Requirements for sellers/purchasers/landlords

Requirements for sellers/purchasers/landlords

Estate Agents are subject to legislation which requires controls and processes to prevent their estate agency business being used for money laundering. Anti-Money Laundering (AML) checks enable us to verify the identity of buyers, sellers and landlords. Identification for tenants also needs to be verified, however this is verified as part of the tenancy application process, and further information can be found on the application form (to rent a property). The customer due diligence checks in relation to money laundering are required by law and are overseen by HMRC, who are the anti-money laundering supervisory body for estate agent businesses. Therefore, in addition to obtaining signed terms of businesses from clients (vendors/sellers and landlords), we also require additional evidence as set-out below: -

Owners/representatives when selling a property

Prior to the commencement of marketing, owners are now legally required (to provide to our offices), two original pieces of evidence to prove their identification and current address. Where a property is owned by more than one person, each owner must provide proof. Acceptable forms of identification include a passport, or current U.K. driving licence (with photograph), together with a utility bill. The forms of identification should detail the current, permanent address, and utility bills should be no more than three months old. Mobile telephone bills are not acceptable. These requirements in relation to identification apply to whether you are acting as an Executor/administrator, in a power of attorney capacity, you are acting as a Trustee, or on behalf of a charity. Where there is more than one executor, each executor must provide the necessary documentation, and where there is a trust, all trust documentation must be provided. If you are acting on behalf of a charity, we will require the details of the charity trustees in order to comply. All trustees must provide the necessary identification.

Purchasing a property

Prior to any sale being formally agreed on a subject to contract basis, we will require from you two original pieces of evidence to prove your identification and current address. Where a property is being purchased by more than one person, each purchaser must provide proof. Acceptable forms of identification include a passport, current U.K. driving licence (with photograph), or fire arms certificate, together with a utility bill. The forms of identification should detail your current, permanent address and utility bills should be no more than three months old. Mobile telephone bills are not acceptable.

In addition, we will also require from each prospective purchaser, their proof of funds, such as a bank statement (if cash), or a “mortgage in principle” agreement.

Landlords when letting a property

Prior to the commencement of marketing, owners are required to provide us with two original pieces of evidence to prove their identification and current address, as well as proof of ownership of the property that is to be let out. Such proof might be a mortgage statement, or title deeds. Where a property is owned by more than one person, each owner must provide the necessary proof. Acceptable forms of identification include a passport, or current U.K. driving licence (with photograph), together with a utility bill. The forms of identification should detail your current, permanent address and utility bills should be no more than three months old. Mobile telephone bills are not acceptable.

Estate agents are also required to carry out anti-money laundering checks on both tenants and the landlord(s) for any letting where there is a monthly rent of 10,000 Euros (or equivalent amount) or more. This means identifying and verifying the owners/landlord, obtaining information on the nature of the business relationship, and also the details of any beneficial owners. All checks must be carried out before the business relationship is formed.

Where personal data is collected to satisfy money laundering requirements, this data will only be used for the purposes of preventing money laundering and terrorist activity (see article 13 of the General Data Protection Regulation (GDPR) 2018. The possessing of personal data is in line with these regulations, is lawful, and is necessary for the prevention of money laundering or terrorist financing, and is for the performance of a task carried out in the public interest.