House purchase / Money Laundering

[Doofus]

I'm hoping buy a house shortly for cash. The cash is from a legitimate source, and the tax is all squared away, but the cash came with a Confidentiality Agreement.

Presumably, I'd be expected to tell one (or both?) solicitors where the cash came from, but just how much do I need to tell them?

If I'd spent ten years saving for a deposit, I wouldn't need to justify every payment into my piggy bank, but I'm not sure that just calling it 'savings' will work in my case.

Presumably somebody here has some experience or expertise in this?

[nyt]

I doubt that the solicitors would care.
The legitimacy of the cash is ensured by the holding bank.
Surely the worst that would happen is that the solicitor would feel obliged to report you to the appropriate authorities - which your bank probably have already as the amount is over £10k

[Doofus]

Feir enough. My bank haven't asked, so I guess it's all good

ETA, I thought solicitors had a duty to cover the Money Laundering thing?

[DocJock]

HMRC will want to know if any part of it was a gift.

[Doofus]

DocJock said:

HMRC will want to know if any part of it was a gift.

It wasn't, and as I've said, the tax is covered (correctly). They know the details but the Conf. Agreement allows for that.

In practice, it is unlikely to be a problem, but it raised a question that I couldn't answer for myself.

[Sarnie]

The solicitors should only require to see sight of the funds in a UK bank.............the mortgage company (if you are taking one) will want to see the same and know where it's came from.

[sugerbear]

Classic money laundering at work

[Doofus]

Sarnie said:

The solicitors should only require to see sight of the funds in a UK bank.............the mortgage company (if you are taking one) will want to see the same and know where it's came from.

Lovely, thanks. No mortgage.

[Doofus]

sugerbear said:

Classic money laundering at work

Exactly. I would have thought somebody would want me to prove that I'm not laundering.

[Sheets Tabuer]

Doofus said:

The cash is from a legitimate source, and the tax is all squared away, but the cash came with a Confidentiality Agreement.

Exactly what a money launderer would say.

[drainbrain]

According to the cops 'Crime Doesn't Pay" so what do banks know that makes them think the cops are lying?

[Kev_Mk3]

if you have savings show them statements etc they will see where it comes from its what I did. I showed them 5 years and asked if they wanted to see more - they didn't.

[Whistle]

I bought a house cash earlier this year to rent out.
About 90% from savings and 10% borrowed from my dad.

I had to send copies of bank statements for all of my accounts for the last 2 years to my solicitors and the estate agent. I also had to send proof of earnings etc.

[anonymous-user]

I've purchased many houses for cash and never been asked by the solicitors to account for the cash. There may be a question about "source of funds" but that's about all I remember.

[Doofus]

garyhun said:

I've purchased many houses for cash and never been asked by the solicitors to account for the cash. There may be a question about "source of funds" but that's about all I remember.

Precisely. I'd sooner not disclose the source, because of confidentiality. As I said, in my case, it probably won't be an issue, but it'sa question nevertheless.

What happens if you win the lottery, opt for no publicity, and then have to tell your solicitor where the money came from? A secret is only a secret if you don't tell anybody.

[drainbrain]

Nobody worth taking seriously banks their proceeds from serious organised crime.

You're supposed to keep that in cash...........aren't you??

[drainbrain]

garyhun said:

I've purchased many houses for cash and never been asked by the solicitors to account for the cash. There may be a question about "source of funds" but that's about all I remember.

I take it you mean bought without a loan, as opposed to taking a couple of poly bags full of readies into the brief's office........like you might have done 20 or even 15 years ago???

[drainbrain]

For the benefit of the tape, the above two posts were written in a spirit of jest

[Doofus]

I've paid off two or three mortgages in the past, and the question was easily answered with "it's savings". That may not wash this time, and I don't want, if asked, to say "I'm not allowed to tell you where it came from"

I do want to buy one of the houses on my list, and I don't want to raise a mortgage, so I guess I'll have to bite the bullet.

[Cliftonite]

If your money is in a bank account, it is not "cash". "Cash" is notes and coin. I doubt you will have any problem paying by some sort of bank transfer, or cheque.

A bag full of "readies", though, WILL raise questions.