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The need for a paper-trail for the purchase monies

Christine Hadfield, Conveyancing Executive in Astle Paterson’s Conveyancing Department discusses the need for purchasers of property to provide a paper-trail for the purchase monies which are used in the transaction.

Chris said “As Solicitors, the Money Laundering Regulations 2007 require us to take steps to be aware of transactions with heightened money laundering or counter-terrorist financing risks.  Further, the Proceeds of Crime Act 2002 requires us to report suspicious transactions.

Many properties are now purchased with a combination of deposit, mortgage or monies from a current property.    As Solicitors we are expected to have information about how our clients intend to fund the transaction.

Indeed, should the purchase of a property be with the assistance of a mortgage then we have obligations to the lender to advise them should the buyers not be funding the balance of the price from their own resources.

As a result we are obliged to ask clients about the source of the funds – this not only includes a paper-trail for the monies from our clients, but should a third party be assisting with the purchase – for example parents or other relatives – we will need to identify them (by carrying out ID checks), ask them whether they intend to take an interest in the property (or, for example, the monies are a gift or separate loan) and to obtain documentary evidence of where the monies are being transferred from.”

Chris concluded “To ensure that your purchase proceeds without any unnecessary delays, we ask that any such information is provided at the outset.

Moving house can be a stressful time for most; we believe that by requesting this information whilst the transaction is in its infancy will help to ensure that the purchase proceeds smoothly – and on-time!”

Should you be in the process of selling and/or buying a house then please contact the Conveyancing department at Astle Paterson on 01283 531366 or by way of email at conveyancing@astlepaterson.co.uk to obtain a no-obligation fixed-fee quotation for our legal services.

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