Providing ID to EA..Is this correct??

Littleblue123

Just seen this in the small print of an advert on a house I am interested in viewing.
I appreciate I'll have to prove I have funds i.e. mortgage AIP if offer was to be successful but why do I have to shown ID to the EA? I've got a solicitor and he's seen my Passport and proof of address so I can't see why EA need to see this as I'm not exchanging any funds with EA so surely money laundry regs do not apply. Or have things changed since I last purchased??

**Under the Estate Agency Act 1991, you will be required to provide us with financial information in order to verify your position, before we can recommend your offer to the vendor. We will also require proof of identification in order to adhere to Money Laundering Regulations.**

Slinky

Every estate agent we've been dealing with has indicated they will want to see passport/utility bill at an offer stage.

When did you last purchase?

Surrey_EA

Money laundering regulations are becoming ever tighter, and whilst for some time EAs have been required by law to verify the identities of their vendors, at present they are not legally required to do the same for purchasers, however I suspect it will not be long until this is the case.

Having said that the legislation is open to a little interpretation, and some firms may be taking a different approach.

Slinky

Surrey_EA wrote: »

Money laundering regulations are becoming ever tighter, and whilst for some time EAs have been required by law to verify the identities of their vendors, at present they are not legally required to do the same for purchasers, however I suspect it will not be long until this is the case.

Having said that the legislation is open to a little interpretation, and some firms may be taking a different approach.

That's useful info, we're viewing a property next week where the vendor will be doing the viewing and we won't meet the EA. As the EA isn't local to the vendor, and 100 miles from us, I wouldn't like to have to do a 200 mile round trip to prove my ID to the EA because the EA can't be !!!!!d to work for his money and do the viewing.

Surrey_EA

The guidance we received says:

"Although customer isn’t defined in the ML Regulations, HMRC’s view is that customer is the party who forms a contractual relationship with the estate agent, who the estate agent may refer to as their client. For sales agents this will usually be the vendor"

We have not received any guidance from the NAEA that we need to start checking the identities of someone buying a property through us. However, if we become suspicious about a specific transaction we are obliged to file a Suspicious Activity Report, to the National Crime Agency.

tomatta

In the middle of buying a house, had to show the estate agent proof of address via a bill and an ID

Miss_Samantha

Littleblue123 wrote: »

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**Under the Estate Agency Act 1991, you will be required to provide us with financial information in order to verify your position, before we can recommend your offer to the vendor. We will also require proof of identification in order to adhere to Money Laundering Regulations.**

I can't find that Act. The whole paragraph seems like rubbish.

It should inform you as to whom you are dealing with here...

chelseablue

We purchased our house last year and the EA asked for proof of ID and address

Surrey_EA

Stourie_Fit wrote: »

I don't mind showing ID, but saying the Act requires them to view your financial info before putting your offer forward feels like a cheeky way of seeing if they can push you to offer more. It completely destroys your ability to negotiate. Your solicitor does the money laundering checks, not the EA, so all the EA should be able to ask for is confirmation from your broker or solicitor that you're good for the amount you're offering.

You're confusing two different things.

The EA referenced in the OP is claiming that under the Estate Agents Act of 1979(not 1991 - that was the property misdescriptions Act) they are required to verify the financial position of a prospective purchaser. This is broadly correct, but usually takes place once a price has been agreed and negotiations have concluded.

They are then saying that to comply with money laundering regulations they need to verify the identity of the prospective purchaser. I have been advised that this is not currently required, however, I expect this to change in the near future.

Surrey_EA

Miss_Samantha wrote: »

I can't find that Act. The whole paragraph seems like rubbish.

It should inform you as to whom you are dealing with here...

The Estate Agents Act was 1979:

http://www.legislation.gov.uk/ukpga/1979/38

The Property Misdescriptions Act was 1991:

http://www.legislation.gov.uk/ukpga/1991/29/contents

Seems this EA have got themselves confused!

steeeb

I never needed ID for my latest purchase. (I did to the estate agent when selling).