How long to wait for proof of funds?

[Back2Black]

Just that really!

I accepted an offer a week ago from cash buyers & called the EA a couple of days ago re proof of funds. They were hoping to have verification by the end of the day.
Called again today, the buyers are still waiting for a cheque to clear.

How long is reasonable to wait? The buyers have been asking questions via the EA about light fittings etc I think their priority should be proving that they have the funds.

Has anyone else been in this situation? Our previous buyer (sale fell through) sent proof on the day the offer was accepted.

Waiting for a cheque to clear? ?It's 2021, I haven't seen a cheque for a long time. Ask them what cheque that is, but expect some bullshit answer. Tell them you will be continuing to market until you receive the proof you requested.

Thanks DelphiniumBlue my thoughts exactly regarding the cheque! EA hasn't booked in any viewings, they've said they have no reason to believe they aren't genuine.

I’d smell a rat with this tbh. Their solicitor should at least be able to confirm in writing they have adequate funds. If they can’t I’d assume that they are calling round to beg steal and borrow from various sources…

I confirmed funds on the day I had offer accepted- on one occasion before the offer was accepted. I just showed statements showing I had enough money in place to buy outright.
Sounds like they are not cash buyers tbh

Hmmmm I personally would be asking to see the proof of deposit of whatever cheque it is they’re waiting to clear. Surely they got a receipt or some proof they put the money in the account

All good points about the cheque - surely the EA should be asking these questions? It's from an inheritance apparently.

When my DH got an inheritance he had to sign a letter to say that he had received x Sum of money from the executor of the estate. We kept a copy so you’d think they’d have some kind of proof like that

All helpful advice - thanks.
I'm going to call the EA tomorrow & get them to book in viewings for next week.

Cheques clear in 24 hours these days with most banks.

We had a buyer, not cash, who dragged out providing proof of funds and MIP. His mother had a fall in Spain, he was in hospital, every excuse until he decided the EA was harassing him and he would no proceed with buying!

That is what I fear TulipsfromAmsterdam - they've started as they mean to go on with delays & excuses. They are now saying the cheque was paid in yesterday & will be cleared on Monday.

EA says the market has slowed down hence no viewings booked. I think it's time to find a new EA & buyer.

I am waiting for maybe buyers proof of fund almost a week

I’m surprised you accepted an offer from a cash buyer without proof of funds, to be honest.

Surely you’d have looked for confirmation of mortgage approval in principle from a non-cash buyer?

Don't cheques take 7 or so working days to clear?

I am currently in the process of being a cash buyer. I emailed evidence of proof of funds within half an hour of my offer being accepted.

Good luck West5on frustrating, isn't it? Hope you get it soon.
VodselForDinner - I've always been asked for proof of funds after having an offer accepted whether cash buyer or buying with a mortgage,.

@Seashell1234

Don't cheques take 7 or so working days to clear?

I am currently in the process of being a cash buyer. I emailed evidence of proof of funds within half an hour of my offer being accepted.

Also a cash buyer who provided proof funds with my offer. Serious cash buyers know this is what is required and are ready to go when they make their offer.

@Back2Black

Good luck West5on frustrating, isn't it? Hope you get it soon. VodselForDinner - I've always been asked for proof of funds after having an offer accepted whether cash buyer or buying with a mortgage,.

I wonder if it depends on the market in your area?

I bought lately (mortgaged) and had to have proof of approval in principle before I was even allowed to schedule a viewing. That was with three properties with three different agents.

one week is reasonable.

more time, especially with defensive excuses, is taking the piss.

We waited a week for our ‘cash buyer’ to prove funds which turned out to be all tied up in investments so not proof of funds at all. They then pulled out when the estate agent told them it wasn’t acceptable.

In their head they are a cash buyer - but what you are discovering is that they are far from it - sure they may not be applying for a mortgage but that does not mean that they are a true cash buyer with funds immediately available.
As you have said - time to move on and get the house back on the market. Have a good read of your T&C's with the estate agent and see what you can do about replacing them if they continue to be so rubbish.

I was buying as an FTB a year ago. I had a mortgage in principle ready for the first viewing but it's not the same as proof of funds, you just state what deposit you have but no one verifies it at this early stage. Proof of funds was requested after the offer was made and I can't remember when I provided it but I think it took me longer than a week - partly due to practicalities of transferring it to my account but mostly because I wasn't yet fully committed to the purchase. The property I made an offer on was my best option but I wasn't excited about it - it was a project requiring a full renovation and there was a bazillion questions and concerns about it that weren't clear and continued to pose risk to me. I wanted to clear them before I pulled the money out of investments as otherwise I'd rather keep my money where it was. I think the property was still advertised at this point but I don't think any further viewings actually happened (whether that was due to lack of interest or agent unwillingness to put more effort into this property, I don't know).

Based on my experience I'd say waiting another week is your easiest way forward. You can communicate a timeframe to your buyer then arrange more viewings after another week if nothing happens. I'd only rock the boat if you are sure you'll be inundated with offers at or above your asking price.

Having money ready same day as offer is made is more common when buyers are experienced and fully committed. Ideally you'd want buyers like that but is it a realistic expectation? You may or may not be able to find your ideal buyer, in which case 'good enough' is totally fine.

Proof of funds does not have to be all the money in one account.

When we bought as cash buyers, we had the funds in about 5 different accounts. We were able to evidence all of these. One required a noths notice to access the funds.

As a tip for anyone buying, getting proof of funds together before starting to view properties/go on EAs lists, and making an electronic document and hard copies, puts you in a strong position as a buyer, it shows you are serious and not a time waster.

When choosing an EA to market my property, Insould always ask if they require proof of funds before showing properties/encourage it/how long after they insist on it. I would expect them to have seen evidence of funds in advance from any cash buyer, wanting their offer as a cash buyer to be taken seriously. Their answers to this would be key in me choosing an EA. Too many so-called cash-buyers are anything but, and use the term to get their offer accepted.

It is true though, that sellers can insist more easily on these things being in place in a hot market where things are selling fast. When it is a buyers market and viewings low in number, it is less easy to insist. It is also true that lots of sellers don't appreciate that not all cash buyers turn out to be cash buyers, or the importance of their EA checking their claim to be cash buyer via evidence of funds, before an offer can be submitted or accepted.

Until prof of funds is provided, I would keep the property on Rightmove etc and not mark it as SSTC. INwould also keep showing the property to anyone interested.

It is fairly common now that EAs tell buyers that until proof of funds is shown and a MIP shown and solicitor app I ted and named, which all go onto the Memorandum of Sale, the property cannot be marked as SSTC and taken off the market.

Again, if choosing an EA, I'd want to know this would be their approach and they would tell buyers about it. A week is reasonable to provide this stuff and as a buyer, that week is when you are vulnerable to another viewing happening or higher offer coming in. That's why, getting it all ready to show, ideally the day after offer, puts you in the strongest position.

OP, I hope your property is still being marketed and if there is any interest you are doing viewings. Taking it off the market shouldn't happen until all of this evidence is provided. Otherwise you might find you've missed prospective buyers, if this current one turns out to be non-proceedable.

Thanks for all the advice - finally have proof of funds.

I'm sure it will all go very smoothly from now (!?) & l won't be starting a new thread in a few weeks to have a rant about the buyers