dipstick Posted September 21, 2005 Share Posted September 21, 2005 Can somebody with some expertise advise please. My sister gave a cheque to her sols for her house purchase about 3 days ago for 120k. She has just been advised that today the Law Society has taken over the solicitors. We have no idea why. She doesn't know what is happening and doesn't know if she can get her money back. She is at the end of her tether. Sensible advice please - urgent. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted September 21, 2005 Share Posted September 21, 2005 (edited) Got to be only one answer - phone up law society PDQ. Phone up bank - 3 days - maybe hasn't cleared - maybe she can tell the bank to not clear until she knows the full circumstances. Edited September 21, 2005 by OnlyMe Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted September 21, 2005 Share Posted September 21, 2005 Can somebody with some expertise advise please.My sister gave a cheque to her sols for her house purchase about 3 days ago for 120k. She has just been advised that today the Law Society has taken over the solicitors. We have no idea why. She doesn't know what is happening and doesn't know if she can get her money back. She is at the end of her tether. Sensible advice please - urgent. <{POST_SNAPBACK}> It should be ring fenced, provided the Solictor hasn't run away to Switzerland with all the client accounts Quote Link to comment Share on other sites More sharing options...
dipstick Posted September 21, 2005 Author Share Posted September 21, 2005 The law society phoned her to inform her of the situation but wouldn't tell her why they had taken over Only Me. I don't know about the bank because it is a stupid time of night to get through. What's ring fencing BB. Client account? Quote Link to comment Share on other sites More sharing options...
JST Posted September 21, 2005 Share Posted September 21, 2005 The law society phoned her to inform her of the situation but wouldn't tell her why they had taken over Only Me. I don't know about the bank because it is a stupid time of night to get through. What's ring fencing BB. Client account? <{POST_SNAPBACK}> If a solicitor uses client account money inappropriately then the law society will re-imburse. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted September 21, 2005 Share Posted September 21, 2005 The law society phoned her to inform her of the situation but wouldn't tell her why they had taken over Only Me. I don't know about the bank because it is a stupid time of night to get through. What's ring fencing BB. Client account? <{POST_SNAPBACK}> Dipstick, sod the time of day - phone up every phone number the bank has got - there has to be some emergency line that can be contactable. If the Law Society can't tell her EXACTLY where the money is then got to be safest to assume there is potential danger of it going walkies and stop the cheque immediately. That's what I would do anyway speaking from a totally non-legal background. What day did she physically hand over the cheque? Quote Link to comment Share on other sites More sharing options...
IP Newcomer Posted September 21, 2005 Share Posted September 21, 2005 This happened to a friend of mine. I don't know about the bank because it is a stupid time of night to get through. <{POST_SNAPBACK}> Keep phoning. Cancelling the cheque will solve so much hassle. What's ring fencing BB. Client account?<{POST_SNAPBACK}> Basically client monies are held in trust. That means that all client monies should be held seperately from that of the business. The Law Society runs an indemnity insurance scheme of sorts although I have no idea whether and how much your sister will be covered. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted September 21, 2005 Share Posted September 21, 2005 If a solicitor uses client account money inappropriately then the law society will re-imburse.<{POST_SNAPBACK}> Wouldn't it be better to pre-empt that scenario if there were an opportunity to do so though? Quote Link to comment Share on other sites More sharing options...
dipstick Posted September 21, 2005 Author Share Posted September 21, 2005 Just had an update. The bank are saying the cheque hasn't been cashed but want a letter from the "solicitors" to stop it. Ha, bloody ha!. Anyway after much rowing they said OK but I've told her to get it in writing if only in email format this evening that the money is safe. Other than that she has lost 28k in her deposit that was paid a while ago. The LS say she has to apply for it as do all the other clients. In other words it has gone. This country has gone to the dogs. It is a stinking shit pile. I hate it. The other month when my house purchase fell through I was asking my sol to return my money 72k for 3 weeks. When I complained to the Scottish Law Society they said there was nothing they could do. We should all emigrate! Quote Link to comment Share on other sites More sharing options...
