Can our solicitor refuse to act if we can't provide enough evidence of proof of funds?

tiredteacher13

Hi. My partner and I are in the process of buying a house. We've provided all the evidence we were initially asked to, which included 6 months of bank statements. However, my partner's ISA statement showed an entire year, including some transactions which the solicitor flagged up. Dated last year, these transactions were wages from his teaching job in the middle east that he was sending to his ISA. The solicitor then asked for bank statements from his (now closed) abroad bank account. He explained that the bank is now dissolved, and his identity card was taken back by his work as soon as he led the country. The only proof he has is his work contract, tenancy agreement, and UK bank statements. Our solicitor has now passed this on to the head of their team to adhere with checks, I assume AML checks? 

My question is, can they refuse our sale? Our solicitor has said it's nothing to worry about on our front, but naturally I'm concerned as it's been passed on in the first place.

Anyone been in a similar position? We are 2 first time buyers and teachers who have honest savings and are desperately concerned about this situation. 

AnotherJoe

Yes they can. They are just covering their behinds though so its likely you'll be OK but solicitor would be in trouble if they didnt pass something like this on. Solicitor has to follow the process.

[Deleted User]

tiredteacher13 said:

Hi. My partner and I are in the process of buying a house. We've provided all the evidence we were initially asked to, which included 6 months of bank statements. However, my partner's ISA statement showed an entire year, including some transactions which the solicitor flagged up. Dated last year, these transactions were wages from his teaching job in the middle east that he was sending to his ISA. The solicitor then asked for bank statements from his (now closed) abroad bank account. He explained that the bank is now dissolved, and his identity card was taken back by his work as soon as he led the country. The only proof he has is his work contract, tenancy agreement, and UK bank statements. Our solicitor has now passed this on to the head of their team to adhere with checks, I assume AML checks? 

My question is, can they refuse our sale? Our solicitor has said it's nothing to worry about on our front, but naturally I'm concerned as it's been passed on in the first place.

Anyone been in a similar position? We are 2 first time buyers and teachers who have honest savings and are desperately concerned about this situation. 

If a solicitor cannot satisfy themselves about the source of your funds for AML then the solicitor can refuse to continue acting for you in the sale or can discount that unaccounted for funds from your deposit.

theartfullodger

Of course he can.  

tiredteacher13

Lover_of_Lycra said:

tiredteacher13 said:

Hi. My partner and I are in the process of buying a house. We've provided all the evidence we were initially asked to, which included 6 months of bank statements. However, my partner's ISA statement showed an entire year, including some transactions which the solicitor flagged up. Dated last year, these transactions were wages from his teaching job in the middle east that he was sending to his ISA. The solicitor then asked for bank statements from his (now closed) abroad bank account. He explained that the bank is now dissolved, and his identity card was taken back by his work as soon as he led the country. The only proof he has is his work contract, tenancy agreement, and UK bank statements. Our solicitor has now passed this on to the head of their team to adhere with checks, I assume AML checks? 

My question is, can they refuse our sale? Our solicitor has said it's nothing to worry about on our front, but naturally I'm concerned as it's been passed on in the first place.

Anyone been in a similar position? We are 2 first time buyers and teachers who have honest savings and are desperately concerned about this situation. 

If a solicitor cannot satisfy themselves about the source of your funds for AML then the solicitor can refuse to continue acting for you in the sale or can discount that unaccounted for funds from your deposit.

Thanks. Would that possibly mean that if we could find a way to provide that money without the original transactions (IE a gift and that person would sign a declaration of no interest) then the solicitor *could* accept that? 

user1977

Of course they can, otherwise what would be the point of trying to do the checks?

tiredteacher13

user1977 said:

Of course they can, otherwise what would be the point of trying to do the checks?

Thanks. Assumed that was the case but because our solicitor hasn't actually mentioned anything about the possibility of not continuing to act, I wasn't certain. 

tiredteacher13

user1977 said:

Of course they can, otherwise what would be the point of trying to do the checks?

Thanks. Assumed that was the case, it's just the solicitor has been quite closed about what the checks entail and what the outcome might be. I understand why, it's just a stressful process.

eddddy

tiredteacher13 said:

Thanks. Would that possibly mean that if we could find a way to provide that money without the original transactions (IE a gift and that person would sign a declaration of no interest) then the solicitor *could* accept that? 

Yep - but bear in mind that the donor would then have to pass the ID and AML checks. So they'd probably have to provide a few months of bank statements showing where the money had come from.


In your position, I'd want to make sure that the solicitor's AML team are happy with everyone's ID and AML checks before transferring the money across to the solicitor. Otherwise it seems there may be a risk that the money might end up in limbo.




FWIW, I came across somebody who had a bit of a problem in this area. The husband had instructed the solicitor and passed the ID and AML checks.

The solicitor wanted extra funds on account, the husband was abroad, so the wife paid them from her account.

But the wife hadn't been ID or AML checked. So the solicitor said they couldn't accept those funds, but worse, they wouldn't even return the funds back to the wife, until she had passed ID and AML checks.


Fortunately, she passed the checks. I'm not sure what would have happened to the money if she hadn't.

tiredteacher13

eddddy said:

tiredteacher13 said:

Thanks. Would that possibly mean that if we could find a way to provide that money without the original transactions (IE a gift and that person would sign a declaration of no interest) then the solicitor *could* accept that? 

Yep - but bear in mind that the donor would then have to pass the ID and AML checks. So they'd probably have to provide a few months of bank statements showing where the money had come from.


In your position, I'd want to make sure that the solicitor's AML team are happy with everyone's ID and AML checks before transferring the money across to the solicitor. Otherwise it seems there may be a risk that the money might end up in limbo.




FWIW, I came across somebody who had a bit of a problem in this area. The husband had instructed the solicitor and passed the ID and AML checks.

The solicitor wanted extra funds on account, the husband was abroad, so the wife paid them from her account.

But the wife hadn't been ID or AML checked. So the solicitor said they couldn't accept those funds, but worse, they wouldn't even return the funds back to the wife, until she had passed ID and AML checks.


Fortunately, she passed the checks. I'm not sure what would have happened to the money if she hadn't.

Thanks, all really helpful to know. I'm just trying to get a sense of how dire the situation might end up being, or whether I'm worrying for the sake of it.