I’m being asked to pay two solicitors

AliceBanned

Strange situation - wanted to instruct a smallish firm of solicitors for purchase of leasehold flat. They advised they can’t deal with Building Safety Act aspect so would refer me to another. They took £270 on account over phone but now second form quoted me £2300 for purchase conveyancing and want £400 on account.

i haven’t paid or instructed as the reason for two payments on account with two solicitors hasn’t been explained to me despite me asking.

i think with first I’m in 14 day cooling off period. They said the £270 would be deducted from final bill but it’s not showing on the quote.

why are they being so complicated? What are my rights. I’m willing to go elsewhere but want my money back. Does it sound a bit dodgy that they just took £270 on account and second firm wants even more? Thanks

Chief_of_Staffy

I'm not sure what you mean when you say £270 was paid and you want it back, but also it will be deducted from the final bill. It can't be both.

Personally I've never been asked for payment on account by one solicitor, let alone two. The only thing I've ever paid for up-front has been the searches, and that's immediately before they're submitted.

AliceBanned

I have no confirmation that it will be taken from the final bill. Even though Solicitor Firm 1 took it they are offering to ask Solicitor Firm 2 to confirm by email that they will pay it back at the end. They still haven’t explained what it’s for. They have very good reviews but I can’t see why - money for old rope.

anselld

It is not "for" anything.  It is an advance payment against the final bill which should have been estimated for you, ie the £2300.

If the first firm is not acting in any capacity then they should return the advance.  They could potentially pass it on to the second firm but then it would form part of the £400 advance. 

bobster2

With solicitors - payments "on account" are normal. 

The quote they provide will be the total cost of the service they are going to provide.

The final invoice they send at a later point will show the outstanding amount owing (i.e. total cost minus payment already made on account).

From your post it's not clear whether the first firm of solicitors have done, or are going to do, any work for you. Did they take the payment on account, do some work then realise they couldn't handle the case? As @anselld has said - if this firm have done no work for you, and won't be doing any - they should return the payment they took on account.

EssexHebridean

Yep - reiterating that money on account is entirely usual. In the case of a purchase it would be put towards searches - and indeed you might be asked for an additional amount to cover those - and in the case of a sale, it would be used towards the costs of a resales/management pack(s) for the property. It won't be accounted for on the quote but will appear on the completion statement you get at the end.

 AliceBanned said:

I have no confirmation that it will be taken from the final bill. Even though Solicitor Firm 1 took it they are offering to ask Solicitor Firm 2 to confirm by email that they will pay it back at the end. They still haven’t explained what it’s for. They have very good reviews but I can’t see why - money for old rope.

If it was really "money for old rope" then I assume you would simply do the work yourself? In fact what you are paying for is the training and expertise in ensuring that the property you purchase doesn't have any nasty surprises within its title, the lease, of the management company documentation, plus ensuring that any mortgage lender is represented adequately. It also covers the person doing the work being properly insured in case of anything going wrong - no small cost. 

It sounds like what has happened in this situation is that you originally instructed firm 1 who took money on account from you, but then advised that they couldn't act at all - or in part. If firm 2 is ONLY dealing with some aspects of the purchase then yes, there may be money on account to pay to both, but if firm 2 are now dealing with the transaction in its entirety then the money on account should be paid back to you from firm 1, and an amount payable just to firm 2 when you formally instruct them. 

AliceBanned

bobster2 said:

With solicitors - payments "on account" are normal. 

The quote they provide will be the total cost of the service they are going to provide.

The final invoice they send at a later point will show the outstanding amount owing (i.e. total cost minus payment already made on account).

From your post it's not clear whether the first firm of solicitors have done, or are going to do, any work for you. Did they take the payment on account, do some work then realise they couldn't handle the case? As @anselld has said - if this firm have done no work for you, and won't be doing any - they should return the payment they took on account.

First firm has done nothing - just referred me to the second who is now doing all the work. I thought the person I spoke to said they were needed because the first doesn’t have insurance to deal with Building Safety Act. But I think they are doing everything.

EssexHebridean

AliceBanned said:

bobster2 said:

With solicitors - payments "on account" are normal. 

The quote they provide will be the total cost of the service they are going to provide.

The final invoice they send at a later point will show the outstanding amount owing (i.e. total cost minus payment already made on account).

From your post it's not clear whether the first firm of solicitors have done, or are going to do, any work for you. Did they take the payment on account, do some work then realise they couldn't handle the case? As @anselld has said - if this firm have done no work for you, and won't be doing any - they should return the payment they took on account.

First firm has done nothing - just referred me to the second who is now doing all the work. I thought the person I spoke to said they were needed because the first doesn’t have insurance to deal with Building Safety Act. But I think they are doing everything.

OK - you are the client, and you need to be clear on this - it's you who is giving the instructions of who is acting, remember. 

Have you signed a terms of engagement or terms of retainer document with either firm? Or with both? 

AliceBanned

Definitely not with 2nd as they are chasing for it. Will check but pretty sure not with first firm either. I have asked for clarity and the guy said ‘do you want me to ask the firm to email to confirm they will refund £270 on completion?’ But I’m not happy paying it because if sale falls through I’ve lost 400 plus 270 or more. The 270 has no meaning and I’m being a bit stubborn but it bugs me.

AliceBanned

Ps this is now holding up progress and EA is asking for solicitor details etc. I’m not keen to shell out money as my full mortgage application isn’t through yet. Definitely not 2x anyway.

EssexHebridean

Why don’t you simply instruct firm 2 to look after the whole transaction? That would be by far the simplest route.