A businessman who bought a three-bedroom house at auction for £395,000 has discovered he also owns a primary school, after a paperwork mix-up meant the property was transferred to him along with the school. Sukhjit Bains purchased the home from Birmingham City Council, but a solicitor's error meant he also became the owner of George Dixon Primary School.
The mistake happened when his solicitor sent the wrong type of contract while finalising the purchase. The error was not noticed at the time, and the transfer was approved by the council's conveyancer, who also failed to spot the problem. As a result, Mr Bains was handed ownership of the school as well as his semi-detached house. Nobody noticed until more than 10 years later, when the council contacted him to ask for the school back.
Legal fight over school ownership
The mix-up means Mr Bains is entitled to evict teachers and pupils, sell the site for millions, or even demolish the school. A legal expert who examined papers related to the case told the Daily Mail: "I don't think I've ever come across anything like this in 40 years. It's the most incredible legal cock-up I can recall."
Mr Bains, who runs a care provider firm called NH Care Ltd, is thought to have been unaware of the property bonus his company had been given when he bought the property at auction in 2013. He and the company's two other directors only found out when the council contacted him to ask for it back last year.
How the mistake happened
The house is on Fountain Road in the Edgbaston suburb of Birmingham, and its rear garden backs on to playing fields at the school. It was originally built as a cottage for the school's caretaker, which is how the mistake occurred. The school and house are both registered under the same land registry number, and the form used, a TR1, only transfers all of the property registered under a number, which caused the mix-up.
The mistake came to light a decade later when the school considered applying for academy status. When the situation was put to Mr Bains, he initially agreed to give the school back, but later stopped replying to the council and declined to sign paperwork sent to him. It is believed parents of the children currently studying at George Dixon remain unaware of the mistake, which happened 13 years ago and only came to light recently. A legal fight has now begun between Mr Bains and the council.
Council takes legal action
Birmingham City Council, which went bankrupt in 2023, say they have now initiated legal action to get ownership of the school back. The council says Mr Bains has not answered phone calls or letters, and officers have been unable to track him down in person despite repeatedly turning up at his office.
Birmingham has issued proceedings against Mr Bains' company and Lloyds Bank, his lender, at the High Court in London, demanding the formal return of the school. They have also clarified that neither the school nor its playing fields could be sold without the consent of the Secretary of State.
The house was converted into a children's home and used by the council in that capacity before it was finally closed and sold to Mr Bains in 2013. Despite Mr Bains operating other care homes in Birmingham and Leicester, the house has remained empty and is now boarded up and currently vacant.
A spokesman for Birmingham said: "The council is pursuing the appropriate legal process to rectify the position. As the matter is currently the subject of ongoing legal proceedings, it would be inappropriate to comment further." A solicitor for Mr Bains pointed out that the 2013 property transfer was to his company NH Care Limited, and not to him as an individual. Lloyds Bank has been contacted.
