buying a house and the closing date is nigh: When do you pay the solicitor?

Hi folks,

we hired a solicitor who is cheap and less cheerful (he's had me on the phone everyday to him!) and we're coming to the end of the transaction...we're buying a house and the closing date is nigh.

When do you pay a solicitor ? And if you're not sure he/she is bothered at all about finishing the transaction, ie. registering title and mortgage, what can you do then if you've already paid them for the job... Do the banks chase it up with the solicitor? What comeback have we got if we pay him and discover he has done nothing with the transfer of title and registration of mortgage, payment of stamp duty... if you have a folio number can you check this in the land registry?

This person has returned one of about 25 phonecalls... am a little concerned that they will finish the job. And we will have paid them by then I'm sure.

ta for advice

mica

Re: When do you pay the solicitor?

"When do you pay a solicitor ?"

On or before closing - the solicitor has to be in funds for stamp duty and outlays anyway so most will want fees paid also.

" And if you're not sure he/she is bothered at all about finishing the transaction, ie. registering title and mortgage, what can you do then if you've already paid them for the job... Do the banks chase it up with the solicitor? "
Yes - they do. Solicitor has an undertaking to bank to complete the transaction.

"What comeback have we got if we pay him and discover he has done nothing with the transfer of title and registration of mortgage, payment of stamp duty... "

If you're not at any loss, its his problem - not yours

"if you have a folio number can you check this in the land registry?"

Yes, you can but it can be several months before the dealing is lodged ( because waiting for previous owners mortgage deed to be returned marked"paid").

mf

Re: When do you pay the solicitor?

Regarding when to pay solicitor - you only have to make sure the solicitor is in funds to pay everyone else. You do not have to settle his fees at the same time. Most of course expect you to pay him (or her) at the same time.

I agree with mf1 that banks will chase the solicitor but you must ensure that the solicitor has actually given the undertaking. Take a look at your file. The solicitor is obliged to let you look at the file so you can see what has and has not been done.

RE the deed - It can actually take 18-24 months. Doesn't always but have known cases to take that long.

Re: When do you pay the solicitor?

".................but you must ensure that the solicitor has actually given the undertaking."

The loan cheque will not be released until the undertaking is given. If you have concerns, contact the lender to confirm they have the undertaking. I advise clients to stay in touch with lender and constantly ask one question:

" Do you have everything you now need to enable you to release the loan cheque for a closing on X date? "


mf

Re: When do you pay the solicitor?

Definately agree with you on keeping in contact with loan provider mf. They will tell you exactly what is going on

Re: When do you pay the solicitor?

Hi there,

thanks for the feedback... am just wondering what would you do if he didn't put your name on deeds?

I worked in a bank before and things were so slow sometimes that they just relied on the undertaking and if the clients went to sell the property, no deeds or registered mortgage received yet, then the bank had an undertaking to cover both cases...the sale/re-mortgage or if the sale fell through, then the registration of banks mortgage against property.

So what can we do if our solicitor just leaves things sit... and is the onus not on us to pay stamp duty, I saw in another thread you have just thirty days...is not something we need to worry about?

I take your point about being in touch with the lender...oh but the times they are a changing! Previously the banks did all that themselves!

Anyway, I do appreciate the feedback, cheers mica

Re: When do you pay the solicitor?

"and is the onus not on us to pay stamp duty, I saw in another thread you have just thirty days...is not something we need to worry about? "

You just make sure that Solicitor is in funds for stamp duty - if he does not pay it, it is his problem not yours.

Yes, it all does become a problem for a client later - perhaps people should be more interested in the overall process. If you did want to sell and title was not registered, it could cause delays , you might lose the new house etc.,etc.

It is a shame you have so little confidence in the solicitor - while recommendation is no guarantee, I find that a recommended professional is generally worth a few extra bob for the sake of peace of mind.

mf

MF1

Would you believe me if I told you he was recommended!
And you're right, it is awful I have so little confidence, but am driven to it at this stage.

Where are you operating yourself, you have come back to me already a lot more than my solicitor has!

but thanks for the advice re stamp duty, I'll make sure he has the funds anyway.


cheers mica

RE stamp duty. Unfortunately, regardless of whether the solicitor has the funds or not is regardless. The liability to pay the SD is on you as is the liability to any interest or penalty. Be careful on that one. Whuile I agree with MF that if the solicitor is in funds to pay it should be his responsibility, REvenue will not agree with that view and will chase you for the money.

If the solicitor was given the money and did not pay the duty then yes technically the liability remains with the purchaser but if it ever did become an issue this is what would happen:

1. Purchaser becomes aware that Deed has not been stamped.
2. Purchaser goes to solicitor and raises Cain.
3. Solicitor either deals with problem or not i.e. he pays the duty and any penalties.
4. Purchaser goes to Law Society who will jump on solicitor so fast that problem will be resolved in no time.
5. If Purchaser is at any loss, purchaser can sue solicitor.

mf

MF1

is there anyway of checking to see stamp duty has been paid on title? We will be exempt for mortgage. Do I ring the tax office?!

How does it work...do i make a cheque out to the Revenue Commissioners and then when it's drawn, I know it's paid...or do I have to make a cheque to solicitors for stamp duty and fees and then they pays the Revenue themselves?

Sorry for pushing but I've no clue how this works, first purchase and I've tried getting info from this solicitor, but have had more success getting blood from a stone! Nah, am waiting with bated breath for them to ring me but it would be nice to know how it works in advance.

if you get a sec, thanks mica

is there anyway of checking to see stamp duty has been paid on title?

Not really - you could ask solicitor to send you a copy of the stamped deed but otherwise it will only be obvious when registration has happened - Land Registry won't register title unless deed is stamped.

I generally ask clients for balance of purchase price ( bank draft to vendors solicitor), stamp duty ( bank draft for Revenue Commissioners) and fees and outlays ( cheque to my office) to be left with me day before closing. Your solicitor could take a cheque for the whole lot but what if that cheque bounces?

mf

Grand MF1, thanks again for all that. At least I know where I stand thanks to you...rang my wonderful solicitor again today and still nothing. I'm obviously not important enough!

thanks for your information, mica