Concerned about simply handing 130k to a solicitor

eirman

Registered User
Messages
121
I'm in the process of buying my first house. My understanding is that the system operates as follows ......

The buyer gives the deposit to their solicitor in two stages and the lender gives the solicitor the balance. The solicitor then give a cheque for the total amount to the vendor's solicitor.

What protection do I have as a buyer if I am unlucky and choose a solicitor with bad cocaine/gambling habits who decides to abscond with as much client's money as possible?

The system seem open to abuse. A much more secure system would be where the buyers deposit is given to the lender and the total cheque is given to the solicitor.
 
best bet is to find a reputable solicitor, perhaps one who a friend has used and been happy with, i've never heard of a solicitor running off with a deposit but stranger things have happened???
 
Are you buying a new house with two stage payments? If so these are passed onto the builder as soon as they become due.
All solicitors are obligated to have professional indemnity insurance.
Ensure you get a receipt for all monies handed over and employ a solicitor you trust.
 
I'm in the process of buying my first house. My understanding is that the system operates as follows ......

The buyer gives the deposit to their solicitor in two stages and the lender gives the solicitor the balance. The solicitor then give a cheque for the total amount to the vendor's solicitor.

What protection do I have as a buyer if I am unlucky and choose a solicitor with bad cocaine/gambling habits who decides to abscond with as much client's money as possible?

The system seem open to abuse. A much more secure system would be where the buyers deposit is given to the lender and the total cheque is given to the solicitor.

You normally pay a booking deposit to the estate agent.

Then when you sign contracts a few weeks later you pay the balance of the deposit to your solicitor who passes it on to the vendors solicitor. Then on closing day your solicitor passes the loan cheque (plus any shortfall you will have to give him) to the vendors solicitor and you get your keys.

The good news is that in the unlikely event of your solicitor putting the whole kit and caboodle on the 3.30 at chepstow( and the nag falls at the first fence ) the law society will give you back your money via the Compensation Fund which every practising solicitor in the country has to pay into every year. This is over and above professional insurance. I may be wrong but I think solicitors may be unique in offering/being obliged to have this additional protection for their clients.

Even better news its very rare for solicitors to do this nowadays. Best protection get a sollicitor who has been recommended to you. cheapest is not always the best.
 
There's some mention of the Law Society compensation fund [broken link removed] in case it's of any use.
 
I recently suggested to my solicitor that he would run off with the €245k for my mortgage. He laughed and said "what the hell would €245k get me these days.." with a good solicitor and the law society scheme you've nothing to worry about.
 
I recently suggested to my solicitor that he would run off with the €245k for my mortgage. He laughed and said "what the hell would €245k get me these days.." with a good solicitor and the law society scheme you've nothing to worry about.


If I had a euro for every time I've heard that remark...
 
You don't need the Law Society Scheme if you have a good solicitor. :rolleyes:


ONQ.
 
Yeah I was thinking €245k? It could buy you quite a lot actually, but in 2007, yeah not a lot...
 
Hi,

I am quite in the same situation, as I am giving all the money to my solicitor to buy a 165000 Euro property.
 
There was consumer show on BBC this week about rogue solicitors in the UK - people pretending to be solicitors but weren't qualified or regulated. At a minimum, make sure your solicitor is a real solicitor by checking back with the Law Society. It's always best to choose a solicitor (and most professionals) by recommendations from family or friends. There is always a possibility that your guy or gal will blow it all on coke, but you would be covered by the law society in that unlikely scenario.
 
I saw that show too.

The fake solicitor was listed by the UK law society. :eek:
 
Back
Top