Revieving money from solicitor after house sale
Discussion
Just after a little advice on behalf of my mum as we cant help feeling something is a little amiss......
My Mum is just selling her house and isn't buying another at present, there is no mortgage to pay off so she should be
getting the full sale price minus solicitor fees and agents fee from the solicitor.
She expected to have the full amount transferred to her via CHAPS on completion day which we considered normal but the Solicitor has said they can't do a transfer until the following day at the earliest.
On top of that they say they can't transfer the full amount as their account has a daily limit so she will have to wait another day at least for the rest of the money......but this unfortunately then takes us into the xmas period and new year so she may not see all the money for a good 10 days or so.
Is this normal practice? They will be sitting on a sum well into 6 figures which seems cheeky and we are also worried about it going missing and it being covered by the FSA guarantee. We were going to put it straight into NSI asap as it is hopefully 100% safe in there.
Any thoughts welcome
Cheers,
Mark
My Mum is just selling her house and isn't buying another at present, there is no mortgage to pay off so she should be
getting the full sale price minus solicitor fees and agents fee from the solicitor.
She expected to have the full amount transferred to her via CHAPS on completion day which we considered normal but the Solicitor has said they can't do a transfer until the following day at the earliest.
On top of that they say they can't transfer the full amount as their account has a daily limit so she will have to wait another day at least for the rest of the money......but this unfortunately then takes us into the xmas period and new year so she may not see all the money for a good 10 days or so.
Is this normal practice? They will be sitting on a sum well into 6 figures which seems cheeky and we are also worried about it going missing and it being covered by the FSA guarantee. We were going to put it straight into NSI asap as it is hopefully 100% safe in there.
Any thoughts welcome
Cheers,
Mark
its will be in a client account which will be protected and insured.
We use BACS payments which do have daily limits on transfers - we have a limit. We try not to exceed it but if we do then we do have to wait until the next day. I believe CHAPS payments do as well.
If a transfer is made into our client account then we wait 24 hrs for it to be cleared and not clawed back. Its sensible for anybody to wait 24hrs after receiving funds - it also takes time to process ie record as in, check its the right amount, set up the payee account and then and double check they are then paying out to the right account. so its not a simple in and out.
We then make the BACS payment out which can take 2-3 working days to clear into the clients bank account depending on who it is ie building society or a bank. Chaps should be that day.
non banking days are weekends and public holidays.
Its costs more to run the account then any interest earnt.
We use BACS payments which do have daily limits on transfers - we have a limit. We try not to exceed it but if we do then we do have to wait until the next day. I believe CHAPS payments do as well.
If a transfer is made into our client account then we wait 24 hrs for it to be cleared and not clawed back. Its sensible for anybody to wait 24hrs after receiving funds - it also takes time to process ie record as in, check its the right amount, set up the payee account and then and double check they are then paying out to the right account. so its not a simple in and out.
We then make the BACS payment out which can take 2-3 working days to clear into the clients bank account depending on who it is ie building society or a bank. Chaps should be that day.
non banking days are weekends and public holidays.
Its costs more to run the account then any interest earnt.
Edited by superlightr on Monday 18th December 16:16
Edited by superlightr on Monday 18th December 16:19
Hi Superlight,
Thanks for the info. I've read around quite allot and I can't find a reference to a limit on CHAPS transfers anywhere, everything I've read says there is no limit so we don't understand why they want to transfer in 2 goes even if I do kind of get the 24 hour wait.
Its good to know that it should be insured etc.
How would it work of we had been buying another house for the same amount of money on the same day?
Mark
Thanks for the info. I've read around quite allot and I can't find a reference to a limit on CHAPS transfers anywhere, everything I've read says there is no limit so we don't understand why they want to transfer in 2 goes even if I do kind of get the 24 hour wait.
Its good to know that it should be insured etc.
How would it work of we had been buying another house for the same amount of money on the same day?
Mark
Edited by nxh66 on Monday 18th December 16:37
nxh66 said:
Hi Superlight,
Thanks for the info. We assumed that there wasn't a daily limit on CHAPS transfer. Its good to know that it should be insured etc.
How would it work of we had been buying another house for the same amount of money on the same day?
Mark
It would have been transferred to the seller’s solicitor in one sum just as your solicitor has received it from the buyer of the house. Thanks for the info. We assumed that there wasn't a daily limit on CHAPS transfer. Its good to know that it should be insured etc.
How would it work of we had been buying another house for the same amount of money on the same day?
Mark
I’ve sold 4 properties in the past 5 years and the proceeds have been in my account within 24 hours of completion in every case. Largest amount was close to 7 figures.
REALIST123 said:
It would have been transferred to the seller’s solicitor in one sum just as your solicitor has received it from the buyer of the house.
I’ve sold 4 properties in the past 5 years and the proceeds have been in my account within 24 hours of completion in every case. Largest amount was close to 7 figures.
I just can't see why they can't transfer it all in one go. They have sited money laundering rules at HSBC....Just seems fishy to me. As I have said we wont see the rest of the money until the NY if it isn't transferred in one go.I’ve sold 4 properties in the past 5 years and the proceeds have been in my account within 24 hours of completion in every case. Largest amount was close to 7 figures.
My parents have sold houses in the past and they have always received the full amount in one go as you describe. I can't see why sending it to us is different to sending it to another solicitor.
