If you’ve decided to make an offer on your dream property being marketed by us, here’s your guide to what’s required, by law, to proceed with the sale and what happens next.

How to submit an offer

Your offer needs to be an official written offer made by a solicitor who is currently registered with Law Society of Scotland. Verbal offers will not be accepted. Your offer will be sent to us and we will present it to the seller. It will either be accepted or rejected by the seller, or negotiation may take place. If you need recommendations for a LSS registered solicitor please let us know.

Customer Due Diligence

As a registered estate agent with HMRC we are required to carry out Due Diligence on all persons who will be named on the new title of the property or who are involved financially in the purchase.  This requires a formal ID and address verification via our electronic ID verification system – each individual will require their passport to complete this process. Enhanced customer due diligence measures will be implemented where buyers reside in a high-risk third country or in relation to any relevant transaction where either of the parties to the transaction is established in a high-risk third country. A high-risk third country is defined for the purposes of the MLRs as a country specified in Schedule 3ZA.

Demonstrating Source of Funds

In line with UK Anti Money Laundering requirements, for cash or part cash purchases you will need to demonstrate sufficient evidence of your source of cash funds, requiring a trail (usually of a minimum of six months) of bank statements using original and verified (e.g. by your bank manager) documentation. Please note that further evidence may be required if the source of funds is still unclear. There are a variety of sources of funds/income each with specific proof requirements:

SAVINGS: Savings are usually made up of regular smaller payments. We require a minimum of six months bank statements showing the incoming salary these savings have come from and the transfers made (if to a separate bank account). We also require six months bank statements for separate bank accounts relating to these savings.

SALE OF ANOTHER PROPERTY: We will require a copy of the completion certificate from the conveyancing solicitor involved in the sale of your property and a copy of the bank statement evidencing receipt of the funds following completion.

GIFTED DEPOSITS: A gifted deposit is most commonly a lump sum gift by a family member of the purchaser. Gifted deposits are used frequently for First Time Buyer transactions. There is a mandatory process which must be followed when purchase is made (or part made) using gifted money. Firstly we require a gifted deposit declaration from the gift provider confirming the sum they are giving and the conditions under which it is given. A copy of this must also be provided to the mortgage lender. If you are relying on a gifted deposit for your purchase, we can provide a template declaration which can be adapted to the specific circumstances. Additionally, we must implement a formal ID check on the gift provider via our online ID system, Our anti-money laundering procedures require us to verify the identity of anyone we will be receiving funds from. They will require a passport and online access (ideally via a smart phone) to complete this process. Finally, gifted deposits are subject to the same proof of fund requirements as any other funds we receive. Therefore, the requisite evidence from the source of the funds prior to it being gifted must be provided as set out above and below. Some mortgage providers have different requirements for gifted deposits, please ensure you’re familiar with your lender’s requirements and that all of them are met.

INHERITANCE: If you wish to use inherited funds, we will require a copy of the letter from the executors confirming your entitlement and a copy of your bank account statement evidencing receipt of the funds from the solicitor or executor’s bank account.

RELEASE OF PENSION: In order to use funds from a release of pension we require a copy of your pension statement as well as a copy of your bank statement evidencing receipt of the funds.

SALE OF SHARES: In order to use funds made through the sale of shares, we will require a certified copy of the share release schedule and copy of your bank account statement evidencing receipt of the funds.

DIVIDENDS FROM A UK COMPANY: If you wish to use dividends from a UK company, we require a certified copy of your dividend certificate, a copy of the company’s accounts and copy of your bank statement evidencing receipt of the funds. Please note, if you wish to use dividends from a company based outside the UK, different requirements may apply. Please see the below section on international funds.

GAMBLING WINNINGS: if you wish to use gambling winnings as all or part of your deposit or purchase we will require a copy of your receipt proving your winnings and copy of your bank statement evidencing receipt of the funds. Please be aware it is difficult to prove source of funds for cash winnings. Please see the below section on cash.

COMPENSATION AWARD: You may have received a lump sum as compensation following a dispute or claim you have brought. If you wish to use these funds we require a letter confirming the agreed compensation from a solicitor or court and a copy of your bank account statement evidencing receipt of the funds from the court, solicitor or third party.

CASH: Providing sufficient evidence of the source of cash funds is very difficult. If you are unable to prove sufficient evidence of source of cash funds,  it will not be accepted as part or total payment for your property purchase.

INTERNATONAL FUNDS: We must assess the country of origin of all funds. If your funds are from or connected to a high-risk country, we may have to decline to process the sale of our client’s property. Current Money Laundering Regulations deem all countries high risk excluding those on this Government list: 

If you require any further information on the above please get in touch via email or refer to the HMRC website for up to date information on the current Anti-Money Laundering requirements.