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Payment of conveyancing money from conveyancing account or conveyancing (CPF) account

Conveyancing and Law of Property (Conveyancing) Rules 2011

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—(1) Subject to paragraphs (6), (7) and (14) and rules 11(2), 12, 13 and 14, an appointed bank shall not pay any conveyancing money from a solicitor’s conveyancing account or conveyancing (CPF) account, unless the appointed bank —(a)receives a pay-out form or variation pay-out form for that payment, and complies with paragraph (12) in relation to that form; or(b)receives an order of court authorising it to make payment in accordance with that order.(2) A solicitor who wishes to withdraw, from his conveyancing account or conveyancing (CPF) account, any conveyancing money that is payable to a Category A payee shall serve on the appointed bank with which the conveyancing account or conveyancing (CPF) account is maintained a duly completed pay-out form for a Category A payee that has been signed by at least one authorised signatory of the solicitor.(3) A solicitor who wishes to withdraw, from his conveyancing account or conveyancing (CPF) account, any conveyancing money that is payable to a Category B payee or Category C payee shall serve on the appointed bank with which the conveyancing account or conveyancing (CPF) account is maintained a duly completed pay-out form for a Category B payee or Category C payee that has been signed in accordance with the First Schedule.(4) Where an individual who acts in person is required to countersign a pay-out form or variation pay-out form to enable conveyancing money to be paid from a conveyancing account or conveyancing (CPF) account to any Category B payee or Category C payee, he shall do so —(a)in the presence of an authorised officer of the appointed bank at which the conveyancing account or conveyancing (CPF) account is maintained; or(b)in such other manner as may be agreed between him and the appointed bank.(5) Where an entity which acts in person is required to countersign a pay-out form or variation pay-out form to enable conveyancing money to be paid from a conveyancing account or conveyancing (CPF) account to any Category B payee or Category C payee, the pay-out form or variation pay-out form, as the case may be, shall be signed by an authorised signatory of the entity —(a)in the presence of an authorised officer of the appointed bank at which the conveyancing account or conveyancing (CPF) account is maintained; or(b)in such other manner as may be agreed between the entity and the appointed bank.(6) Where —(a)a conveyancing transaction consists of the redemption of an existing mortgage of, or the discharge of an existing charge on, any land, and the grant of a new mortgage of, or a new charge on, that land;(b)the existing mortgagee, the new mortgagee and the mortgagor are represented by the same solicitor;(c)the conveyancing money for the transaction consists only of —(i)money disbursed by the new mortgagee under a loan taken by the mortgagor; or(ii)money disbursed by the new mortgagee under a loan taken by the mortgagor and money provided by the mortgagor; and(d)the whole or any part of the conveyancing money is paid into the solicitor’s conveyancing account,the appointed bank at which the conveyancing account is maintained may, with the consent of the solicitor, reverse the payment transaction and refund that whole or part of the conveyancing money to the person who provided that whole or part of the conveyancing money.(7) Without prejudice to paragraph (7A), where —(a)a conveyancing transaction consists of the full or partial redemption of an existing mortgage of, or the full or partial discharge of an existing charge on, any land;(b)the existing mortgagee and the mortgagor are represented by the same solicitor;(c)the conveyancing money for the transaction consists only of money provided by the mortgagor; and(d)the whole or any part of the conveyancing money is paid into the solicitor’s conveyancing account,the appointed bank at which the conveyancing account is maintained may, with the consent of the solicitor, reverse the payment transaction and refund that whole or part of the conveyancing money to the person who provided that whole or part of the conveyancing money.(7A) Without prejudice to paragraph (7), where —(a)a loan has been granted for or in connection with a conveyancing transaction;(b)the conveyancing money consists only of money provided by the borrower for the full or partial repayment of the loan;(c)the lender and the borrower are represented by the same solicitor; and(d)the whole or any part of the conveyancing money is paid into the solicitor’s conveyancing account,the appointed bank at which the conveyancing account is maintained may, with the consent of the solicitor, reverse the payment transaction and refund that whole or part of the conveyancing money to the person who provided that whole or part of the conveyancing money.(8) Where paragraph (6), (7) or (7A) applies, all expenses incurred in obtaining the refund shall be borne personally by the solicitor.