Frequent question: Why do solicitors need bank statements when buying a house?

What solicitors look for in bank statements?

Current/Savings Account

If the transaction is to be funded from a savings account or a current account, solicitors will need the original bank statement showing the funds accumulated in the account. It is vital that the bank statements show the name of the bank, the clients name and their address.

Why do solicitors check bank statements?

Why do you need a copy of my Bank Statement? … With increasing (and welcome) concern over Money Laundering, solicitors now need to be satisfied over the provenance of the monies, hence why we not only need to see a copy of your bank statement, but you also need to show how your deposit monies came to be where they are.

Why do solicitors ask for 6 months bank statements?

If you are buying, we ask for 6 months of bank statements and will query if the source of funds for the deposit isn’t clear. When someone else has given you your deposit funds (e.g. a parent or other family member) this does mean asking for more information.

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What does a solicitor check when buying a house?

Your solicitor will need to prove that the property seller is the legal owner of the property you are buying. They do this by checking the ‘title register’ and ‘title plan’ at the Land Registry.

What is proof of funds when buying a house?

Proof of funds – this is evidence that you have the money needed for you to proceed with a property purchase. It could be a bank statement showing you have the money in the bank and/or a mortgage agreement in principle. Source of funds – this is evidence of how you came to have the money in your possession.

Can a solicitor look at my bank account?

A solicitor cannot by law proceed with your purchase without knowing the source of your funds. This is to limit the potential for fraud, protecting the solicitor, the legal sector and most importantly, the buyer.

Why do solicitors need ID proof?

Fraudsters can and do impersonate others to sell property they do not own. This is one of the reasons why, if you are selling a property, your solicitor is under a duty to verify your identity. The other main reason that identity checks are required is to help prevent money laundering and mortgage fraud.

Why do solicitors ask for money on account?

Transferring money for your costs

It is usual for firms to ask for money on account of their costs from a client, based on an estimate of those costs but where no bill has been delivered. This money has to be paid promptly into a client account as set out in rule 2.3 of the Accounts Rules.

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Do I have to prove where my deposit came from?

It is simply proof of where the money for your deposit came from. This is because a deposit is not required to come from your own savings and can come from elsewhere. For example, it may come from the sale of or equity release from another property, or be a gift from a parent.

What is proof of source of funds?

Proof of Sources of Funds or PoSoF is one or several documents providing information on the origin of funds that are being used in a particular transaction. Any submitted PoSoF documents have to cover all withdrawals, previous as well as the most recent ones, and deposits made via the funding method in question.

Do you have to prove where your house deposit comes from?

The proof you will be required to supply of the source of your mortgage deposit will depend entirely on where the funds came from. For example, where personal savings are being used, most lenders will ask you to provide 6+ months of bank account statements which demonstrate the funds gradually building up over time.