Purchasing a property is an exciting time for any buyer, but, before we can start work, there are a number of checks which we must complete; being ready with the necessary information will help speed up the process.
Regulations
As solicitors we are required by law to identify our clients and understand their source of wealth: Anti-Money Laundering checks (AML) and Customer Due Diligence (CDD). We must keep records of the results for potential audits by relevant authorities.
What do we need from all buyers?
If you are living in the UK, we will need your original passport and a recent proof of address to verify your place of residence. In most cases we can carry out these checks using a digital ID platform. If you or your company are based abroad, we will ask for additional information, depending on your location. For overseas companies, we require a full suite of company documentation, including details of beneficial owners. We will, of course, guide you on what is needed.
Source of funds
We need to have evidence about the origin of the money intended for the purchase to ensure it is legitimate and properly documented. If someone is giving you a cash gift to help, we will also request identity documents from your donor and details of their source of funds too.
Money on account
Before we can start work, we will ask you to sign our retainer letter and to pay some money into our client account. These funds cover the costs of the initial property searches that we always recommend undertaking as soon as we receive the contract papers from seller's solicitors. Some searches can take several weeks to be returned hence ordering them early should limit delays.
Mortgage
If you are purchasing with a mortgage and we are acting for your lender, we recommend keeping us updated on the progress of your application and putting us in touch with your mortgage broker. This ensures that any property-related questions from your lender or its valuer can be answered promptly. We may need to liaise with your broker to amend the mortgage offer as it could contain incorrect information, such as the wrong lease term or the level of service charges payable for the property. In addition, the lender also needs to be informed about who will be occupying your property upon completion, so if there are any additional occupants (other than your children), your lender needs to be advised.
Other factors
If you are considering putting the property into a trust, there will be some additional work involved as we will need to obtain more information about your trust and the beneficiaries. If necessary, we will also refer you to our trust team, who can prepare the relevant deeds of trust and explain the process to you, including the registration formalities for your trust.
Key advice
Be prepared with all your AML and CDD documents before starting the purchase process. This will help us open your file and get started on the purchase as quickly as possible.
If you have any questions about what is required for you or your company, we are happy to help so please get in touch.