JST Posted September 21, 2005 Share Posted September 21, 2005 Wouldn't it be better to pre-empt that scenario if there were an opportunity to do so though?<{POST_SNAPBACK}> Yes of course. If the cheque hasn't cleared and you fear fraud, then stopping it may be a sensible idea. Quote Link to comment Share on other sites More sharing options...
Guest X-QUORK Posted September 21, 2005 Share Posted September 21, 2005 (edited) Edit: Cancelled this post after reading Dipstick's 5:51pm post. Edited September 21, 2005 by X-QUORK Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted September 21, 2005 Share Posted September 21, 2005 Dipstick, Christ. It's her bloody cheque, with her name on it and until it is cashed the money is still in her bank. The bank are now aware of it, they know there's a problem. Your sis should let them know in no uncertain terms that the cheque is to be cancelled and if it is not she will be holding the bank liable for any consequent loss having informed them of her request - period. Speak to the bank and then say that the verbal instruction will be folowed in writing/fax whatever so the know there will be a paper trail and references to the time conversations. Take notes the lot. Quote Link to comment Share on other sites More sharing options...
JST Posted September 21, 2005 Share Posted September 21, 2005 Just had an update. The bank are saying the cheque hasn't been cashed but want a letter from the "solicitors" to stop it. Ha, bloody ha!. Anyway after much rowing they said OK but I've told her to get it in writing if only in email format this evening that the money is safe.Other than that she has lost 28k in her deposit that was paid a while ago. The LS say she has to apply for it as do all the other clients. In other words it has gone. This country has gone to the dogs. It is a stinking shit pile. I hate it. The other month when my house purchase fell through I was asking my sol to return my money 72k for 3 weeks. When I complained to the Scottish Law Society they said there was nothing they could do. We should all emigrate! <{POST_SNAPBACK}> I have sympathy for your sister's plight. To defend my profession slightly though, there are frauds in any line of work, at least your sister will get her money back. Quote Link to comment Share on other sites More sharing options...
dipstick Posted September 21, 2005 Author Share Posted September 21, 2005 I think at the moment JST that is the worry i.e. not getting the money back. Just trying to secure the 120k 100% by getting everything in triplicate written format. Sis has figured out she paid the cheque in on Monday so I'm hoping it will be OK. Since you are in "the business" what are her chances of recouping the 28K deposit? I'm just sick of the whole set-up. When I complained to the SLS that my solicitor was ignoring my requests to return funds they said they couldn't do anything. Then when something like this happens they go leaping in trying to salvage something. Surely to God they must have some preventative measures in place? and by that I mean practical measures not just swearing allegiance or paying in to a linked professional body? What really gets to me is that we only buried Mum on Saturday as well. Which is probably why sis couldn't remember what day she paid the cheque in. Not going for a sympathy vote. Just all getting too bluddy much! Quote Link to comment Share on other sites More sharing options...
JST Posted September 21, 2005 Share Posted September 21, 2005 I think at the moment JST that is the worry i.e. not getting the money back.Just trying to secure the 120k 100% by getting everything in triplicate written format. Sis has figured out she paid the cheque in on Monday so I'm hoping it will be OK. Since you are in "the business" what are her chances of recouping the 28K deposit? I'm just sick of the whole set-up. When I complained to the SLS that my solicitor was ignoring my requests to return funds they said they couldn't do anything. Then when something like this happens they go leaping in trying to salvage something. Surely to God they must have some preventative measures in place? and by that I mean practical measures not just swearing allegiance or paying in to a linked professional body? What really gets to me is that we only buried Mum on Saturday as well. Which is probably why sis couldn't remember what day she paid the cheque in. Not going for a sympathy vote. Just all getting too bluddy much! <{POST_SNAPBACK}> I am sorry to hear of your troubles dipstick. I don't know much about the scottish law society I'm afraid, but assume that the rules are pretty much the same as in England. Your sister should get her 28k back ok. If it is fraud, whilst serious, it may not be that big. I.e. even small withdrawls from client account (quite rightly) would be sufficient to get the law society involved, so your sister's money may still be in client account. Alternatively, as far as I'm aware, the law society should guarantee any funds stolen from client account (that's part of what I pay a practising certificate each year for). I agree the law society can appear somewhat incompetent sometimes. This is partly due to way in which it has a split role between representation and regulation. This is something, which I believe there are plans to look at reforming. Quote Link to comment Share on other sites More sharing options...
