How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Alice H Your Own Question
Alice H
Alice H, Solicitor/Partner
Category: Law
Satisfied Customers: 2850
Experience:  Partner in national law firm
Type Your Law Question Here...
Alice H is online now

My solicitor is to receive £42,000 as deposit house

Customer Question

My solicitor is to receive £42,000 as deposit for my house sale. He refuses to release any of this to me, although he will need only £26,500 as deposit my my purchase plus approx £6000 for his own fees,disbursements, and estate agent fees.
What is the legal position ?
Submitted: 2 years ago.
Category: Law
Expert:  Alice H replied 2 years ago.
My name is ***** ***** I will help you today. From whom did the solicitor receive the £42,000?
Customer: replied 2 years ago.
He is due to receive the deposit from my buyer
Expert:  Alice H replied 2 years ago.
You may well have a problem here. The usual process is that your solicitor will hold, on your behalf, the deposit paid by the buyer. Generally, the Law Society standard conditions of sale, which govern most contracts for the sale of residential property, say that the seller’s solicitor should not part with the deposit until completion.Thus your solicitor should retain the deposit paid by your buyer upon exchange of contracts in their client account and should not release the funds to you until completion takes place. However, there is an exception: the deposit can be used prior to completion if it is used as a deposit on a related purchase of a residential property and your buyer must agree to the deposit being released to you early. The reason the money is held in this manner is in case the transactions fall through. The buyer is then at risk of losing the deposit which you may have spent.
Expert:  Alice H replied 2 years ago.
Can I assist any further? If not please remember to rate my answer otherwise I am not paid for my time.