6. Payment terms
a) We may at any stage ask you to pay us money in advance on account of our fees,
expenses and VAT. Requests for money on account usually relate to the next stage of the
work that we are doing for you and bear no relation to the likely overall costs of the
matter, an estimate of which we will have given you separately. Money paid to us on
account will be held in our client account in accordance with the SRA Accounts Rules.
b) We may have to pay various expenses to third parties on your behalf, for example court
fees, barristers’ or experts’ fees, Land Registry fees and taxes. We will
normally ask you to let us have funds in advance to cover payments that we have to make
to third parties. If you are paying us by cheque, we must have it at least 7 working
days in advance as the SRA Accounts Rules do not permit us to pay out against uncleared
funds. We have no obligation to make such payments unless you have provided us with
cleared funds for that purpose, and we will not be liable to you for any penalties or
other loss caused by your failure to make a requested payment in time. Occasionally we
may agree to pay an expense from our own funds on your behalf, in which event we may ask
you to reimburse us at any time.
c) It is a condition of our accepting instructions that we have the right to send you
regular interim bills as the matter progresses. Any Interim bill we send you is a
self-contained invoice for the work done during the period it covers. We will send a
final bill at the end of your matter which will cover work from the date of the last
interim bill. Where this applies, we will discuss the frequency of billing with you
before we start work.
d) If you fail to meet a request for money to pay expenses and/or on account within a
reasonable time, or to pay an interim bill within 14 days of delivery, we are entitled
to stop work until payment is received or until you or we decide to end our instructions
as provided for above.
e) Our invoices are payable 14 days from the date of sending.
f) In property transactions:
i) we will normally send you our bill, together with a completion statement, following
exchange of contracts. Payment of our fees, expenses (including Stamp Duty Land Tax and
Land Registry fees) and VAT is required for purchases before completion and for sales on
ii) we must have cleared funds to complete the transaction and, if the funds required to
complete do not arrive into our client account in time to clear by close of business on
the working day before completion, your completion may be at risk.
iii) if sufficient funds are available on completion and we have sent you a bill, we will
deduct our charges and expenses from those funds.
iv) we can only accept money from legitimate sources that we have verified. If you
arrange for us to receive money from people or sources that we have not verified, this
may cause delay and/or additional expense and, if we are unable to verify them
satisfactorily, we may not be able to use it; we will not be responsible for any delay,
expense or losses arising as a result.
v) if you are using mortgage funds to purchase a property, we will ask the lender to
arrange for us to receive cleared funds the day before completion. Depending on the
lender, this may involve providing us with a cheque four working days before completion
or an electronic transfer of funds the day before completion. You should be aware that
the lender might start charging you interest from the date of issue of their loan cheque
or the date of the electronic transfer.
g) In all other matters, if we are holding money in our client account we may, in our
discretion, transfer sufficient funds to cover any interim or final bill, expenses and
VAT instead of or as well as asking you for payment. We will tell you if we intend to do
h) You are primarily responsible for paying our bills irrespective of any right that you
may have to claim them from a third party by way of an indemnity. If a court orders your
opponent in litigation to pay or contribute towards your costs you will have to pay them
to us first and then take steps to recover them from your opponent. In that event, you
can claim interest from your opponent on those costs from the date of the court order;
you will be entitled to the interest on such of our costs as you have already paid on
account and we will be entitled to the interest on the rest of our costs that you have
i) If a bill is not paid within one month of delivery we may, at our discretion, do all
or any of the following:
i) cease work until such time as all our charges are fully paid and up-to-date
ii) raise a further invoice for any work done since the date of the last invoice
iii) terminate our contract with you with immediate effect
iv) retain by way of security for our unpaid costs any documentation or other assets in
our possession (known as exercising our right to a lien)
v) claim contractual interest at the rate of 8% per month from date of invoice on
outstanding invoiced amounts which are not paid on time.
vi) issue proceedings for the recovery of monies due to us.
If you wish to challenge a bill (interim or final), you should invoke our complaints
procedure, a copy of which is available on request. You also have the right to apply to
the County Court for our bill to be assessed under section 70 of the Solicitors Act
1974. Applications to the County Court should normally be made within one month of
delivery of the bill be that interim or final. If you challenge a bill, we will charge
interest on such of the unpaid costs as we are entitled to recover from one month after
delivery of the bill as set out above.
j) If you provide us with a cheque which is dishonoured when presented for payment, we
will charge you an administrative fee of £10 plus VAT.
k) If we need to telegraphically transfer monies on your behalf then we will charge an
administration fee for doing so.
l) We accept payment by cheque, electronic transfer or debit/credit card (charges apply
for the latter)
m) We generally do not accept cash of more than £500. If you avoid this policy by
depositing cash directly with our bank, we may charge you for any additional checks we
consider necessary to verify the source of the funds.
n) Where we have to pay money to you, it will be paid by cheque or electronic transfer.
It will not be paid in cash or to a third party.