Proof of funds for estate agent

c6ysaphjvqw41k · 09-05-2019 6:48pm #1

We have been bidding on a house and are currently the highest bidder. The other bidders don't want to go any higher, so the estate agent called and told us the vendor is happy for us to go sale agreed, but he needs to see proof of funds for the total amount of the property. We have a letter from our lender for roughly 55% of the property, we are covering the rest in cash.

I told him I'm not happy to do this as we have so much in cash, I don't want him seeing my bank account statements or how much cash I have. It's also across 3 different bank accounts and I don't want to send him all this information.

We are also getting a gift from my Dad for 20k.
I told him I'd prefer to get my solicitor to write a letter confirming we have access to the total amount even if it takes longer which is what I will start to organize with them tomorrow. Does anyone know how it will work with the solicitor regarding the gift of the 20k from my Dad though. He has stock he's going to sell. Will I have to show these statements to the solicitor too?

09-05-2019 7:07pm

It is understandable that they want proof of funds before taking the property off the market, just get a letter from the bank to say you have the mortgage and cash to cover your bid. If you don’t, or there is a delay, the vendor is well within their rights to go back to the underbidder.

c6ysaphjvqw41k · 09-05-2019 7:34pm

Thanks. Yeah its understandable but the other bidder is also a bit below the min he would accept and we were the only ones willing to go that high. Il still try to get my solicitor to do it ASAP tomorrow.
Im happy enough to show the proof but Id just rather have my solicitor do it.
The bank did give us a letter but its only for 55% and the EA said he needs to see proof of the other funds to make up the total.

09-05-2019 7:40pm

I don’t see what the problem is, you need to have the money to buy the house, they want you to prove it before they agree to sell to you, why are you hung up about this?

Just transfer the necessary cash into one account and show them a statement with exactly that amount plus your mortgage approval for the balance.

c6ysaphjvqw41k · 09-05-2019 7:52pm

This is also literally not answering my question either its not really your business why I dont want to show my bank statements to someone who isnt my solicitor. If you arent going to answer it you dont need to post. Do you go around showing your statememts to random strangers? Ive never even met this man.

limericklad87 · 09-05-2019 8:03pm

Your individual financial situation is unique in comparison to the run of the mill proof of funds from one source.

I think what you need to do is being covered already. You either comply with this request for this business transaction to proceed or you run the risk of losing out. Simple as

c6ysaphjvqw41k · 09-05-2019 8:06pm

limericklad87 wrote: »

Your individual financial situation is unique in comparison to the run of the mill proof of funds from one source.

I think what you need to do is being covered already. You either comply with this request for this business transaction to proceed or you run the risk of losing out. Simple as

I've already said we are willing to show it and asked the EA could we give him a letter from our solicitor which he said was no problem. The only question I asked was if anyone knows if we will have to show a statement for the gift to the solicitor too. We haven't got that in our account yet so it involves showing someone else's information. That's all. Everyone is trying to answer a question I didn't ask. The EA has already said a letter from my solicitor is fine.

vmb · 09-05-2019 8:09pm

Move some money to another bank account and give them the account balance only

JustLen · 09-05-2019 8:11pm

The onus is on you to provide proof you have funds to complete the purchase.

The estate agent would be more than willing to accept a solicitors letter I'm sure, this is common practice.

Your hesitance to provide proof is because you don't actually have the total funds.

You are waiting on the sale of stocks which once converted to cash will need to be transferred to you.

You will also have to sign paperwork relating to the gift at the request of the bank.

You don't have to provide anything to the estate agent, you are free to walk away and never have contact with the agent again if you wish.

09-05-2019 8:12pm

Marco Acidic Refrigeration wrote: »

I've already said we are willing to show it and asked the EA could we give him a letter from our solicitor which he said was no problem. The only question I asked was if anyone knows if we will have to show a statement for the gift to the solicitor too. We haven't got that in our account yet so it involves showing someone else's information. That's all. Everyone is trying to answer a question I didn't ask. The EA has already said a letter from my solicitor is fine.

At the risk of pointing out the obvious, you are being asked to prove you have the funds before your bid is accepted and you go sale agreed. Unless you show those funds, it is highly probable your bid will not be accepted. If the gift is necessary to buy the house, then you need to show them this. They don’t know or care how you get the money, but you need to show you have it now. Jeez.

