Section 75 question

Mishomeister

Basicaly the question is if I was to pay £101.00 to solicitors towards deposit etc via credit card during the home purchase and the rest would be paid via bans transfer, would I be covered under section 75 or not?

[Deleted User]

If you pay any amount by credit card, then the full sum is covered.

molerat

The upper limit for S75 protection is £30,000. Plus paying the purchaser's solicitor will break the direct buyer-seller link.

bigadaj

Mishomeister wrote: »

Basicaly the question is if I was to pay £101.00 to solicitors towards deposit etc during the home purchase and the rest would be paid via bans transfer, would I be covered under section 75 or not?

What are you trying to do?

Mishomeister

molerat wrote: »

The upper limit for S75 protection is £30,000. Plus paying the purchaser's solicitor will break the direct buyer-seller link.

30k would be very close to the amount I am paying to solicitors

jonesMUFCforever

Paying the solicitors for what?
Is it to cover their charges for work done on your behalf - then yes you would be covered for any misrepresentation of their work to you.
If the monies you are paying them is to be sent on to a third party then your cover stops at this point.

HelpfulTips

As stated above, second 75 is a 3 way contract between buyer-seller-creditor. Basically your card company are paying the money and you pay them back, so they are jointly liable for the purchase, but if the solicitor is then paying the money to another party, you won't be covered

eddddy

Section 75 specifically excludes cover for purchases of land (i.e. property) so I doubt the deposit would be covered, but the solicitor's fees may be.

If the solicitor's fee is covered, then Section 75 specifically provides cover for Breach of Contract and Misrepresentation.

However, the Legal Ombudsman and SRA provide much greater protection than Section 75.

For example, the legal ombudsman can order a Solicitor to pay compensation for poor service (even if there is no Breach of Contract or misinterpretation.)

And the SRA has a compensation fund which you may be able to claim from if lose money because your solicitor is dishonest or insolvent.