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Sending Your Conveyancer Your Deposit or Balance in Readiness to Exchange or Complete & Third Party Funds & Cybercrime

Regulations and mortgage lender requirements state that monies which are sent to your Conveyancer and Law Firm must be:


• From your own accounts and your own resources. They must not be further borrowing. They must not come from another person’s account. They must come from the accounts covered during the Source of Funds and Source of Wealth checks during your matter.


• Your Conveyancer must have performed AML checks on any party sending funds to the firm. For Donors of Monetary Gifts they will require AML / identity checks and Source of Funds checks before monies are sent.


• Funds must not be received from, or on behalf of any third party. They must not be received from a joint account where only one account holder is the client.


Conveyancer

Your Conveyancer Will Also Require:


• Cleared funds in readiness for exchange and / or completion It will not be possible to proceed without these.


• All fees and disbursements to be paid prior to completion. You will be sent the Conveyancer’s Completion Statement showing monies in and out during your matter.


• Copies of your bank statements showing the origin of the funds, or electronic banking screen shot showing your name and account number. A full evidence trail is required. Funds received must come from this account.


• P60s, payslips, details of inheritance, former solicitors details, ISAs etc must be provided to evidence Source of Wealth .




NB: Where funds in your accounts have originated from a third party this will result in delays. The third party needs to comply with AML checks and provide Source of Wealth and Source of Funds evidence. As do you. This must be a full and detailed paper trail. This is invasive but set by Government Regulations and Conveyancers have no choice.



INSURANCE


Your Conveyancer will need your buildings insurance schedule noting your lender (where applicable). Insurance must cover the rebuild value as a minimum. This will be shown on your lender valuation.


Where your property is Leasehold the Landlord or Management Company are likely to be insuring. If in doubt check.



SENDING FUNDS


In order to ensure receipt of cleared funds in good time for completion you should send funds via CHAPS, Telegraphic Bank Transfer or Faster Payment. Internet banking does not guarantee the same. Check with your bank. Each bank is different. Your Conveyancer will not know how your bank will transmit the funds. The bank must confirm.


Your Conveyancer cannot take the balance to Complete directly from your bank account and will require you to transmit it to them.


There are various types of Bank Transfer available. 


You may need to be present at your bank (with original current identification).  Speak to your bank before attending. Each bank has its own requirements.


Cash payments and credit card payments are NOT accepted for the balance to complete.


The most cash a law firm can accept is a few hundred pounds.


Cheques may take up to ten working days to clear.


BACS takes up to 3 working days to clear.



CHAPS & FASTER PAYMENT


This is a same day electronic transfer of funds from your bank.  Funds clear by close of business.


Arange to send funds at least 24 hours before needed


BACS - This method can take up to 3 working days for funds to be received.


When transmitting funds quote your reference to assist accounts in tracing funds. Hundreds of payments are being received daily.



THIRD PARTY FUNDS


In the event that funds are being provided by a third party, or from a joint account where not all account holders are clients, speak to your Conveyancer. Such payments will require further investigation, proof of identity and source of funds. Do this before sending. Unexpectedly sending third party funds will delay matters.



CYBERCRIME WARNING:

NB Emails are NOT secure and law firms do NOT like to send or accept emailed bank details.  If they provide bank details via email, bear in mind that emails can be intercepted & details replaced.  Cybercrime is rife and sophisticated.


Bank details should always be confirmed via a telephone call.  


Please also note that law firms do not change bank details mid-transaction. That is incredibly rare. If you receive an email stating it is from your Law firm and advising of a change of bank details, this is likely to be a scam. If in doubt ring your law firm to double check.


You can find out more about the sophisticated scams employed by criminals on Action Fraud


 



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