MAKING AN OFFER

So, you have found a property that you wish to make an offer on. That's great news! 

In order to make an offer we will need to establish some more detail about you and your intended purchase. This includes detail on your Buying Position and your Financial Arrangements. This may seem intrusive but it is now a legal requirement for us to obtain all of this information as part of our buyer qualification and risk assessment process - without exception. It also helps us put your 'best foot forward' to the sellers.

With that in mind, the first step is to go ahead and contact us to make your offer. You can do this filling in the form below, by phone, email, text message, or by popping in. 

All offers will be subject to the following checks before it can be formally accepted (and therefore the property advertised as SSTC). 

It is understandable that once you have had an offer accepted you will want the property to be advertised as SSTC or Under Offer. This will only take place once all of the following checks are completed, so being prepared will ensure this happens without delay. 

BUYING POSITION

Your buying position relates to whether or not your purchase is dependent on the sale of another property (or assets). In the event of a related sale, we are required to verify the progress of the sale directly with the agent / solicitor dealing, as well as the balance of any existing mortgage or finance on the property or asset to be sold. 

Your buying position will be one of the following:

• No related sale of property or assets. You are ready to buy and your intended purchase is not subject to the sale of anything else. This could be a cash purchase, a refinance of assets or you are a first time buyer. 
• Related sale of property or assets. Your purchase is subject to the sale of something that is, or is about to be going through. 

FINANCIAL ARRANGEMENTS

We are required to identify the full details about how you intend to fund the purchase. It may be that you are using proceeds from a sale, raising a mortgage or using cash. In any event, we are required to obtain 'proof of funds' and in many cases, information on the 'source of funds'.

Acceptable funding evidence includes one (or a mix) of:

• Bank statement. A recent statement (within 30 days) showing the purchase price or deposit amount.
• Mortgage AIP. A valid Agreement in Principal from a lender or Financial Advisor.
• Letter from bank manager. A letter or email from your bank manager vouching for funds available for the purchase price or deposit amount.
• Letter from financial advisor. A letter or email from your financial advisor / wealth manager to confirm approval of your funding method.
• Mortgage statement. If you are purchasing from the proceeds of a sale, we are required to verify the balance of any outstanding finance on the property being sold.

Source of funds may also be required. This may include:

• Savings. If you have saved the money yourself, you will need to provide bank statements going back over a period of time showing how you gradually built up the money.
• Gift. A letter from the person gifting you the money plus evidence of how it came into their possession.
• Inheritance. Evidence from the executors of the estate.
• Sale of a property. A copy of the completion statement from your solicitor. Alternatively, a copy of a statement showing the money being received from a solicitor.
• Pension. A copy of your pension statement and a copy of your bank statement showing the money coming in from a pension firm.
• Gambling winnings. Won the lottery? Lucky you! If you plan to buy a house, you'll need to show a receipt proving your winnings. 
• Compensation. A copy of the letter you received from a solicitor or court confirming your compensation settlement. 

WHAT HAPPENS IF YOUR OFFER IS ACCEPTED

Congratulations! There is still a long way to go, but now that all of the above is dealt with it is on to the next phase of your purchase. 

First of all, please understand that the property will remain on the market until we have all of the following information (as well as the funding information as detailed above), so it pays to be prepared.

AML Checks

Firstly, we are required under Money Laundering Regulation 2007 to obtain a valid ID and proof pf address for each of the purchasers. We will require one document, dated within the last three months, from each of the following sections for each buyer:

Photo ID

• Driving License
• Passport

Proof of Address

• Utility Bill (not mobile phone bill)
• UK Driving License (if not used for photo ID as well)
• Mortgage Statement
• Bank / building society statement
• State pension benefits book
• Home or motor insurance certificate
• Current local authority tax bill / tenancy agreement

PEP (Politically Exposed Person)

As part of our AML requirement we are also required to complete a PEP (Politically Exposed Person) check for each buyer. This is included in the online form, or can be done separately here www.archerandco.com/pep

Solicitors

You will need to appoint a solicitor to handle the transaction for you. We can often recommend someone so if you do not have one please let us know. we ask that you appoint a solicitor within two working days of having your offer accepted. 

Survey

If you are having a survey then we ask that you book this in within two working days of having your offer accepted. 

WHY WE NEED SO MUCH INFORMATION

It is now a legal requirement for all estate agents to undertake several checks once an offer is agreed with a prospective buyer. These checks include satisfying rules set out by The Property Ombudsman, Anti Money Laundering regulations set out by HMRC and (as of January 2020) the EU Fifth Money Laundering Directive. 

Estate agents are also required to complete a Risk Assessment for each buyer where unwillingness to provide information on funding (including its source), automatically triggers the buyer to be a 'high risk'.

More information can be found at the following websites:

https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/do-estate-agents-need-proof-of-funds/

https://www.propertymark.co.uk/advice-and-guides/buying-a-home/estate-agent-checks.aspx