Where a couple is married in community of property, certain assets (including property interests, shares, investments etc) cannot be disposed of by one spouse without the consent of the other.
There’s danger there for the buyer, as illustrated in two recent High Court cases, where sales were set aside because the husband in each case had (as a result of breakdown in the marriage), sold property interests at reduced prices to relatives without the wife’s knowledge or consent.
Naturally enough, such a disposal will be set aside if the buyer “was aware when entering into the transaction that the husband’s disposal of the asset was being effected fraudulently as against the wife”.
But what if you buy such a property in the innocent belief that any and all necessary consents are in place? You are protected - and the sale is valid - provided that you “do not know” and “cannot reasonably know” that the sale is being entered into without the necessary consent.
The problem is that you cannot merely “rely upon a bold assurance by another party regarding his or her marital status”. You are required to perform an “adequate inquiry” into such status. What level of investigation is required? How do you confirm that the seller is telling you the truth? In the one case, even the Deeds Office’s records were misleading! Take advice in doubt.