A woman whose house was bought by the National Trust has been paid the token £5 fee for the site, the charitable trust has said.
The Argus told how Elizabeth Lazareno's son Sebastian said that his mother had not received the nominal fee for her house at Birling Gap, near Beachy Head, Eastbourne.
The cliff-top house was in danger of falling into the sea and the trust bought the site and paid for the demolition costs and legal fees. It already owns land around the home.
Spokesman Paul Pontone said the £5 was incorporated into the legal costs.
He added: "A cheque was forwarded to the solicitors acting on behalf of Mrs Lazareno in September 2001.
"This included a payment for Mrs Lazareno's legal fees, which were also borne by the National Trust.
"The house has subsequently been demolished at a cost to the trust of some £30,000, for which Mrs Lazareno would otherwise have been liable."
A row of terraced houses on the edge of the cliff will all have to be demolished before they erode into the channel.
The National Trust offered to pay the demolition costs and £5 for each property, but two owners refused the deal.
They campaigned for a sea defence until a public inquiry ruled that any protection would be expensive and futile.
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