Costs when buying and selling

[Freshrain]

We're at the stage of decluttering, our family home we've lived in for a long time, to move somewhere smaller for our retirement years.

as such, I am perusing Rightmove and Zoopla to get ideas of what might be available when the time comes.

Reading through the details of one property I rather like, I came across this statement from the EA:

"MONEY LAUNDERING REGULATIONS
Under government regulations we are required to carry out prescribed identity checks on all purchasers and also obtain precise details of funding for their purchase. This must be done before agreeing a sale. We will carry out these checks, electronically and as soon as you make an acceptable offer on a property. There is a charge of £36 for one person and £54 for two or more. Prices are inclusive of VAT and are non-refundable."

Is this a standard thing for all house buying now ?
That people buying the house, are supposed to pay the EA for their administrative tasks, as well as the people buying the property ?

Unfortunately yes

We paid a fee but it was a lot cheaper, £10 per buyer if i remember correctly. It’s the cost the credit agency charged them they said

Thanks for replies.

I always assumed it was down to the lender to check your finances, and / or the solicitors (aware some people might not be borrowing).

I've never paid this before (although I acknowledge I've not moved for many years).

Wondering what happens if the sale doesn't reach completion, and you offer on another property ?

Yes it’s to weed out the time wasters and adhere to strict money laundering regulations which are now in place. You should be able to use it on another property if it doesn’t go through to exchange.

Normally solicitors undertake money laundering checks at the point of instruction. I’ve just bought and sold and the agent certainly didn’t. Nor did any any I made 9 offers With different agents

I didn't pay an estate agent anti money laundering checks. We paid the solicitor as part of the full bill but didn't pay an estate agent.

Not all agents do it.

Thank you.

Although it is more than 2 decades since we've moved, I have supported 2 of my adult dc to buy houses over the last 4 years, and they didn't pay EAs anything either. I did wonder if it was because their Mortgage advisor had gathered information and they had a MiP certificate to show.

Thanks @TheDandyLion and @pilates

Interesting to hear.

I mean, I know it isn't huge, in the scheme of all things you pay out for when moving, but it seems like a sneaky extra bill for them to reassure the vendors that the potential buyers seem to have the money, even though that is part of the legal work the solicitors do. Especially as the EAs take such large amounts from the Vendors to do their job. I never notice the % of the sale price they charge coming down as house prices have sky rocketed over the years.

Been in force since 1st March 2004, over 22 years. The legislation was 2003.

Estate agents are required to carry out these checks, but you could try just insisting on taking in your passport and driving licence instead. It doesn't cost that much to carry out the check, so the agent is making a profit on doing this.

Since we last moved, but interesting that I don't think either of my dc ever paid it, and that two posters above have said not all EAs charge it though.

Hmm. I wouldn't pay.

I'm a residential property solicitor but I work in a support role. When DH and I last bought and sold in 2015 we didn't pay the EA for ML checks. Your conveyancer will do those in much more detail. I'd only show ID documents and proof of an offer in principle if you need a mortgage.

I do ML checks for colleagues. It wouldn't even occur to me to rely solely on what the EA passed over.

I remember a client refusing to show the EA her proof of funds. She showed me and I told the EA it was fine. I'm sure they can't make you.

I wouldn't pay it. Sounds like they are affiliated with a mortgage broker or somebody trying to take commission.
When I was last viewing there were some agents that I simply didn't want to deal with and I would not offer on a property they represented. I kept looking, or occasional a property changed agent.

I'd simply not view properties they are advertising OP.

I’ve bought and sold 10 properties in the last ten years and never bend charged for this. However agents have been required to do this check since 2017 , as well as the lawyers. But googling it and only 17% of agents charged for doing this in 2023, but by 2025 63% had started charging.

loads of estate agents on rightmove are doing this in my area. feels like a money for old rope situation.

Thanks all.

Bought and sold twice in the last 15 years, we’ve only done this at solicitor’s request.