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Original poster

Gifted deposits

38 replies

Amichelle84 · 01/07/2022 20:58

After a year of searching we've found a property we love that is in budget and have made an offer.

We are very lucky and our deposit (5%) is being gifted by partners parents.

The estate agent has asked us to provide some info including proof of deposit in way of a bank statement which FIL is reluctant to give.
The last thing I want is to not be taken seriously because of this, does anyone know a way round this or anything I can say to FIL to reassure him? We can obviously block out any of his personal details - I don't really see the problem.

OP posts:
RNBrie · 01/07/2022 21:00

Can he give your partner the deposit now so your partner can show his bank statement? Otherwise the Estate agent might accept a letter from your partner's dad...

JaniceBingALing · 01/07/2022 21:06

They won't accept a letter, they need either a letter from a financial adviser or proof of funds which is exactly that - proof!

Original poster
Amichelle84 · 01/07/2022 21:07

RNBrie · 01/07/2022 21:00

Can he give your partner the deposit now so your partner can show his bank statement? Otherwise the Estate agent might accept a letter from your partner's dad...

I suggested he transfers it to us if he's worried, will speak to him again tomorrow and push this if he won't provide us with a bank statement.

OP posts:
1moreyear · 01/07/2022 21:08

My fil gave us our first deposit. We had the money before we started anything. He needs to give you the money now so you can show your own proof.

DietCoke99 · 01/07/2022 21:10

Why does the estate agent want to have this information? They should get a letter from your broker proving evidence of funds or from your lawyer if they want it.
Get your dad to transfer the money into your account though. That will stop this estate agent nonsense - never heard of this tbh.
Your dad, as an aside will need to write a letter to say to you that this has been gifted. This is for tax purposes and you do not need to show it to the EA either.

GiltEdges · 01/07/2022 21:18

1moreyear · 01/07/2022 21:08

My fil gave us our first deposit. We had the money before we started anything. He needs to give you the money now so you can show your own proof.

This isn't necessarily the answer. We had a similar scenario with FIL when we bought our first house and because the mortgage company saw the money going into DH's account from FIL they still requested FILs bank statement to show where it had actually come from. He also still had to complete a gifted deposit form to confirm it was definitely a gift rather than a loan.

Original poster
Amichelle84 · 01/07/2022 21:22

Yes that's correct, the gift form is completed with the mortgage broker once an offer has been accepted.

The EA wants that info to vet out people who are putting in offers as they have had so many. I guess if they see you've got the deposit they know you are serious and it's one less possible complication down the line.

OP posts:
Duettino · 01/07/2022 21:28

Can't the bank statement be shared without you two seeing it?

They need proof of how the money was accrued to prove it isn't laundered etc. if he isn't willing to provide this, I can't see you being able to proceed.

I've know people who's parents have had to show bank statements showing the money being saved over long time periods for their gifted deposits.

Duettino · 01/07/2022 21:30

To clarify, It's not normally the estate agents but the solicitors so is he willing to show them?

Original poster
Amichelle84 · 01/07/2022 21:32

Duettino · 01/07/2022 21:28

Can't the bank statement be shared without you two seeing it?

They need proof of how the money was accrued to prove it isn't laundered etc. if he isn't willing to provide this, I can't see you being able to proceed.

I've know people who's parents have had to show bank statements showing the money being saved over long time periods for their gifted deposits.

It's not that he minds us seeing it, more that someone he doesn't know (EA) will.

It's a bit annoying really and I don't see the problem as his account number and SC can be blocked out.

OP posts:
DarkDarkNight · 01/07/2022 21:32

I had the same problem with my dad. He’s quite old fashioned and doesn’t like sharing information like that.

He thought they were being nosy and it was none of their business. I explained it was a condition of the mortgage offer that they had to see where the money was from. Transferring it to you won’t change that, they need to do anti-money laundering checks. They will still need to see the account it originated from.

prinnycessa · 01/07/2022 21:33

My MIL gave me and DH our house deposit. We used a broker and all we needed was the gifted deposit form.

Original poster
Amichelle84 · 01/07/2022 21:33

Duettino · 01/07/2022 21:30

To clarify, It's not normally the estate agents but the solicitors so is he willing to show them?

He'd show the solicitor.

I think because it just at putting in an offer stage he doesn't get why he has to do it now.

OP posts:
Aconitum · 01/07/2022 21:33

Agree with a pp. Solicitors will need proof of source of funds anyway for money laundering purposes so he will have to provide it at some point.

HSKAT · 01/07/2022 21:37

He needs to provide it either way.

Can he do a bank statement and marker out other payments in/out/balance if that's what he's worried about.

