Ea being mosey about deposit?
Discussion
A chap I work with is in the process of buying a BTL property. He's not getting a mortgage, for some reason he's just taking some from the equity in his own house and putting in 15k of his own savings.
Right from the start I thought the EA seemed to be asking a lot of questions. But now he wants to know where the 15k came from, muttering about money laundering and things. I advised my friend to tell him to worry about selling the house and let the solicitors worry about the big boys questions. But the ea is being pretty adamant.
When I bought my property a few months ago I was asked to show proof of deposit. I didn't mind as it showed I Wasn't time wasting. But at no point did they ask where I had got the money from.
Is the a reason the ea is being overly nosey?
Right from the start I thought the EA seemed to be asking a lot of questions. But now he wants to know where the 15k came from, muttering about money laundering and things. I advised my friend to tell him to worry about selling the house and let the solicitors worry about the big boys questions. But the ea is being pretty adamant.
When I bought my property a few months ago I was asked to show proof of deposit. I didn't mind as it showed I Wasn't time wasting. But at no point did they ask where I had got the money from.
Is the a reason the ea is being overly nosey?
fido said:
I wish the EA was more nosey about the timewaster that just cost me >£500 in solicitor fees.
This. Anything they can do to prevent this kind of scenario is a bonus. I totally sympathise for anyone that has been stuffed up because of halfwit buyers.I recently completed on a house and was asked by the EA to give him proof of deposit. He didn't want to know where it came from but just that I was good for it. This didn't happen when I bought my first house but I wasn't putting down a £50k deposit (more like £5k) so is fair enough IMHO.
During a discussion the EA mentioned that some people are still putting in offers without an agreement in principle so anything they can do to filter out the idiots the better.
They're trying to vet your mate as a buyer - doing their job and trying to keep their clients fees to a minimum by vetting buyers before they start incurring solicitors fees. Your mate is more than welcome to tell the EA to piss-off, but don't be shocked if another buyer pops out of the woodwork who isn't as cagey about their finances.
A stab in the dark guess would be that the Vendor or EA thinks your mate doesn't have the money. He obviously doen't have enough equity in his own house to make a full cash purchase, so I'd imagine the EA is worried your mate is planning on taking a personal loan or credit card to meet the shortfall, which therefore brings into question the validity of the offer made by your mate. Things progess and then suddenly your mate can't get a personal loan or credit card because he missed a £1 payment to Vodafone 18 months ago and the whole deal falls through costing the vendor alot of time and effort.
There are an awful lot of dreamers out there, the EA is just trying to make sure your mate's not one of them. Personally, if my EA was told to piss-off when asking how the purchase was being funded, I'd be instructing them to keep you on the hook until I could find another buyer.
A stab in the dark guess would be that the Vendor or EA thinks your mate doesn't have the money. He obviously doen't have enough equity in his own house to make a full cash purchase, so I'd imagine the EA is worried your mate is planning on taking a personal loan or credit card to meet the shortfall, which therefore brings into question the validity of the offer made by your mate. Things progess and then suddenly your mate can't get a personal loan or credit card because he missed a £1 payment to Vodafone 18 months ago and the whole deal falls through costing the vendor alot of time and effort.
There are an awful lot of dreamers out there, the EA is just trying to make sure your mate's not one of them. Personally, if my EA was told to piss-off when asking how the purchase was being funded, I'd be instructing them to keep you on the hook until I could find another buyer.
It`s standard practice now as nearly 2 out of 3 sales abort.
They`re making sure that the buyer is in a position to complete the sale, as if not it wastes the EA`s time and the vendors.
We always ask for it now because as above some buyers say they`re cash buyers or are in a position to move quickly and it`s BS, they`ll use the money laundering as an excuse to get proof of funds.
Call it qualifying the buyer and tell your mate not to be too offended if he`s a serious buyer. ps if he IS serious I think he should bid them in the balls on the price too! ;-)
They`re making sure that the buyer is in a position to complete the sale, as if not it wastes the EA`s time and the vendors.
We always ask for it now because as above some buyers say they`re cash buyers or are in a position to move quickly and it`s BS, they`ll use the money laundering as an excuse to get proof of funds.
Call it qualifying the buyer and tell your mate not to be too offended if he`s a serious buyer. ps if he IS serious I think he should bid them in the balls on the price too! ;-)
Gassing Station | Finance | Top of Page | What's New | My Stuff