Is my solicitor right or wrong?

HDNT

We are first time buyers purchasing a property with no chain. All searches and surveys have come back satisfactory, the mortgage is ready to go and according to my solicitors secretary we have completed all relevant paperwork (transfer, contract, land registry ETC). The sellers are really keen to exchange and complete ASAP. We have been given our 'bill' from the solicitor which includes our deposit and their fees.


I have asked our solicitor (who hasn't been very helpful throughout the process) if we have an idea on an exchange date (she told me a couple of weeks ago the completion would happen a week after the exchange). From what I was reading online you tend to pay the funds once dates have been confirmed, or at least discussed. She replied that she would begin discussing dates once the money was received. Have I got the process wrong and is this right?


She said a couple of weeks ago that we were almost ready to exchange and I have explained that we will need to give our employers more than a weeks notice for time off to move. She wont even give us a rough idea of a week, a month... is this the norm?


Someone has told us she may be doing this so her company can get a few weeks interest from the money. What do you think?

anselld

She is correct, it is her job after all.

Deposit funds have to be paid (to your Solicitor) before exchange can take place.
Completion date is agreed at exchange.
Readiness for exchange cannot be accurately predicted in advance.
Hypothetical dates can be discussed but she is giving the Legal position.

If you genuinely need more than a week to book leave you will need to tell her this in order for her to allow more time between exchange and completion.

wesleyad

Seems strange. From what I remember a small deposit (10%) is paid on exchange, and the main deposit not till completion (or day before to be safe)

Fees I always pay after... they haven't finished the job yet! What if there are any problems? Would they say you owe more to fix them, would they be more inclined to put you down the priority list etc.

They may have cash flow problems, very unlikely its for the interest at current rates (most business account have effectively 0%)

wesleyad

Just seen ansells reply, perhaps I am misremembering the deposit. Definitely don't think fees should be paid at this time though.

anselld

wesleyad wrote: »

Just seen ansells reply, perhaps I am misremembering the deposit. Definitely don't think fees should be paid at this time though.

Possibly a small sum on account up front. Deposit prior to exchange. Everything else prior to completion.

I have not come across any Solicitors who will proceed in the absence of all relevant funds.

dunroving

HDNT wrote: »

<<snip>> ... according to my solicitors secretary we have completed all relevant paperwork (transfer, contract, land registry ETC).

<<snip>>
She said a couple of weeks ago that we were almost ready to exchange a<<snip>>

I'd say your solicitor is the best person to ask about timing - solicitor's secretaries are usually very on the ball, but they may not have access to the solicitor's file, or know 100% the status of the case.

I've been "almost ready to exchange" for 3-4 weeks now, due to a title issue that has come up. I see you mention "Land Registry" above - what does that mean? Have all searches been concluded with no adverse findings? If "No", this may be why she is being so "evasive".

Re: fees, my solicitor won't be paid until the job is completed.

davidmcn

anselld wrote: »

I have not come across any Solicitors who will proceed in the absence of all relevant funds.

Same here - I think you'd be lucky to find a residential conveyancing solicitor willing to complete before they are holding funds to cover their fee.

Sarah-J26

I agree with David..they hold their fee in Advance.

Badger50

Someone has told us she may be doing this so her company can get a few weeks interest from the money. What do you think?

That is very unlikely. There are rules about client accounts and if anything she should pay you interest.

ReadingTim

HDNT wrote: »

Someone has told us she may be doing this so her company can get a few weeks interest from the money. What do you think?

It's a nice conspiracy theory, but if their business bank account pays any interest at all, the amount is likely to be pennies - hardly worth it. Whoever told you that probably needs to get out into the real world a bit more.

davidmcn

ReadingTim wrote: »

It's a nice conspiracy theory, but if their business bank account pays any interest at all, the amount is likely to be pennies - hardly worth it. Whoever told you that probably needs to get out into the real world a bit more.

More likely is that they ask for the money nice and early because it saves all the hassle involved in badgering clients at the last minute to get their money (and any associated proof of source of funds) to the solicitors.