Good Communications

The Firm has been engaged in general legal practice and has been involved in the Edinburgh Property market for over thirty years. All necessary legal work for the transactions will be dealt with by Peter Stephen personally. He will keep you regularly informed as to the progress of the transaction and if you have any queries or concerns on any aspect, please feel free to contact him directly at any time.

 We want to retain your business and to do such a good job for you that you will recommend us to your friends and family. We do not want to lose you because we have not set out our terms of business clearly from the outset. Here, therefore, are our standard terms of business.

 As your agents, we can only act on the information and instructions you give to us. You can instruct us either verbally or in writing, although we may ask you to confirm your instructions in writing or we may write to you confirming our understanding of your instructions. You should not assume that we have knowledge of your personal circumstances. If there is any change to your instructions, you must notify us immediately.

 If, at any stage in the transaction there is anything concerning you about what has happened, what has not happened or what may happen, please contact us. The chances are we will have the answer, if not, we will formulate a solution and come back to you. Please do not hesitate to contact us.

In the context of Home Reports, please note that whilst it is our normal practice to address any title or conveyancing issues which are raised by the Home Report and/or Mortgage Valuation, it is important that you yourself/selves fully consider all aspects of the Home Report. The elements of the Report covered by the Property Questionnaire and Energy Performance Certificate are for your information as purchaser/s and not matters which we would normally consider it necessary for us to cover as part of the legal process. If there are any matters and/or queries which you wish to cover arising from these aspects of the Home Report, you must let us know as soon as possible.

 Policy on Fees and expenses.

 It is the Firm's normal practice to agree a fee basis, including timing and method of payment, for the particular transaction with clients before any work is carried out on the transaction. If a Fee Estimate for the current transaction is attached to this agreement, the fees shown are based on our best estimate of the work involved in completing the current transaction. 

 Except in so far as otherwise specified  our fee will be arrived at by totalling the amount of time we spend dealing with your transaction plus, where appropriate, a Risk and Responsibility factor. Our fees are subject to VAT at the prevailing rate. Our current hourly charge out rate is £200.

 Sometimes we may need to employ non Rae Reid & Stephen personnel to do work on your behalf, e.g. surveyors, accountants, other solicitors or anyone who has the necessary skills required to progress matters. If this is required you will be liable to settle their fees and expenses and you hereby authorise us to settle their fees and expenses from any funds we hold on your behalf.

 Any estimate given will be for a probable fee based on our experience of the amount of work usually involved in a transaction of this type. If, due to unforeseen complications, it looks likely that there will be an overspend on the transaction we will alert you to this before the overspend occurs. No further work will be carried out on the transaction without your authority.

 Risk and Responsibility Factor

 The figure arrived at by totalling the time spent may be increased by a “Risk and Responsibility” factor. This reflects the complexity and difficulty of the transaction, the urgency with which you want it carried out, the value of any money or property involved, the skill or specialist knowledge required, the risk and responsibility we are required to shoulder on your behalf and anti-social hours involved in looking after this transaction for you. Usually this will be 0.5% of the value of the money or property involved. 

 Whether a transaction merits a Risk and Responsibility factor and what is a fair and reasonable percentage to be applied will be determined by a suitably qualified Scottish Law Accountant.

 Payment of fees

 Except as otherwise detailed in this agreement, all fees payable to Rae Reid & Stephen W.S. and any expenses due in connection with a transaction will be settled 7 days prior to the completion of the transaction. If the transaction is a property sale and there will be surplus funds, we will deduct all such fees and expenses from the proceeds of the sale before remitting the free proceeds to you. For on going matters or transactions that are likely to last for more than 3 months we will render interim fees on a quarterly basis. We reserve the right to withdraw from acting for clients where the terms of this agreement are not adhered to.

