When will I receive funds if I am due these from my transaction(s)?
The answer to this question depends upon a number of factors. It is important to stress that it will rarely be on the actual day that the sale settles, and generally is likely to be a few days later (see below).
The two major factors affecting timescales are:
ONE: although we live in an electronic era, most settlements take place between solicitors using cheques . Although a cheque from a Scottish firm of solicitors is essentially unable to be bounced and guaranteed it still requires to formally clear. That means, although the receipt of the funds is certain, the actual time that our bank is credited with the funds, depends upon the normal clearing times for cheques. That means a wait of at least three working days.
TWO: there are a number of tasks that require to be dealt with upon the sale of the property, not least the redemption of the existing loan or loans over the property. As you would expect we have to make certain that there are robust systems in place to ensure that these important payments have been made.
The casual observer may think that the legal profession is dragging its feet in not using electronic transfers between solicitors to effect settlements. In fact that is not the reason as it would be far easier to use electronic transfers; unfortunately one of the repercussions of the credit crisis and an environment which is far more cautious than yesteryear is that to avoid "chains" between solicitors making settlements very difficult, it is commonplace for a cheque to be sent the day before settlement by the solicitor acting for the purchaser to the solicitor acting for the seller to be held as "undelivered" until everybody has their paperwork resolved.
From this point, there are two choices as to how your funds may be paid:
ONE: we can send you a cheque
TWO: we can send the funds by CHAPS which guarantees you receive funds on the same day as they are sent; the charge for this is £30 + VAT
A cheque from a solicitor is effectively iron-clad but it does mean you have additional time for funds to clear.