Conveyancer

[greenhem]

Hello

Can anyone help- we're in a tiny house chain all very motivated to move asap- due to exchange last week- everything ready to go but suddenly our buyers solicitor is asking for their proof of funds (they are fairly new to the UK and sold their home to buy here so cash buyer- had statements to show this). Is this not something should have been done first? Rather than the very last thing? Our whole chain collapse because of this as people need to move and it's the only thing holding it up. Why on earth would they wait until exchange week to ask for evidence of how they have obtained the source of funds?Surely they are obliged to do this ahead of everyone spending hundreds on initial moving costs? They've had two months to do this?!

it's normal for the conveyancer to review the file at this stage where things like this are cross checked.
with a mortgage the bank also has an interest/obligation regarding proof of funds so this is checked earlier in the process.

Really? 2 months later at the week of exchange? We all had to prove mortgages within the first week- but they can ask this at such a late stage risking the chain and peoples money? Seems bonkers?

I suspect they asked for it in the beginning, and probably chased it in the middle.

Now they have everything else so are asking again as the final thing.

I imagine it’s the buyers who are causing the issue rather than the solicitors.

Sadly not, the sales progression agent said they had just asked 😞

Firstly, and this applies not just to this but anything else you’re told during the process, take everything the estate agents tell you with a very large pinch of salt.
The solicitor may well need additional information over and above anything that has already been provided. Especially with a buyer who is new to the country. The anti-money laundering regulations are extremely stringent and it can take a long time -and a lot of information-for a solicitor to satisfy themselves that they have carried out full due diligence. A solicitor risks going to prison if they get this wrong, so even if it holds up a sale by a few weeks whilst the evidence is gathered, so be it.

They buyer themselves who were in contact with called us in tears because of being asked so late too- I feel like the solicitors are often the ones who have been caught out fibbing!

as pp says, money laundering checks are very stringent by law.
banks (usually) pick up the documentation checks earlier if you buy with a mortgage.

the buyer probably provided some documents thinking that was enough but when the conveyencor did the pre-exchange check discovered they need more details.

it's normal. it could have been a missing document from your side delaying exchange.

fingers crossed all can be solved quickly.

They’ll have been asked for it by the solicitors in the initial paperwork. I guarantee it would have been asked for in the letter of engagement. The buyers haven’t provided the correct paperwork and so the solicitor is saying they cannot exchange until they have this.

The good news is that it’s very quick to resolve. They can literally sign it off in an hour if the buyer gets a move on.

Yes they should have been asked at the start. Usually the EA asks for proof of funds too before the offer is even put forward.
But why the panic? Can't they produce it?

The estate agent saw funds in bank.

They can produce it but their solicitor will only operate a week at a time I.e won't look at anything submitted last week until end of this week- it's been driving our solicitor insane- she's actually drafted some bits that they haven't done to speed things along!

The rush is that we're losing our choices for moving dates, our buyer is in rented and goes back home for a month in 2 weeks and will come Back with no home when she returns and then we're also away- and the the ones above us also have to be out asap for various reasons. Frustrated that we could all end up not moving and out of pocket due to the solicitors not doing something they should have

the issue is not 'fund in bank' but where the funds come from.

exchange hickups happen

I had funds from abroad and was asked towards middle of the process for more info as it came via my mum's account so she had to provide statements too (she was not happy with it😳). I would flip if that was left to the end.
What are they aaking of them? Does the paperwork need to be translated?

Of course I know source of funds isn't just cash in the bank - that was the estate agent checking. I am aware the solicitor needs more than this to cover for money laundering etc but I have found the solicitor to be very incompetent and dishonest. Everyone seems to hate an EA but I've found them to be far more trustworthy than the sols on this occasion!

Hello @greenhem did this all get resolved in the end? This is exactly what we are going through now so i would to hear that yours did work out ok. Small chain here and all ready to go now and yet the AML on our purchasers source of funds still not complete after about 2 months!

Love to hear that should say!