Some Solicitors keep client’s monies in an interest bearing client account, some don’t.Hi,
So we sold our house back in May. The money - 118k euro from the sale went into our solicitors "holding account" and has been there ever since (over six months). We have been waiting on a certificate of no audit from the revenue before funds could be released as we live in Australia. Finally yesterday we got the certificate and our solicitor when asked has transferred the funds into our bank account. I asked what happens to the interest that has been earned over the past six months and was simply told there isn't any. Our solicitor doesn't particularly like us nor us them. The reply was as short as possible and just didn't seem right... in short I don't trust them as far as I could throw them.
I have read the posts above and as with everything legal or otherwise in Ireland it seems to be as difficult as it possibly can be with no simple answer.
Does this seem legit? I am happy to leave it as is but don't want to be screwed over by solicitors .
Thanks in advance
Colm
I spoke with a Solicitor yesterday and what’s looming on the horizon is negative interest rates i.e. banks actually charging customers interest for depositing funds.
So be careful in drawing down mortgages early.
Your bank will charge you interest on lending it to you.
At any one time, a small solicitor’s practice which engages in conveyancing can hold several millions of euro at any one time in the client account. If the banks start charging solicitors for holding these funds, these costs will ultimately end up being passed on to the client in some shape or form by increased fees.They are charging a solicitor with €1m in their client account a fee for holding that money.
Brendan
Which is fair enough but when they are getting interest on the money in their client account do they pass it on to their clients?At any one time, a small solicitor’s practice which engages in conveyancing can hold several millions of euro at any one time in the client account. If the banks start charging solicitors for holding these funds, these costs will ultimately end up being passed on to the client in some shape or form by increased fees.
See my post a few post up.Which is fair enough but when they are getting interest on the money in their client account do they pass it on to their clients?
Okay, so when my former solicitor held over €100,000 of my for months, back in the day of decent interest rates, he should have paid me the interest that accrued?See my post a few post up.
AFAIK, if (1) the Solicitor held the monies in an interest bearing client account and (2) the amount of the interest, if any, exceeded whatever monetary threshold was in place (€100 in 2004) then yes.Okay, so when my former solicitor held over €100,000 of my for months, back in the day of decent interest rates, he should have paid me the interest that accrued?
He should have paid you what the money would have earned on demand deposit--- which would be not much, but at 0.5% it would have been €250 if he had your money for 6 months. So probably yes. Something.Okay, so when my former solicitor held over €100,000 of my for months, back in the day of decent interest rates, he should have paid me the interest that accrued?
I'm sure that's covered in the fees and charges that the client pays.Incidentally, maintaining a client account is a significant admin overhead. Most small firms have a bookkeeper in every day (for maybe 3-5 hours). Without a client account, once or twice a month would be enough. Even when the client account generated interest, it is a long long time ago since the interest covered the associated bookkeeping overhead.
Yes, it is an overhead that has to be taken into account in setting fees. But when the interest covered this particular overhead, it meant that the clients whose transactions caused the overhead (mainly property and probate) also indirectly footed the bill. Nowadays all clients pay (indirectly) toward this overhead, even though only some of them cause it. I preferred the justice of the previous arrangement.I'm sure that's covered in the fees and charges that the client pays.
In my case the solicitor was instructed in writing to clear a loan with the money but failed to do so for 8 months, until I got a Statement from the bank. Mind you it's also the same guy who couldn't close a sale because his wife had had a baby. I asked his secretary if he was aware that his wife was pregnant and that the gestation period for humans was around 9 months. She said he was so I asked what steps he had taken to ensure his business functioned while he was out. There was no satisfactory answer.Yes, it is an overhead that has to be taken into account in setting fees. But when the interest covered this particular overhead, it mean that the clients whose transactions caused the overhead (mainly property and probate) also indirectly footed the bill. Nowadays all clients pay (indirectly) toward this overhead, even though only some of them cause it. I preferred the justice of the previous arrangement.
Sounds like getting interest on your funds was the least of your problems with this guy.... I hope you got meaningful redress and apologies eventually.In my case the solicitor was instructed in writing to clear a lone with the money but failed to do so for 8 months, until I got a Statement from the bank. Mind you it's also the same guy who couldn't close a sale because his wife had had a baby. I asked his secretary if he was aware that his wife was pregnant and that the gestation period for humans was around 9 months. She said he was so I asked what steps he had taken to ensure his business functioned while he was out. There was no satisfactory answer.
Nope, not a squeak out of him.Sounds like getting interest on your funds was the least of your problems with this guy.... I hope you got meaningful redress and apologies eventually.
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