Transfer of funds for exchange and completion

fryderykchopin

I'm very close to completion and it's now the time to transfer the big chunk of money to my solicitor.

I just have two doubts and would appreciate it if someone could clarify them:

1. The solicitor has asked - before exchange of contracts - to transfer the whole sum required from my side for completion. This includes the 10% for the exchange of contracts plus the rest that is not covered by the mortgage plus their fees. I thought I should only transfer 10% of the purchase price for the exchange of contracts, then transfer the rest before completion day, and then pay the solicitor fees after completion. Is this the normal procedure?

2. Is there any way I can check that the account I'm sending the money is legit? I know there is a website (https://www.lawyerchecker.co.uk/) where my solicitor can check the account of the vendor's solicitor, but do I as a customer have any similar resource to make sure I'm sending the money to my solicitor and not a scammer? I have read some advice to transfer a small amount and ask the solicitor to confirm they received it, then transfer the rest. Is this a common practice?

Thanks!

davidmcn

1. What's the period between the exchange and completion dates? Unless you have a particular need to hold onto the cash until the very last minute, I doubt there's much point in sending the money as separate payments. It's not normal for solicitors to allow payment of their fees for residential conveyancing to take place after completion - whether or not they do should be clear from their terms of business.
2. Phone your solicitor (on a number which you've verified as actually being theirs) and confirm the account details.

Tiglet2

If you are simultaneously exchanging and completing on the same day (or a day apart), your solicitor will require the whole amount needed to complete the transaction in their account the day before.  The solicitor will require their fees to be paid prior to completion.  Telephone your solicitor to confirm the correct account number and sort code - do not rely on correspondence by email.  If you have an online tracker, you could confirm bank details on there.  You should have received a postal letter from the solicitor at the beginning of the transaction which shows their bank account details.  This should not have changed at all, but your phone call can confirm.

PaulCooper

As a good discipline, whenever I have someone new to pay I always send them £1, then phone them to make sure who I thought was going to receive the money actually has, then & only then will I transfer the remaining amount
Paul

greatcrested

fryderykchopin said:

1. The solicitor has asked - before exchange of contracts - to transfer the whole sum required from my side for completion. This includes the 10% for the exchange of contracts plus the rest that is not covered by the mortgage plus their fees. I thought I should only transfer 10% of the purchase price for the exchange of contracts, then transfer the rest before completion day, and then pay the solicitor fees after completion. Is this the normal procedure?

2. Is there any way I can check that the account I'm sending the money is legit? I know there is a website (https://www.lawyerchecker.co.uk/) where my solicitor can check the account of the vendor's solicitor, but do I as a customer have any similar resource to make sure I'm sending the money to my solicitor and not a scammer? I have read some advice to transfer a small amount and ask the solicitor to confirm they received it, then transfer the rest. Is this a common practice?

1) What's the gap between Exchange and Completion? If a week or less, just send it all.If more, yes, you could send the 10% for Exchange and the rest later.

No, the solicitor will not Complete unless you have paid his bill!

2) How are you transferring? CHAPS? Online banking (Faster Payments)? If online banking (check the limits, some banks it's £10K per day...), just send £1.00 and confirm it's arrived.

If CHAPS, ring the solicitor to double-check the destination codes before sending.

PS - New banking rules mean when you arrange an online payment, your bank will(should...) confirm the name of the account holder you are sending it to:

https://www.mirror.co.uk/money/new-bank-transfer-rules-come-22277233

fryderykchopin

Thank you all for your answers. Yes I received a letter soon after I hired them with (incomplete) details of bank account. I have phoned them and everything matches, so it seems to be ok. I will send the whole amount at once by CHAPS tomorrow.

nnewtoarea

Even then, send £1 first. Call them to confirm if they have received it. Then transfer the full amount.

greatcrested

nnewtoarea said:

Even then, send £1 first. Call them to confirm if they have received it. Then transfer the full amount.

With CHAPS costing £35 each time? Well, it may be worth it for peace of mind, but if OP has verified the details via a direct source (as opposed to an email), then I'd say that's overkill.

pjread

I just whacked mine over via faster payments...  CHAPS is a bit pointless these days, though a lot of solicitors and mortgage lenders seem unable to move on from it.  Just send a day or two early as it's not technically guaranteed until close of following business day, even though it's generally all but immediate.

davidmcn

greatcrested said:

nnewtoarea said:

Even then, send £1 first. Call them to confirm if they have received it. Then transfer the full amount.

With CHAPS costing £35 each time? Well, it may be worth it for peace of mind, but if OP has verified the details via a direct source (as opposed to an email), then I'd say that's overkill.

Indeed, I keep on seeing this recommended but all you're really protecting yourself against are your own fat fingers getting the numbers wrong (and who's to say you won't make a mistake the second time?). I've never seen it used in practice.