Client Accounts

4.

(1)

Money other than clients' money may be paid into a client account—

(a)

if it is the minimum required for the purpose of opening or maintaining the account;

(b)

to restore in whole or part any money paid out of the account in contravention of these Regulations,

and in no other circumstances.

(2)

Where—

(a)

part of a contract deposit paid by a purchaser is not, or is not intended to form part of, the consideration for acquiring an interest in land in the United Kingdom or for a connected contract, or

(b)

part of a pre-contract deposit—

(i)

is not paid as an earnest of the payer's intention to acquire an interest in land in the United Kingdom, or

(ii)

is not paid towards meeting any liability of the payer in respect of the consideration for the acquisition of such an interest which will arise if he acquires or enters into an enforceable contract to acquire the interest,

and the money is received in cash or in any other form which it is practicable and lawful to split, then the part of the contract deposit referred to in sub-paragraph (a) or any of the part of the pre-contract deposit referred to in subparagraph (b) not paid in respect of a connected contract shall not be paid into a client account.