Realistically though they don't care they just need to know the moneys there.

Original poster
Amichelle84 · 01/07/2022 21:38

HSKAT · 01/07/2022 21:37

He needs to provide it either way.

Can he do a bank statement and marker out other payments in/out/balance if that's what he's worried about.

Realistically though they don't care they just need to know the moneys there.

I know, it's so simple I don't get why he's being so awkward.

Maybe I'll speak to him instead of my partner, he's a bit softer than me.

OP posts:
mistermagpie · 01/07/2022 21:40

Amichelle84 · 01/07/2022 21:22

Yes that's correct, the gift form is completed with the mortgage broker once an offer has been accepted.

The EA wants that info to vet out people who are putting in offers as they have had so many. I guess if they see you've got the deposit they know you are serious and it's one less possible complication down the line.

In this scenario (as in, they just want to know the money exists) would the EA not accept your bank statement if FIL transferred the money right now?

Fil would still need to show his statements to the solicitor to prove where the money came from once the transaction is underway (as a pp pointed out, they could see the money coming into your account) , but I don't see why the EA would need them.

HinchcliffeandMurgatroyd · 01/07/2022 21:46

Amichelle84 · 01/07/2022 21:38

I know, it's so simple I don't get why he's being so awkward.

Maybe I'll speak to him instead of my partner, he's a bit softer than me.

Show quote history

EAs trying to vet buyers like this is a comparatively new thing. It is a cheeky practice TBH, given EA’s are unregulated and presumably you have a DiP to show?

So I’d take that commissararing line with your FIL; “Estate agents, eh?” I don’t think it’s fair to brand him “awkward”, especially when he is giving you a decent chunk of cash. You could suggest a solicitor’s or banker’s letter? He might be more comfortable with that, even if there is a charge.

Duettino · 01/07/2022 21:48

If he is ok to show you and ok to show the solicitor, I can see why he isn't keen to show the wastage agent. I get that we have to prove we aren't wasting their time but it would be akin to a homeowner showing the mortgage deeds to prove they are a homeowner. Awkward but the estate agent is over the top.

Duettino · 01/07/2022 21:50

Freudian slip there... I mean estate agent.

caringcarer · 01/07/2022 21:52

When I gifted my DS a 10 percent deposit, when he found house he wanted to buy and got offer accepted subject to proof of funds I just transferred money into his bank account and had to write a letter stating it was a gift and not a loan. Why can't fil just do that?

imperialminty · 01/07/2022 21:52

3 years ago my mother transferred me the money she was gifting us (6 figures, so not a small amount) and then she had to write a letter witnessed by her financial advisor explaining what she was doing and that she was gifting it with no expectation of repayment from me (i.e it truly was “a gift”). And then she also had to provide the “trail” of the money - so for us that was my father’s will, the will’s executor statement thing and then evidence of where the money had been for the intervening time in my mum’s account. It was A LOT and she also felt very uncomfortable sharing those details, but we found that explaining the process and showing stuff online that proved it was legit helped.

it’s really stressful trying to convince them though - if your FIL is anything like my suspicious of banks and lawyers Mum! I hope it goes smoothly.

Kite22 · 01/07/2022 22:16

DietCoke99 · 01/07/2022 21:10

Why does the estate agent want to have this information? They should get a letter from your broker proving evidence of funds or from your lawyer if they want it.
Get your dad to transfer the money into your account though. That will stop this estate agent nonsense - never heard of this tbh.
Your dad, as an aside will need to write a letter to say to you that this has been gifted. This is for tax purposes and you do not need to show it to the EA either.

You may never have heard of it, but it is standard practice now and has been for some time.
Over the last 3 years or so, where I live, you can't even view a house unless you can show proof you are in a position to make an offer.

mindutopia · 01/07/2022 22:19

Part of our deposit was gifted to us. It was transferred to us before we made an offer and we just provided our bank statements as proof of funds. You will need to do this. There’s no way around it. So either he provides his statements or transfers to you and you provide yours.

abw94 · 01/07/2022 22:37

I worked in estate agency from 2012-2015 and back then you would always have to prove you had the deposit so it's not a 'new thing'.

They have to do their due diligence for their vendor. Think of it this way, you're using an agent to sell your house and you have an acceptable offer, wouldn't it be standard the EA checks the potential buyers can actually buy the house? Imagine if they didn't? You could then go on to buy your new home, have a chain then it collapse as your buyers actually can't afford it. What a waste of time & money and who would be to blame? That's right, the estate agent as they didn't check out their buyer has got a DIP and the deposit to make it up to purchase price.

What do you think an estate agent is paid for?