For many people, moving home is one of the most significant and emotional decisions they will ever make. When a legal firm unexpectedly ceases trading, it can feel frightening, confusing, and deeply unsettling – especially if money has already been paid, contracts are close to exchange, or completion is approaching.
While every situation is different, there are clear, regulated steps that apply whenever a law firm stops trading. This guide explains what typically happens, what you can do next, and where to turn for support.
This article is intended as general guidance only and does not relate to any specific firm.
First: Pause and Gather Information
If you have been affected by the sudden closure of a conveyancing firm, you are not alone – and you are not without options.
The most important first step is to establish:
- Whether the firm was regulated by the Solicitors Regulation Authority (SRA) or the Council for Licensed Conveyancers (CLC)
- Whether an intervention, insolvency, liquidation, or formal closure has been announced.
- Who has been appointed to take control of the firm’s files and accounts?
This information determines how client money is handled and what recovery routes are available.
Understanding What Happens to Client Funds
When a regulated law firm closes, client funds are not treated as business money. They are normally held in a separate client account, subject to strict regulatory rules.
However, only the firm’s regulator or an appointed insolvency practitioner can confirm:
- Where the funds are
- Whether they are recoverable
- How claims should be made
No third-party firm can access, or release funds held by another business.
If Your Firm Was Regulated by the SRA
The SRA operates a Client Protection Fund to compensate clients who have lost money due to the failure of a regulated firm.
Where the SRA intervenes or confirms insolvency:
- A formal claims process is opened.
- Clients can submit evidence of funds paid and the purpose of the payment.
- Compensation is assessed by the regulator.
If no intervention has yet been announced, clients must wait for official confirmation of the firm’s status before a claims route becomes available.
If the Firm Has Entered Liquidation or Ceased Trading
Where a law firm has entered liquidation or has elected to cease trading:
- A licensed insolvency practitioner is appointed.
- Clients must register as creditors, if appropriate.
- Proof of payment and transaction details are submitted.
This process is managed independently and can take time. It is important not to rely on speculation or unofficial commentary.
If You Were Close to Exchange or Completion
If your transaction was already underway:
- Your file and title documentation will normally be secured by the regulator or liquidator.
- Once released, you are able to appoint a new conveyancer of your choice.
- A new firm can review what has been completed and what remains outstanding.
You do not need to start again, but you will need formal authority and access to your file before work can continue.
How Priory Law Can Support You
While we cannot advise on the recovery of funds held by another firm, we can support clients who have been left without representation by:
- Reviewing the status of their transaction
- Explaining what is likely to happen next.
- Helping them understand their options.
- Providing clear, transparent guidance on how to proceed
Our role is not to replace another firm, but to help people feel supported, informed, and steady at a time when everything can feel uncertain.
A Calm Next Step
If you are experiencing disruption following the sudden closure of your chosen conveyancing firm and would like a calm, confidential conversation about your situation, we are here to help.
You can speak directly with Anne-Marie Fowler, Managing Director at Priory Law, on 01737 457457.
We provide personalised, transparent quotations, not estimates, so you have a clear picture of costs from the outset, with no hidden extras.
Even if you are simply looking for reassurance or guidance, we will take the time to listen.
At Priory Law, we understand that moving home is personal. And when the unexpected happens, clarity and care matter more than ever.
Update 5.2.26
This guidance has been shared following a number of recent enquiries from individuals affected by the unexpected closure of PM Law Ltd at 250 Shepcote Lane, Sheffield, and associated firms on Monday 2 February.
The Solicitors Regulation Authority (SRA) has now published further information for affected clients, outlining the regulatory position and next steps. We encourage anyone impacted to review the SRA’s official update, as this provides the most up-to-date and authoritative guidance.
Our intention in publishing this article remains the same: to help people feel informed, supported and steady while navigating a very unsettling situation, and to provide clarity around the process rather than speculation