Conveyancing Explained

I spoke recently to a client who previously used another solicitors’ firm. The solicitor held his deposit in relation to a commercial transaction for a period of three months. The deposit was 25k. The client didn’t know that he could have asked for the interest accrued on the money whilst it sat in the solicitor’s client account and the solicitor didn’t offer it to him.

If the solicitor holds your money in his client account, then he doesn’t always have to pay interest to you. In particular, there’s no requirement for him to do so if the sum is 20 pounds or less.

No interest is payable to you if the money held doesn’t exceed the following amounts and times set out below;-

1,000 pounds for less than 8 weeks.
2,000 pounds for less than 4 weeks.
10,000 pounds for less than two weeks.
20,000 pounds for less than one week.

If this guideline is exceeded, then you are entitled to ask for interest to be paid to you.

If more than 20,000 pounds is held for less than a week, then although the guidelines say generally that interest doesn’t have to be paid, this is only if it is fair and reasonable not to do so in the circumstances of the case. Discretion has to be exercised by the solicitor in the client’s favour however.