PhilipJ · 10-05-2019 9:15am

Hi Marco Acidic Refrigeration,
Im the same, have a cash sum to buy a house but I will not be showing E/A my account details. I will have a letter from my solicitor stating that I have the agreed amount ready should my offer be accepted..simplest way after all your paying for the solicitor to look after the purchase from start to finish...im not sure why others have made a big deal of it...best of luck with your purchase.

Marco Acidic Refrigeration wrote: »

We have been bidding on a house and are currently the highest bidder. The other bidders don't want to go any higher, so the estate agent called and told us the vendor is happy for us to go sale agreed, but he needs to see proof of funds for the total amount of the property. We have a letter from our lender for roughly 55% of the property, we are covering the rest in cash.

I told him I'm not happy to do this as we have so much in cash, I don't want him seeing my bank account statements or how much cash I have. It's also across 3 different bank accounts and I don't want to send him all this information.

We are also getting a gift from my Dad for 20k.
I told him I'd prefer to get my solicitor to write a letter confirming we have access to the total amount even if it takes longer which is what I will start to organize with them tomorrow. Does anyone know how it will work with the solicitor regarding the gift of the 20k from my Dad though. He has stock he's going to sell. Will I have to show these statements to the solicitor too?

happyfriday74 · 10-05-2019 9:22am

Asking for proof of funds is all very common and actually shows the sellers EA is being diligent.

PhilipJ · 10-05-2019 9:27am

happyfriday74 wrote: »

Asking for proof of funds is all very common and actually shows the sellers EA is being diligent.

Id imagine it would be a requirement of E/A to make sure funds are there from bidder.

Sunrise_Sunset · 10-05-2019 3:09pm

I'll be in a similar situation soon, as savings is in a few different places, including shares.
I plan on asking the bank for a letter to say we have sufficient funds. Surely this is enough?
I do understand that the vendor needs to see proof of funds, and I'd hope a letter like this would suffice.

Balanadan · 10-05-2019 4:21pm

Marco Acidic Refrigeration wrote: »

We have been bidding on a house and are currently the highest bidder. The other bidders don't want to go any higher, so the estate agent called and told us the vendor is happy for us to go sale agreed, but he needs to see proof of funds for the total amount of the property. We have a letter from our lender for roughly 55% of the property, we are covering the rest in cash.

I told him I'm not happy to do this as we have so much in cash, I don't want him seeing my bank account statements or how much cash I have. It's also across 3 different bank accounts and I don't want to send him all this information.

We are also getting a gift from my Dad for 20k.
I told him I'd prefer to get my solicitor to write a letter confirming we have access to the total amount even if it takes longer which is what I will start to organize with them tomorrow. Does anyone know how it will work with the solicitor regarding the gift of the 20k from my Dad though. He has stock he's going to sell. Will I have to show these statements to the solicitor too?

I'm surprised they even let you bid without proof of funds. I wouldn't use that estate agent to sell property.

Balanadan · 10-05-2019 4:32pm

PhilipJ wrote: »

Hi Lorenna,
Im the same, have a cash sum to buy a house but I will not be showing E/A my account details. I will have a letter from my solicitor stating that I have the agreed amount ready should my offer be accepted..simplest way after all your paying for the solicitor to look after the purchase from start to finish...im not sure why others have made a big deal of it...best of luck with your purchase.

The estate agent couldn't give a bollocks about your account details as long as you have enough to buy the house.

Dr_Kolossus · 10-05-2019 5:35pm

We bought house at 415k. Had mortgage approval for 300k, for this specific house from our bank. I showed the estate agent this approval and explained bank would not have approved the mortgage had I not got the difference in my bank account. And I was not showing him my balance as this was private.

10-05-2019 6:45pm

laotg wrote: »

Tell the EA you will need to see his frims written policy on GDPR before you can provide him with copies of your bank statements.

And when they show the op, he/she will still have to show the money. Sometimes you have to get out of your own way, acceptance of the bid requires proof of funds. It’s simple, and good practice. If the bidder can’t show the money, property stays on the market.

LirW · 10-05-2019 8:52pm

Get a letter from your lending institute and get a letter from your solicitor stating that the majority of the purchase is covered by cash and you have sufficient funds in your account to close the sale.

BnB · 10-05-2019 9:34pm

First of all.... Let's be honest..... The reason this is a problem is because you do not have the money right now. There is some faffing that has to be done RE your father selling something. The reason the EA has looked for this is because they do not want to accept your offer and take the house off the market and then find out that you do not have the money straight away.