IP Newcomer Posted September 21, 2005 Share Posted September 21, 2005 Just had an update. The bank are saying the cheque hasn't been cashed but want a letter from the "solicitors" to stop it. Ha, bloody ha!. Anyway after much rowing they said OK but I've told her to get it in writing if only in email format this evening that the money is safe.Other than that she has lost 28k in her deposit that was paid a while ago. The LS say she has to apply for it as do all the other clients. In other words it has gone. This country has gone to the dogs. It is a stinking shit pile. I hate it. The other month when my house purchase fell through I was asking my sol to return my money 72k for 3 weeks. When I complained to the Scottish Law Society they said there was nothing they could do. We should all emigrate! <{POST_SNAPBACK}> Yeah I've had two solicitors cling on to funds weeks after. I think that the interest from house funds are a part of the business model of any conveyancing solicitor. Quote Link to comment Share on other sites More sharing options...
dipstick Posted September 21, 2005 Author Share Posted September 21, 2005 Thanks JS I will let her know. She is in England it is me that is dealing with the SLS. I just don't know what to say anymore. I'll let you know if what you are paying in is going to a deserving cause and thanks very much for the advice! Quote Link to comment Share on other sites More sharing options...
JST Posted September 21, 2005 Share Posted September 21, 2005 (edited) Yeah I've had two solicitors cling on to funds weeks after. I think that the interest from house funds are a part of the business model of any conveyancing solicitor.<{POST_SNAPBACK}> We're allowed to keep it if it's less than £20. Any more than that & we have to account to the client for it. Edited September 21, 2005 by JST Quote Link to comment Share on other sites More sharing options...
dipstick Posted September 21, 2005 Author Share Posted September 21, 2005 I got my money back in full plus the interest. As I understand it the sol has to give you the amount and the interest rate they get for you. What I can't understand is if they are not financially benefitting from it then why not return it? I needed to prove to a potential seller that I had the funds to proceed with a purchase and couldn't do this because the sol had my money. I've just got to the stage where I think that money has so little value due to the credit/borrowing culture that it's significance has dwindled to nothing. People talk in thousands and hundreds of thousands as if it's nothing. They either earn it too easily or borrow it too readily. Maybe somebody who is feeling slightly more coherent than me can express it better, but I hear people talking about Chavs and sink estates yet I see no difference between them and the people who wear suits and deal in millions. If you have no respect for the people you deal with, no matter what your status, then how do you differentiate? Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted September 21, 2005 Share Posted September 21, 2005 (edited) What I can't understand is if they are not financially benefitting from it then why not return it?<{POST_SNAPBACK}> They probably only have to pay you the interbank offered rate and get to keep the spread. Btw, what are you doing buying houses at such a time? Edited September 21, 2005 by BuyingBear Quote Link to comment Share on other sites More sharing options...
JST Posted September 21, 2005 Share Posted September 21, 2005 People talk in thousands and hundreds of thousands as if it's nothing. They either earn it too easily or borrow it too readily. <{POST_SNAPBACK}> Agreed. People talk about hundreds of thousands as if it were nothing, when for the majority of the country, it's more than they could earn in a lifetime. There's nothing more galling than kirsty et al swanning around talking blithely about investing two or three hundred thousand in property. Some of those FTB's in the 'have it now' culture are persuaded to take out a 100% mortgage on a ridiculous income multiple often with an unsecured loan on top, whilst for the rest of us it seems to demean what we are working for. By the way Dipstick. I found this on the law society website. This is where your sister should apply if she has lost money through dishonesty:- http://www.lawsociety.org.uk/choosingandus...nsationfund.law Quote Link to comment Share on other sites More sharing options...
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