Selling BTL solicitor wants my bank statements

BB.

Hi all,


I went to see my solicitor yesterday to sign the contract before exchange happens. She requested the latest ban statement which I provided. However as I get statement every 3 months that statement was only up to end of Aug and next one won’t arrive until end of Nov. So I’m worried about the exchange date being delayed but also I’m curious why she needs it when I’m selling not buying. I searched the web and cannot everything about that. I asked and she said this is due diligence. Could she be looking to check my rental income? My tenant used to pay me in cash sometimes but I would provide the tenant written receipts and I’m up to date with my tax returns. I hope that’s not going to be an issue?

Can I provide a printout of the latest transaction in lieu of statements or maybe a bank branch can provide a stamped printout? I’m with Barclays.  

Many thanks for all advice. 

B.

eddddy

If your solicitor won't tell you why she needs the information, perhaps the easiest approach is to provide the printout - and ask a branch to stamp it, as you suggest.

Are you selling with the tenants in situ? If so, it might be to do with allocation of rent.

e.g. if the tenant has paid a month in advance, and you're selling half way through the month. And/or investigating previous payments for arrears. (If the tenant has occasionally paid in cash, do you have copies of receipts?)

BB.

Hi edddy,

Many thanks for your response. 
I was hoping to agree exchange date today so this will delay things if I have to go to the branch as I can’t do it until next week. I am guessing I cannot challenge the solicitor on them needing this? 

I am not selling with tenant in situ. The tenant has already moved out.

All the best
B

eddddy

BB. said:

Hi edddy,

Many thanks for your response. 
I was hoping to agree exchange date today so this will delay things if I have to go to the branch as I can’t do it until next week. I am guessing I cannot challenge the solicitor on them needing this? 

I am not selling with tenant in situ. The tenant has already moved out.

All the best
B

Then I'm not really sure why the solicitor needs bank statements - unless it's simply to check that the bank account details you've given really do belong to you.

(e.g. You haven't mistyped the account number / sort code, and/or your trying to trick your solicitor into sending the sale proceeds to a 3rd party.)

In which case, a 2 month old statement should be fine.

Bookworm105

due diligence is whatever that individual solicitor considers they want to see in order to be content in themselves that they have undertaken said action. Ultimately they are liable for it (or more specifically their professional negligence insurance is), but not given a definitive list of how to do it.
- proved who the client is
- proved that what the client is selling has some basis in fact 

everyone will have different ideas as to what due diligence they need as the Solicitors Regulation Authority does not provide a set list of things to do but does require that due diligence is done 

BB.

Thanks Bookwarm.


I think what the solicitor is requesting is well beyond the two points you mentioned. She has seen my passport twice and my statements from August. I will be very disappointed if the exchange date is delayed due to this. 

Will I have any basis to complain to SRA once the process is over? She also said things to me like: does anyone tell you to ask these things? When I asked her a question about LPE1 after glancing at my phone where I had a list written so I don’t forget to ask all the questions (old age!).

Best regards
B.

theartfullodger

Only every 3 months?  Surely available more frequently online (mine updated daily.. both accounts).

35har1old

BB. said:

Hi all,


I went to see my solicitor yesterday to sign the contract before exchange happens. She requested the latest ban statement which I provided. However as I get statement every 3 months that statement was only up to end of Aug and next one won’t arrive until end of Nov. So I’m worried about the exchange date being delayed but also I’m curious why she needs it when I’m selling not buying. I searched the web and cannot everything about that. I asked and she said this is due diligence. Could she be looking to check my rental income? My tenant used to pay me in cash sometimes but I would provide the tenant written receipts and I’m up to date with my tax returns. I hope that’s not going to be an issue?

Can I provide a printout of the latest transaction in lieu of statements or maybe a bank branch can provide a stamped printout? I’m with Barclays.  

Many thanks for all advice. 

B.

They usally like a bank statement to be more than 3 months old but if it's a second property it won't be of much use

BB.

theartfullodger said:

Only every 3 months?  Surely available more frequently online (mine updated daily.. both accounts).

Nope. The options are quarterly or monthly. I have now charged it to monthly for the time being but will revert back to quarterly as it’s just too much paperwork and filing.  

AskAsk

You need to register the bank account for online banking then you can send her screen prints or PDF prints of transactions rather than wait for a bank statement to be produced, but if you don't have online banking then you will need to go into branch and get them to print the transactions out for you.

Solicitors are required to detect fraud, money laundering and tax evasion as part of the sale and purchase so they need to look at bank statements to check if there is anything irregular going on and if they spot anything that they believe needs to be questioned or reporting to the respective authorities, they will have to do so.

It is to prevent criminals being able to sell properties that they own and so release funds for more criminal or fraudulent activities.  Unfortunately, solicitors can go a bit too far with what they believe needs to be checked for fraud and money laundering, and it is entirely up to each solicitor to ask for what they think they need in order to satisfy themselves that there is no criminal activites, fraudulent activities or tax evasion activities going on.  You can not challenge them and it would only make things worse if you do, as someone without anything to hide will happily provide what they need.

The reason she wants an up to date statement is because she needs to verify that bank account for the credit of the sale money and so she needs to see all the transactions up to date to make sure there is nothing odd going on with that account before she can agree to credit the proceeds to that account.

BB.

Thanks AskAsk. That makes more sense. Happy to provide printouts but didn’t think they would accept that. Will ask.

thanks all.