Edited by nxh66 on Monday 18th December 16:47
nxh66 said:
I just can't see why they can't transfer it all in one go.
I suspect that the daily limit they're referring to is via normal faster payments. I'm sure there'd be no problem with transferring it all in one go via CHAPS. Obviously, the cost of that is for the customer to cover.Okay so Property solicitor here.
I have no idea why they can't send your mum the full sum due to her by CHAPS on the day of completion.
Our Bank charges £18 to do this, it is a disbursement that is payable by the client and it is best to get the money out of our Client account as it makes no interest to write home about (pennies) and the SRA takes a dim view of solicitors holding on to funds when not really needed and of law firms using their client account (or allowing it to be used) as a 'temporary' bank account for clients.
We have no limit on the sums we can send by CHAPS (that i am aware of so lets say that the max is more than £5m.) provided that there are the cleared funds in the account.
We can also send BACS transfers but we have a limit of £500k being allowed in the system over all Firm accounts at any one time. We use BACS to pay small legacies, SDLT, wages, office bills and the like so as a rule try to keep it free of transfers like proceeds from house sales. Only when we are talking £10K or less do we tend to use it for that, looking at the Client's circumstances (to some £18 is a weeks food, to others they wouldn't notice if they'd dropped ten times that out their back pocket.)
I have no idea why they can't send your mum the full sum due to her by CHAPS on the day of completion.
Our Bank charges £18 to do this, it is a disbursement that is payable by the client and it is best to get the money out of our Client account as it makes no interest to write home about (pennies) and the SRA takes a dim view of solicitors holding on to funds when not really needed and of law firms using their client account (or allowing it to be used) as a 'temporary' bank account for clients.
We have no limit on the sums we can send by CHAPS (that i am aware of so lets say that the max is more than £5m.) provided that there are the cleared funds in the account.
We can also send BACS transfers but we have a limit of £500k being allowed in the system over all Firm accounts at any one time. We use BACS to pay small legacies, SDLT, wages, office bills and the like so as a rule try to keep it free of transfers like proceeds from house sales. Only when we are talking £10K or less do we tend to use it for that, looking at the Client's circumstances (to some £18 is a weeks food, to others they wouldn't notice if they'd dropped ten times that out their back pocket.)
TooMany2cvs said:
I suspect that the daily limit they're referring to is via normal faster payments. I'm sure there'd be no problem with transferring it all in one go via CHAPS. Obviously, the cost of that is for the customer to cover.
This is what I suspect too but I believe my mum has told them to do a CHAPS and they are saying there is still a limit. It just feels like they are doing all they can to hang onto the money when this is surely something simple and straightforward solicitors should be doing every day.
Rude-boy said:
Okay so Property solicitor here.
I have no idea why they can't send your mum the full sum due to her by CHAPS on the day of completion.
Our Bank charges £18 to do this, it is a disbursement that is payable by the client and it is best to get the money out of our Client account as it makes no interest to write home about (pennies) and the SRA takes a dim view of solicitors holding on to funds when not really needed and of law firms using their client account (or allowing it to be used) as a 'temporary' bank account for clients.
We have no limit on the sums we can send by CHAPS (that i am aware of so lets say that the max is more than £5m.) provided that there are the cleared funds in the account.
We can also send BACS transfers but we have a limit of £500k being allowed in the system over all Firm accounts at any one time. We use BACS to pay small legacies, SDLT, wages, office bills and the like so as a rule try to keep it free of transfers like proceeds from house sales. Only when we are talking £10K or less do we tend to use it for that, looking at the Client's circumstances (to some £18 is a weeks food, to others they wouldn't notice if they'd dropped ten times that out their back pocket.)
Awesome, thanks for that rude boy. pretty much clears up exactly what should be happening.I have no idea why they can't send your mum the full sum due to her by CHAPS on the day of completion.
Our Bank charges £18 to do this, it is a disbursement that is payable by the client and it is best to get the money out of our Client account as it makes no interest to write home about (pennies) and the SRA takes a dim view of solicitors holding on to funds when not really needed and of law firms using their client account (or allowing it to be used) as a 'temporary' bank account for clients.
We have no limit on the sums we can send by CHAPS (that i am aware of so lets say that the max is more than £5m.) provided that there are the cleared funds in the account.
We can also send BACS transfers but we have a limit of £500k being allowed in the system over all Firm accounts at any one time. We use BACS to pay small legacies, SDLT, wages, office bills and the like so as a rule try to keep it free of transfers like proceeds from house sales. Only when we are talking £10K or less do we tend to use it for that, looking at the Client's circumstances (to some £18 is a weeks food, to others they wouldn't notice if they'd dropped ten times that out their back pocket.)
Thanks you muchly.
TooMany2cvs said:
I suspect that the daily limit they're referring to is via normal faster payments. I'm sure there'd be no problem with transferring it all in one go via CHAPS. Obviously, the cost of that is for the customer to cover.
We will not use faster payments - The cash is not as certain as CHAPS i am told. In any event if we are talking £10k plus why would you not use CHAPS? If 'To save £18' is the answer then Sir will not be interested in these brand new Pirellis i have here, but i do have some nice 26 year old, part worn, Linglong ditchfinder specials...
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