bank security of solicitors' client accounts


R

RobertL

I am about to buy a house. At present my money is scattered among
several banks and building societies so as to take advantage of the£
35,000 guarantee of each. Once I pay this money to the solicitor,
prior to completion, it will all be sitting in his client account in
some bank or other.

What is the position if that bank goes bust after my money goes in but
before it comes out?

I know it's a remote possibility, but I'd still be intersterd to know
the answer if anyone has it.

Robert
posted to uk.legal and uk.finance
 
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P

PeterSaxton

I am about to buy a house.  At present my money is scattered among
several banks and building societies so as to take advantage of the£
35,000 guarantee of each.  Once I pay this money to the solicitor,
prior to completion, it will all be sitting in his client account in
some bank or other.

What is the position if that bank goes bust after my money goes in but
before it comes out?

I know it's a remote possibility, but I'd still be intersterd to know
the answer if anyone has it.

Robert
posted to uk.legal and uk.finance
The answer is the obvious one. The guarantee is a maximum of £35,000
for each bank. Why don't you take out insurance?
 
B

Bartc

RobertL said:
I am about to buy a house. At present my money is scattered among
several banks and building societies so as to take advantage of the£
35,000 guarantee of each. Once I pay this money to the solicitor,
prior to completion, it will all be sitting in his client account in
some bank or other.

What is the position if that bank goes bust after my money goes in but
before it comes out?

I know it's a remote possibility, but I'd still be intersterd to know
the answer if anyone has it.
My experience is that you give the money to the solicitor on the day of
completion (although a telegraphic transfer from each of several banks will
cost).

Then the solicitors' bank would have to go bust within a matter of hours.

How you asked your solicitor about this possibility?
 
S

stillnobodyhome

My experience is that you give the money to the solicitor on the day of
completion (although a telegraphic transfer from each of several banks will
cost).

Then the solicitors' bank would have to go bust within a matter of hours.

How you asked your solicitor about this possibility?
Does the Law Society ( similar organisations in Eng and Scot) not
protect cash in Client Accounts in the event of Fraud or a solicitor
going bust .
 
R

RobertL

Does the Law Society ( similar organisations in Eng and Scot) not
protect cash in Client Accounts in the event of Fraud or a solicitor
going bust .- Hide quoted text -

I will ask him when I instruct him. of course, it would not be fraud
or the solicitor going bust. It's interesting that the answer is not
obvious.

Robert
 
S

stillnobodyhome

I will ask him when I instruct him. of course, it would not be fraud
or the solicitor going bust. It's interesting that the answer is not
obvious.

Robert
Indeed but is it really something you need to worry over ?
 
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R

RobertL

Indeed but is it really something you need to worry over ?-
Probably not, but I'd worry even less if i thought the money was
protected.

Robert
 
T

the.pheasant.plucker

Does the Law Society ( similar organisations in Eng and Scot) not
protect cash in Client Accounts in the event of Fraud or a solicitor
going bust .- Hide quoted text -

- Show quoted text -
Bwahaaaaaahaaaaaa!

The Law Society exists to protect the interests of
solicitors..........but you knew that already.

Didn't you?
 
R

Richard Miller

In message
Bwahaaaaaahaaaaaa!

The Law Society exists to protect the interests of
solicitors..........but you knew that already.

Didn't you?
The Law Society is the representative body for solicitors.

The Solicitors' Regulation Authority is the regulator for the legal
profession, which operates a fund to compensate any person who loses
money due to the fraud of any solicitor. It is funded entirely by
solicitors. It is wholly in the interests of clients, and completely
against the interests of solicitors to run such a fund. In my view, when
we move to alternative business structures, with legal services being
provided by the Co-op etc, the indemnity fund has no place in the brave
new world. It is every man for himself in this commercial wonderland.
And you can forget that we ever considered ourselves a profession.
 
L

Les Invalides

Richard Miller said:
The Solicitors' Regulation Authority is the regulator for the legal
profession, which operates a fund to compensate any person who loses
money due to the fraud of any solicitor. It is funded entirely by
solicitors. It is wholly in the interests of clients, and completely
against the interests of solicitors to run such a fund.
Not entirely. Its existence may induce people to trust and thus employ a
solicitor when they might not otherwise have done. Like the arrangements
set up by the banking, insurance and tourism industries to build
consumer confidence.
In my view, when we move to alternative business structures, with legal
services being provided by the Co-op etc, the indemnity fund has no
place in the brave new world. It is every man for himself in this
commercial wonderland. And you can forget that we ever considered
ourselves a profession.
Well, there's always a silver lining :)
 
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R

RobertL

My experience is that you give the money to the solicitor on the day of
completion (although a telegraphic transfer from each of several banks will
cost).

Then the solicitors' bank would have to go bust within a matter of hours.

How you asked your solicitor about this possibility?

I have just instructed the solicitor and I asked him about the risk to
the money in his client account. His response was; "that's a very
intersting question and I don't know the answer. I'll find out.".

When he finds out I'll post it here.

Robert
 
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N

Norman Wells

RobertL said:
I have just instructed the solicitor and I asked him about the risk to
the money in his client account. His response was; "that's a very
intersting question and I don't know the answer. I'll find out.".

When he finds out I'll post it here.
When he finds out, he'll be in the Bahamas.
 

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