Solicitors check proof of funds at the start of the conveyancing process. Here's exactly what they need, why it's required, and how to prepare so it doesn't slow down your purchase.
Key Points
Proof of funds checks are one of those things that catches buyers off guard—especially cash buyers who assumed that having the money was enough. In practice, your solicitor needs to verify not just that you have the funds, but where they came from. This is a legal requirement, not a matter of trust.
Your solicitor will request proof of funds at the very beginning of the conveyancing process—typically within the first few days of being instructed. This happens in parallel with other initial tasks like ID verification and client onboarding.
The estate agent will also ask for proof of funds, often before accepting your offer. This is standard practice under the Property Ombudsman Code of Practice and is intended to confirm that buyers are financially credible before a property is taken off the market.
| Who Checks | When | Why |
|---|---|---|
| Estate agent | Before / upon offer acceptance | Property Ombudsman Code of Practice compliance |
| Conveyancing solicitor | Day 1–7 of conveyancing | Anti-money laundering (AML) legal obligation |
| Mortgage lender | During mortgage application | Confirming deposit source for mortgage underwriting |
The legal basis is the Proceeds of Crime Act 2002, which makes solicitors legally responsible for ensuring the funds used in a property transaction are not derived from criminal activity. Property is a historically popular vehicle for money laundering—hence the strict requirements.
This isn't the solicitor being nosy or bureaucratic. Failing to carry out these checks can result in fines, loss of licence, and even criminal prosecution for the firm. The checks protect you too—a properly conducted purchase can't later be challenged on the basis of suspicious funds.
Highest scrutiny. Must show where the full purchase amount is held and its source. Bank statements, investment accounts, inheritance documentation, sale proceeds—all may be needed.
Must show proof of deposit funds only. The mortgage element is already verified by the lender. Simpler checks, but still required.
Must provide donor's bank statements and a gift letter confirming the money is a gift (not a loan). Extra solicitor fee of around £183 for the additional work involved.
The documents accepted vary depending on the source of your funds:
Many buyers draw their deposit from multiple places—some savings, part from parents, part from the sale of an investment. Your solicitor needs to account for all sources and will ask you to complete a source of funds declaration form listing each one.
Be thorough and honest. If your solicitor spots a large deposit into your account that you haven't mentioned, they'll ask about it—and if you can't explain it satisfactorily, the transaction may be reported to the National Crime Agency (NCA) under the Proceeds of Crime Act. This can pause or kill the purchase.
⚠️ Important Warning
Don't move large sums of money around in the months before a purchase if you can avoid it. Funds entering your account from unusual sources—even if legitimate—can trigger additional questions. If you plan to consolidate funds from multiple accounts, do it well before instructing a solicitor and keep records.
If you provide all documents promptly and they're straightforward (e.g. savings account statement from a UK bank), the check can be cleared in 1–2 days. Complex sources (overseas transfers, multiple accounts, business income) can take 1–2 weeks or more.
This is why it's worth preparing your proof of funds documentation before you start making offers—so you're ready the moment a solicitor requests them.
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