Solicitors Accounts 2

Question 1

When a solicitor acts as stakeholder in property deposit transaction

Answer 1

• deposit money cannot be handed over to either party without the consent of the other or until the property sale completes.
• the deposit money received by the seller’s solicitors is client money per rule 12.2(a) and (b). But it can’t be shown in the seller’s client order since it’s not yet theirs.
• put into separate client ledger called stakeholder and is only credited to the seller clients own client ledger on completing.

AT EXCHANGE OF CONTRACTS

• CR Client ledger: stakeholder
• DR client cash

ON COMPLETION

• DR client ledger: stakeholder
• CR client ledger: seller client

Question 2

When a solicitor acts as agent in property deposit transaction

Answer 2

Agent can hand the money over to the seller before completion.

Deposit belongs to client from exchange