Paying estate agent with cash, not sale proceeds?

Anamox

Hi,

I would rather pay my estate agent fees with my personal savings, rather than sale proceeds, for various accounting reasons. I can pay the full fee at the exact moment they are normally paid. The internet is unclear on whether or not you can do this, is it possible/has anyone done this? I'm awaiting the answer from the EA but I'm impatient, I'll update you with what they say in case anyone is searching this in the future!

Thanks.

davidmcn

It'll be fine, just tell them (and your solicitor) that's what you want to do. 

prowla

It's legal tender.

They may have anti-laundering procedures in place, so there might be a hoop to jump through.

anselld

It seems a pointless complication.  Cash savings are your money, sale proceeds are your money.  There is no valid accounting reason to prefer cash.

onwards&upwards

As long as they get paid I don't see why they'd care, but I agree that I don't get why it makes any difference. 

blue_max_3

I guess you could transfer the fee to the solicitor ahead of time. That should answer most reservations.

davidmcn

prowla said:

It's legal tender.

They may have anti-laundering procedures in place, so there might be a hoop to jump through.

I was assuming they just meant "money in the bank" rather than literally folding stuff. But if the latter they should check in advance, not everywhere is set up to receive and bank large quantities of dosh.

AdrianC

Unless I'm misunderstanding you completely, surely the only difference is that you're transferring the fee to the EA rather than the solicitor doing so before disbursing your equity from the sale?

Of course it's perfectly legal. Why on earth wouldn't it be?

I can't see what benefit there is to your "accounting", but that's your pigeon.

Anamox

The question wasn't whether it is legal, more if it is doable. My EA is still to get back to me. And yes I mean paying from my bank via transfer rather than paper cash.

The accounting benefit is that if I pay the EA from equity I will be down £4k on the deposit my next mortgage requires. I could pay the £4k shortfall on the deposit from my current account but that would require money laundering checks and potential rejection as the original mortgage was based on the entire deposit coming from equity release. I don't trust the banks as obviously they're tightening the screws and I'm sure if they can nullify any offer that was granted just before lockdown that had a 10% deposit they'd be happy. 

Alternatively I could just pay the EA £4k from my current account and it would likely be a simple transaction that won't involve the lender at all or will involve their own money laundering checks.

[Deleted User]

You are overcomplicating things
Just send the solicitor the monies in advance to cover EA fees, sols fees, disbursements and stamp duty 

[Deleted User]

Densol said:

You are overcomplicating things
Just send the solicitor the monies in advance to cover EA fees, sols fees, disbursements and stamp duty 

What you are proposing is the same as what every single FTB does as they don't have a house to sell and using the 'profit' if there is any to go towards the deposit on the newly purchased house.  I know I received a letter from the solicitor asking us to send them various fees and the deposit.  So all you need to do is inform the solicitor you will forward them the money towards your deposit. Its not as complicated as you believe. Don't even need to involve the EA.