Solicitor won’t hold proceeds of my house sale ahead of purchase of another

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LLB123

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I’ve just sold a house and will be completing on another in a month or so all going well.
I’d thought it would have made sense, or even be safest for my solicitor who’s handling both transactions to hold onto the proceeds of my sale in trust until it’s time to pay for the new one, but he insists on sending the balance to me now - is this typical?
it’s a mid-six figure sum so I’m a little worried about being so far over deposit guarantee limits, plus seems pointless when I’ll be transferring it back to him again soon anyway. Bit baffled really but he hasn’t volunteered an alternative.
 
LLB123 said:
I’ve just sold a house and will be completing on another in a month or so all going well.
I’d thought it would have made sense, or even be safest for my solicitor who’s handling both transactions to hold onto the proceeds of my sale in trust until it’s time to pay for the new one, but he insists on sending the balance to me now - is this typical?
it’s a mid-six figure sum so I’m a little worried about being so far over deposit guarantee limits, plus seems pointless when I’ll be transferring it back to him again soon anyway. Bit baffled really but he hasn’t volunteered an alternative.
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Surely that's a good thing????? Why would you want a solicitor to hold that amount of money but yet be worried about a bank failing and being above the deposit guarantee amount. Spilt it if you want but no need for sake of a month. Solicitor is right.
 
Sarenco said:
Funds held in a solicitor’s client account are covered by the DGS if the underlying beneficiary would have been covered.

In other words, there is no benefit or disadvantage to keeping the funds in a solicitor’s client account.
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Unless the solicitor helps himself!
 
Sarenco said:
The DGS covers temporary high balances, including on the sale of a private residence, for a period of six months.
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For personal bank accounts also? Thought this only applied to solicitor client accounts which is why I thought safer with him than me.
 
If the Irish banking system can manage to collapse in the next month or so to the point where depositors are burned, that would be quite something.

Notwithstanding Sarenco’s point.
 
There might also be a possibility that the solicitor's professional insurance/indemnification or other regulations/policies require that they return funds to clients rather than holding onto them even if the funds will be used again soon for another property purchase?
 
It’s really down to regulation.

Historically, solicitors were only delighted to hold on to client funds and harvest the interest payments.

Those days are long gone.

In any event, there is practically zero chance of an Irish bank collapsing in the foreseeable future - they are making out like bandits at the moment.
 
Sarenco said:
It’s really down to regulation.

Historically, solicitors were only delighted to hold on to client funds and harvest the interest payments.

Those days are long gone.

In any event, there is practically zero chance of an Irish bank collapsing in the foreseeable future - they are making out like bandits at the moment.
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Not even the forseeable future…the next month!

Not possible, particularly with all the scoundrels who might bring about a banking collapse down in Quinta do Lago for August.
 
Statistically far more likely that something untoward might happen the solicitor's client account during this short timeframe than the remote possibility of a short-term economic or banking collapse.
 
Solicitor client accounts are often charged negative interest at the moment by their banks so this is the main driver for not wanting to hold client funds for long periods.
 
The Solicitors Accounts Regulations 2023 state:

“Solicitors are to return any client moneys in a client account as soon as practicable following completion of the provision of legal service and, in any event, a solicitor not hold those moneys in the client account for a period longer than 6 months after the completion of legal services.”

There are separate conveyancing transactions here, including one that may never materialise. Better for the Solicitor and client to return the money.
 
Gushering said:
Solicitor client accounts are often charged negative interest at the moment by their banks so this is the main driver for not wanting to hold client funds for long periods.
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This is exactly what our solicitor told us about a year ago when he was dealing with probate but things have most likely changed since then.
 
Sue Ellen said:
This is exactly what our solicitor told us about a year ago when he was dealing with probate but things have most likely changed since then.
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I don’t think any of the banks charge negative rates any more.

They’re bad enough as they are…
 
Johnno75 said:
The Solicitors Accounts Regulations 2023 state:

“Solicitors are to return any client moneys in a client account as soon as practicable following completion of the provision of legal service and, in any event, a solicitor not hold those moneys in the client account for a period longer than 6 months after the completion of legal services.”

There are separate conveyancing transactions here, including one that may never materialise. Better for the Solicitor and client to return the money.
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Yes that’s what I was going to say. I’m a bit terrified of these new rules. The solicitor did the right thing
 
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