A solicitor who failed to advise clients about the risk involved in transferring their properties has been fined £12,000 by the SRA.

‘Negligent and reckless’ solicitor fined over property transfers

Source: Michael Cross

The sanction against Mohammed Israr is one of the highest financial penalties issued to an individual since the regulator extended its fining powers last year.

Israr, a former associate with Birmingham firm Morgan Wiseman Solicitors, acted for the transferors and transferee in a conveyancing transaction, facilitating the transfer of five properties for nil consideration to a Dubai-based company.

Following the transfer, one property was sold at auction and the proceeds of the sale paid into a third-party bank account.

The transferors stated that the transfer of the properties was done without their knowledge or agreement. They reached a settlement agreement for the return of the four properties but have not received the proceeds of the sold property.

The SRA found that Israr did not advise clients of the conflict of interest that existed or of the risks involved in transferring properties for nil value.

He did not follow the firm’s policies and procedures for conveyancing regarding commercial clients, establishing control of the client, establishing beneficial ownership and non-domiciled companies, and completing all due checks, potential conflict of interests and risk assessments.

Israr accepted he failed to provide a proper standard of service and had not kept up to date with the firm’s policies and procedures. He admitted throughout the investigation that he did not understand his responsibilities and had not read the relevant policies. He has since been on training courses to rectify gaps in his knowledge.

The SRA said: ‘A negligent and reckless approach was taken to his work. He failed to ensure his knowledge and understanding of the regulatory requirements to provide professional service and act in the best interest of each client was followed.’

Israr, now with Birmingham firm Lawrence Kurt Solicitors, agreed to pay the £12,000 fine and £1,350 costs.