FAQs - Buying and selling a home in the UK

Identity verification (IDV) is the process of confirming that a person is who they claim to be.

Only authorised members of the firms involved in carrying out your legal and compliance checks will have access to your documents where necessary. Your information is handled securely and only used for legitimate purposes connected with your property transaction.

The exact documents required may vary, but you’ll usually need a photographic ID such as a valid passport or driving licence together with a recent document showing your current address, such as a bank statement, council tax bill or utility bill. Your property professional will let you know which documents they can accept before you begin the process.

Property professionals must carry out client due diligence, including verifying the identity of everyone involved in a property transaction, to comply with AML regulations. This helps protect buyers, sellers, and property professionals from fraud, money laundering, and other financial crime.

HM Land Registry also imposes strict identity verification requirements. Conveyancers who use advanced verification methods, like cryptographic checking and biometrics, can achieve Safe Harbour, which means “HM Land Registry will not pursue any recourse claim against the conveyancer resulting from the registration of a fraudulent transaction on the grounds that identity checks were inadequate.”

Many identity checks can be completed within minutes when documents are provided electronically. If additional verification or manual review is needed, the process may take longer. Providing clear, up-to-date documents as early as possible will help keep your transaction moving.

Photo ID confirms your identity, but it doesn’t always prove where you currently live. That’s why you’ll often be asked for proof of address, such as a recent utility bill or bank statement. Together, these documents help your property professional meet their legal obligations and verify your identity with confidence.

Your personal information is handled securely and in accordance with data protection laws.

Sometimes additional information is needed before your identity can be verified. If this happens, your conveyancer will explain exactly what’s required and why. If your identity cannot be verified at all, then the conveyancer will be unable to proceed with the transaction.

Source of Funds refers to the origin of the money used in a particular transaction, such as when purchasing property, making an investment, or transferring capital. Under Regulation 28 (11) of Money Laundering Regulations 2017, property professionals must scrutinise transactions to ensure they are “consistent with the knowledge of the customer, the customer’s business and risk profile.” The Solicitors Regulation Authority (SRA) interprets this to mean taking a “risk based approach”. Home buying is typically considered moderate-to-high risk.

Higher-risk transactions will require more detailed verification. The Law Society outlines possible supporting evidence, including:

• Bank statements
• Business accounts
• Documents confirming the source, such as:
  • sale of a house
  • sale of shares
  • receipt of a personal injuries award
  • a bequest under an estate
  • a win from gambling activities

The specific documentation will depend on the transaction, your financial situation, and the level of risk. If you are asked for bank statements, it could be because some of the financial information needed could not be obtained via open banking.

Providing Source of Funds information is a legal requirement for most property purchases. If you choose not to provide the requested evidence, you may be unable to satisfy client due diligence. For example, under Regulation 31 of Money Laundering Regulations 2017, if a conveyancer is unable to apply customer due diligence, they:

• must not carry out any transaction through a bank account with the customer or on behalf of the customer
• must not establish a business relationship or carry out a transaction with the customer otherwise than through a bank account
• must terminate any existing business relationship with the customer
• must consider whether the relevant person is required to make a disclosure (or to make further disclosure)

There is no fixed timeframe for Source of Funds checks. While three-twelve months is a commonly requested period for bank statements to show salary and savings, you should be prepared to go back as far as is necessary to evidence the origin of a specific sum if the transaction has a high level of risk.

Source of Funds checks help confirm that money being used in certain transactions is legitimately earned or acquired. They are essential for meeting AML compliance, preventing fraud or financial crime, and ensuring compliance with regulatory requirements when buying a property or making large investments.

If the information provided doesn’t fully explain the source of your funds, you will usually be asked for additional documents or clarification. This is a normal part of the process and doesn’t automatically mean there’s a problem with your transaction.

Large or unexpected payments may need to be explained because they increase the risk of the transaction. In many cases, a simple explanation together with supporting evidence is all that’s required.

Gifted deposits are common, particularly for first-time buyers. Your conveyancer will usually need to verify the identity of the person providing the gift, understand where the money came from, and obtain a declaration confirming that the funds are a genuine gift and not a loan.

Different organisations involved in your home purchase (such as your conveyancer, estate agent and mortgage lender) have their own regulatory responsibilities. Although the information requested may appear similar, they can’t always rely on checks completed by another organisation.

