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Corbett v Halifax Building Society [2002] EWCA Civ 1849; [2003] 1 W.L.R. 964

DATE: 18 Dec 2002

Thomas Jefferies acted for the successful appellant in an important modern case on what is meant by a "purchaser in good faith".The judge had set aside a sale by a mortgagee to one of its managers on the ground that the sale was at an undervalue, and the manager was not a purchaser in good faith because he had bought the house in breach of the Banks internal rules.

The Court of Appeal held that the "bad faith" had to be relevant to the ground for impugning the transaction. The manager was a purchaser in good faith as he had no notice of the undervalue. It went on to hold that in any event setting aside the sale after so many years was a wrong exercise of the judges discretion.