Estate Agent Charging Buyer for AML Checks
Discussion
I've had an offer accepting on a house I'm buying. The agent has said I need to complete anti-money laundering checks via an app for which there is a £60 + vat fee per person.
I've never paid this previously as a buyer and would have assumed that doing these checks is a cost of doing business for them, so should be accounted for in the fee they charge the seller. Google suggests this is becoming a very normal practise.
On the one hand, £72 in the grand scheme of things is a miniscule sum and not worth mentioning. On the other, it's a slippery slope before a £72 check becomes £100, becomes £150, and eventually becomes a percentage of the purchase price etc.
I've checked the property listing and nowhere does it state this fee will be payable by the buyer.
I've pushed back once and said I didn't think it was appropriate for me to pay for their checks to which they've replied;
Edit to add: The solicitor charges £6 + VAT, the agent charges £60. Surely the same quality of check is required?!
I've never paid this previously as a buyer and would have assumed that doing these checks is a cost of doing business for them, so should be accounted for in the fee they charge the seller. Google suggests this is becoming a very normal practise.
On the one hand, £72 in the grand scheme of things is a miniscule sum and not worth mentioning. On the other, it's a slippery slope before a £72 check becomes £100, becomes £150, and eventually becomes a percentage of the purchase price etc.
I've checked the property listing and nowhere does it state this fee will be payable by the buyer.
I've pushed back once and said I didn't think it was appropriate for me to pay for their checks to which they've replied;
Agent said:
Unfortunately like with solicitors, AML checks do cost us, solicitors charge within their breakdown of fees and sadly we can’t use their copy to comply with our process. Unfortunately, the government issued stricter guidelines where estate agents had to follow a similar method to solicitors, and we cannot accept just a passport no longer. I am ready to issue the memorandum of sale once our AML is complete.
I'll probably just pay it reluctantly later today, but interested in others' thoughts.Edit to add: The solicitor charges £6 + VAT, the agent charges £60. Surely the same quality of check is required?!
Mars said:
The estate agent has no business arranging this. I have bought 9 houses and this has only ever been something the conveyancer has requested. The EA is overstepping.
Hmm, the agent does have a legal responsibility to check my identity - It's just the cost of doing so which I'm quibbling 
romeogolf said:
Hmm, the agent does have a legal responsibility to check my identity - It's just the cost of doing so which I'm quibbling
I'm not sure why they need to charge £60. In fact I'm sure they don't need to charge £60 they just need to take a copy of your ID and your address.https://www.propertymark.co.uk/professional-standa...
Countdown said:
romeogolf said:
Hmm, the agent does have a legal responsibility to check my identity - It's just the cost of doing so which I'm quibbling
I'm not sure why they need to charge £60. In fact I'm sure they don't need to charge £60 they just need to take a copy of your ID and your address.https://www.propertymark.co.uk/professional-standa...
The estate agent is legally obliged to do these checks.
There's been a race to the bottom with pricing with estate agents and one way to achieve a "cheaper" advetised price for the listing is to charge for extras like AML checks for both parties, drone videos, for sale boards, listing on more than one online platform etc. The estage agent will also charge a margin on these items much like taking a margin and passing onto the landlord on repair costs for lettings managed by them.
There's been a race to the bottom with pricing with estate agents and one way to achieve a "cheaper" advetised price for the listing is to charge for extras like AML checks for both parties, drone videos, for sale boards, listing on more than one online platform etc. The estage agent will also charge a margin on these items much like taking a margin and passing onto the landlord on repair costs for lettings managed by them.
Sy1441 said:
The estate agent is legally obliged to do these checks.
There's been a race to the bottom with pricing with estate agents and one way to achieve a "cheaper" advetised price for the listing is to charge for extras like AML checks for both parties, drone videos, for sale boards, listing on more than one online platform etc. The estage agent will also charge a margin on these items much like taking a margin and passing onto the landlord on repair costs for lettings managed by them.
