A stakeholder is a ‘middle-man’ who has no interest, right or title but has a duty to hold and deliver to the owner (or owners) the money or assets where two or more claimants are in dispute.
1. A solicitor can hold money as a stakeholder, regardless of whether such money is paid by solicitor’s client. The client is required to pay the solicitor for taking such role.
2. The solicitor is required to pay interest in accordance with the Solicitors’ Accounts (Deposit Interest) Rules 1990, to the person to whom the stake money is paid, unless otherwise agreed.
3. A stakeholder is not supposed to be biased towards one party, his or her role is to act on behalf of both or more claimants, fair and justly.
4. No money or document shall be released, utilised or dealt with by the solicitor unless consent is obtained.
5. For a buyer, this may be advantageous as the money is safe in the hands of a solicitor but not so much to a seller, as he or she cannot use the money without permission from the buyer.