Cleared Funds - Selling House

Hi, I *should* be competing contracts on the sale of my property this friday. I will be moving into rented accomadation with my partner the same day. As expected, I will need to pay bond money+1st months rent (total £1700) to the letting company. I am due around £14K from the sale of my property, which I've asked my solicitor to deposit in my HSBC current account (I'll wizz the bulk across to a savings account for a few days)

My question is: Once I get a call from my solcitor saying that she has transfered funds, will I be able to draw on them? Ideally, I'll be waiting for her to call, then will nip into the town and withdraw £1700 for the letting agency.

Has anyone else done this? What do I need to tell my solcitor to ensure that I can draw on the funds once they have been transfered? If I am unable to draw on the funds, I will have a van full of my kit, and no-where to sleep!

Any thoughts welcome! Jason

Reply to
Jason
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Eric

Reply to
Eric Jones

Bitstring , from the wonderful person Jason said

If your buyer transfers the funds by Telegraphic Transfer/CHAPS (which is normally the case, at least IME) then it should get there 'almost instantly'. However things do go wrong. I also wonder about the wisdom of handing over (or indeed driving around with) £1700 in cash (which appears to be your idea). Won't the letting agency take a cheque?? That'd give you 2-3 days leeway in case something screws up.

If the funds are transferred by BACS or similar expect a 3 day delay before the money shows up. Working days.

Reply to
GSV Three Minds in a Can

Ask them to send it by CHAPS transfer. It will cost you about £25 to do this.

Reply to
Jonathan Bryce

Not usually. They will generally accept cash or a bankers draft.

Reply to
Jonathan Bryce

Thanks all for your quick replies, Its looks like CHAPS is the way to go... although from reading online, it does not guarrantee a specific time :-/ I'll speak to my solicitor tomorrow and make sure she fully understands the situation, and try to create a "plan b"...

I'm not too concerned about walking around with a sum of cash - the only "exposure" is from the bank to where I park my motorbike. I'm more worried about what to do with my stuff which is sitting in the Van, if I can't move in because of transfer delays!

Thanks again! Jason

Reply to
Jason

In message , Jason writes

Be aware that CHAPS isnt instantaneous, it SHOULD get there the same day but some solicitors arent on line to their banks and leave it late meaning your bank might not get it till quite late or even miss the cut off.

Suggest you speak to your solicitor and your bank in advance. Get a name and a contact number for somebody at the bank whom you can ring to check if the dosh has arrived. Be sure to make it clear that you are awaiting a CHAPS payment, dont just ask for a 'balance' as it wont show in that until later.

Reply to
john boyle

Thanks John, I will have to pop into the bank anyway, as I need to withdraw my money

- I'm also with HSBC so have to put up with their *&*## call centre :-(

I'll get on the case tomorrow. When I've mentioned this to my solicitor the other week, she was a bit confusing and offhand and I don't remember the outcome- other than she just agreed with me. I'll find out what she's going to do to ensure it goes smoothly.

Jason

Reply to
Jason

In message , Jason writes

Good Luck! I'm sure it will all OK on the day.

Reply to
john boyle

In message , GSV Three Minds in a Can writes

We won't hand over keys for a rental until the cheque has 'cleared' (without getting into the arguments over what 'cleared' means for a cheque!)

Could you get the solicitor to TT it through to the lettings agent? After all, in the normal chain of events he would be punting the money straight through to another solicitor for a related purchase.

Reply to
me

Bitstring , from the wonderful person " snipped-for-privacy@privacy.net" said

Pretty tacky, since you've presumably taken up credit references ahead of time, and have a handle on the person's employer, and know where they intend to live (grin). If you can't trust their cheque not to bounce you really shouldn't be handing them house keys, even if they gave you a wad of ££ notes, IMO.

8>.
Reply to
GSV Three Minds in a Can

Anyone can pass a credit check and give references, cash speaks louder than a print off from their printer.

Knowing where they live is irrelvent, what you going to do, CCJ them ? big deal.

ANy landlord who handed over the keys without taking a cash deposit(cleared cheque) is stupid stupid stupid.

Reply to
Peter King

Its only 1700, it fits in your wallet, I carry more than that arround regularly and as long as 'Mr Mugger' doesn't know then there is no risk at all.

Reply to
Peter King

"Peter King" wrote

How do you take payment for subsequent month's rent? How would you deal with a tenant who paid 1st month's rent + deposit in cash, just to get the keys, then never paid another penny?

Reply to
Tim

Cash, cheque, standing order, just like any other tenant what is your point?

You would evict em, you seem to be missing my point.

If the tenant gives cash for the deposit for a months rent and a month in advance you have some cash.

If you let him give you a cheque for a months rent and deposit and let him move in before it clears you have nothing if it doesn't clear, and then you have to evict him.

Reply to
Peter King

"Peter King" wrote

The point is, any of the subsequent month's rent might not clear!

"Peter King" wrote

You seem to be missing my point - if the tenant wanted several month's rent-free living, then they can simply pay the deposit & 1st month then stop paying. It'll be several months before you can legally remove them via eviction!

"Peter King" wrote

But then they pay for month 2 by cheque, which doesn't clear, and you don't start proceedings to evict them until a month *after* the time you would have done, if the 1st month's cheque hadn't cleared.

"Peter King" wrote

In this case, you start proceedings when the cheque doesn't clear in month

  1. A whole month *before* the start of proceedings in the case above.

In the end, the number of month's rent-free living obtained (between giving a bouncing cheque & final eviction) will be the same under both scenarios - it's simply determined by the legal process.

Reply to
Tim

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