Interest on deposit

[32KX]

What is the situation regarding the interest on a deposit that is held by a solicitor. A deposit was held by our solicitor for 12 months while the deal proceeded and if this was held in a high interest account (Rabo or NR) then the interest would have ben considerable
Is the vendor entitled to any of this interest?

 

[Lobby]

No, neither the purchaser or the vendor is legally entitled to this interest. The depoist is held by a solicitor as an "agent" or "stakeholder" and the solicitor retains the deposit.

 

[Lobby]

Oops, that last bit should have said that the solicitor retains the interest.

 

[MOB]

I think this is not correct. (Although I am a practising solicitor, I do not handle my firm's accounts, which is why I would not be an authority on this). As best I recall, a solicitor must account to his client for interest once it goes beyond a certain figure (maybe €100 - I can't remember).

However, the interest is at the demand deposit rates appropriate to the individual sum of money (as the money is and must be available on demand) so if the solicitor has negotiated a better rate with the bank (as he\she has lots of such sums on deposit) the surplus belongs to the solicitor.