A few people including yourself were suggesting that you get your solicitor to do a letter instead and of course your EA would be happy with that. But in order for your solicitor to do this, you will need to show them proof of having the funds first. They will not just write that letter on your word because if you turn out to not have the money, the solicitor will be in trouble if themselves.

And if you have the proof why not just give it to the EA directly instead of paying your solicitor (and you will pay for it) to do it for you.

PhilipJ · 13-05-2019 10:59am

It really goes without saying a solicitor will not provide a letter unless you have funds ready and available..
personally, I will not show anyone except my solicitor whats in my account...my business and not relevant to anyone else, gladly pay an additional fee for letter...

BnB wrote: »

First of all.... Let's be honest..... The reason this is a problem is because you do not have the money right now. There is some faffing that has to be done RE your father selling something. The reason the EA has looked for this is because they do not want to accept your offer and take the house off the market and then find out that you do not have the money straight away.

A few people including yourself were suggesting that you get your solicitor to do a letter instead and of course your EA would be happy with that. But in order for your solicitor to do this, you will need to show them proof of having the funds first. They will not just write that letter on your word because if you turn out to not have the money, the solicitor will be in trouble if themselves.

And if you have the proof why not just give it to the EA directly instead of paying your solicitor (and you will pay for it) to do it for you.

PhilipJ · 13-05-2019 11:05am

Exactly, so why show whats in your account/savings to E/A, its private and none of their business...hence the reason for solicitors letter as long as funds are available..

Balanadan wrote: »

The estate agent couldn't give a bollocks about your account details as long as you have enough to buy the house.

Askthe EA · 13-05-2019 11:44am

I dont understand the reluctance from buyers to show proof of funding (especially when they have been told their offer will be accepted subject to it).

We dont give a FIDDLERS how much you have once it covers your offer. We are simply protecting our client from dreamers.

voluntary · 13-05-2019 12:24pm

EAs handling bank statements are walking the edge. GDPR and stuff. Asking for huge fines.

13-05-2019 12:43pm

voluntary wrote: »

EAs handling bank statements are walking the edge. GDPR and stuff. Asking for huge fines.

If they comply with GDPR regulations, they don’t have to worry about edges and stuff.

What a strange thread this is. The op wants to buy a house, and he seller wants to make sure he/she has the funds to buy it before taking it off the market, and the advice is? Don’t show it, it’s none of his business. The mind boggles.

Incidentally, the most pertinent fact in all this, is that the op doesn’t have the money, he she is relying on a gift, after shares are sold by father. Presumably this is why he/she can’t just get a letter from the bank confirming cash & finance is available. To those advocating a letter from the solicitor, how does that work ? “We confirm John/Jane has the funds to buy the house, except for the €20k she has been promised by Dad when he sells shares that hopefully will be worth €20k after tax on profits”

Askthe EA · 13-05-2019 5:28pm

Dav010 wrote: »

If they comply with GDPR regulations, they don’t have to worry about edges and stuff.

Exactly

Dav010 wrote: »

Incidentally, the most pertinent fact in all this, is that the op doesn’t have the money, he she is relying on a gift, after shares are sold by father. Presumably this is why he/she can’t just get a letter from the bank confirming cash & finance is available. To those advocating a letter from the solicitor, how does that work ? “We confirm John/Jane has the funds to buy the house, except for the €20k she has been promised by Dad when he sells shares that hopefully will be worth €20k after tax on profits”

And again, exactly. This is why we ask for proof of funding. OP is not currently in a position to buy the house. That doesn't mean that the vendor wont sell to them but they are entitled to have all the info before making a decision!

13-05-2019 5:53pm

PhilipJ wrote: »

Exactly, so why show whats in your account/savings to E/A, its private and none of their business...hence the reason for solicitors letter as long as funds are available..

Yes it clearly is their business because they can't sell the house to someone who cannot actually afford it. Like the OP at the moment.

voluntary · 14-05-2019 9:57am

A proof of 'ability to pay' is one thing, a bank statement is another. Bank statement is an overkill, EAs don't need to view your transactions or even your balance.
It's in everyone's best interest to keep his personal sensitive information safe and private. You never know how such data can or will be used or will it be handled in a secure way or will it leak one day or be used for malicious purposes.

lucast2007us · 14-05-2019 10:43am

Just email the statement with all transactions blanked out and just leave your name and balance in so they can see that. Plain and simple.