 Arbitration

 If any dispute arises between the parties in relation to the level of fee charged, the same shall be referred to the amicable decision of a suitably qualified Scottish Law Accountant, acting as an Arbiter, to be appointed by the parties, or failing agreement to be appointed by the Chairman for the time being of the Remuneration Committee or its successor within the Law Society of Scotland on the application of either party, the decision of such Arbiter to be final and binding on the parties notwithstanding the terms of the Administration of Justice (Scotland) Act 1972.

 The Arbiter can fix a fee higher or lower than the fee charged. If it is lower, then we will pay the expenses of the Arbitration and reduce our fee accordingly. If the Arbiter fixes a higher fee or confirms the fee as charged, then you will be responsible for any increase in the fee and the expenses of the Arbitration.

 Cleared funds

 The Law Society of Scotland, who are our governing body, have issued guidelines to all solicitors on the issue of cleared funds in our Bank’s Clients Account. At the heart of the problem is that any cheque is not actually money, it is only a promise that the Bank will pay money in exchange for the cheque. The way that the bank clearing system works means that it can take up to 5 banking days for the promised money to be deposited in our bank account. If the firm were to send out a cheque on the strength of an uncleared cheque and, for whatever reason, the uncleared cheque does not clear, this could lead to the firm being closed down by the Law Society.

 In light of this guideline, we have had to implement stringent standard procedures for all transactions that cannot be departed from. These are:-

• If we receive funds by cheque, whether from you or from the mortgage lender, we will need that cheque no later than 5 banking days prior to the completion date.

• Before we send out any free proceeds of sale, the cheque received from the purchaser’s solicitors must have cleared in our account. This can take up to 5 banking days.

• As soon as funds are cleared in our account, clients can request that the free proceeds be electronically transferred via the banking CHAPS system to their nominated account under deduction of our standard Bank fee, currently £16.

 The implication for house buyers is that their mortgage will start 5 banking days before they get the keys. For house sellers, their mortgage will be redeemed 5 banking days after they have parted with the keys.

 Interest on cleared funds

 It is the firm's policy that all cleared funds held by the firm for clients should earn interest for clients at the best rate that can reasonably be achieved taking into account the amount of the funds involved and the length of time the firm is expected to hold the funds.

 The Law Society Accounts rules require (a) that sums in excess of £500 are put on an interest earning account and the (b) we account to you for all interest, irrespective of the amounts. With interest rates at 5%, £1,000 invested for 3 months would earn about £10 net. To cover the cost of opening a new bank account, depositing funds, uplifting funds and closing the account we charge our standard administration fee, currently £25 + VAT. This would leave you a £15 loss and involve us spending a good deal of time unproductively. This obviously makes no sense for either of us.

 The balance we have struck to ensure that where reasonable amounts of interest are earned you benefit without the firm having to spend disproportionate amounts of resources opening and closing separate investment accounts, is as follows:-

• The Firm will pay interest on cleared funds, excluding any sums due in fees or expenses, where (a) the amount of interest earned would have exceeded the standard administrative fee and (b) there is more than three days between the funds being cleared and a cheque being paid out.

• Funds in excess of this amount will earn interest at the prevailing investment rates paid on the appropriate Investment Account by the Clydesdale Bank PLC. In the absence of a written instruction to the contrary the firm will not be required to open separate investment accounts for client’s money irrespective of the amount. 

Confidentiality

Neither the firm nor any of it's employees will disclose to any person any information relating to the business you have entrusted us with, except, of course, as required in the proper conduct of that business.

Money Laundering

Rae Reid & Stephen, W.S., are obliged by law, along with all other solicitors, to comply with all civil and criminal legislation currently in force. This includes the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2007. These require us to undertake identity checks on all clients and, notwithstanding any confidentiality issues (subject to “privileged” circumstances), to report to the authorities any transaction or activities we regard as “suspicious”.

We are obliged to ask you to provide identification evidence. The regulations allow us to start work on your behalf but we must have the necessary documents within 7 days. If we do not receive them from you within 7 days, we have to stop all work on your transaction until the documents are produced.

