Purple Bricks charging for anti-money laundering checks

[Babychewtoy]

We are buying a house through PB and they are trying to charge £80 through a third party (lifetime legal) for anti-money laundering checks.

Has anyone successfully avoided being charged? Or negotiated a reduced price? Our estate agents for selling our house and our conveyancer have both done the check already.

And does anyone know if it is £80 total or £80 each for me and DH?

I know it’s not much money in comparison to all the expenses of buying / selling houses, it just annoys me that we’re being charged as buyers by the seller’s choice of estate agent.

Just tell them you won't pay it. Anti money laundering checks are already done by your solicitors so it is totally unnecessary for agent to do them. They just want to get more money out of you and I see no reason that they should be able to when they act purely for the sellers and PB don't do much anyway.

I have no idea really but I would imagine such checks are to protect PB more than anything and so they can’t simply leave it up to the estate agent, if you see what I mean. It will be for their own compliance.

Was the charge stated in any t&cs or contract you signed with PB? I would assume that’s the only way you could get out of it… if they’ve not been clear about it from the start…?

Hopefully someone else can give more useful advice… I just thought I’d share my first thoughts on it

PB are saying that they can’t complete the memorandum of sale without it… and presumably we need that to be sent to our conveyancer and vendor’s conveyancer before things can move forward?

As it stands DH has told PB that we won’t pay so we’re waiting to see what they come back with. We will probably just end up paying, just wanted to see if anyone had found a way around it.

@ViaRia01 appreciate the need for due diligence but the check apparently costs less than £5 so it really is a scam that they charge £80!

reed rains do the same and it’s a very shoddy practice

It was £60 for two of us altogether a couple of months ago via PB.

They do have to do it or aren't following Anti money laundering rules.

I've not paid anything as a buyer to the estate agent selling the house we are buying.
It is listed on our solicitors quote, although not paid yet.

Memorandum of sale was sent before any monies were paid by us.

Of course they can complete the memorandum of sale without it. You could offer to undergo the process with your solicitor and for your solicitor to confirm with PB. They are just trying to rinse you which is jolly cheeky. I would refuse to pay it personally and tell the sellers why.

No way should you be paying as the buyer. Your solicitor should be doing anti M-L checks (identity and source of funds) anyway.

PB are the Ryan Air of EA's.

I’ve paid for Lifetime Legal before but it was much less - about £30 each I think. Not with PB. Once with the agency we bought through as FTB and then with the agency we subsequently sold through. They do need to do their own checks.

Not ideal to pay BUT it does get you homebuyer’s insurance where you can recoup some costs if the other party pulls out, and we also got our wills done by them.

It seems like this is maybe something a normal EA would include in their fee but PB don't because they're cheap. If it is a requirement I'd just tell the vendor they have to pay it if they want it done. I'm not paying more because they're cheapskates (they'll probably take the lightbulbs too).

Okay, they could complete the memorandum of sale without it, but they won’t basically!

I did make an error, it’s £60 not £80 and it sounds like that’s the total cost not per person… so we will just pay the robbing bastards, unless anyone comes along and says they’ve managed not to.

I was thinking that but we don’t want to get the seller’s backs up over £60 before the survey incase we need to negotiate anything on that.

'Okay, they could complete the memorandum of sale without it, but they won’t basically!'
Exactly. I would play hard ball or deduct the cost from your offer. Sadly, I don't think it's illegal but you could contact the Ombudsman to check.

Honestly I'd look at this the other way and think if they won't cover the 60, they'll be completely unreasonable/penny pinching to deal with (and refuse to negotiate on the survey) so I'd probably rather walk now.

You could always type your own memorandum of sale and continue as a private buyer.

This is why:

https://propertyindustryeye.com/aml-compliance-amongst-estate-agents-surges/

A bunch of agencies were issued huge fines.

That article just reads as an advert for Credas @KievLoverTwo!

Oh, sorry. If you put “estate agent money laundering” into the google news tab, it brings up a bunch of articles about sizable fines.

This seems to be a new thing to charge the buyer this fee. I've seen a few people mention it recently locally and saw a property advertised on rightmove which mentioned it on the blurb. Not PB or other online agencies in these cases either.

If I was selling I would categorically discount an agency which charged this fee and I'd expect the agent to cover as part of their commission.

We're having the exact same issue, as the buyer, being forced into paying £80 for their ID check. My solicitor has already done the checks (for much less than the overpriced £80) but PB flatly refuse to recognise those and insist on me (the buyer) paying them for the same service. Also they hassle for other services they want to sell. I am the buyer, I have no interest in anything from PB, the seller engaged them not me.

My dd, a FTB, recently completed on a house sold via Purple Bricks. Dd had to provide evidence to PB that she had the funds, and that her solicitor had completed the money laundering checks. Dd paid her solicitor for these checks. She was not expected to pay PB anything.

I started the other thread a while ago about this, I even contacted the ombudsman. Long story short, yes they can do it. If you want this house you have to pay.
I'm nearly over my bitterness about it but we still haven't moved yet!

An estate agency legally has to carry out the checks on both their seller and the buyer. The solicitor also has to do the checks on their client. And the mortgage company also has to do the compliance checks. Blame the government and the rules. But £60 or £80 is extortionate.