More reasons why we estate agents need to go away!There's been a race to the bottom with pricing with estate agents and one way to achieve a "cheaper" advetised price for the listing is to charge for extras like AML checks for both parties, drone videos, for sale boards, listing on more than one online platform etc. The estage agent will also charge a margin on these items much like taking a margin and passing onto the landlord on repair costs for lettings managed by them.
Sy1441 said:
The estate agent is legally obliged to do these checks.
There's been a race to the bottom with pricing with estate agents and one way to achieve a "cheaper" advetised price for the listing is to charge for extras like AML checks for both parties, drone videos, for sale boards, listing on more than one online platform etc. The estage agent will also charge a margin on these items much like taking a margin and passing onto the landlord on repair costs for lettings managed by them.
No contract with buyer though so surely buyer just says jog on.There's been a race to the bottom with pricing with estate agents and one way to achieve a "cheaper" advetised price for the listing is to charge for extras like AML checks for both parties, drone videos, for sale boards, listing on more than one online platform etc. The estage agent will also charge a margin on these items much like taking a margin and passing onto the landlord on repair costs for lettings managed by them.
TX.
Update: Called agent. Explained that I'm not intending to be difficult for the sake of it, but it feels somewhat underhand to spring a fee on the buyer after the offer has been accepted by the seller when no mention is made of the fee until that point. It very clearly isn't on their listing, nor on the printed brochure provided at the viewing.
Her response initially was "nobody's ever questioned it before, so I don't think I can proceed without you paying the fee" before agreeing to speak with her manager. She later called back and agreed that they would use the checks undertaken by my solicitor if the solicitor can provide these.
I'm hoping that's the end of it. I think I'm mostly irritated at the people who don't question it which makes it harder for those of us who do!
Her response initially was "nobody's ever questioned it before, so I don't think I can proceed without you paying the fee" before agreeing to speak with her manager. She later called back and agreed that they would use the checks undertaken by my solicitor if the solicitor can provide these.
I'm hoping that's the end of it. I think I'm mostly irritated at the people who don't question it which makes it harder for those of us who do!
romeogolf said:
Update: Called agent...
Her response initially was "nobody's ever questioned it before, so I don't think I can proceed without you paying the fee" before agreeing to speak with her manager. She later called back and agreed that they would use the checks undertaken by my solicitor if the solicitor can provide these.
"Sure, a nominal £15 administration fee will obviously apply"Her response initially was "nobody's ever questioned it before, so I don't think I can proceed without you paying the fee" before agreeing to speak with her manager. She later called back and agreed that they would use the checks undertaken by my solicitor if the solicitor can provide these.
romeogolf said:
Her response initially was "nobody's ever questioned it before, so I don't think I can proceed without you paying the fee" before agreeing to speak with her manager.
i think she's telling porkies.romeogolf said:
She later called back and agreed that they would use the checks undertaken by my solicitor if the solicitor can provide these.
That's odd. From my (admittedly limited) knowledge of AML you can't rely on 3rd parties having done the checks. 'd also be surprised if your Solicitor provides them, because it potentially increases their liability.
All they need to do is check your passport and proof of address
Countdown said:
romeogolf said:
Her response initially was "nobody's ever questioned it before, so I don't think I can proceed without you paying the fee" before agreeing to speak with her manager.
i think she's telling porkies.romeogolf said:
She later called back and agreed that they would use the checks undertaken by my solicitor if the solicitor can provide these.
That's odd. From my (admittedly limited) knowledge of AML you can't rely on 3rd parties having done the checks. 'd also be surprised if your Solicitor provides them, because it potentially increases their liability.
All they need to do is check your passport and proof of address
In defence of the EA, they may operate at a level in the market or a location where collecting basic AML from people is an absolute nightmare so just decided to farm it out and stop having so much staff time consumed by the task.
They can accept a cover note from the solicitor as the solicitor is deemed a 'professional' in this regard but ultimately all the EA needs is the usually two forms of ID and a recent utility or bank statement showing home address etc.
What I don't fully understand is why companies such as Equifax haven't created digital AML services whereby you just generate a PIN code to give to the EA and they go and download the docs they need.
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