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Endorsement of Cheques
The exigencies of current conveyancing practice often require that cheques made out to clients are endorsed and passed on, without being lodged to the solicitor’s client account.
Any such endorsement should be made, preferably, with the written authorisation of the client or, in exceptional circumstances, on the client’s oral instruction, if the prompt dispatch of the client’s business requires it. A copy of the cheque and its endorsement should be given to the client without delay and, in the case of an oral instruction, a letter should be written confirming that the cheque was endorsed in accordance with such instruction.
Practitioners should also note that the provisions of the Solicitors’ accounts regulations (and money-laundering legislation) require that a copy of such endorsed instrument be kept on the solicitor’s file.
