Transferring money into lawyer's trust account for settlement

Discussion in 'The Buying & Selling Process' started by TonTon903, 29th Nov, 2019.

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  1. TonTon903

    TonTon903 Active Member

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    Hi all,

    I am going to purchase a property in Sydney and the settlement is next week. I have the necessary fund in my personal bank account and need to transfer it to the lawyer's trust fund account. My question is:

    Should I bank transfer the amount at a branch ( I am with Commonwealth Bank) or should I write a cheque to my lawyer?

    My main concern is that with a bank transfer, the receptionist of the lawyer office can just give me her personal account or something...

    Thank you for your help
     
  2. Terry_w

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

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    If worried go into the branch and ask the teller to confirm the account number is correct.
     
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  3. TonTon903

    TonTon903 Active Member

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    Thanks for that. So the bank teller can confirm if it is a trust account ?
     
  4. Terry_w

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

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    I am not sure, but they should be able to confirm that the name is correct.
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    To be totally sure, don't rely on an email from your solicitor (it may have been phised), ring and confirm the account details.
     
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  6. Marg4000

    Marg4000 Well-Known Member

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    For that amount of money, I would write a cheque, go to a branch of the bank the lawyer uses, and deposit it. The lawyer’s bank teller will check that the account name is correct as it has to match the cheque.

    Clumsy, old fashioned, but 100% secure and traceable for a high amount of money.
     
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  7. Trainee

    Trainee Well-Known Member

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    But if settlement is next week, how long before the cheque clears?
     
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  8. The Gambler

    The Gambler Well-Known Member

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    Won’t the CommBank handle the transfer?
    On 2nd thought... I guess that’s only if you get the loan through the commbank.

    def make sure of the details in person if possible. How did you get this lawyer/solicitor? Surely not off gumtree!!! Haha ... I’m guessing the lender recommended? Or REA?
     
  9. Terry_w

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

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    another option is to open an account at the same lender you are borrowing from and let them take the funds at settlement from there.
     
  10. TonTon903

    TonTon903 Active Member

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    I am using my own money so the bank will not be able to attend settlement on my behalf. I got the lawyer from a relative who has used him in the past. I also went to his office and everything seems legitimate so far.
     
  11. Terry_w

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

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    It may not be a good idea to buy a property with cash, even a main residence. Might be too late now though.
     
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  12. TonTon903

    TonTon903 Active Member

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    I did try to apply for loans but got knocked back as I have maxed out my borrowing capacity in 2017... I recently sold a property and try to borrow some more but apparently lending practices have "tightened" a lot since I last borrowed...
     
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  13. Terry_w

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

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    You would have had over options such as
    a) substitution of security on the one sold, and debt recycling the loan and/or
    b) related party loan
     
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  14. GreenTea

    GreenTea Member

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    May I ask, why ?
     
  15. Brady

    Brady Well-Known Member

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    Don't believe they would, reckon breach of privacy.
    They would likely be able to confirm the account number you provided matches the account number they have entered in.
     
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  16. Trainee

    Trainee Well-Known Member

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    flexibility, tax deductibility. A couple of possible scenarios.

    You lose your job and need money. A fully owned ppor doesnt help you and you cant borrow without income.

    you move ppor due to family, work etc. no deductible debt.
     
  17. Terry_w

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

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    Plus you can loan and debt recycle to get owner occupied rates on investment debt
     
  18. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Banks cannot confirm account names. "Privacy"...And if its another bank its impossible. Its how many super frauds were committed. Now a new more robust fund to fund process occurs...But a super withdrawal is still popssible under the new code. But funds are meant to validate the receiving account identity. Many ask for a bank statement and drivers license etc for absolute security. The whole EFT system works on numbers. Its like cheques - NOBODY ever reviewed who signed them you know.

    You may be wise to carefully confirm ETF details or provide a bank cheque several days earlier. Bank cheques are also not subject to daily limits etc when drawn at a branch. OSKO can be more useful BUT it relies on care. Get one digit wrong it will either reject or go to the wrong party or a third party. :eek:..In real time. Then you are at the mercy of the banking e-payments code of practice.....

    ePayments Code | ASIC - Australian Securities and Investments Commission
     
  19. Trainee

    Trainee Well-Known Member

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    If really paranoid, transfer a small odd amount in, call the lawyer separately to confirm theyve received it, then transfer the rest.
     
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  20. larrylarry

    larrylarry Well-Known Member

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    1. Ask lawyer to confirm in writing the ETF account numbers for trust account.
    2. Telephone the lawyer to confirm the ETF account number, not the receptionist.
    3. Go to bank and transfer funds using the ETF account number.
    4. Check with lawyer if he receives it.

    OR

    1. pay for a bank cheque
    2. deposit the bank cheque
    (depends on how quick it clears and how soon you need the funds in trust account)
     
    Terry_w likes this.

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