Council Sells Semi for $395,000, Accidentally Includes School Worth Millions

Birmingham City Council is pursuing legal action to reclaim ownership of George Dixon Primary School after a decade-old conveyancing error led to it being mistakenly sold with a residential property. The mistake occurred in 2013 when Sukhjit Bains, through his care home company NH Care Ltd, purchased a three-bedroom house at auction for £395,000.

The Conveyancing Error

The error arose when Mr. Bains's solicitor used an incorrect form (TR1) for the property transfer, which, unlike the appropriate TP1 form, transfers all property registered under a specific land registry number. The house and the school share the same land registry number, leading to the school's inadvertent inclusion in the sale. The council's conveyancer failed to notice the error when rubber-stamping the paperwork.

Mr. Bains reportedly did not realize he had acquired the school until the council contacted him last year to request its return. Initially, he agreed to return the property, but he later ceased communication with the council and declined to sign the necessary paperwork. The council states that attempts to contact him by phone, letter, and in person have been unsuccessful.

Legal Action and Current Status

Birmingham City Council, which has recently faced significant financial challenges and criticism for mismanagement, has now initiated legal proceedings against Mr. Bains's company and its lender, Lloyds Bank, at the High Court in London. The council seeks the formal return of the school property.

The house, located on Fountain Road in Edgbaston, was originally built as a caretaker's cottage for the school and later served as a children's home before being sold. Despite the purchase, Mr. Bains's company has not utilized the property, which has remained empty and boarded up, reportedly becoming a site for antisocial behavior.

School's Situation

The mistake came to light on April 12, 2024, when George Dixon Primary School began the process of applying for academy status and discovered they did not own the building. The school currently has 324 pupils, exceeding its capacity of 300, and has recently received criticism in an Ofsted report for areas requiring urgent improvement, particularly in reading, writing, and maths for disadvantaged pupils. Irregular attendance and a lack of understanding of British values among some children were also noted.

A spokesperson for Birmingham City Council stated that the council is following the appropriate legal process to rectify the situation, but declined to comment further due to the ongoing legal proceedings. A solicitor for Mr. Bains emphasized that the property transfer was made to NH Care Limited, not to Mr. Bains as an individual.