Property transactions can be delayed for many reasons, including waiting for documents, mortgage approvals, searches, or compliance checks. Providing requested information promptly and ensuring documents are accurate can help minimise avoidable delays.

You can prepare by ensuring your identification documents are up to date, gathering proof of address, and collecting evidence showing where your purchase funds have come from. Having these documents ready before they’re requested can help your transaction progress more smoothly. The amount of evidence with depend on you circumstances and level of risk, but having the following to hand can help reduce delays:

• Valid photo ID – a passport or driving licence.
• Proof of address – a recent utility bill, council tax bill, or bank statement.
• Evidence of your source of funds – documents showing where your purchase money has come from, such as savings, a property sale, inheritance, or a gift.
• Supporting financial documents – savings statements, payslips, gift letters, or property completion statements, depending on your circumstances.
• Access to your online banking – if your conveyancer offers Open Banking, having your online banking credentials ready can help complete source of funds checks more quickly.

If you’re providing gifted funds, the home buyer’s conveyancer will need to confirm your identity as part of their legal and regulatory obligations. The SRA sets out guidance for how conveyancers must verify the identity of giftors and confirm their relationship to the buyer.

The home buyer’s conveyancer may need to understand the source of the funds being gifted, not just who is providing them. A source of funds check helps demonstrate that the money being used for the property purchase comes from a legitimate source.

Bank statements help show where the gifted funds have come from and provide a clear record of the money being used. Gifted deposits are sometimes considered higher risk and so must undergo enhanced due diligence, as per Regulation 33 (1)(a) of Money Laundering Regulations 2017. The home buyer’s conveyancer is looking to confirm that the funds being gifted can be appropriately evidenced.

A gifted deposit declaration is a document confirming that the money you’re providing is a genuine gift and doesn’t need to be repaid. It also confirms that you won’t have a legal interest in the property unless otherwise agreed.

Yes. It’s common for more than one person to contribute towards a property purchase. Each giftor will usually need to complete their own identity and compliance checks and provide evidence of where their contribution has come from.

Long-term savings are commonly used for gifted deposits. The home buyer’s conveyancer may ask for bank statements or other documents to help demonstrate how the savings accumulated over time and confirm the source of the funds being gifted.

If you can’t provide the requested evidence, or any additional evidence requested, the conveyancer may not be able to proceed with the home buying transaction.

Having your photo ID, proof of address, and documents showing where your gifted funds have come from ready in advance can help speed up the process. If you know you’ll be making a gift, it’s worth gathering these documents before the home buyer’s conveyancer asks for them.

Not necessarily. Most checks can be completed quickly if the requested information is provided promptly. Delays are more likely to occur when documents are missing, incomplete, or require further clarification.

Property professionals are legally required to carry out AML checks as part of every property transaction, as per Money Laundering Regulations 2017. These checks help prevent fraud, money laundering and other financial crime by verifying the people involved and understanding the source of the money being used.

PEP (Politically Exposed Person) and sanctions checks help identify whether someone may present a higher risk of financial crime. Being identified as a PEP doesn’t necessarily mean you’ve done anything wrong. It means that your property professionals may need to carry out additional checks to meet their legal obligations.

Some compliance checks continue throughout the transaction to identify any significant changes that could affect the level of risk.

Your property professional must complete certain checks before they can act on your behalf. If the requested information isn’t provided, they may be unable to continue with your transaction until those checks have been completed.

Yes. Property professionals, including conveyancers, are legally required to carry out identity verification, source of funds and other checks as part of client due diligence and anti-money laundering regulations before proceeding with most property transactions. In addition, all property must be registered at the HM Land Registry, which imposes strict identity verification requirements, meaning identity checks must be undertaken as part of a property purchase or sale.

Many checks can be completed within minutes once all the required information has been received. However, more complex circumstances or requests for additional information may take longer. Providing complete and accurate documents as early as possible can help minimise delays.

The best way to keep your transaction moving is to provide the requested information promptly, ensure your documents are clear and up to date, and respond quickly if your property professional needs further clarification. If you can’t use online banking or don’t have digital copies of your documents, let them know as soon as possible – alternative ways to provide the information may be available.