A recent High Court decision has clarified whether informal digital communications, such as WhatsApp messages, meet the statutory requirements under s 53(1) of the Law of Property Act 1925 for disposing of equitable interests. The court concluded that while such messages could theoretically demonstrate intent, their informal nature and lack of a valid "signature" meant they did not fulfill the legal criteria, emphasizing the importance of formal documentation in property transactions.
Michael Ellis and Georgina Salt have written an article for the Solicitors Journal, where they state: "For practitioners, the message is clear: parties should be advised to proceed with caution when discussing property interests informally online. What may appear to be casual negotiation can carry real legal consequences, even if — as in this case — the statutory formalities ultimately provide a safeguard."
Read the full article here.