The dangers are well illustrated by a recent case involving a firm of solicitors that acted for three companies on the sale of three properties. Each property was subject to an ‘all moneys charge’ as part of a security for an overall loan that was considerably larger than the value of each individual property. Before the completion of each of the separate sales, the seller’s solicitors provided replies to the standard requisitions which meant they were therefore giving undertakings that: 


they would redeem or discharge the existing charges;


they would send the relevant discharges to the buyer as soon as they were received from the mortgagee; and


they were the duly authorised agent of each mortgagee.



But before giving that undertaking the solicitors had not obtained redemption of figures, and nor had they obtained a consent to the release of the property on completion (and nor had they obtained specific authority to act for the mortgagee in relation to the redemption of the loan). 



The buyers got summary judgment against the solicitors, who were personally liable (since the sellers were insolvent). Needless to say, the moral is clear: always get redemption figures; always get consent to the release of the charge; and always get the mortgagees’ authority to act on redemption of the charge.