Council Sells House for $395,000, Accidentally Includes School

Birmingham City Council is pursuing legal action to reclaim ownership of George Dixon Primary School after an administrative error in 2013 resulted in the school being sold along with a three-bedroom house for £395,000. The error occurred when the solicitor for the buyer, care-home boss Sukhjit Bains, used the wrong type of contract during the property transaction. The council's conveyancer then rubber-stamped the document without noticing that the contract, a TR1 form, transferred all property registered under a specific land registry number, which included the school, rather than a TP1 form which would have transferred only a specific portion.

The house, located on Fountain Road in Edgbaston, was originally a caretaker's cottage for the school and its grounds back onto the school's playing fields. It was later converted into a family home before being left to the council in the early 1960s. After being used as a children's home, it was closed and sold to Mr. Bains's company, NH Care Ltd, at auction in 2013. At the time, Mr. Bains was reportedly unaware of the included school.

The mistake remained undetected for a decade until April 12, 2024, when the school began exploring the process of becoming an academy and discovered it did not own its own building. Parents of the school's 324 pupils are believed to be unaware of the situation.

According to Birmingham City Council, Mr. Bains initially agreed to return the school after the error was explained. However, he subsequently ceased communication with the council and declined to sign the necessary paperwork to rectify the sale. The council claims it has been unable to contact him through various means despite repeated attempts to reach him at his office.

The council has now initiated legal proceedings in the High Court against NH Care Ltd and Lloyds Bank, the company's lender, seeking the formal return of the school. The council has also clarified that neither the school nor its playing fields can be sold without the consent of the Secretary of State.

The property purchased by Mr. Bains's company has remained empty and boarded up since the acquisition, reportedly becoming a site for antisocial behavior. Neighbours have complained about the property being overrun by individuals involved in illicit activities.

Birmingham City Council, which faced bankruptcy in 2023 and has experienced significant financial and administrative challenges, has been criticized for its management. NH Care Ltd has also faced scrutiny, with inspectors finding instances of abusive behavior and threats towards residents at one of its care homes in 2021. George Dixon Primary School has also received criticism, with an Ofsted report noting that the school, which has 324 pupils exceeding its capacity of 300, requires urgent improvement, particularly in reading, writing, and math for disadvantaged students. Irregular attendance and a lack of understanding of British values were also cited.

A council spokesperson stated that the authority is pursuing the appropriate legal process to resolve the matter, but declined further comment due to the ongoing legal proceedings. A solicitor for Mr. Bains noted that the property transfer was made to his company, NH Care Limited, not to him personally.