Negative interest rates
The Conveyancing Committee has drafted sample clauses to address the issue of negative interest rates in solicitors’ client accounts in conveyancing.
Using the clauses
These are now available in the committee’s page on the website under the Resources tab.
There are three sample clauses – one where the purchaser bears the negative interest cost, one where the vendor bears the cost and one where the cost is shared between the purchaser and vendor. It is not the function of the committee to say who should bear the cost in any given set of circumstances as this is a matter for negotiation between the parties.
The samples provided are not intended to be precedents or in any way mandatory. They may not cover the circumstances of every case and will need to be adjusted to the facts of a given transaction.
Practitioners are reminded to obtain the relevant instruction from the client prior to utilising the clauses.
The Committee hopes the sample clauses provided will be of assistance to practitioners.