Proof of funds for conveyancing matters
Why do we ask for Proof of funds when you buy or remortgage a property?
As solicitors, we have an obligation to ensure that all money that passes into our bank account has been legitimately obtained and therefore we have to undertake certain checks against all clients and the money that they will be providing us with.
For every transaction where we will be receiving your money for things such as a deposit for a property purchase or the balance on a re-mortgage etc, we will need to verify where you have obtained the money from. We need to verify this BEFORE we can give you our bank details and BEFORE we can accept any funds from you. This is a legal obligation upon us and we cannot vary the procedure in any circumstances.
To satisfy our requirements, we will need to see bank statements/investment summaries etc showing the full balance that we will be receiving from you together with as much detail as possible about where the money has come from. If for example, you received damages from a personal injury claim, an inheritance, proceeds from the sale of a previous property etc, a bank statement showing the funds going into your account, a copy of the correspondence from your previous solicitors will be sufficient for our requirements.
If the funds have accumulated over time from regular savings, we will need bank statements going further back over time to show the balance increasing over a longer period. The earlier that you can let us have this information, the better.
If the funds are by way of a gifted deposit, we will also require evidence of the monies to be gifted. This involves providing us with original or certified copies of bank statement/saving accounts etc showing the monies to be gifted by the person gifting the money, standing to their credit for the last 6 months.
If you do have any queries at all about your individual circumstances and the information that we will need to see, please do not hesitate to give us a call and we can discuss matters with you.