Solicitor completion Statement query

S

Shakespeare

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Hi
I've received a completion statement from my solicitor for the purchase of our house - finally!!
I've 2 quick questions please...
1. There's a Eur100 "holdback" on the list of charges - what is this?
2. Searches - Are these a variable cost? last year on the estimate of costs it was Eur100, now it's Eur200 I know in hard cash the difference isn't huge but it is 100% so I'm curious as to whether these are normally fixed?

Thanks for your help
Shakespeare
 
Thanks for the link Clubman but I still can't see any mention anywhere of a "holdback" just seems odd. Looks like I'll just have to query it directly.
I don't mean to seem overly cynical but sometimes it really feels like everyone has a little sting that maybe people wouldn't notice if they didn't examine all invoices closely.
What I also think is a bit sharp is the request for 2 bank drafts - which of course will cost me to get so that the Stamp duty and legal fees are on one (ie. will be sitting in Solicitor's account for a while no doubt) and the 2nd one for the balance between the total o/s payable for purchase over and above the mortgage amount which will have to go to vendor.
Crikes but they wouldn't even pay for their own bank draft!!!!
 
Holdback is unusual but makes sense - it can happen that e.g. Land Registry fees come in higher than anticipated.

I suppose solicitor could later ask for those increased fees but many clients take the view, sod it, its up to them to get it right and I'm not paying it - even if it is due by me.

"What I also think is a bit sharp is the request for 2 bank drafts - which of course will cost me to get so that the Stamp duty and legal fees are on one (ie. will be sitting in Solicitor's account for a while no doubt) and the 2nd one for the balance between the total o/s payable for purchase over and above the mortgage amount which will have to go to vendor."

I genuinely cannot see the issue here - some clients will act the maggot and pay over a cheque for fees and stamp duty which will bounce and means solicitor is chasing for both. That is not a bit funny - I will only accept a cheque from my very good clients. Otherwise I will require a bank draft. No messing, no chance of a mistake. And we must be in funds for outlay and stamp duty before we hand over a loan cheque.

And you do have to pay the balance of funds to the Vendor by way of Bank Draft - a cheque is not acceptable so why not have the client just get one?

I assume that you are closing in the very near future so its not as if anyone is making money on it.

mf
 
MF1
Thanks for your response but would the land registry fees not be sorted at this stage? I'm not claiming to know, merely to ask
Also, I have no issue with bank drafts per se vs cheques, it just seemed a bit much that they were insisting on having two of them. I have never been asked for such a split in the past. I thought I would pay (by draft) everything I owed and the solicitor divvied it up between the parties.
When does the stamp duty get paid? Does it have to be immediate?
I'm not trying to insult any professions, to reiterate I'm merely looking for an understanding of the practices which I believe many would be interested in as there are perceptions of banks/solicitors etc holding onto "other people's money" and earning interest on same. If this is not the case then it would be good to clarify. For eg. we paid our deposit of over Eur70k 6mths ago which has been earning interest since and who gets that money? I personally would have thought that prior to closing, the interest on that money should still accrue to me??
I was pretty sharply put down on that theory when I raised it with our solicitor but I still think it's unjust.
Shakespeare
 
Land Registry fees- no, its not ( entirely)set in stone , particularly if this is a new build -Land Registry assess at time of lodging dealing.

When does the stamp duty get paid? Does it have to be immediate?
Stamp duty is due by you to Revenue within 30 days of the Deed. BUT if you are getting a mortgage, it is a condition of the Solicitor releasing the Mortgage Cheque to your Vendor that he is in funds for all outlays. In advance.

If I have a cash client, I advise them on their Stamp Duty obligations, confirm that I cannot register the transaction without the Deed being stamped and advise that penalties and interest will arise in due course.

If you paid a deposit on a purchase then your solicitor is not holding it - your vendor's solicitor is and it is nothing to do with you or your own solicitor. However, if you are selling and someone has paid a deposit to your solicitor which has earned or could have earned interest, then yes, your own solicitor should account to you for it.

mf
 
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