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The key issue here is that HOC made a rod for its own back, by asking too many questions. HOC raised a particular enquiry about identity etc and thereby got sucked in to the fall out once the fraud was realised.

Jurisprudence is developing to the effect that if you raise a particular issue you must follow up on it.

I too think the judge was looking for an excuse to blame the Buyer's conveyancer.

They say that conveyancing is just "form filling" !