When Does a Solicitor Check Proof of Funds?

This article is intended for general information purposes only and does not constitute financial, legal or property advice. We recommend seeking independent professional advice before making any property-related decisions.

At a glance

When does a solicitor check proof of funds? In England and Wales, a buyer's solicitor checks proof of funds soon after being instructed, usually within days of an offer being accepted and before any substantive conveyancing work begins. The check forms part of the solicitor's anti-money laundering (AML) obligations and must be completed before contracts can be exchanged. In Scotland, buyers usually speak to or instruct a solicitor before submitting an offer, so funding checks often happen earlier than in England and Wales. The sale becomes legally binding only once missives are concluded, which can be days or weeks after an offer is accepted.

What this guide covers

If you are selling your home or buying a new one, understanding when proof of funds checks happen helps you plan around the legal timeline and avoid delays. This guide covers when a solicitor checks proof of funds in England, Wales and Scotland, what counts as acceptable evidence, the difference between proof of funds and the deposit transfer, and how all of this fits into the broader sale process.

We have written this guide for sellers in particular - the timing of buyer-side checks directly affects how quickly your sale can progress. The right estate agent will also keep the chain informed. You can use the GetAgent comparison tool to see which agents have the strongest performance selling homes in your area.

What is proof of funds?

Proof of funds is documentary evidence that a property buyer has the money to complete a purchase and that the money has come from a legitimate source. It covers two questions:

1. Does the buyer have the full purchase price available (either as cash or as a combination of deposit plus mortgage)?
2. Where did that money come from, and is the source verifiable?

Both questions must be answered before a solicitor can act on the transaction. The second one, source of funds, is increasingly the part that takes time. Under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, solicitors are required to verify not just that the money exists, but where it originated. This is regulated for solicitors in England and Wales by the Solicitors Regulation Authority.

According to a 2025 UK Government National Risk Assessment cited by industry compliance providers, an estimated £10 billion is laundered through UK property each year, which is why these checks have become more rigorous in recent years.

When does a solicitor check proof of funds in England and Wales?

In England and Wales, the formal proof of funds check happens after a buyer has had their offer accepted and instructed a solicitor, but before any meaningful legal work begins. The timing breaks down as follows:

The solicitor's check is part of client onboarding, alongside identity verification. The buyer cannot exchange contracts until both have been satisfactorily completed.

Why the timing matters for sellers

For sellers, the timing is significant because nothing else in the conveyancing process can move forward until proof of funds is in place. According to The Law Society, the SRA has placed property transactions under particular scrutiny for AML compliance, which means solicitors will not press ahead until they are satisfied with the documentation.

If your buyer has prepared their paperwork in advance, the check can be quick. If they have not, it can add weeks to the transaction. Your estate agent and your own solicitor will usually keep you informed of progress on the other side of the chain.

When does a solicitor check proof of funds in Scotland?

The Scottish system is different. Because Scottish property sales become legally binding much earlier in the process (at the conclusion of missives, often within days of offer acceptance), proof of funds is normally established before an offer is even formally submitted.

In practice, a buyer in Scotland will instruct a solicitor before bidding, and that solicitor will check the buyer's deposit and any mortgage in principle ahead of submitting the offer. By the time a seller accepts, the buyer's financial position has typically already been verified. This is part of why Scottish transactions can complete faster than those in England and Wales.

What documents count as proof of funds?

The exact evidence required will depend on where the buyer's money has come from. Solicitors look at both the source of funds (where the immediate money came from) and, where relevant, the source of wealth (how the buyer accumulated their assets overall).

Common acceptable documents include:

According to the SRA's consumer guidance, if any of the money is being provided by a third party (for example, a parent gifting a deposit), the solicitor will also need to verify that person's identity and the source of their funds.

If money is coming from overseas, additional checks usually apply. Funds from within the EU, Iceland, Liechtenstein, Norway and Switzerland are often accepted with standard checks. Funds from outside this group, or from any country on the UK's high-risk third country list, will normally trigger enhanced due diligence under the Money Laundering Regulations.

Source of funds vs source of wealth

These two terms are sometimes used interchangeably, but they are different.

• The source of funds is where the money used in this specific transaction came from. For example: a recent house sale, or a savings account.
• The source of wealth is how the buyer accumulated their overall assets. For example: a career in a particular profession, business sale proceeds, or inherited wealth.

