Are cash buyers finances checked if an offer is put in.

mufi

Old_Git wrote: »

when I bought as a cash buyer last year I was never asked to prove anything .

We've never been asked either.

maas

I was asked by EA for proof of funds when I purchased.

ViolaLass wrote: »

We were asked for proof so I showed them a statement with precisely the amount we were offering on it. Interestingly, when we upped our offer, they didn't bother checking again.

I think its more to do with weeding out the time wasters, or those who claim to be cash buyers when the reality is they are waiting on a sale or inheritance that may or may not come. They don't check every penny is accounted for.

I personally dont think its such a big deal. Many people seem to get the hump over it. To me it makes perfect sense, when there's a good chance a cash buyer comes along, gets your hopes up for a quick sale (etc) and then it turns out they've got no cash.

I know when I come to sell my house if its a cash buyer I will be insisting the EA gets some proof of funds, and if they're unwilling to co-operate they can find themselves another house.

Slayerx

Solicitors should be checking to comply with ML rules.

maas

Slayerx wrote: »

Solicitors should be checking to comply with ML rules.

Yeah the solicitor will do that of course, but beforehand when the offer comes in, you accept it. The status of your house is then changed to "Under Offer" or "Offer Accepted" and then you spend a few weeks looking for your next house.

Then after all that you discover the original buyer didnt have the money in his account in the first place and good time was wasted.

the_blacksmith

Thanks for the reply's. Hopefully I should know more about what the actual problem is once I have spoken to the agent & my Solicitor.

Stuck in the middle with a slow buyer that's not ready & a seller needs completion in the next week due to his work commitments.

davidmcn

Slayerx wrote: »

Solicitors should be checking to comply with ML rules.

Yes, but that's usually done immediately before completion (because the check is where the funds transferred to the solicitor actually came from). I think the OP is about a much earlier "is this so-called cash buyer a timewaster" check.

MobileSaver

Old_Git wrote: »

when I bought as a cash buyer last year I was never asked to prove anything .

Same here and I never met or even talked to the Estate Agent as all correspondence was via email.

Tiffany_Aching

We were asked for proof of funds by the estate agent when we put our offer in (and we were careful that she only saw accounts up to the amount that we had offered ). Our solicitor also checked we had the cash available.

If I accepted an offer from a cash purchaser I would ask the estate agent to confirm that funds were in place before going any further.

DRP

As a seller our EA has checked a potential buyers' bank statement shortly after we accepted their offer. That is normal in my experience.

DaftyDuck

Many years ago, I used to show the EA bank statements as proof of funding, but I reckon that's more likely to get them to squeeze every last penny they can. I progressed to transferring the right amount of cash to a specific account. However, with the onset of internet banking and printing your own statements, I'd think it'd be too easy to adjust the printout for this to be wholly reliable.
I now make sure my solicitor has full and detailed proof of funds, and let him tell the agent.

A good agent will always want proof of funding, whatever the claims of the prospective buyer.