COMPLETION DATE CHANGED

[geek84]

Hi Folks

I bought a property recently. However, the seller changed the completion date a few times.

I had sent all the funds to my solicitor a few weeks before exchange and completion, according to the original exchange and completion dates.

Am I entitled to any interest earned on the funds which were held by my solicitor for those few weeks?

Thanks in advance

There is no requirement to send the funds a few weeks ahead of exchange of contract. A week would have been sufficient, maybe less.

Until you Exchange, there is no certainty about the completion date. Therefore, I highly doubt you have a case, sadly.

I mean the obvious answer is to ask your solicitor?

I'm sure there's something in the solicitor terms of business that your sign at the start about interest so maybe check the contract.

But I agree, it's unusual to send the funds sooner than exchange, for that very reason....

The completion date is never certain until you exchange. Solicitors do pay interest but it’s absolutely tiny and there willl probably be some minimum interest condition

Not a chance you are entitled to anything. Until you have actually exchanged, anyone is free to change the dates or pull out completely with no legal consequences.

Yes. My solicitor paid me interest when there was a delay. I think there's something in the contract t about this so have a look (or the solicitors t&cs).

If the interest that accrues is over a certain amount then the solicitor accounts to you for any interest earned whilst in their client account. Ask them.

Also why have you sent it before being asked for it.

There are two types of interest;

i. Interest earned on your money sitting in the solicitor’s account whilst you wait for exchange or completion. Solicitor is only required to account to you for a ‘reasonable’ amount of interest, so almost guaranteed you won’t earn anything from that. Most firms only pay interest if it’s accrued over a certain amount they consider ‘reasonable’ e.g £20

ii. If you have exchanged and completion date is fixed and the seller doesn’t complete on the fixed date then you are entitled to interest on the deposit you have paid, calculated at a daily rate. The interest rate will be in your contract and is usually 4% above a nominated bank’s rate. This doesn’t sound like your scenario though, it sounds like you’re waiting to exchange, so scenario i. applies and doubt you get any interest.

Hi Folks

Many thanks for your responses.

Exchange and completion happened on the same day.

Ask your solicitor if their client account (where your funds have been sat) pays interest. If so, ask for your share.

I work in a totally different area of law but we return any interest accrued on client money.

Then it’s up to the individual policy of your law firm whether they need to account to you for any reasonable interest. So check direct with them as no one on here will know their policy.