The following terms (as amended by us from time to time) will apply to the work referred to in the Engagement Letter you have received from us and, unless otherwise agreed by us in writing after the date of the Engagement Letter, to all other work carried out by RDM on your behalf. By receipt of the Engagement Letter you will be deemed to have read over and accepted RDM’s terms and conditions of business unless you specifically advise us to the contrary. This Schedule explains the way in which RDM will deal with your business and sets out the terms and conditions on which RDM will act for you. They fall into the following broad categories: -
RDM’s terms and conditions are not intended to be, nor should be construed as being, exhaustive and may be subject to change from time to time. If you have any questions on them, either now, or in the future please do not hesitate to contact us, or the Instructed Solicitor specified in your Engagement Letter.
If you require these terms and conditions of business, translated, or need any other assistance in dealing with RDM please let us know. RDM advocates compliance with the Disability Discrimination Act 1995 and will do everything reasonably practicable to ensure equality of access to our services.
- Knowing our Client/Instructions
1.1. Who is our Client?
You are our Client and RDM will take instructions only from you.
1.2. Instructions
As your Agent, RDM can only act on the information and instructions given to us by you. You should not assume that we have knowledge of any factual matters beyond those imparted to us by you. We can only act in your best interests if we are in possession of all the relevant facts from you.
You may instruct us either verbally, in writing (including e-mail communication if that is appropriate). We reserve the right to ask you to confirm verbal instructions to us in writing. If at any time there is any change in your instructions to us, you must notify us immediately in writing and seek an acknowledgement that the change has been properly recorded.
All information provided to us in relation to your business will be received and acted upon in strict confidence and will only be disclosed to those parties or bodies authorised by you, or as reasonably required by the Law Society of Scotland, or any other authorised body or Authority.
1.3. Internet/Email
Internet communications are capable of data corruption. RDM cannot accept any responsibility or liability for changes made to such communications after their despatch, nor can it guarantee their successful receipt or delivery. For that reason it may be inappropriate to rely upon advice transmitted by e-mail without obtaining written confirmation of it. RDM does not accept responsibility or liability for any errors or problems that may arise through the use of Internet communication. All inherent risks in sending commercially sensitive information relating to your business rests with you. If you do not agree to accept this risk, you should notify us in writing immediately that e-mail is not an acceptable means of communication for you or your business.
1.4. Client Due Diligence/ID
To meet our statutory requirements under the Proceeds of Crime Act 2002, the Terrorism Act 2000, the Money Laundering Regulations 2007, and the rules of The Law Society of Scotland, RDM are obliged to properly identify its’ Clients and to verify the financial credentials of both the Clients and the transaction in which we are instructed before starting work.
To comply with the Regulations we must ask you provide us with up-to-date Personal ID and proof of address and all the relevant details of your financial/funding sources for the transaction (if that is appropriate) as we may deem necessary, at the earliest opportunity. If you have no already done so please forward to us 2 of the following items (one from each group). The documents will be photocopied and returned to you immediately:-
1. (a) Full UK/EC Passport
(b) Full UK Driving Licence
(c) Pension Book
(d) ID Card
(e) Bank/Building Society Passbooks
2. (a) Mortgage Statement
(b) Gas/Electric/BT bill
(c) Credit Card Statement
(d) Council Tax Demand
A delay or failure to produce this information (of a satisfactory standard, as prescribed by the Regulations) may require us to carry out enhanced due diligence. Please be aware that this could lead to a delay in us progressing/completing your transaction. As your Solicitors we would prefer to avoid such an eventuality but you will understand that we are constrained by the Regulations.
The Regulations also require you to notify us immediately of any material change in your funding sources or arrangements that you have made known to us at the outset of your instruction to us. If there is such a change RDM may have to investigate the changes, request additional information, and, if absolutely necessary, suspend work until the additional due diligence is completed.
Under the Regulations cash transactions are deemed potentially dangerous. For that reason, and to avoid you further unnecessary diligence, please note that in all cases RDM will not accept Clients’ funds in cash unless for single transactions with value of £500.00 or less.
- Our Work
2.1. Your contact with RDM
Primary responsibility for the conduct of the transaction will lie with the Instructed Solicitor as detailed in the Engagement Letter you have received from us. As the instruction progresses others within the firm may assist the Instructed Solicitor; you will have been advised of the other members of the Instructed Solicitor’s team in the Engagement Letter.
