Solicitor under voluntary administration

Currently buying a PPOR (in rural Qld). Offer via Contract submitted today, now awaiting the vendors response. Discovered by sheer chance today that the rural Solicitor (a Pty Ltd company) I've nominated to act for me in the purchase (ie. Buyer's solicitor - will do the conveyancing, and has already provided me some legal advice on special conditions) is in voluntary administration - has been so for about 2 weeks. As I currently reside far from the town I'm buying in, I used the solicitor suggested to me by the Real Estate Agent.

How risky might it be using an 'Adminstrators Appointed' solicitor firm for my purchase?

My perception is that a majority of administration schemes fail, with the company eventually being wound up. My concerns are thus (i) whether they'll be operating, and properly pursuing my interests in the purchase, over the next month or so (proposed settlement in mid Nov.)? and (ii) is it wise to eventually be placing the very large purchase price sum in this solicitors trust account while they are in administration?

I raised this with the solicitor directly, and got a brief, terse response: along the lines of 'Directors are dealing with this issue. They hope to have the administrators step aside in the next 4 weeks or so. In the meantime, the firm is operating normally. They believe there is no issue or risk for me. If any problem arises, we'll let you know.'

Any thoughts/experiences on whether I should continue using this solicitor for my purchase in that situation?

 

The risk is that the administrator will return the file and cease to act for you. A new solicitor may be appointed to take over the files, but you should probably move on to another solicitor asap.

Why were they appointed?

 

I was told because of unpaid debts by the Solicitor firm to the Australian Taxation Office. The ATO had sought a winding up order, but the Solicitors went into Vol. Admin. to stave that off.

 

They are probably operating as per normal under licence from the Administrator. I would move on rather than risk the potential hassle that could come.

 

The law society would have appointed n administrator. I suspect few issues

 

It might not be an issue but agree probably not worth the risk.

Happy to help and we will credit whatever you have already spent against our fees.