Buyers paying for estate agent AML checks?

SamDude

We are registering with estate agents for a future move and I received a 'thank you registering' email this morning. I don't usually read them but there was a section that stated that BUYERS need to pay for AML checks if their offer is accepted.

We are required by law to conduct anti-money laundering checks on all those selling or buying a property. Whilst we retain responsibility for ensuring checks are carried out correctly and for ongoing monitoring, the initial checks are carried out on our behalf by [xxxxx] Legal who will contact you if you have had an offer accepted on a property you wish to buy. The cost of these checks is £80 inc. VAT, which covers the cost of obtaining relevant data and any manual checks and monitoring which might be required. This fee is paid in advance, directly to [xxxxx] Legal and is non-refundable.

I've checked other emails and they do not mention this, so I want to ask if this is expected?
(I've removed the details, but happy to name them if it turns out they are trying it on...)

Bigphil1474

AML checks were carried out by my conveyancing solicitor. I've never heard of an EA doing those checks.

twoLou

I think estate agents are required by law to carry out the AML checks and as they have become so expensive many now charge for them to be done.

Myci85

I came across this with one EA, they expected us to pay it when we made an offer, with no guarantee our offer would even be accepted. Totally put me off that EA, wouldn't consider going through them again. 

AML checks are necessary, but they field them out to third parties who charge through the nose and then (I've been told, didn't get that far myself) try and sell you additional things. Whereas most EAs just do the checks themselves without charging, and even solicitors don't charge that much for their AML checks. 

user1977

twoLou said:

I think estate agents are required by law to carry out the AML checks and as they have become so expensive many now charge for them to be done.

They're not as expensive as quoted and there's no reason why it should be the buyers paying for them rather than the EA bundling it into their clients' fees.

MyRealNameToo

SamDude said:

We are registering with estate agents for a future move and I received a 'thank you registering' email this morning. I don't usually read them but there was a section that stated that BUYERS need to pay for AML checks if their offer is accepted.

We are required by law to conduct anti-money laundering checks on all those selling or buying a property. Whilst we retain responsibility for ensuring checks are carried out correctly and for ongoing monitoring, the initial checks are carried out on our behalf by [xxxxx] Legal who will contact you if you have had an offer accepted on a property you wish to buy. The cost of these checks is £80 inc. VAT, which covers the cost of obtaining relevant data and any manual checks and monitoring which might be required. This fee is paid in advance, directly to [xxxxx] Legal and is non-refundable.

I've checked other emails and they do not mention this, so I want to ask if this is expected?
(I've removed the details, but happy to name them if it turns out they are trying it on...)

They do have to do AML checks by law... it's discretionary how and who pays for it. Certainly some sellers have chosen to use different estate agents for fear that buyers will be put off, some estate agents dont explicitly charge for it so its part of the sellers fees

HelpfulLittleHelper

You'd expect the EA to cover those costs themselves out of the fee they receive when selling a property. Basically the cost of doing business. If I'm being charged for a check, I'm moving on to another property. You're already being fleeced out the wazoo by your solicitors, searches, indemnity policies for every fart under the moon which you can't really avoid so while it might be just £80, it would be enough to keep on looking for something else.

MyRealNameToo

HelpfulLittleHelper said:
 If I'm being charged for a check, I'm moving on to another property. 

If you're not going to proceed with a property for the sake of a £90 search I'd argue you arent very keen on the property in the first place, its a tiny consideration compared to the total amount you are about to spend. 

The estate agent may argue its achieved its point and removed a non-serious buyer who could have dropped out at the slightest matter at a later date. 

user1977

What next though? Paying for the agents' petrol for coming to the viewing?

born_again

HelpfulLittleHelper said:

You'd expect the EA to cover those costs themselves out of the fee they receive when selling a property. Basically the cost of doing business. If I'm being charged for a check, I'm moving on to another property. You're already being fleeced out the wazoo by your solicitors, searches, indemnity policies for every fart under the moon which you can't really avoid so while it might be just £80, it would be enough to keep on looking for something else.

OK for a few making a offer. But for every viewer... Imagine the costs of that. Their fee's are bad enough. But get say 20 people looking at a property. That is £1600 (going by Op price)

eddddy

SamDude said:


This fee is paid in advance, directly to [xxxxx] Legal and is non-refundable.

FWIW, this is my understanding of how the process works:

Essentially, this is a sales opportunity for the company xxxxx Legal - and an opportunity for the estate agent to earn commission.

My understanding is that you pay the £80, and then xxxxx Legal will phone you. Maybe you'll assume it's for AML checking purposes, so you might openly discuss your situation with them.

In reality, they will be attempting to sell you their conveyancing services, buyer's protection insurance, will writing services, etc. (If they succeed, the estate agent will get commission fees.)


It's probably not too much of an issue, as long as you realise that you're answering a sales call, and not answering a call about AML checking.