Deposit settlement fund in Solicitor's trust account?

Discussion in 'Legal Issues' started by flosed, 23rd Mar, 2020.

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  1. flosed

    flosed Well-Known Member

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    Solicitor asked to deposit settlement fund into his trust account. I remember it was direct debited from my bank account in previous transactions.

    But solicitor said PEXA ePlatform will require all fund pre deposited to his trust account.

    As this is new to me. Could anyone please confirm that's the case. Sound like a little bit risky.

    Thanks !
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    You can deposit it into the trust account or let the bank take it from your accountant at settlement, depending on a few things.
     
  3. maybellz

    maybellz Member

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    Solicitor's trust account sounds pretty normal to me
     
  4. flosed

    flosed Well-Known Member

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    Thanks @Terry_w .

    When using trust account, how could customer protect himself? You know what if the solicitor get my money and run away.
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    These accounts are guaranteed.
     
  6. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

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    Not all banks have “electronic shortfall withdraw” capability, especially the second tier banks. If that’s the case, the only way PEXA can accept the shortfall amount is via a verified solicitor trust account.
     
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  7. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    BEWARE. There have been email scams where people who have accessed your email can wait for such an event. The old Microsoft Antivirus scam is often a culrit. They delete the real email from your solicitor and then then send FAKE details to you posing as your solicitor. Before sending ANY $$$ always phone the soliictors office and reconfirm their bank details. I recall one where the scammers even noted that the buyer was cautious and transsferred $1 as a test. So they actually put that in the solictors account. Then when the second sum went across they kept it.

    Dani Venn from Masterchef had a well publicised case
     
  8. FatElephant

    FatElephant Well-Known Member

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    I was given that option as well but I think reading the documents from my conveyancer, they charge me a $150 admin fee for using their trust account. Also PEXA settlement costs $114.07 compared to $85 for a paper settlement and with PEXA you are required to have your ID checked via VOI which costs another $59. Not sure if that is just my conveyancer's rules or if it applies to all PEXA settlements. But hence I didn't opt for this option.
     
  9. Perthguy

    Perthguy Well-Known Member

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    My last purchase was through depositing settlement funds in my conveyancers trust account. Trust account funds are treated very seriously.