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Solicitor has all money to close sale it's been 5 weeks!

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  • 04-07-2015 10:15am
    #1
    marsbar1
    Registered Users Posts: 95 ✭✭


    Hi, first time buying property in Ireland. The date of close was supposed to be 5 weeks ago. I've given my solicitor all the funds to complete: The deposits, full balance for the house, all searches, his fees, stamp duty etc and its all been sitting in his client account for all this time. Is this normal?

    The delay, I'm told is due to an side issue in the contract raised by the sellers solicitor about a tax relief scheme. From what I see this tax relief does not benefit me in any way. I heard there is a law which put a stop to solicitors gaining interest from money in their client accounts so its not that. This situation is worrying me and seems very odd that the money is all there and nothing is happening. I still have no idea when the sale will close, can anyone advise me please?


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    #2
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,507 Mod ✭✭✭✭johnnyskeleton


    Speak to your solicitor about the delay. If there is a taxation problem let him do his job or you could be hit with a tax bill later on


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    #3
    Taxburden carrier
    Registered Users Posts: 555 ✭✭✭Taxburden carrier


    Appears to be common practice for solicitors to let your funds sit in their deposit accounts , earning interest, at your expense.


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    #4
    Barely Hedged
    Closed Accounts Posts: 992 ✭✭✭Barely Hedged


    Taxburden carrier wrote: »
    Appears to be common practice for solicitors to let your funds sit in their deposit accounts , earning interest, at your expense.

    They must be milking it with the lavish interest rates paid by banks to quick access current accounts


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    #5
    Rabbo
    Registered Users Posts: 637 ✭✭✭Rabbo


    Taxburden carrier wrote: »
    Appears to be common practice for solicitors to let your funds sit in their deposit accounts , earning interest, at your expense.

    If they are lucky, theyd be earning interest of 1% nett on their balance which would be €250 per month on a sum of €300,000. Don't think too many solicitors would be interested in holding up a sale for that


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    #6
    marsbar1
    Registered Users Posts: 95 ✭✭marsbar1


    That's right. Most current accounts pay out no interest on money over 2,000 Euro balance. The tax is something which will benefit me not penalise me.


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    #7
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,507 Mod ✭✭✭✭johnnyskeleton


    Taxburden carrier wrote: »
    Appears to be common practice for solicitors to let your funds sit in their deposit accounts , earning interest, at your expense.

    The OP has already noted, correctly, that solicitors cant charge interest on their client account. So thats not it


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    #8
    Victor
    Registered Users Posts: 78,423 ✭✭✭✭Victor


    johnnyskeleton wrote: »
    The OP has already noted, correctly, that solicitors cant charge interest on their client account. So thats not it
    Can't charge interest or can't earn interest?


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    #9
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,507 Mod ✭✭✭✭johnnyskeleton


    Victor wrote: »
    Can't charge interest or can't earn interest?

    Earn. Sorry.


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    #10
    TheSelf
    Registered Users Posts: 88 ✭✭TheSelf


    Sols usually have two c/a. A client a/c and an office a/c. The funds held in the client a/c are almost always used to minimise the fees and charges on their office a/c. This is known as an "offset arrangement" in banking terms..


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    #11
    marsbar1
    Registered Users Posts: 95 ✭✭marsbar1


    My solicitor says he has contacted sellers sol, advising we wish to close as soon as possible. He says once they send the paperwork he will send them the money. Does this sound ok?


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    #12
    the_syco
    Registered Users Posts: 37,301 ✭✭✭✭the_syco


    marsbar1 wrote: »
    He says once they send the paperwork he will send them the money.
    Has the seller signed the contracts yet?


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    #13
    marsbar1
    Registered Users Posts: 95 ✭✭marsbar1


    Sorry for the delay. Yes they have signed the contracts. The vendors sol apologises for the delay and blames her client for not raising paperwork!

    If they have signed there is no going back for them is there?


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    #14
    BabySlam
    Closed Accounts Posts: 349 ✭✭BabySlam


    OP, your solicitor has all the money to close the PURCHASE ? It is up to the seller to send on the contract for sale and then to answer your solicitors questions about the property. This can take a bit of time depending how ready the sellers were for the sale. Equally some sellers have the documents needed at their fingertips (e.g. copy of planning for extension). But you should ring your solicitor and say you are worrying - they can probably reassure you.


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    #15
    farrerg
    Registered Users Posts: 133 ✭✭farrerg


    marsbar1 wrote: »
    Sorry for the delay. Yes they have signed the contracts. The vendors sol apologises for the delay and blames her client for not raising paperwork!

    If they have signed there is no going back for them is there?

    It sounds to me like your solicitor sent the requisition for funds prematurely if they were still waiting on documentation. The bank doesn't release the funds until asked, and normally this is only done when all that's left to do is hand over the keys. I would be very clear that you will not be paying the mortgage interest that has accrued over the last 5 weeks!


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