What's stopping your solicitor from taking your money

[marg4000]

what insurance are you referring? landlord insurance or mortgage insurance?

I am referring to the fidelity fund. Not sure if it is Govt or Law Society. I believe all solicitors pay into it to cover misconduct.
Marg

 

[RPI]

Don't worry too much as there are reimbursemnt schemes where money has been stolen from trust accounts. I don't know how it works but if a agent or solicitor etc took your money from a trust account you would likely be reimbursed.

When paying agents make sure it is to their trust account!

We all pay into a fidelity fund in QLD to cover this.

If we have a deficiency in our trust account we have 24 hours to make it up from our own pockets or we can pretty much kiss our practising certificates goodbye.

 

[Terry_w]

We all pay into a fidelity fund in QLD to cover this.

If we have a deficiency in our trust account we have 24 hours to make it up from our own pockets or we can pretty much kiss our practising certificates goodbye.

Yes, I pay something every year for this too - about $100 from memory.

And, that is why I do not run a trust account. Too many compliance issues and one little mistake and your are a gonna.

 

[Aaron_C]

And, that is why I do not run a trust account. Too many compliance issues and one little mistake and your are a gonna.

So is it common for solicitors in NSW not to have a trust account? I've encountered this many times even though in Victoria pretty much every solicitor has one.

 

[Terry_w]

So is it common for solicitors in NSW not to have a trust account? I've encountered this many times even though in Victoria pretty much every solicitor has one.

I am not sure. Not common for the small firms/sole traders who don't do much conveyancing matters I guess. I only do estate planning type law where the fees aren't very high so no need to get the money upfront. larger litigation type matters you would want the money upfront so you know you will get paid. Conveyancing can be done without a trust account but it is easier with one.

 

[thatbum]

In WA pretty much every solicitor has one.

I suspect it has more to do with the supply/demand for legal services and whether lawyers can get away with demanding money upfront for services. (Lawyer shortage in WA)