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Delay in receiving sale proceeds


Wolfhound
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HI all

We've sold numerous properties in England but this is the first time we have sold in NI, so maybe the process is different.

We completed on the sale of our investment property today.  Our solicitor said the sale had completed and we could release the keys, as no estate agent was involved.  When we asked when the funds would arrive to our surprise he said that the purchaser's solicitors provided a cheque and that we would have to wait 6 days for it to clear.  he also said he had mentioned this to us, which he hadn't.

So two questions:

1.  Is this normal in NI (i.e. Not to wire the funds); and

2.  If the cheque takes 6 days to clear why did he say it was OK to release the keys?

Many thanks.

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It is quite frustrating. As a housing developer we insist that completion takes place by Electronic Transfer however many purchasing Solicitors insist on cheque. We on the other hand have had to pay suppliers and often the bank for the site payments whilst not in receipt of funds.

I believe half of the Solicitors in NI are just too old school and don't know how to do it. this may appear hard to believe but many of them will not accept legal packs via dropbox and share point and insist we copy and post sometimes boxes of documents.

In any event the Law Society guarantees Solicitors cheques and undertakings so you can be quite happy that this will all clear.

Welcome to Northern Ireland.

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43 minutes ago, BelfastVI said:

It is quite frustrating. As a housing developer we insist that completion takes place by Electronic Transfer however many purchasing Solicitors insist on cheque. We on the other hand have had to pay suppliers and often the bank for the site payments whilst not in receipt of funds.

I believe half of the Solicitors in NI are just too old school and don't know how to do it. this may appear hard to believe but many of them will not accept legal packs via dropbox and share point and insist we copy and post sometimes boxes of documents.

In any event the Law Society guarantees Solicitors cheques and undertakings so you can be quite happy that this will all clear.

Welcome to Northern Ireland.

Standard practice in Scotland believe it or not.

There's an element of the law having to catch up with tech rather than solicitors having to catch up.

 

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On 10/28/2016 at 10:57 AM, BelfastVI said:

It is quite frustrating. As a housing developer we insist that completion takes place by Electronic Transfer however many purchasing Solicitors insist on cheque. We on the other hand have had to pay suppliers and often the bank for the site payments whilst not in receipt of funds.

I believe half of the Solicitors in NI are just too old school and don't know how to do it. this may appear hard to believe but many of them will not accept legal packs via dropbox and share point and insist we copy and post sometimes boxes of documents.

In any event the Law Society guarantees Solicitors cheques and undertakings so you can be quite happy that this will all clear.

Welcome to Northern Ireland.

Provision within the standard Law Society sale contract allows for payment to take place by cheque or electronic transfer.We have instructed our solicitor to amend the contract to allow for payment by electronic transfer only.They are also instructed to receive confirmation from the purchases solicitor that this is acceptable from the outset.This removes the excuses later that the mortgage provider can only make payment by cheque and therefore we have to accept a cheque or delay completion.

We also suggest that our solicitor requests to be placed in funds the day prior to the date of completion giving the required undertakings.This means that on the day of completion the purchasers aren't waiting until late in the afternoon to receive confirmation that the money has arrived with our solicitor.

Nothing as annoying as a removal van parked on site from lunchtime waiting for confirmation that the funds have made it out of the bank clearing system.

We insist that the solicitor transfers the sales proceeds to us on the same day as completion.

I dont' share opinion that the Law Society guarantees the solicitors cheques.The Law Society will cover the cost of professional negligence but not fraud.

People are all to ready to except what they are told by their solicitor.Always remember that you are paying their fees. 

 

   

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On 29 October 2016 at 10:16 PM, ABC 123 said:

Provision within the standard Law Society sale contract allows for payment to take place by cheque or electronic transfer.We have instructed our solicitor to amend the contract to allow for payment by electronic transfer only.They are also instructed to receive confirmation from the purchases solicitor that this is acceptable from the outset.This removes the excuses later that the mortgage provider can only make payment by cheque and therefore we have to accept a cheque or delay completion.

We also suggest that our solicitor requests to be placed in funds the day prior to the date of completion giving the required undertakings.This means that on the day of completion the purchasers aren't waiting until late in the afternoon to receive confirmation that the money has arrived with our solicitor.

Nothing as annoying as a removal van parked on site from lunchtime waiting for confirmation that the funds have made it out of the bank clearing system.

We insist that the solicitor transfers the sales proceeds to us on the same day as completion.

I dont' share opinion that the Law Society guarantees the solicitors cheques.The Law Society will cover the cost of professional negligence but not fraud.

People are all to ready to except what they are told by their solicitor.Always remember that you are paying their fees. 

 

   

Would you keep us all posted if this pans out as you've planned.

Hope for your sake it does.

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3 hours ago, talksalot81 said:

First time that I have sold a house and we just completed - done by cheque so waiting on funds and apparently this is normal.

Some of the conveyancing scams doing the rounds will be factor in this. Why risk sending a chaps payment or waste time double checking the details when you can post a payee only cheque. 

I get that it's an inconvenience but I understand why most smaller practices do it. 

 

 

 

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