(9) Where a solicitor requests that any person countersign a pay-out form or variation pay-out form (referred to in this paragraph as the relevant form) relating to the payment of any conveyancing money from the solicitor’s conveyancing account or conveyancing (CPF) account to a specified payee that purports to be a Category B payee —(a)that person shall be entitled to request that the solicitor provide him with such information and documents as may be necessary to enable him to verify that the specified payee is a Category B payee;(b)the solicitor shall promptly furnish the information and documents to that person; and(c)that person shall refuse to countersign the relevant form, if —(i)the solicitor refuses or neglects to furnish any information or document under sub-paragraph (b), after being requested to do so in accordance with sub-paragraph (a);(ii)that person is not satisfied of the authenticity of any document furnished by the solicitor under sub-paragraph (b); or(iii)there is any material discrepancy between any information or document furnished by the solicitor under sub-paragraph (b) and the relevant form, or there is any material discrepancy in the information and documents furnished by the solicitor under sub-paragraph (b), as regards whether the specified payee is a Category B payee.(10) Where a solicitor requests that any person countersign a pay-out form or variation pay-out form (referred to in this paragraph as the relevant form) relating to the payment of any conveyancing money from the solicitor’s conveyancing account or conveyancing (CPF) account to a specified Category C payee —(a)that person shall be entitled to request that the solicitor provide him with —(i)a statutory declaration, or any other document, that specifies —(A)that the conveyancing money is to be paid to the specified Category C payee; and(B)the amount of the conveyancing money that is to be paid; and(ii)such other information and documents as may be necessary to enable him to verify —(A)that the conveyancing money is to be paid to the specified Category C payee; and(B)the amount of the conveyancing money that is to be paid;(b)the solicitor shall promptly furnish the information and documents (including the statutory declaration or document referred to in sub-paragraph (a)(i)) to that person; and(c)that person shall refuse to countersign the relevant form, if —(i)the solicitor refuses or neglects to furnish any information or document under sub-paragraph (b), after being requested to do so in accordance with sub-paragraph (a);(ii)that person is not satisfied of the authenticity of any document furnished by the solicitor under sub-paragraph (b); or(iii)there is any material discrepancy between any information or document furnished by the solicitor under sub-paragraph (b) and the relevant form, or there is any material discrepancy in the information and documents furnished by the solicitor under sub-paragraph (b), as regards —(A)whether the conveyancing money is to be paid to the specified Category C payee; or(B)the amount of the conveyancing money that is to be paid.(11) Where a person requested to countersign a pay-out form or variation pay-out form under paragraph (9) or (10) does so in accordance with this rule, rule 10(4) and the First Schedule, the person shall not be liable to be sued for the act of countersigning the pay-out form or variation pay-out form, if the act —(a)was done in good faith; and(b)did not involve any fraud or wilful misconduct on his part.(12) An appointed bank shall, before acting in accordance with a pay-out form or variation pay-out form for the payment of any conveyancing money from a solicitor’s conveyancing account or conveyancing (CPF) account —(a)verify that the pay-out form or variation pay-out form has been signed by an authorised signatory of the solicitor; and(b)if the conveyancing money is to be paid to a Category B payee or Category C payee, verify that the pay-out form or variation pay-out form has been countersigned by an authorised signatory whom the appointed bank has been notified, by the pay-in form or written instruction referred to in rule 6(5) for the conveyancing money or by a change of counter-signatory form, is authorised to countersign the pay-out form or variation pay-out form.(13) No conveyancing money shall be paid by an appointed bank from a conveyancing account or conveyancing (CPF) account —(a)in any case where the conveyancing money consists of stamp duty, and the payment is to be made to the Commissioner of Stamp Duties, except —(i)by such electronic means as the Commissioner of Stamp Duties may require; or(ii)by means of a bank draft issued by the appointed bank; or(b)in any other case, except —(i)by any electronic means; or (ii)by means of a bank draft issued by the appointed bank.(14) Notwithstanding anything in this rule, an appointed bank may pay conveyancing money from a solicitor’s conveyancing account or conveyancing (CPF) account in accordance with a resolution of the Council made in accordance with paragraph 10 of the First Schedule to the Legal Profession Act (Cap. 161).

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