an application can be made to have the register corrected to reflect the true ownership intentions.
Professional Negligence: The conveyancing solicitors owed a duty of care to both parties they were instructed to act for. If they failed in this duty by allowing a fraudulent or incorrect TR1 to be submitted, they could be sued for professional negligence for any resulting financial loss.
If you are the complainant
You must act decisively. Immediately instruct a solicitor who specialises in both family law and property litigation. Your solicitor should send a formal letter of complaint to the conveyancing firm, putting them on notice of a potential professional negligence claim. They should also handle placing a restriction on the property at the Land Registry and ensure the property is correctly valued and included in the financial disclosure (Form E) for your divorce.
If you are the victim
Understand the gravity of your liability. Being named on the charge means the lender can pursue you for the entire debt if the other party defaults. The threat to pursue your other assets, like the family home, is real because the debt is legally attached to you. Your priority is to untangle this liability, either by being removed from the charge (which requires the lender’s consent and often a re-mortgage) or by forcing a sale of the property so the loan can be repaid.
How the police behave in such cases
The police will almost certainly classify this as a civil dispute, not a criminal matter. While submitting a fraudulent document could constitute fraud, the police are unlikely to investigate, as the primary issue is one of property ownership and debt liability, which are matters for the civil courts. They will advise you to seek legal advice from a solicitor.
FAQs people normally have
The solicitor claims it was a mistake by a junior member of staff but can’t be changed – is this true?
This is highly unlikely to be true. The Land Registry can and does correct mistakes. The firm is likely trying to avoid liability. A formal complaint to the firm, and if unresolved, to the Legal Ombudsman, is the correct procedure. The firm’s professional indemnity insurance would cover losses caused by such an error.My ex says he won’t take me off the charge. Can he really claim against our main home?
He personally cannot claim against your home, but the lender can. As you are a joint party to the loan, if he stops paying, the lender can seek repayment from you. If they obtain a court judgment against you for the debt, they could then seek to enforce it against your assets, which could include your share in the family home.He says I am not entitled to any of the rental income. Is this correct?
No. If you can establish your beneficial interest in the property, you are entitled to a share of the net rental income (after mortgage and expenses) proportionate to your ownership share. The court can order him to provide a full account of all income received.He won’t sell or resolve the issue. Can I force a sale?
Yes. As part of the divorce settlement under the Matrimonial Causes Act 1973, the court can make an ‘order for sale’. Alternatively, you can make a separate application to the court under TOLATA 1996 to force a sale and for a declaration of your share.
What evidence is required?
The most critical evidence includes the loan/charge document showing both names; bank statements proving your financial contributions (to the deposit or loan); any written communication (emails, texts, letters) that discusses the property as a joint venture; and, if possible, a copy of or witness evidence about the original TR1 form that you signed in joint names.
How long will the investigation take?
This is a legal process, not a police investigation. The timeline varies. A resolution through negotiation between solicitors could take 3-6 months. If court proceedings are required, either under TOLATA or as part of a contested financial remedy in the divorce, it could take 12-18 months or more, depending on the complexity and court availability.
Advocate Sudhir Rao, Supreme Court of India