2.2. Work Detail
The advice we expect to be giving and the work that we expect to be undertaking on your instructions will be: -
2.2.1 detailed in the Engagement Letter
2.2.2 drafting and finalising all documentation to completion of the work detailed in the Engagement Letter
2.2.3 generally all other work ancillary to your instruction
2.3. Completion of the Work The nature of the instruction and the Work will determine the length of time it takes to complete the Work. RDM undertakes to keep you informed (both verbally and in writing) of progress and all significant events that may affect that progress (and expect you to do likewise), but we cannot give any binding estimate as to when the Work will be completed.
- Charge Out Rates & Payment Terms
3.1. Our Fees
Our fees are calculated by reference to a number of factors, but critically upon the time spent by the Instructed Solicitor and others working on the matter. Our work roster is divided up into units of 6 minutes each, each unit being worth the following: -
3.1.1. Partner/Consultant - £22.00
3.1.2. Associate/Senior Solicitors - £18.00
3.1.3. Assistant Solicitors/Trainee Solicitor - £15.00
3.1.4. Paralegal Assistant - £12.50
3.1.5. Support Staff - £7.00
These rates are revised from time to time and usually annually. We shall inform you of any increase in advance of any change being affected.
Each unit is applied as follows:-
3.1.6. Telephone calls received and made are timed in units of 6 minutes each.
3.1.7. Letters and faxes are charged at 1.25 units for each page of 125 words or part thereof. Formal letters such as acknowledgements and confirmatory letters are charged at 0.5 units.
3.1.8. Deeds and documents intended to have a contractual effect including missives, formal writs, figured statements and accounts, inventories and relative schedules, Memorials for Opinion, Court writs, Motions and associated papers are charged at 5 units per page.
3.1.9. The time spent considering matters perusing documentation, attending you in person, travelling, attending Court and all other personal work undertaken on the file are charged on the file at the time actually spent and recorded.
To this basic charge rate there may be added an increase, or mark up, which depends upon a number of factors including the complexity of the matters involved, the expedition with which they are dealt with, the size of the documentation involved, the expertise or specialised knowledge in the circumstances in which the matter is dealt with. Any fees quoted are exclusive of VAT.
In the administration of Trusts and Estates where RDM is handling client funds it is entitled to commission charges on the financial transactions it instructs /handles in the course of the instructions at the rates prescribed from time to time by The Law Society of Scotland. The Auditor of Court will independently assess these charges, in addition to our fee.
3.2. Outlays and Additional Costs
There may be certain outlays and additional costs that we incur in progressing your instruction such as registration dues payable to The Land Register of Scotland, Court Dues payable to the Scottish Court Service, Sheriff Officers’ charges, Advertising costs for the sale or letting of properties, Courier charges, travel costs (currently charged £0.40 per mile) and subsistence and admin costs such as photocopying etc. all of which you will have to pay.
3.3. Payments to Account
RDM reserves the right to seek payments to account from its’ Clients in respect of fees and pre-payment in full of all outlays that are anticipated.
3.4. Interim Fees
Depending on the nature of the business instructed it is RDM’s usual practice to issue interim fees on either a monthly or a quarterly basis. A final account will rendered upon completion of the business.
3.5. Payment Terms
RDM expect payment in full of all invoices within 28 days of the Invoice being rendered.
If payment is not made in time, or in full, RDM reserves the right: -
3.5.1. To charge an administration fee of between £40.00 to £100.00 (dependent on the value of the outstanding Invoice) and interest on the outstanding sum at 5% over The Bank of England Base Rate applying at the relevant time; and,
3.5.2. If we are obliged to instruct a Debt Collection Agency to recover the Invoice due to charge you the collection fees and outlays at the rate charged to us by the Agency concerned.
3.6. Remit to a Law Accountant
We reserve the right to remit your business file to an independent Law Accountant for the purposes of fee assessment at any juncture throughout the course of your instruction for the purposes of raising interim and/or final fee invoices. Also, and in the event our level of charges are disputed, your file, on your request will be remitted to an independent Law Accountant who will carry out an independent and objective fee assessment. In the event the Law Accountant assesses the fee to be higher than the fee raised. RDM reserves the right to charge the higher fee assessed.
- Professional Liability
4.1. Professional Indemnity Insurance Cover
RDM carries substantial professional indemnity insurance with a cover that is currently £8 million for each and every claim. The level of this cover is reviewed annually.
All work undertaken and advice given by RDM is for your sole benefit and based on your instructions and the information provided by you. A third party should not, in any circumstances, rely upon our work for you. RDM will not have any liability, howsoever arising, for any loss, cost or expense incurred by a third party as result of such reliance.
