I have applied successfully for a loan.
One of the papers I have now to sign for the bank is the authority to pay the loan monies to someone.The form has on it, that the bank should pay the loan monies to my Solicitor or whoever the solicitor nominates.
As a pedantic so and so I am wondering whether I should cross out my Solicitors name and put the Vendors Name on the form instead, with the Vendor name that should go on the bank cheque.
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The bank can easily contact my solicitor and ask how to address the name on the Bank Cheque for settlement, but I don’t like the idea of signing payment over to the solicitor when it should be handed to the Vendor at settlement.what can I do without looking like an idiot.
Help please
Jules
JULES1
Email MeThis is funny. Another great advertisement for using a mortgage adviser / broker!!!
))You should send the money to your solicitor. If you put the vendors name on it and the amount is too much, you will have a nightmare getting it back. The solicitor will hold the money in trust on your behalf and only disburse what the vendor is entitled to. If you don’t trust your solicitor, why are you using them?
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksMaybe you should get legal advice… oh
Another problem with signing it over to the Vendor is if at the last minute the sale for one reason or another doesn’t go through. The money is now in the Vendor’s name, as requested by you.
Solicitors have a fiduciary duty to act in their client best interest. They will only be directing where the money is to be paid (i.e. to the vendor, State revenue office, surplus back in your account). If, for some reason, they direct the monies be paid to themselves they must deposit the money into a trust account (which solicitors must maintain). If they take your money and run you can claim on their Professional Indemnity insurance. The usual election is to select “as directed by my solicitorâ€.
Cheers
Stu
Thanks everyone.
I am staggered by some of the wordings on these bank forms. To The Mortgage Advisor – how would using a broker help me any?? I still have to sign these forms don’t I???JULES1
Email MeYes, but you would have had someone take care of all the issues you are facing without stressing yourself about standard forms. You might have also obtained a better deal.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential Links
))
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