AML Check Fee

fatboydaz

Hi,

Our estate agents have just sent my wife and I a link each for some software called https://iamproperty.com/product-updates/unlock-additional-revenue-with-compliance/

It required us to fill out our details and then upload a passport picture. My wife completed this and then paid £36 which I was confused about as I have never heard of this when she told me. 

I contacted the estate agent and said that the solicitors are already carrying out all the necessary checks so why are we paying for this? the EA said this is now are standard requirement for most estate agents to prove they have done their checks also. He said I have to complete my form to otherwise the buyer will pull out the sale off the property.

Has anybody heard of this before? And should I stick to my guns and not pay it? I know it's only £36  each but I feel it's just an unnecessary cheeky payment that does nothing for anybody. 

eddddy

It's correct that estate agents now have to do ID checks (as well as solicitors).

However, most estate agents get these done for about £5 or £6 per person, and don't pass the cost on to the buyer.

In your case, it looks the estate agent is 'handing you over' to a 3rd party (who will try to sell you stuff), because the estate agent wants to earn referral fees.



Here's 2 snippets from the 3rd party's website that tells estate agents how much referral fees they can earn from doing this:






So if I'm reading their website correctly,  for each transaction...

• 2xBuyers plus 2xSellers for ID verification @ £20 each = £80 fee for the estate agent

• Apparently, 70% of buyers (and/or sellers) agree to use their conveyancing services @ £160 per referral for the estate agent

• Apparently, 30% of buyers agree to use their survey service @ £40 per referral for the estate agent 

(I would worry about a conflict of interest, if conveyancers and surveyors are relying on estate agents to get their business.)

So you can try arguing with the estate agent about not paying for this.

And be prepared for some 'sales calls' from the 3rd party, trying to sell you stuff.  (I guess they might even pretend to be calling you about ID verification, when their real goal is to sell you stuff.)

AskAsk

When I sold my house last year, I had to do this with my EA, but I didn't have to pay as that was included in their commission.  My in-laws are selling their house this year, and they didn't have to do that, so it looks like it depends on the EA.

Tell the EA that they should pay that fee unless it was in your contract of sale.  It may also be done if they can't check you electronically.

diggingdude

If I had to do that I would be reducing my offer for the house by £72. Sure I'm petty but when you consider what an estate agent earns on selling a house compared to what you often pay your solicitor.... They can afford it. 

Myci85

I have come across this with one estate agent out of many we've so far dealt with, and agree it seems really underhand. Nothing mentioned about this fee until we had made an offer on a house, and they tried to get us to pay it before even knowing if the offer was accepted - telling us it was okay because of we didn't buy that house, the checks would remain valid for any house we did buy through them! We didn't pay, offer was not accepted, and out of principle, I would be very reluctant to buy through that agent unless I really really liked the house!

user1977

Some confusion in the replies but given the OP talks about "our" EA and "the buyer" in the third party, I presume the OP is the vendor and they are the EA's client? Not the buyer being asked to pay for such checks, which has come up in other threads.

BobT36

Indeed, OP looks like the seller. 
Still another instance of Rip Off Britain.

chanz4

purple bricks loved this kick back

fatboydaz

Sorry for the confusion. We are the buyers and when I say our EA I mean the EA that is selling us the house. I called them again today and said I’m not happy about the £32 my wife has already paid and I am also refusing to pay it. I’d either like a full refund or the house to be sold at £32 cheaper.

Our solicitor will provide all the checks that are necessary and he said are you really prepared to lose the house just because of £72? I said are you really prepared to lose a sale of £325k?

He said he will speak to his manager and get back to me. 

eddddy

fatboydaz said:

Our solicitor will provide all the checks that are necessary...

I think you've misunderstood.

Estate agents are required by law to carry out appropriate ID and AML checks. (And solicitors are as well.)

Your agument should be about the £32 fee for doing the checks.



As the National Association of Estate Agents Propertymark confirm:

In April 2018, the European Parliament passed the Fifth Money Laundering Directive on the prevention of money laundering and terrorist financing. For this reason, estate agents must do these checks on everyone buying a property to make sure the money is coming from a legitimate source—they can be fined or imprisoned if they don't.

https://www.propertymark.co.uk/professional-standards/consumer-guides/buying-selling-houses/aml-proof-of-funds.html

(Although the UK has since left the EU, that legislation is still in place.)