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‘Most incredible legal mistake’: Man buys a £395,000 house at auction, then realizes the paperwork accidentally made him the legal owner of the school next door

The realization came 10 years later.

A man who bought a three-bedroom house at an auction in the United Kingdom ended up becoming the legal owner of a primary school worth millions of pounds after a paperwork error went unnoticed for a decade, as reported by The Daily Star. Sukhjit Bains purchased the property from Birmingham City Council in 2013 for £395,000 through his care home company, NH Care Limited.

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There was a mistake when buying the house. While preparing the legal documents, the deal also included George Dixon Primary School next door. The error reportedly happened when Bains’ solicitor used the wrong type of contract to complete the purchase. The paperwork was approved by the council’s conveyancers, and neither side caught the mistake at the time.

It took around 10 years for anyone to notice the mix-up. The situation came to light when the school applied to become an academy, which prompted the council to review the property’s ownership. Bains reportedly learned about the mistake when the council contacted him and asked him to return the school.

The house itself was originally built as a cottage for the school caretaker, and it is this link that led both properties to be registered under the same number with the Land Registry. When Bains finalized the purchase, the legal team used a TR1 form, which transfers ownership of property registered under a single title number. Consequently, the documents failed to distinguish between the house Bains wanted to buy and the school next door, making him the legal owner of both.

According to The Daily Mail, a legal expert who reviewed the paperwork reportedly described the error as the ‘most incredible legal mistake’ they had encountered in a 40-year career. The consequences could be significant, as Bains technically holds legal ownership of the school and could potentially seek rent for its use.

Bains initially agreed to return the property to the council after learning about the mistake. However, as the legal mix-up with the house proceeded, he reportedly stopped responding to the council and did not sign the documents sent to him to reverse the transaction.

As per Ladbible, the Birmingham City Council launched legal proceedings against Bains and his lender, Lloyds Bank, in the High Court in London. The council is seeking to recover ownership of the school and its playing fields, arguing that the transaction was based on a mutual mistake. It also stated that the school and playing fields cannot be sold without the Secretary of State’s permission.


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Syeda Laiba Alam
Laiba is a Psychology major who accidentally stumbled into the writing domain in 2017 through a freelancing job post at an outsourcing company. Fast forward to 2022, the rapid advancements in tech spaces made her realize she enjoys learning about the latest tech innovations. She also keeps herself up-to-date with the latest news and happenings around the globe.