No independent legal advice
In the case of Saranovic v Saranovic (2017), a man put his name to a deed that was put before him by his brother but which eventually led to the forced sale of his £750,000 home.
The man and his brother had used money given to them by their mother to buy the flat. He believed that it would provide a home for him and his family indefinitely, but his brother considered it a development opportunity.
Following a conversation in a coffee shop, the man signed a deed that enabled him to live in the flat rent free and capped his brother’s interest in the property at £367,500.
However, unbeknown to the man, the deed included a provision that either of them could require a sale of the property, without the other’s consent, a year after it was purchased. They subsequently fell out and the brother sought to force a sale.
After the brother launched proceedings, a judge commented on the man’s naivety. He was not good with details and had relied upon his brother to explain to him the meaning and effect of the deed. However, his brother had not breached the duty of candour that he owed to him and had not brought undue influence to bear.
The brother was entitled to expect that his brother would take independent advice before signing such a document. Had the mutual power to force a sale not been included, the brother would have been obliged to allow the man to live in the flat, rent free, indefinitely and would not have been entitled to share in any increase in its capital value.
In the circumstances, the effect of the deed was fair and reasonable and the judge gave the man and his family one month to move out before the flat would be put on the market.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
A briefing on fall protection systems for designers
A legal requirement and an ethical must.
CIOB Ireland launches manifesto for 2024 General Election
A vision for a sustainable, high-quality built environment that benefits all members of society.
Local leaders gain new powers to support local high streets
High Street Rental Auctions to be introduced from December.
Infrastructure sector posts second gain for October
With a boost for housebuilder and commercial developer contract awards.
Sustainable construction design teams survey
Shaping the Future of Sustainable Design: Your Voice Matters.
COP29; impacts of construction and updates
Amid criticism, open letters and calls for reform.
The properties of conservation rooflights
Things to consider when choosing the right product.
Adapting to meet changing needs.
London Build: A festival of construction
Co-located with the London Build Fire & Security Expo.
Tasked with locating groups of 10,000 homes with opportunity.
Delivering radical reform in the UK energy market
What are the benefits, barriers and underlying principles.
Information Management Initiative IMI
Building sector-transforming capabilities in emerging technologies.
Recent study of UK households reveals chilling home truths
Poor insulation, EPC knowledge and lack of understanding as to what retrofit might offer.
Embodied Carbon in the Built Environment
Overview, regulations, detail calculations and much more.
Why the construction sector must embrace workplace mental health support
Let’s talk; more importantly now, than ever.
Ensuring the trustworthiness of AI systems
A key growth area, including impacts for construction.