- Administration & Regulation
5.1. Data Protection
We may obtain, use, process and disclose personal data about you in order that we may discharge the services agreed in this Engagement Letter, and for other related purposes including updating and enhancing client records, analysis for management purposes and statutory returns, crime prevention and legal and regulatory compliance. You have a right of access under data protection legislation to the personal data that we hold about you. For the purposes of the Data Protection Act 1998, the Data Controller in relation to personal data supplied about you is the Partner who deals with your affairs generally.
5.2. Conflict of Interest
In terms of the Solicitors (Scotland) Practice Rules 1986 Solicitors are not allowed to act where either their interest conflicts with those of their Clients, or where they are acting for two or more Clients whose interests conflict. In the event of any such conflict arising, whether actual or potential, we shall advise you as to how this should be best dealt with. This may include RDM withdrawing as your Agent in order to best protect your interests. As a matter of good practice all transactions are monitored on an ongoing basis to highlight at the earliest opportunity and help avoid any conflict of interest arising.
5.3. Commissions
As Solicitors and Independent Financial Advisers we are entitled to retain exclusively commission of up to 0.25% on clients’ deposits paid to us as introducers without further disclosure. We shall also be entitled to retain on a non-sharing basis any procuration fee(s) and/or commission that may be paid to us for business introduced by us on behalf of clients in selling Mortgage Life Assurance or Life Insurance products. We will inform you if we receive a fee for arranging a mortgage.
5.4. Holding Funds for you
We will hold money for you in accordance with the rules of the Law Society of Scotland. If we hold funds on your behalf which are likely to earn in excess of £100 in interest while held by us then we are obliged to invest the funds such that they earn interest on a short term basis. These funds will normally be deposited with The Royal Bank of Scotland plc through its Client Money Service accounts (“CMS”). The total funds invested for RDM’s clients under the CMS are pooled enabling RBS to offer a competitive rate of interest. As this rate is only available through the introduction of all Clients monies deposited, the Bank pays us, as intermediary, a % of the invested funds. The Law Society of Scotland has approved the CMS Scheme as an appropriate method by which Solicitors can handle Client deposits. We are happy to provide you with more information should you so wish.
Please note that if you wish your funds to be deposited with a different Bank or Banks, or other investment vehicle, you must let us have your specific written instructions to do so.
5.5. Retention of Files, Papers etc
RDM are entitled by law to retain all your files, papers and documents, etc. until all fees and costs properly due to the Firm have been paid in full.
5.6. Physical & Electronic Storage of Files
After we have completed your business RDM will close and store our correspondence file for your business for up to a maximum of ten years, or otherwise as prescribed by the Law Society of Scotland for certain types of business, after which it will be destroyed.
RDM will also scan and electronically store correspondence, documents and papers for its Clients. Where the contents of files are scanned and electronically stored RDM reserve the right to destroy the hard copy prior to the end of The Law Society’s recommended retention period. Electronic records may be retained beyond The Law Society’s recommended retention period. As, in certain circumstances, electronic copies of documents may have lesser evidential weight than the originals you must advise us in writing if you do not wish your file to be electronically stored.
5.7. Mandates
Subject to Condition 5.4 RDM will deliver your papers to another Agent upon receipt of a valid Mandate and that within the time scales laid down by The Law Society of Scotland. RDM is entitled to render a fee for delivery of documents in these circumstances. Electronic records will be transmitted in the appropriate format. If electronic records are not acceptable to a new Agent you will have to pay the cost of RDM producing hard copies.
- Complaints
6.1. Our aim is to provide an efficient and thoroughly professional service. If you are unhappy about any aspect of our handling of your business, please discuss your concerns in the first instance with the Solicitor acting for you. If that might cause you any difficulty, or embarrassment, you should contact Richard Bott, our Client Relations Partner, at our Glenrothes Office or, in his absence, any other partner whose names appear on our headed notepaper.
6.2. In the event that we are unable to mediate or resolve your complaint and you are still unsatisfied you may contact the Scottish Legal Complaints Commission, The Stamp Office, 10-14 Waterloo Place, Edinburgh EH1 3EG [LP 86 Edinburgh2]. Tel: 0131 528 5111. Email: enquiries@scottishlegalcomplaints.org.uk. Website: scottishlegalcomplaints.org.uk.
- Termination
7.1. Either you, or RDM, may bring this business relationship to an end by giving the other party such written notice as may be reasonable having regard to the nature of business in hand.
7.2. If your instruction is withdrawn you will still be liable for all properly incurred fees and outlays due up until the point of termination. This may be only a fraction of the anticipated costs or it may be the full costs.
- Governing Law
8.1. The Law of Scotland governs these Terms and Conditions of Business. They shall be binding and remain in full force and effect from the date hereof, whether acknowledged or not.