Claiming your money

Make a claim to us

In order for us to consider making a grant out of the Compensation Fund, you must make a claim to us.

We will only consider claims relating to those who are regulated by us.

Am I eligible?

For you to be eligible to apply, the loss must have happened during the normal work of a regulated person or firm, and you must

• have suffered loss because of their dishonesty, or
• be suffering hardship due to their failure to account for money they have received.

You do not need to be a client or a former client.

Important factors

You are not automatically entitled to a grant out of the fund.

We will not make a grant resulting in you receiving more than £2 million.

"Failure to account" includes failure by a regulated person or firm to finish work for which they have been paid.

How to make a claim – what you need to do

It is your own responsibility to prove your claim, but we will give you help and guidance if you contact us.

To make a claim, download an application form (PDF 64K, 7 pages; DOC 294K, 7 pages) or contact us.

Types of application

You will need to provide evidence to support your claim.

Your claim may fall under one of the following categories:

• Stamp duty, land tax, land registry fees
• Lost mortgage advance
• Failure to pay off a mortgage
• Estate or trust funds
• Unpaid counsel, expert or agent fees
• General client money or other losses

Please contact us if you need more help.

What we will do

After you have completed and returned the application form (PDF 64K, 7 pages; DOC 294K, 7 pages) to us, we will investigate your claim. If we need more information, we will ask you. We will deal with your claim as quickly as possible. Sometimes issues are complex and may take time to consider.

We will decide whether to make a payment and inform you of our decision.

Stamp duty land tax land registry fees

If your purchase has completed, but your legal adviser has not dealt with the payment of stamp duty land tax or registration of your property, you will need to prove to us that the legal adviser had enough money to complete your transaction.

What we need from you

We will need the following documents from you:

Claiming a lost mortgage advance

If you are making a claim for a lost mortgage advance, we need certain information from you.

Please provide information about

• your loss, and
• the proposed borrower.

Please provide us with answers to the following questions.

• Are you insured against the loss suffered? If so, supply details of the type of policy and its excess or limit, if any. Please tell us if you have made a claim on the policy and the result of the claim.
• Has the lender repossessed or sold the property? If so, tell us the expected or actual amount recovered, including any payment received or expected under any mortgage guarantee policy.
• Provide a copy of the valuation report. (If there is no valuation, explain why.) In addition, provide copies of correspondence with the valuer or surveyor. Please advise if the property has been over-valued. If it has been, explain why and inform us of any action you have taken or intend to take.
• Has the alleged misuse of the advance been reported to us or to the police? If so, send us details of the Fraud Squad or police station and any reference numbers.
• Does anyone live at the property now? If so, who?
• What original title documents are available?
• Details of any repayments, including dates and amounts.
• Do you know where the borrower is? If not, have you tried to trace them?
• Was a mortgage broker or other agent used? If so, provide details.

We need the following information relating to the proposed borrower:

• the mortgage application form,
• the accepted offer,
• copies of all references,
• salary slips,
• P60s,
• confirmation as to whether or not the credit rating of the borrower was checked, and whether enquiries were made to find out if they were on the electoral register (if these checks were made, inform us of the result).

Please also provide

• the report on title (including the request for the advance cheque);
• evidence of the mortgage amount given to your legal adviser—for example, a paid cheque or telegraphic transfer authority;
• office-copy entries for the title (this should show the present registered owner and mortgage lender);
• details of the legal adviser's costs;
• the purchase price;
• money the legal adviser received in the form of the mortgage advance;
• the deposit paid;
• money the client has paid; and
• other expenses—for example, stamp duty land tax, registry fees and searches.

Claiming general client money or other losses

What we need from you

To prove the amount you claim was paid to your legal adviser, we will need

• bank statements,
• receipts issued by the legal adviser,
• copies of cheques paid to the legal adviser (you can get these from the bank),
• copies of bills the legal adviser may have delivered or details of fees agreed with the legal adviser, and
• copies of any ledger sheets. If we have closed the firm, you can obtain these from the agent we asked to close the firm. If the agent does not have them, contact us, as it is possible we are storing them.

We also need details of

• why you sent the money to the legal adviser,
• any money the legal adviser paid out, and
• any other matters the legal adviser was dealing with.

Claiming money in relation to a mortgage

If you can prove that the legal adviser had enough money available to pay off the mortgage, we may authorise a grant to you.

• Payment will be based on the amount the legal adviser had available.
• If there is a shortfall, you will need to pay the difference.
• We may pay the lender directly.

Can you make a claim?

You can make a claim to us if you are

• a borrower (or person on their behalf) whose mortgage has not been paid off, or
• a buyer who will suffer loss because a mortgage is not paid off, or
• a buyer's lender who will suffer a loss because a mortgage is not paid off, or
• a lender whose mortgage has not been paid off, but only if
  • a mortgage receipt has been released; or
  • you are a lender acting as agent for your borrower, the new buyer or the new buyer's lender, and you send us a declaration confirming this.

