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.
Temporary high balances are guaranteed for 6 monthsit’s a mid-six figure sum so I’m a little worried about being so far over deposit guarantee limits
Funds held in a solicitor’s client account are covered by the DGS if the underlying beneficiary would have been covered.What would happen if the bank holding the solicitor's funds went bust?
Brendan
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.
For personal bank accounts also? Thought this only applied to solicitor client accounts which is why I thought safer with him than me.The DGS covers temporary high balances, including on the sale of a private residence, for a period of six months.
Yup.For personal bank accounts also?
Funds held in a solicitor’s client account are covered by the DGS if the underlying beneficiary would have been covered.
Not even the forseeable future…the next month!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.
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.
I don’t think any of the banks charge negative rates any more.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.
Yes that’s what I was going to say. I’m a bit terrified of these new rules. The solicitor did the right thingThe 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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