Our estate agent accepted that,
If you want the house that bad don't rock the boat

voluntary · 14-05-2019 10:55am

lucast2007us wrote: »

Just email the statement with all transactions blanked out and just leave your name and balance in so they can see that. Plain and simple.

Our estate agent accepted that,
If you want the house that bad don't rock the boat

What if your balance is multiple of what you need to secure a property? Would you still show it to a vendor?
If you only have what you need to process this particular transaction then you're probably OK sending on the statement with all info except for the balance blanked out.

BnB · 14-05-2019 11:35am

Jesus H, why are ye trying to make something very simple into something complicated.

If you have the money in the bank and you are paranoid about giving a statement to an EA (for some strange reason) , the bank will give you a letter stating that you have the funds available without stating exactly how much you have and where you got it. If you have it across a number of banks, they will each give you a letter.

As regards GDPR.... that's the EA's problem, not yours

Graham · 14-05-2019 11:52am

The main point of proof of funds is to weed out the "we hope to have the funds in place by closing" type of offers. It's not personal, the EA/vendor is unlikely to know anything about you or your finances.

If you can't (yet) prove you have funds, expect that your offer may not be accepted until you can.

Arguing privacy/GDPR/identity-theft is likely to do nothing other than alert the agent to the fact that you don't have the funds.

voluntary · 14-05-2019 11:55am

The ignorance and naivety of some people in regards to handling their own sensitive data is frightening. Not that I care what people share, it's everyone's own business.

Balanadan · 14-05-2019 12:00pm

voluntary wrote: »

What if your balance is multiple of what you need to secure a property? Would you still show it to a vendor?
If you only have what you need to process this particular transaction then you're probably OK sending on the statement with all info except for the balance blanked out.

Move it to another account if you want to, blank out any data that you don't want to share. Why do people make simple things unnecessarily complicated? The estate agent just wants to know that you can afford to buy the house.

I haven't had dealings with estate agents in Ireland, but I am genuinely surprised that they would accept bids without proof of funds because you could be accepting bids from complete timewasters. If an estate agent took a bid on a property I was selling without the bidder providing proof of funds, I'd sack them off.

Effects · 14-05-2019 12:08pm

Marco Acidic Refrigeration wrote: »

Do you go around showing your statements to random strangers? Ive never even met this man.

It's not a random stranger though.

14-05-2019 12:08pm

voluntary wrote: »

The ignorance and naivety of some people in regards to handling their own sensitive data is frightening. Not that I care what people share, it's everyone's own business.

How did you go about proving you had funds?

Graham · 14-05-2019 12:09pm

voluntary wrote: »

The ignorance and naivety of some people in regards to handling their own sensitive data is frightening. Not that I care what people share, it's everyone's own business.

There have been plenty of suggestions how to avoid sharing any more data than is absolutely necessary.

Anteayer · 14-05-2019 12:12pm

Just get a letter from the bank. Most branch managers can do that without any great difficulty.

Failing that just open an in demand deposit or a second current account and transfer it all in and give them a copy of that statement.

AIB for example will let you open a simple deposit account instantaneously if you're already a customer. So will any of the major banks.

14-05-2019 12:15pm

Anteayer wrote: »

Just get a letter from the bank. Most branch managers can do that without any great difficulty.

The OP doesn't have the funds to buy the house yet.

LirW · 14-05-2019 12:17pm

Dominic Crooked Bucket wrote: »

How did you go about proving you had funds?

You'd be surprised, in lower demand areas plenty EAs don't need a proof of fund, especially when the house is on the market longer. We were prepared showing it but he never asked for it. He was probably just glad that someone bought this dump after 18 months on the market.

Graham · 14-05-2019 12:18pm

Dominic Crooked Bucket wrote: »

The OP doesn't have the funds to buy the house yet.

Being blunt, that does appear to be the stumbling block here. Not the methods of proof.

EA/Vendor/Solicitor may be prepared to accept the explanation if it's put to them.

Doodoo · 14-05-2019 12:41pm

LirW wrote: »

You'd be surprised, in lower demand areas plenty EAs don't need a proof of fund, especially when the house is on the market longer. We were prepared showing it but he never asked for it. He was probably just glad that someone bought this dump after 18 months on the market.

