Completion day - is this normal?

louisaj28

I sold a flat and today is completion day, our solicitor has just advised that the transaction has now completed and they have authority to cash the buyers cheque. They then go on to say that they cannot send the balance to ourselves until this cheque clears which will be Thursday next week.

Is this normal? I thought solicitors usually honoured each others cheques?

When I sold my main property recently to move house, everything happened on the completion date, ie. we all moved at the same time so no-one was waiting around for cheques to clear. I'm wondering why it is different in this situation.

Can anyone advise? Many thanks

G_M

Solicitors usually use Telegraphic Transfers to move the money same day (costs £25 - 35).

But if they used a cheque, then yes, they will need the cheque to clear before they can send the money on.

I would be asking why they accepted a cheque....

louisaj28

Thanks for your reply.

I will be asking the solicitor why he indeed accepted a cheque...

Cheers

abankerbutnotafatcat

And what if the cheque doesn't clear? Presumably, the key handover is happenning today...

I recently paid for my house purchase by chaps and would not have expected my vendor/their solicitors to accept anything other than cleared funds in their account at completion. If I was you I would ask a lot of questions.

bobula

tell them if the buyer wants to pay by cheque then they will have to wait till it clears before they get the keys. :rotfl:

simple really - dont think their cheque guarantee card will cover a house purchase if it bounces

louisaj28

well apparantly the keys have already been handed over...

so the buyers have their new property and we have nothing!

solicitor won't do anything about it...

thankfully we don't need these funds desperately but that's not the point is it? what if we needed these for a new house?!

thanks for your responses anyway

kingstreet

I don't understand why the vendor's solicitor has a cheque from the buyer. Surely, he will have a cheque from the buyer's solicitor drawn on their client's account?

abankerbutnotafatcat

Have you paid your legal fees, Louisa? If not I'd seriously consider it before I did as your conveyancer has badly let you down. They should not have allowed you to be in this situation. That said, if the cheque doesn't clear the buyers haven't fulfilled the contract so wouldn't be entitled to the house but it's hardly the point.

louisaj28

kingstreet wrote: »

I don't understand why the vendor's solicitor has a cheque from the buyer. Surely, he will have a cheque from the buyer's solicitor drawn on their client's account?

yes sorry it is from their solicitor

louisaj28

abankerbutnotafatcat wrote: »

Have you paid your legal fees, Louisa? If not I'd seriously consider it before I did as your conveyancer has badly let you down. They should not have allowed you to be in this situation. That said, if the cheque doesn't clear the buyers haven't fulfilled the contract so wouldn't be entitled to the house but it's hardly the point.

The legal fees will be coming from these funds, they will take what is due to them and pay off the mortgage and then send the balance to us.

abankerbutnotafatcat

louisaj28 wrote: »

yes sorry it is from their solicitor

Well, that's good, it means that the buyer's solicitors probably have the buyer's cleared funds in their clients' account so there is no risk of the cheque not clearing. That said, it still sounds like a out-dated and cumbersome method of transacting and I can only presume it's so that the buyer's solicitor gets the benefit of interest for two days, which over all the completions they handle could probably really add up.