Proof of funds transfer?

Deckie

Several months ago I provided the solicitor with proof of funds for our purchase including statements showing where the funds came from which he was happy with. The funds are sitting in several accounts for protection and at the appropriate time I will need to transfer them all into one current account to do a CHAPS payment to the solicitor just before completion. For logistical reasons we will need at least 2 weeks between exchange and completion. With only a few weeks to go the solicitor is saying that he also needs to see evidence of the transfers into the current account before exchange of contract.

We’re not very happy with this because funds taken from some accounts cannot be returned if anything happens before completion and having the full amount sitting in a current account for even two weeks will mean hundreds of pounds in lost interest. Albeit a low risk, what happens if the bank goes bust in the period before completion? We lose all the funds apart from the guaranteed £85,000.

Does anyone know whether we legally need to provide evidence of the transfers into the current account, so long before it needs to be paid out? I’m sure the legal requirement is only to provide proof that the funds exist and where they came from. Even if I did provide evidence of the transfers, it doesn’t prove that I won’t be using other dodgy money laundering funds to pay him on the day.

Brie

So you currently have money sitting in accounts A, B, C, D, E & F.  And the solicitor will need to see that money transferred to account G.  That is so you don't suddenly magic up some ill-gotten gains from accounts H & J.  

I would have thought that completely reasonable and a request that that would be obliged to make and document or else be penalised/struck off or something.  That you lose interest is of no concern to anyone except yourself.  

Deckie

Brie said:

So you currently have money sitting in accounts A, B, C, D, E & F.  And the solicitor will need to see that money transferred to account G.  That is so you don't suddenly magic up some ill-gotten gains from accounts H & J.  

I would have thought that completely reasonable and a request that that would be obliged to make and document or else be penalised/struck off or something.  That you lose interest is of no concern to anyone except yourself.  

Thanks Brie, duly noted . However, I don’t see how that proves I haven’t paid in some ill-gotten gains from accounts H & J after exchange of contracts and used that to pay him.

user1977

Exchange of contracts doesn't have any legal relevance in relation to proving the source of funds being sent later for completion, I suspect this is just the solicitors' own policy to avoid any additional stress/hassle between exchange and completion if there is trouble with the transfers or producing evidence of them.

pumas

I made transfers from several accounts, over 2days to the solicitor. To speed things up I also transferred from 'account h', and sent proof of funds, no problem.

BungalowBel

I don't see why you just can't send it from Banks A, B, C and D.

Deckie

user1977 said:

Exchange of contracts doesn't have any legal relevance in relation to proving the source of funds being sent later for completion, I suspect this is just the solicitors' own policy to avoid any additional stress/hassle between exchange and completion if there is trouble with the transfers or producing evidence of them.

Thanks User1977, the solicitor says that he needs evidence of the final transfers in order to sign off the file before exchange of contracts. I too think it’s just his own policy for completeness rather than it being a legal requirement.

Deckie

pumas said:

I made transfers from several accounts, over 2days to the solicitor. To speed things up I also transferred from 'account h', and sent proof of funds, no problem.

Thanks Pumas, I could make the transfers from the individual savings accounts and cut out the current account and CHAPS payment but the solicitor wants to receive a single payment rather than about 20 over several days due to daily withdrawal limits.

Deckie

BungalowBel said:

I don't see why you just can't send it from Banks A, B, C and D.

Thanks BungalowBel, same response as above.

se2020

If the bank goes bust the £85k protection is extended to £1million for temporary (max 6mths) higher balances as a result of a property transaction

Deckie

se2020 said:

If the bank goes bust the £85k protection is extended to £1million for temporary (max 6mths) higher balances as a result of a property transaction

Thanks se2020, I didn’t know that.