We are unable to accept payments in cash of more than £500, whether paid in at our offices or paid directly into our bank account. If we do receive a cash payment of more than £500 from you, you should be aware that it may take a minimum of 8 working days and a maximum of 40 days for us to obtain the necessary clearance from the authorities before we can use that money. 

By accepting these terms of engagement you confirm that any cheque you give to us will be a personal cheque from you drawn on a UK bank account in your name. If the funds come from any other source it may take a minimum of 8 working days and a maximum of 40 days for us to obtain the necessary clearance from the authorities before we can use that money. This will result in additional cost to you and it might result in you not getting the keys to your new house on the day you had expected. 

The best solution is for you to avoid this possible complication by gathering the funds in an account in your name and then writing a cheque or arranging a CHAPS transfer to us from your own account.

Termination of appointment

Either of us may terminate our professional relationship at any time by giving written notice to the other. We hope that this will not happen but if it does, you will pay us all fees and outlays and expenses incurred prior to such termination and due to us in accordance with these Terms of Engagement, together with any further fees and outlays and expenses reasonably incurred by us in connection with the transfer of our files to another solicitor instructed by you. Where Rae Reid & Stephen, W.S. markets your property for sale we are entitled to be paid the Estate Agency fee if the eventual purchaser’s interest in your property originated prior to our agency being terminated. Upon payment, we will deliver the originals or copies of all deeds and documents belonging to you.

Distance Selling Regulations

You should be aware that if your transaction is one which is deemed to fall within the Distance Selling regulations you may have a right to withdraw your instructions, should you decide not to proceed, without any charge, by writing or emailing your instructions to us within seven working days from the date you receive this. However, unless you instruct us to wait for the seven day period to elapse before we start working for you, this will not apply and you will be taken to have consented to our starting to work for you immediately.

Complaints & feedback re levels of service

Any complaint or feedback which you may have about any service provided by the firm shall be made by you direct to our partner Peter D.J. Stephen notwithstanding that you, in addition, have a right to complain to Scottish Legal Complaints Commission, The Stamp Office, 10 – 14 Waterloo Place, EDINBURGH EH1 3EG Phone: 0131 528 5111 Fax: 0131 528 5110

enquiries@scottishlegalcomplaints.org.uk http://www.scottishlegalcomplaints.org.uk

We recognise that Alternative Dispute Resolution Regulations have implemented ADR/EDR Directive 2013/11/EU to promote alternative dispute resolution as a means of redress for consumers in relation to unsatisfactory services. We have however chosen not to adopt an ADR process, and if you have any concerns about the services you receive from this firm you should contact the firm’s Client Relations Manager.

Ownership of the intellectual property rights in work produced while we act on your behalf

It is very rare that a complete transaction is unique and original. Usually large parts of the letters, contracts, other documents and advice are produced from documentation or knowledge we have accumulated over many years. We will copy all and any documents to you but all intellectual property rights in the documentation remains the sole property of Rae Reid & Stephen, W.S.

Shredding of your paper file on the completion of the transaction

All paper files require to be held by us for a period of seven years from completion of the transaction and will be shredded thereafter. However we need your authority to do this for the current transaction and any future or closed files we hold for you. Please note that where a mortgage is involved it is a requirement under the Council of Mortgage Lenders Rules that the file be retained by us for a period of at least 6 years from date of completion of the mortgage transaction. Accordingly our normal practice is to retain all files for a minimum period of 7 years. The file will either be shredded or delivered to you thereafter.  

I/We will consent to your retention and use of my/our personal data in relation to this and any other transactions undertaken by your firm on my/our behalf/behalves under and in terms of the 

General Data Protection Regulation (EU) 2016/679 rules and regulations. We understand that you will treat any such information held as confidential and private on my/our behalf/behalves but I/we consent to limited information being made available as and when reasonably required.