What is Source of Funds, and why do I need to produce this evidence to my Conveyancing Solicitor?
Posted on 29th October 2023
When our local solicitors deal with your conveyancing purchase transaction, verifying your proof of funds is an integral part of our obligations to the Solicitors Regulation Authority and under Anti Money Laundering Regulations.
Conveyancing is an area where huge sums of money are involved, therefore, being a heavily targeted area by criminals, in an attempt to launder money which is acquired by criminal activity.
Our solicitors in Lytham are obliged to thoroughly check where your funds have come from, and how the same have accrued over time. Whilst this may seem somewhat intrusive; this is a fundamental part of the conveyancing transaction, and part of our requirements under Anti Money Regulations 2017. In instances where a mortgage lender is involved, we also have a duty towards your lender, to confirm the funds have been legitimately acquired.
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What evidence do I need to provide?
At the start of your conveyancing transaction, our solicitors in Lytham will provide you with a source of funds form for completion, together with our source of funds guidance table. The table will set out documentary evidence we require, in order to evidence the origin of all funds being used to assist your purchase. Essentially, we require a clear paper trail of the source of funds, in order that we can trace where they deviate from. The documents required depend on exactly where the funds are coming from.
Common Examples include the following:
Gifts
If you are lucky enough to be relying on a family member, who is gifting funds towards the purchase, our Lytham solicitors will need to write out to the family member, in order the confirm how their funds have accrued. We also require proof of identity from that person gifting the funds.
Inheritance
If you have received money under the provisions of a Will, or the Estate of a relative, we will need confirmation, in writing, from the solicitor who dealt with the Estate, which should confirm the amount received as the beneficiary, together with a copy of your bank statement showing the funds being received.
Savings from Employment
If the funds have built up from employment earnings over time, we require 6 months of your most recent bank statements, together with 6 months of wage slips. This is required in order that we can see the funds being received from your employer, which should correlate with your wage slips.
Compensation
Where the funds derive from compensation funds, our solicitors in Lytham will request a copy of your letter from the solicitor who dealt with your claim, confirming the amount of compensation being awarded, together with a bank statement showing the payment being received.
Pension
In instances where pension funds are being utilised, a copy of your pension statement together, with a bank statement showing the pension being received, will suffice.
Sale of Property
If the funds have originated from a previous property sale, we will require sight of the completion statement from the solicitor who dealt with the transaction for you. This will show the amount of sale proceeds due back to you, which can then be evidenced by a bank statement showing receipt of the sale proceeds.
Sale of Shares
If you intend on selling shares to aid your conveyancing transaction, our local solicitors would request sight of a copy of the share account, and a copy of your bank statement, showing the funds being received, once released.
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Please note, the above are only a summary as to common examples, and the source of funds evidence our solicitors in Lytham require will always depend upon the circumstances, and where you have obtained the funds from. If you are unsure on what documents are required, please do not hesitate to get in touch with our friendly team today.
Our expert conveyancing solicitors will always ask for your proof of funds from the outset, and review the same at the earliest opportunity to allow time to compile further evidence, if requested. We appreciate the documentation can take some time to compile which is why we ask for the same at the very start of the transaction, making the process as smooth as possible for you.
Our solicitors in Lytham are here to assist you thought out the Conveyancing process, including advising what we need to satisfy our proof of funds requirements. Get in touch with our specialist team today, and speak to a fully qualified solicitor.
Why choose MG Legal, Conveyancing Solicitors in Lytham?
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Tagged as: Conveyancing, Solicitors in Lytham
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