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Upon exchange of contracts a deposit of £ninety six,000 was paid on phrases, considerably unusually, that it's held by the vendor's solicitors as brokers for the vendor (reasonably than the normal place the place it is held by the seller's solicitors as stakeholder and can't cross to the vendor without the client's consent). The Solicitors Regulation Authority intervened and the 2 principals of the agency have been struck off for fraudulent misuse of consumer money.
The Court docket discovered that the Defendant was not in breach of obligation: the Handbook directed that a solicitor ought to warn his client of the risks related to paying a deposit on the idea that the seller's solicitors acted as agent for the vendor and this was adhered to by the Defendant. As well as it was not extraordinary conveyancing practice (nor urged by the Handbook) for a chapter search to be carried out.
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