Property work is where solicitors handle some of the largest sums that pass through a client account — deposits, mortgage advances, redemption payments and sale proceeds all flowing in and out, often on the same day. Getting these entries right is a daily reality of conveyancing practice: the money must be classified correctly, attributed to the right client, and recorded promptly. A mistake here is not just untidy bookkeeping — it can be a breach of the SRA Accounts Rules.
This lesson takes you through the bookkeeping for a transaction from start to finish, on both sides of the deal.
- Conveyancing Money and Deposits — the types of money that flow through a transaction and the crucial difference between stakeholder and agent deposits.
- Double-Entry Bookkeeping Basics — how receipts, payments and inter-client transfers are recorded across the cash sheet and client ledgers.
- Buyer's Solicitor Entries — the sequence of entries from deposit to mortgage advance to completion.
- Seller's Solicitor Entries on Completion — receiving the price, releasing the deposit, redeeming the mortgage and paying out net proceeds.
- Failed Transactions and Other Receipts — forfeited and returned deposits, bridging loans, and inter-client loans.
- Timing and Compliance — when money must move and when entries must be recorded.