Hello,
Settlement date on our property is early September and I am concerned I wont be able to line up all the bank cheques for our solicitor in adequet time as all our money is deposited with ING and I am worried about bank cheques disappearing in the mail.
Were using a different lender for the loan than ING.
Someone suggested to put the money into the solicitors trust account and they can drawer cheques as needed against those funds.
I would be depositing a six figure sum to the solicitors trust account as they would be effectively handing over my contribution over and above the deposit we paid when exchanging contracts, stamp duty payments, there fees etc.
I have not checked with our solicitor yet but is that the done practice or is there an easier way with ING?
Thanks in advance.
Buying a house and settlement date approaching
Last edited 07/08/2015 - 19:32
Comments
does your lender offer a savings a/c?. Most do..& most lenders will allow you to authorize them to debit funds from your savings a/c with them(but from cleared deposit only) to make funds available to your solicitor along with your loan monies to draw whatever cheques they required to complete settlement(so you don't need to arrange any bank chques yourself).
Only catch is some lenders charge crazy cheque fees for any additional bank cheques over their free limit which might be 0 or 1 or maybe more depending who you go with.
also it might be obvious to most, but personal cheques will not be accepted at settlement.We just settled on our property and transferred the sum to our solicitors trust account. They drew the bank cheques etc and refunded excess monies at settlement back to us via cheque. Its much easier this way, and they notified us to make sure transfer was done at least 4 days prior to settlement
EDIT: You're paying the solicitors, so why not make them work for their fee. We transferred the funds to their account mainly because we didn't want to wait in line at the bank to purchase the bank cheques and drive to the city to drop them off to the solicitor etc… Just makes life less stressful as we had to do a pre-settlement inspection that morning before settlement
Thanks all and Kasumi that was exactly what i was hoping for. I will speak to the solicitor Monday.
Not sure how much your cash sum for settlement is, but with current interest (3.5% at ING) rates every $100,000 gives you about $10 per day in interest. So transferring the sum 4 days prior you will miss out on $40 for every $100,000. I suppose you pay for convenience…
But if you miss settlement, the pain and stress is not going to be alleviated knowing you got $40 interest. Pick your battle - I'd personally forgo the interest knowing that the solicitor was on the hook to do all of it for me and as Kasumi said - make them work for the fee.
Yes but if
$100,000=$40
$200,000=$80
$300,000=$120
And on that sort of money it is very likely you can get free bank cheques from your bank (just talk to them and negotiate it beforehand)…after all the bank will make the interest from the day you get the bank cheque until the seller puts it in and it clears…
For our land settlement, we paid the solicitor. They went, paid and settled the land, kept their fees, refunded me any left over.
Don't you just inform the bank of the solicitors details and they sort it out between them? That's what you've paid them to do.
we used ING for our last 2 house purchases
no issues whatsoever, so long as you give them enough notice