Chapter 3

Question 1

Record holding the deposit for a client

Answer 1

CR client ledger: buyer client

DR client cash

Question 2

Record payment of deposit for a property transaction

Answer 2

DR client ledger: buyer client

CR client cash

Question 3

From which account should a property deposit be paid?

Answer 3

Client account- if it comes out of office account the firm is essentially lending money

Question 4

What are the two positions a seller’s solicitor can hold in relation to deposits?

Answer 4

Stakeholder (like a trustee)

Agent

Question 5

Where can mortgage money be recorded?

Answer 5

Client ledger if from an institutional lender and clearly identifiable (Rule 29.10)

Separate ledger if acting for private lender transaction