For higher-value or higher-risk transactions, solicitors are increasingly expected to understand both. This is part of the SRA's wider focus on the legal sector's role in preventing money laundering, as set out in updated Legal Sector Affinity Group guidance that took effect in April 2025.

When do you transfer the deposit to the solicitor?

A separate but related question. Once proof of funds checks are complete, and the conveyancing process is progressing toward exchange, the buyer must transfer the deposit money to their own solicitor's client account so that funds are cleared and ready for exchange day.

The standard timeline in England and Wales is:

The deposit at the exchange is normally 10% of the purchase price, though 5% can be agreed in some circumstances. The exact figure is something the buyer's solicitor will advise on, depending on the lender's requirements, the contract terms and the chain. Buyers should aim to send funds to their solicitor several days before the expected exchange date, because the money must be cleared (not just received) before the solicitor can exchange.

If you are wondering when to transfer the deposit to the solicitor in practical terms, the safest answer is: as soon as your solicitor confirms the exchange is approaching, and ideally with enough buffer for cleared funds. Most solicitors will give a clear instruction on timing.

It is worth noting that the deposit paid at the exchange is not the same as the deposit a mortgage lender refers to. The mortgage deposit is the buyer's overall equity contribution to the purchase, which is usually larger than the 10% exchange deposit and is paid in full on completion alongside the mortgage funds.

What happens if proof of funds is delayed or fails?

If a buyer's proof of funds is incomplete, unclear, or comes from a source the solicitor cannot easily verify, the transaction will stall. The solicitor cannot proceed with searches, enquiries or exchanges until the issue is resolved.

In rare cases, where the solicitor has reasonable grounds to suspect the funds may be the proceeds of crime, they have a legal duty under the Proceeds of Crime Act 2002 to submit a Suspicious Activity Report (SAR) to the National Crime Agency. The solicitor cannot tell the buyer they have done this, due to the "tipping off" rules. In practice, the overwhelming majority of cases are straightforward and result in no such action - the regime exists to protect against criminal misuse of property transactions, not to inconvenience genuine buyers.

For sellers, the practical risk is timing. A buyer whose paperwork is in order can usually clear the AML stage in a week or two. A buyer who has to gather statements from multiple sources, provide gifted deposit letters from family members, or prove the legitimacy of overseas funds may take significantly longer.

How proof of funds fits into the wider sale process

Proof of funds is just one of several checks that have to be completed before the exchange. Your estate agent's job is to keep the chain moving, and a good agent will know when to chase the buyer's solicitor and when to step back. According to GetAgent's research, the UK average time to go under offer is 12 to 17 weeks, depending on location, with London averaging around 17 weeks, Manchester 12 weeks, and Cardiff 13 weeks. Once an offer is agreed, conveyancing typically takes a further 12 to 16 weeks on top.

The average estate agent fee in the UK is 1.18% plus VAT (1.42% including VAT), with fees ranging from 0.75% to around 3% plus VAT. Different agent types charge differently. The right agent is the one whose performance justifies the fee they charge, which is why looking at average sale time and percentage of asking price achieved is often more useful than focusing on the headline percentage alone. You can read more in our guide to choosing the right estate agent for your local market.

Over 1.2 million UK homeowners have used GetAgent to compare local agents by real performance data.

Practical takeaways

For sellers, the key things to understand about proof of funds:

• The check happens early - usually within days of the buyer instructing a solicitor in England and Wales, or before the offer in Scotland
• The check is mandatory under AML rules and cannot be skipped or shortcut
• Delays here delay everything else, so a buyer with paperwork ready is a stronger buyer
• Your estate agent should be confirming the buyer's funding position before recommending that you accept an offer
• Your own solicitor will handle the seller-side AML checks, which are usually less onerous than the buyer's

For buyers:

• Start gathering documents before you make an offer, not after
• Be ready to explain not just the immediate source of the money, but how it was accumulated
• Gifted deposits require paperwork from the donor, too
• Transfer your deposit to your solicitor several days before the expected exchange date

References

• Citizens Advice
• GetAgent
• HM Land Registry
• Legislation.gov.uk - Money Laundering Regulations 2017
• Legislation.gov.uk - Proceeds of Crime Act 2002
• National Trading Standards Estate Agency Team
• Solicitors Regulation Authority
• Solicitors Regulation Authority - consumer guidance on AML
• The Law Society
• The Property Ombudsman