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So reading the small print in the document i got from the soliciter conducting the sale of my house. I found and interestng snippet about their fees and morgage repayment which they do "automatically".
"Neither of these payments can be made until the date on which cleared funds are available in **********'s account. If settlement with your purchaser is made by cheque (which reamins standarda practice) cleared funds will be available 7 clear bank business days after the date of settlemnet of eth transaction. These payments will also be subject to bank transfer costs at our normal rates of charge."
Now I know hwat i think this menas but is anyone conected with soliciters in Sotland able to tell me what it actually means? does this mean the funds for an ongoing purchase will not be available for up to 12 days after the sale?
Call your solicitor.
It means any net proceeds due to you will first, have their fees deducted, then rest in their account for up to 7 days before they hand them over. Might not happen in practice but they are just making it clear what can happen if someone pays for your house with a cheque!
Has no impact on a selling and purchasing situation where they have to send funds same day.
So seven complete working days. From a Friday afternoon would take us through the weekend 5 days of the next week the next weekend monday tuesday as complete days then to wednesday. 12 days after keys handed over i get MY money and my mortgage lender gets paid off. So I am paying 12 days mortgage on a property that has been sold.
They'll get the interest then charge me for the money being moved to my account (probably by cheque).
He's back from holidays today. Time for a chat
I think it means the solicitor won't give you an interest free loan of the value of your transaction but will only act on cleared funds. Seems fair to me , most transactions are by telegraphic transfer so no issues .
Is the buyer paying by cheque?
If the buyer pays by cheque, you lawyer will wait until the funds are cleared before doing anything - lawyers aren't banks, so aren't in the busiess of lending their clients money.
It also says that, after paying off your lender and taking their fees, they'll then hand over your cash.
Just tell your buyer not to pay by cheque.
If the monies are clearing in the account for 7 full working bank days then that is potentially £300 of mortgagae fees i pay on a house i don't own.
Law Society:
Traditionally, when a selling solicitor received and banked another solicitor's client account cheque, he could write his own client account cheques to redeem his client's loan or settle his client's purchase on the same day. Problems are encountered very occasionally if the solicitor receiving the cheque banks at the same branch of the same bank as the solicitor sending the cheque although that is rare.
If the monies are clearing in the account for 7 full working bank days then that is potentially £300 of mortgagae fees i pay on a house i don't own.
Law Society:
Traditionally, when a selling solicitor received and banked another solicitor's client account cheque, he could write his own client account cheques to redeem his client's loan or settle his client's purchase on the same day. Problems are encountered very occasionally if the solicitor receiving the cheque banks at the same branch of the same bank as the solicitor sending the cheque although that is rare.