Sale completed but no keys :( Sellers bank "holding pool" has not released the funds?

Katsa

HI All,


So far its been a very stressful 4 months trying to purchase my first home. We completed on Friday, everything signed my insurance has started on the new house but one thing...no keys! The seller has said the money never went into his account and it looks like his bank is holding the money and has not released the funds.


I waited all day Friday as I was being told it could clear at any time, it never did.


So now it is Monday and I've just had an update of the same thing, my mortgage has started but the seller has not received the funds and my solicitor said they can't do anything about it, its up to the seller to nag their bank.


Is this the case? how long will a holding account keep the money for? I'm very disappointed and anxious as we want the keys to start work on it and move in!


If anyone has experience this or knows more about it please explain what is happening.

TBagpuss

Assuming that your funds were sent to the correct account then you have paid and the property is yours, the seller should release the keys and they can then make a complaint to their bank / own solicitor if the funds were delayed.

If the money is in a holding account because the account details were wrong, then it depends who made the mistake. If the seller / seller's solicitors provided the wrong details then it is their problem. If they provided accurate details but these were wrongly entered by your solicitor when sending the money then your solicitor is at fault.

If it is routing error then in my experience the bank can usually resolve it pretty quickly. Another possibility is that it has been delayed because it has flagged an anti-money laundering / Proceeds of Crime / fraud check, in which case the bank won't be able to say so (as that can amount to 'tipping off') and may take longer to resolve.

I'd suggest that you ask your solicitor to provide documentary evidence of the account the money was sent to and the account details they were given, and push the point that you completed as the money has been paid to and received by the seller's bank, and that you need your keys and for the seller to deal directly with his bank to resolve that issue.

davidmcn

The transfer will invariably be between the solicitors, so am confused by the reference to the money not reaching the seller's account (which would only happen after completion).

The money will need to reach the correct account, I wouldn't expect any seller to complete with the funds still in transit or a holding account.

eddddy

Is the seller using a solicitor, or doing their own conveyancing?

To keep things simple, just ask your solicitor if completion has happened.

If your solicitor confirms it has, ask your solicitor to contact the other party urgently to say that they are in breach of contract, because they are not giving you vacant possession of the property - and that you will make a claim for your consequential losses.

Katsa

Ah right I suppose I should mention the Seller self represented so there was no "other" solicitor involved. That is part of the reason its been so stressful!!!


oh ok, I was thinking if we could be more forceful on them giving us the keys but I could see it the other way, that the seller hasn't received the money yet so why would they want to release the keys until fully sure.


That way of thinking might be because I don't fully understand the banking process though, is it a sure thing? can I 100% say the money is theirs and it wont bounce back to my solicitor?

comeandgo

Ok, you are up the creek without a paddle. Are you certain it was his house to sell? Be advised by your solicitor. Hopefully the money will come through today.

Browntoa

Suspect seller has problems with their move and thinks they can delay

If completion occured Friday I would be telling the seller I am seeking a possession order and costs for alternative accommodation and storage etc up to the point they vacate from Fridays completion

Is it possible their bank are holding funds for money laundering regulations as it's such a large amount ?

Or have they made a pigs ear of handling the clearing of outstanding mortgages etc

G_M

Either

* your solicitor was given the wrong bank details so the money was sent to the wrong place
* your soicitor made an error and sent the money the wrong place
* the seller's bank has flagged this large credit as potential money laundering and has put it in a holding account while they investigate
* the seller has scammed you and is now en route for the Bahamas with your money

you need to try to ascertain which it is.

As to whether Completion has taken place, no - it clearly hasn't, since the keys have not been handed over and (perhaps) the money has not been received.

As to who is responsible for the failure to Complete (and hence the costs of the other) that depends exactly what happened.....

Katsa

Well my solicitor ran checks on the seller, they dropped in ID and provided deeds to the house and all that stuff, so I would have thought that protects us (I guess you can never say entirely) from a scam?


I am thinking maybe its the bank holding the money due to suspicion. My solicitor confirmed the account details and have been swapping reference numbers with the seller. Hopefully it clears soon >_<


Im kind of worrying now if the seller is lying and has received the money....can they do that? If that was to happen, could we recall the money? or contact the sellers bank for fraud or something?

ThePants999

If the money has been sent, get your solicitor to issue a notice to complete...

G_M

Katsa wrote: »

Im kind of worrying now if the seller is lying and has received the money....can they do that? If that was to happen, could we recall the money? or contact the sellers bank for fraud or something?

What do you mean 'can they do that?' Do what? Lie? Of course. People lie - especially scammers!

I doubt you could recall the money if it were a scam. The scammers would have already moved it on.

But on the plus side, I doubt if they'd be hanging around still communicating with your solicitor. As I suggested, they'd be en route for the Bahamas (or wherever), not waiting for the Fraud Squad to turn up.