Estate Agent asking for employment details

[squash0905]

My partner and I have just put in an offer to buy a house. The estate agent asked for ID, mortgage AIP and proof of deposit which we provided. He then asked me what we both do for a living. I could understand why he would ask if we were renting the property but AIBU to think this is irrelevant?

It's absolutely relevant - they'll want to know more about your money. If you're a full time hospital consultant, they will just ask different questions compared with someone on a 0hr contract with a significant cash lump sum or a part time "insert any job here" with a small deposit.

It massively affects your ability to proceed and whether you'll pass money laundering checks and actually have a mortgage agreed.

Correction: we actually have a mortgage agreed on another property for £10K more but the seller pulled out and kept the house to let. So it's a full mortgage agreement expiring in May.

Of course it’s relevant. You’re buying a property, not a pair of jeans.

Why would it be understandable if you were renting but not if you're buying? That makes no sense, purchasing is a much bigger commitment.

@MorningStarling

Why would it be understandable if you were renting but not if you're buying? That makes no sense, purchasing is a much bigger commitment.

Because we have provided proof of funds and a full mortgage agreement. So we have already passed the hard credit checks, submitted 3 months payslips and bank statements to the bank, and they know this. I know that some people only want to rent their houses to professionals etc, so would understand that. I've told them what we do anyway, I just wondered why they asked because the last estate agent didn't ask what our jobs are, that was the mortgage advisor's role.

Your estate agent need to know they are not wasting their time with you - they are after all advising your seller on lots of elements including your ability to proceed.

And an AIP is not a guarantee you'll actually get a mortgage by the way.

Very odd and irrelevant. I wonder if they have a list of normal questions they run through and don't think to amend. That said when we purchased we were not asked what we do for work

@SilverHairedCat

Your estate agent need to know they are not wasting their time with you - they are after all advising your seller on lots of elements including your ability to proceed.

And an AIP is not a guarantee you'll actually get a mortgage by the way.

Indeed. A couple who wanted to buy our house had an "AIP" and we accepted the offer. Weeks down the line, after checks were done, they were refused the mortgage. It cost us ten thousand pounds as we lost another buyer (who then bought another house on our street) and ended up accepting a lower offer as we needed to sell in order to move.

Former estate agent here. It will be Money Laundering. Pretty sure that they can be held personally liable (imprisoned/fined) if it is later found to be laundered money and they could be found to have reasonable suspicion over the source.

This applies to all parties involved in the transaction- the bank, the solicitor and the agent. If it got pulled up in court “well it was approved” by the bank wouldn’t be a reasonable defence, they would have been expected to do their own due diligence, hence the parties separately ask for the same information.

I was not asked anything about my financial position by the estate agents but my solicitor asked for proof of my finances. I dont think I would be happy to give my financial details to the seller's estate agent. Speak to your solicitor and try to get it arranged that the solicitor will confirm if you are financially able to make a house purchase at £x

@SilverHairedCat

Your estate agent need to know they are not wasting their time with you - they are after all advising your seller on lots of elements including your ability to proceed.

And an AIP is not a guarantee you'll actually get a mortgage by the way.

Yes I understand that. It's not an AIP that we have. I posted a correction. Given that, what could be the reason?

@User57327259

I was not asked anything about my financial position by the estate agents but my solicitor asked for proof of my finances. I dont think I would be happy to give my financial details to the seller's estate agent. Speak to your solicitor and try to get it arranged that the solicitor will confirm if you are financially able to make a house purchase at £x

Yes, we weren't asked for our occupations in our previous situation. We were still asked for financial details, which I didn't mind. I've already provided it all anyway, I was just curious to know if it was normal because it seemed like an afterthought and as if the guy was just being nosey tbh.

Surely that mortgage agreement doesn't stand though? As they'll need to be satisfied that this new house is mortgageable etc?

Your current mortgage offer won't apply on the new property, you will need to go through the application process again.

Because in addition to the money laundering issues the vendors will want to assess how reliable you are - solicitor and accountant✅, stripper & security not so much, whether that’s fair or unfair! Particularly if you’ve gone in under asking they’re more likely to take it if you seem a good bet!! If they’re going to agree to take it off the market for you they want to be as sure as they can be that you’re not wasting their time (& yes, I know you’re most probably reliable but they don’t know you - my mil’s been through x3 different purchasers on hers…hoping third comes off!!). Good luck!

Estate agents (along with banks and solicitors) have a legal obligation to check that your money hasn't come from money laundering.

As a PP said it's probably money laundering checks but I think some estate agents like to give more context on an offer to the sellers. So they can say "they're young professionals" or whatever. Unfortunately it's a sellers' market at the moment so you just have to dance to their tune.

@Blinkingbatshit

Because in addition to the money laundering issues the vendors will want to assess how reliable you are - solicitor and accountant✅, stripper & security not so much, whether that’s fair or unfair! Particularly if you’ve gone in under asking they’re more likely to take it if you seem a good bet!! If they’re going to agree to take it off the market for you they want to be as sure as they can be that you’re not wasting their time (& yes, I know you’re most probably reliable but they don’t know you - my mil’s been through x3 different purchasers on hers…hoping third comes off!!). Good luck!

This is what we suspected too, and although our jobs are traditionally respected, I don't think it's very fair on other people. We also thought it could be because we're relatively young and not first time buyers, so he might have thought "how can they afford this?". He did say it was to give the sellers some background info. Maybe they've told the neighbours they won't sell it to a stripper!

Good luck to you too, my sale was also third time lucky.

Of course they need to know.

They have checks they need to carry out including money laundering