What we need from you

We will need

• evidence of the exact amount originally needed to pay off the mortgage,
• the mortgage account number and lender's address,
• a copy of the completion statement and legal adviser's bill,
• details of any payments made to the mortgage account since the date of completion,
• the address at which the title deeds or charge certificate are held, and
• if available, the legal adviser's ledger sheet. (You can get this from the agent we asked to close the solicitor's firm. If they do not have it, please contact us, as it is possible we are storing it.)

If you are unable to obtain the completion statement or ledger sheet, you will need to prepare a cash statement.

Preparing a cash statement

If you are unable to obtain the completion statement or ledger sheet, you will need to prepare a cash statement. This is a simple document listing the money the legal adviser received and paid out in relation to both the sale and any related purchase. It should show

• the sale price,
• the amount of your mortgage that should have been paid off,
• the estate agent's fees,
• details of the legal adviser's costs,
• the purchase price,
• money the legal adviser received in the form of the mortgage advance,
• the deposit paid,
• money the client has paid, and
• other expenses—for example, stamp duty, land tax, registry fees and searches.

Estate or trust funds

If the legal adviser is the only executor or administrator, you may need to replace them before we can deal with your application. Please contact us before doing so.

What we need from you

We will need

• copies of the most recent estate accounts,
• copies of any bills the legal adviser may have delivered,
• a copy of the will or trust deed,
• a copy of the grant of probate or letters of administration, and
• copies of any ledger sheets the legal adviser kept. You can obtain this from the agent we asked to close the firm. If they do not have it, please contact us, as we may be storing it.

What if the estate accounts are out of date, challenged or missing?

You will need to prepare a cash statement. This is because we need to know the actual amount for which the legal adviser has failed to account to you.

A cash statement is a simple document listing

• all the assets the legal adviser received,
• all the amounts they have paid out, and
• the legal adviser's costs for work done.

You must also send us supporting evidence, such as

• a letter from the person making the payment to the legal adviser, or
• the legal adviser's account slip to show they have received the money.

Claiming money lost from a house purchase

If your purchase has completed but your legal adviser has not dealt with the payment of stamp duty land tax or registration of your property, you must prove to us that the legal adviser had enough money to complete your transaction.

What we need from you

We will need the following documents from you:

• A copy of the completion statement for the purchase (or re-mortgage) and any related sale

  If you do not have this, telephone us for more help.

• Copies of your legal adviser's bills to you
• A copy of your legal adviser's account sheet relating to the purchase (and sale if this applies)

  You can obtain this from the agent we asked to close the firm. If they do not have it, contact us, as we may be storing it.

• Evidence your legal adviser has received the amounts shown in the completion statement

  A bank statement or receipt is best.

Claiming unpaid counsel's, expert's or agent's fees

We will try to find out if the regulated person or firm received money specifically to pay your fees. We may not be able to do this if the bill has been outstanding for some time. If we are unable to obtain this evidence, we may reject your application.

You will need to show that the regulated person or firm dishonestly misappropriated the money or that you have or are suffering loss and hardship as a result of their failure to account for the money.

If you are a barrister

If you were instructed in a publicly funded matter in which you were to be paid directly by the Legal Services Commission (LSC), you should apply to the LSC.

You can apply if you were instructed in

• a private matter; or
• a publicly funded matter, where you were not to be paid directly by the LSC.

In either case, you must be able to show the solicitor had received money specifically to discharge your fees.

What we need from you

Please provide us with

• copies of all unpaid bills,
• the name of the client on behalf of whom the legal adviser acted,
• details of the case (for example, litigation, divorce),
• the date your bill was first delivered, and
• documentary evidence to show that you are suffering hardship, if your application is on the basis that the legal adviser has failed to account for money due to you.

For more information, please contact us.

Debts and obligations

Debts

If you think a person or firm regulated by us owes you money, either in connection with their practice or privately, your main option is to take legal action. We are unable to give you legal advice.

Professional obligations

In some circumstances, a legal adviser has a professional obligation to send or return money to you—for example, if they have given a promise to do so (known as an undertaking). If you think a legal adviser may be in breach of a professional obligation, you can report it.

What to do if you have outstanding professional fees

If you have professional fees outstanding (for example, agent or expert fees), we will consider non-payment if

• you have a County Court judgment in respect of the fee, and
• the judgment relates to the legal adviser's practice and connection with providing a legal service.

If you have a judgment against the legal adviser, you can report the matter to us.

If you are a barrister and are owed money as a result of an outstanding fee note, please contact the Bar Council. The Bar Council is able to report matters to us.

If you are an agent, expert or barrister and the firm has been closed by us, you may be able to make an application to our compensation fund if the firm was in receipt of money specifically to discharge your fees. A decision by us to close a firm may be published.

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