Buying and Selling land: Recent Legal Developments in Trinidad and Tobago Property Law that lawyers should know

Why This Case Matters for Buyers and Trinidad and Tobago Lawyers/Attorneys

Introduction

The legal landscape of property transactions in Trinidad and Tobago has recently been shaped by a significant Court of Appeal decision upholding a trial judge’s findings of negligence on the part of an Attorney and an award for damages to a buyer and mortgage bank. The ruling addresses the responsibilities of conveyancers and the importance of rigorous identity verification. For Trinidad lawyers or anyone buying property in Trinidad and Tobago or working within the legal and financial sectors, understanding this case is crucial—not only to appreciate the evolving standards of care but also to protect themselves and their clients from the ever-present risk of fraud.

Background of the Case

At the heart of this legal development is a dispute involving Beckles, a conveyancer, and claims brought by FCB (First Citizens Bank) and Hunte. The case revolved around a fraudulent property transaction whereby an unknown fraudster impersonated the identity of the true owner/vendor had sold the property to an unsuspecting buyer who purchased with a loan from FCB. Beckles, who was also on the panel of Attorneys for the bank, prepared the agreement for sale, deed of conveyance and deed of mortgage. The true legal owner sued the buyer and bank to set aside the deeds and the buyer and bank sued Beckles accusing him of failing to exercise reasonable care in verifying the identity of the seller, ultimately resulting in financial loss to the parties involved, the purchaser and the bank. Beckles was not accused of being involved in the fraud but of not doing enough to confirm the identity of the fraudster, i.e. failing to determine that he was not the true legal owner of the property.

Suspicious Matters on the Identity of the Vendors

The evidence trial brought to light several discrepancies that pointed toward potential fraud:

• Differences in the serial numbers on the fraudster’s passport and identification card, suggesting forged or mismatched documents.

• Identical photographs on both passport and ID card, raising suspicions regarding the authenticity of the documents.

• Variations in signatures and listed addresses across documents, further highlighting irregularities.

  
  

These issues were all presented as warning signs that, if properly scrutinised, should have triggered further inquiries by Beckles.

The Judge’s findings

The Judge found the attorney negligent and ordered him to pay the true owner’s legal costs and awarded damages to the purchaser and the bank as well as the payment of their legal costs. The Court of Appeal found no reason to set aside such findings. The attorney therefore foot the bill to set aside the fraud and restore parties’ position.

Implications for Property Buyers and Conveyancing Professionals

For Property Buyers

Anyone purchasing property in Trinidad and Tobago should be mindful of the risks of fraud. This case demonstrates the importance of questioning and verifying the identity and authenticity of all parties involved in a transaction. If a buyer’s legal representative fails to thoroughly investigate, the buyer could face severe financial and legal consequences.

For Conveyancers, Lawyers, and Financial Institutions

The evidence in this case, though disputed, was that the attorney relied upon scanned copies of identification documents rather than the production of the original. Professionals responsible for facilitating property transactions must be vigilant in their due diligence. This means:

• Meticulously reviewing all identification documents and cross-checking details for consistency.

• Being alert to red flags such as mismatched serial numbers, inconsistent signatures, or identical photographs across different forms of ID.

• Ensuring that all findings and checks are well-documented, so the process can be justified if reviewed by a court.

• Understanding that if a claim of professional negligence is made, courts may allow a broad range of evidence where a general plea of failure to investigate is advanced.

  
  

Summary and Best Practices

This case serves as a reminder of the heightened duties placed on those involved in property transactions. For practitioners, the following best practices are recommended:

• Proactively identify and document all potential issues with identification and the chain of title.

• Ensure that all relevant facts and concerns are fully captured in pleadings if litigation may arise.

• Discuss any irregularities directly with your client and advise on possible remedies, including obtaining additional evidence or third-party verification.

• Stay informed of evolving legal standards, which are increasingly focused on consumer protection and procedural fairness.

  
  

Conclusion

Unfortunately, instances of fraud in property transactions are on the rise in Trinidad and Tobago. Trinidad lawyers need to be wary. The evolving case law in Trinidad and Tobago underscores how critical meticulous investigation of the identity of parties is in conveyancing and property transactions. Whether you are a buyer, seller, lawyer, or financial institution, these developments should serve as both a warning and a guide for navigating the increasingly complex world of property law. By learning from recent cases and adhering strictly to best practices, you can help ensure that your property transactions are secure, compliant, and less vulnerable to costly disputes.

The case is likely to be appealed further to the Privy Council as it imposes what is perceived as new obligations on conveyancers that extend well beyond the mere preparation of the conveyancing documents and the verification of title.

The full judgment can be found here.