Interest on funds held in solicitors client account

[Jasper pal]

Hi All,

We have just sold a property which was not cross secured with another that we own, however the mortgages are with the same bank
Due to an argument with a bank on an 'all sums due' clause for a redemption figure the solicitor has the proceeds from the sale in his client account for a month now. This amount is in excess of 300k.

He has said that he cannot release them until this is sorted. The said redemption will not be 300k or even half this (Worst case scenario). this is also net of the mortgage that has been redeemed on the sold property.

The monthly mortgage payments have stopped on the sold property however we are still making the payments without fail on the other property (Capital & Interest).

My question is: Who is entitled to the interest earned on these funds?

Thanks for your help in advance...

 

[mf1]

This is a response posted to a similar query last year. Its from MOB:

" Unless special arrangement is made, you are entitled to interest at the demand deposit rate applicable to your money in the solicitor's bank -as the money held by the solicitor is available on demand. The solicitor may well get a better rate, but that is because your money is held with lots of other money - which is the solicitor's good fortune, not the client's.

I think the demand rate right now is less than 0.4%. So, let's say €300k purchase money @0.4% = €1200 p.a. (before DIRT) or €23 for the week. And, as Vanilla says, there is no requirement to account for sums of less than €100 (actually it might even be €150).

In this example I have assumed a demand deposit rate of 0.4%. For smaller sums, you could be talking as little as 0.1% right now."

mf