I'm sale agreed on a house and have still not been asked for proof of funds so each estate agent has different practices. I was prepared to show it and even offered it just in case they thought I wasn't serious. House was only on the market 4 weeks when I went sale agreed.

14-05-2019 12:54pm

Graham wrote: »

Being blunt, that does appear to be the stumbling block here. Not the methods of proof.

EA/Vendor/Solicitor may be prepared to accept the explanation if it's put to them.

Exactly. I had my broker provide a letter to the EA saying we had the funds and it was accepted. If the bank have allowed this gift to factor into mortgage approval then they might provide a letter.

And in response to other posts, I bought in a high demand area and the EA was asking for proof of funds before we'd even gone sale agreed (which I didn't provide until we did go sale agreed).

Anteayer · 14-05-2019 1:02pm

Dominic Crooked Bucket wrote: »

The OP doesn't have the funds to buy the house yet.

Then he needs to get a letter from his solicitor showing the funds are available.

They can independently verify the details without any of your personal data being handed to anyone else.

pod76 · 14-05-2019 1:10pm

Just gave screenshots of bank accounts to the EA. EA is obviously beholden to GDPR and stressed this in their email. They are from a reputable agency and our bid had been accepted subject to funds evidence. We simply did not show all allied accounts in our 'evidence'.

Funds evidenced. House, sale agreed.

It is par for the course these days with so many sales collapsing particularly to increasing bank regulations, messy chains etc.

snowcat · 14-05-2019 1:48pm

Askthe EA wrote: »

Exactly

And again, exactly. This is why we ask for proof of funding. OP is not currently in a position to buy the house. That doesn't mean that the vendor wont sell to them but they are entitled to have all the info before making a decision!

You dont need to show it to the EA. You can deal with the vendors solicitor or the vendor. The EA only cares about the a sale and his percentage.

snowcat · 14-05-2019 1:52pm

Balanadan wrote: »

Move it to another account if you want to, blank out any data that you don't want to share. Why do people make simple things unnecessarily complicated? The estate agent just wants to know that you can afford to buy the house.

I haven't had dealings with estate agents in Ireland, but I am genuinely surprised that they would accept bids without proof of funds because you could be accepting bids from complete timewasters. If an estate agent took a bid on a property I was selling without the bidder providing proof of funds, I'd sack them off.

The can and all do it. Rare if ever you get asked for proof of funds and if you do only at the sale agreed stage. Its too much additional work for an EA to get every bidder to produce proof of funds. They would have to work then.

14-05-2019 2:00pm

snowcat wrote: »

You dont need to show it to the EA. You can deal with the vendors solicitor or the vendor. The EA only cares about the a sale and his percentage.

You do if acceptance of the bid is conditional on it. If the bid isn’t accepted, the solicitors don’t get involved yet.

Anteayer · 14-05-2019 2:03pm

I would actually wonder about some of this with relation to GDPR.

While they can certainly request and handle information relevant to doing their business, they would need data protection controls in place and also they'd only be allowed to use it for the purposes of processing the sale. If they used it for example to target a wealthy individual with advertising, they could be in big trouble.

Also there's issues around destruction of stored data and so on.

Also technically speaking the only information they need is that the funds are available and this can be verified independently by a solicitor.

14-05-2019 2:10pm

Anteayer wrote: »

I would actually wonder about some of this with relation to GDPR.

While they can certainly request and handle information relevant to doing their business, they would need data protection controls in place and also they'd only be allowed to use it for the purposes of processing the sale. If they used it for example to target a wealthy individual with advertising, they could be in big trouble.

Also there's issues around destruction of stored data and so on.

Also technically speaking the only information they need is that the funds are available and this can be verified independently by a solicitor.

Do you not think EAs handle personal data, and are subject to GDPR regulations?

In relation to the request for the information, is there more important information needed than, can you pay for the property you are bidding on?

Crikey.

snowcat · 14-05-2019 2:10pm

Dav010 wrote: »

You do if acceptance of the bid is conditional on it. If the bid isn’t accepted, the solicitors don’t get involved yet.

I have never seen a bid being conditional on proof of funds.You might be informed that should your bid be accepted you must produce proof of funds. At that stage you lodge your deposit and proof of funds with the vendors solicitor. All is still subject to contract and deposit is fully refundable even at that stage if either party pulls out before signing contracts. The EA does not need the deposit or to see the proof of funds. He just wants his fee.

Proof of funds for estate agent

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