What can you do if your lawyer’s bank system goes down on the day of completion?

We have recently seen the results of a banking outage by Barclays at the end of January causing problems up and down the land with failed completions (see the report here from the BBC). As lawyers, we are often fully reliant on the banking system being operational in order to transfer monies. Here’s what you should if it happens to you. 

If your lawyer’s bank system goes down on the day of completion in England and Wales, it can create a challenging situation. Here are some steps you can take to manage the situation effectively:

1. Stay Calm and Communicate: The first step is to remain calm. Contact your lawyer immediately to establish the situation. Clear communication is essential in these scenarios.

2. Understand the Implications: Ask your lawyer about the specific implications of the bank system issue. Delay in funds transfer could affect the completion of the transaction which can have implications for removal firms and other parties if you are in a chain, so understanding the timeline and consequences is crucial.

3. Check Alternative Payment Methods: Inquire if there are alternative methods to facilitate the transfer of funds. Sometimes, lawyers can use different banking platforms or services to bypass the issue. At Alexander JLO we operate client accounts with different banks to enable us to manage outages by one bank but in the worst case scenario, where the whole system goes down (which thankfully is an extremely rare occurrence) options are limited.

4. Explore Escrow Options: If your lawyer cannot access the funds, ask if they can hold the funds in escrow to ensure the completion goes through and provide appropriate undertakings to the seller’s lawyers to send the monies when the system resumes. This can provide a temporary solution until the bank system is back online but is unlikely to work if there is a chain involved.

5. Coordinate with All Parties: Keep all parties involved in the transaction updated about the situation. This includes the seller, the estate agents your removal company and any other relevant parties. Transparency can help maintain trust and cooperation.

6. Review Contracts and Agreements: Check your contractual obligations regarding completion dates. Most contracts may have provisions for delays, and understanding these can provide clarity on your options.

7. Consider a Legal Delay: If completion cannot occur due to the banking issues, discuss with your lawyer the possibility of negotiating a delay with the other party. This might involve formal communication and agreement to amend the completion date.

8. Document Everything: Keep records of all communications and attempts to resolve the issue. This documentation can be vital if disputes arise later on and are likely to be needed if you need to recover monies that you have lost from your bank as a result of the outage.

9. Seek Legal Advice: If you’re concerned about the implications of a delayed completion or the potential for financial loss, seek additional legal advice. Understanding your rights and options is important.

10. Plan for Contingencies: Moving forward, consider discussing with your lawyer what contingencies are in place for future transactions. Understanding the plans for potential banking issues can help mitigate stress in the future. As we have said, client accounts with different banks (which we have) can help if only one bank is affected.

In summary, while a bank system failure on completion day can be hugely inconvenient you should take proactive steps to help manage the situation effectively. Open communication, exploring alternative solutions and understanding your contractual obligations are key to navigating this unexpected hurdle.

If you are looking for a first rate conveyancing service why not give one of Alexander JLO’s specialist property lawyers a call on 020 7537 7000, click the link or email quote@london-law.co.uk for a free, no-obligation quotation? Come and see what we can do for you.

This blog was prepared by Alexander JLO’s property partner Matt Johnson on the 1st February 2025 and is correct at the date of publication. Matt has many years of experience of dealing with property work and specialises in new build and shared ownership properties.  His profile on the independent Review Solicitor website and be found Here