When does a solicitor check proof of funds?

Selling your home is exciting, but it also means navigating the legal steps of a property transaction. One common question is: when does a solicitor check proof of funds? On this page we explain when proof of funds checks happen in England and Wales, and in Scotland, why they’re important, and what counts as proof.

What is “Proof of funds” and why is it important?

Proof of funds simply means evidence that the buyer has the money available to complete the purchase. Whether the buyer is paying cash or using a mortgage, they must show they can cover the price (including any deposit).

Solicitors and conveyancers are legally required to use due diligence and verify this as part of anti-money laundering (AML) checks. These checks protect against criminals using property purchases to “clean” illegal money.

In England and Wales, this responsibility is regulated by the Solicitors Regulation Authority (SRA), which can investigate and sanction solicitors who fail to carry out proper checks. This makes the proof-of-funds stage a critical compliance step in any property transaction.

As a seller, this benefits you too: you don’t want your sale falling through because the buyer can’t actually pay. So while these checks might feel like red tape, they’re there to give everyone peace of mind that the buyer’s finances are in order.

When do solicitors check proof of funds in England and Wales?

In England and Wales, proof of funds is checked early in the conveyancing process – typically right after your buyer’s offer is accepted and they’ve instructed a solicitor. Once a sale is agreed (sold subject to contract), the buyer’s solicitor will ask the buyer to provide proof of their funds before things progress much further.

In fact, a solicitor cannot legally proceed with the sale until satisfied with the proof and source of the buyer’s money. This means buyers need to be ready to show where their deposit and purchase funds are coming from as soon as the deal is struck.

It’s worth noting that estate agents (who represent you, the seller) often ask for some proof of funds as well, around the time an offer is made or accepted. For example, an agent might request a bank statement or mortgage agreement in principle from the buyer to confirm they’re a serious buyer and have the means to.

You aren’t obligated to provide proof before making an offer, but many agents will check once an offer is on the table. From the seller’s perspective, this is good news: it helps weed out any non-serious offers and gives you confidence in the buyer.

However, even if the buyer showed something to the estate agent, the buyer’s solicitor will still do their own, more detailed checks. Each party (agent, lender, solicitor) has to do checks independently by law, so buyers should expect to supply their evidence multiple times.

When do solicitors check proof of funds in Scotland?

In Scotland, the house-buying process is a bit different, but proof of funds checks occur just as early – essentially at the start of the transaction.

In Scotland, buyers make formal offers through a solicitor, and once an offer is accepted and missives (the letters forming the contract) are concluded, the deal becomes legally binding relatively quickly. Scottish solicitors will ask about proof of funds very upfront – often one of the first questions when you start the purchase process. This applies whether the buyer is a cash buyer or using a mortgage; the solicitor will need to see evidence of the deposit money and any other funds before proceeding.

Because of the faster pace in Scotland (where there’s no long gap waiting to “exchange contracts” as in England), buyers usually need to have their finances in order before putting in an offer.

So, from a seller’s perspective in Scotland, you can take comfort that by the time you accept an offer, the buyer’s ability to fund the purchase should already have been vetted early on.

Key difference: The requirement to check proof of funds is essentially the same legal obligation UK-wide, but the timing is tied to the process. In England and Wales, it’s after offer acceptance but before exchange of contracts (during the conveyancing period). In Scotland, it’s around the offer and prior to concluding missives (much earlier in the timeline of a binding agreement). In both cases, the check happens before the sale is legally final, but in Scotland “legally final” comes sooner.

What documents count as proof of funds?

Proof of funds isn’t just a single document; it can be a combination of papers showing the money exists and whether it's from a legitimate source. Buyers will typically need to provide:

• Bank statements for savings or cash funds: Usually covering the last several months (often 6 months) to show the accumulation of the purchase money in the buyer’s account. This proves the buyer actually has the amount required, whether it’s the full purchase price (for a cash buyer) or just the deposit in case of a mortgage.
• Mortgage agreement in principle (AIP) or mortgage offer: If the buyer is using a mortgage lender, they should show an AIP or a lender’s letter confirming how much they’ll lend. Along with this, the buyer’s deposit (their portion of the price) must be evidenced with a bank statement.
• Proof of a property sale (if applicable): If your buyer is relying on selling their own property to fund the purchase (common in chains), they might provide a letter or memorandum from the estate agent or solicitor handling that sale, confirming it’s underway and the expected equity from it.
• Gift letters and evidence (if using gifted money): Many buyers receive help from family. In these cases, the person giving the gift must provide a signed gift letter stating the money is a gift and they expect no repayment or stake in the property. The giver will also need to show their bank statements or source of those funds, to prove the money is not from criminal activity.
• Inheritance evidence: If the funds come from an inheritance, the buyer would show a letter from the executors of the estate or a grant of probate, plus bank evidence of the money being received.
• Investment or asset sale records: For money raised by selling investments like stocks, crypto, or other assets, the buyer should provide things like sale receipts or statements showing the sale and the proceeds arriving in their account. If they sold a business or car for the funds, similar proof of sale would be needed.
• Other lump sum sources: Any unusual or one-off sources of funds need evidence. For example, lottery or gambling winnings would require proof of the win (a letter or receipt from the lottery company, casino, etc.). Compensation or court settlement money would be shown via official letters or court documents noting the awarded. Even a large pension lump sum withdrawal should be backed up by pension statements and bank records.

Essentially, the seller's solicitor is looking for two things: that the buyer has the required amount available, and a paper trail of where it came from (the “source of funds”). It’s not enough for a buyer to say “I have the money in my account” – they must demonstrate how it got there (saved over time, a gift, a sale, etc.).

This is why sometimes multiple documents are needed. For example, showing £50,000 in a bank account is part one; showing it was gradually saved from salary over two years or came from selling a car is part two.

If any of the money is coming from abroad, there may be extra checks or even restrictions (some solicitors are cautious with funds from certain high-risk countries). Buyers should always be upfront and discuss any complex sources with their solicitor early to avoid last-minute issues.

Example scenario: The proof of funds in action

Imagine you’re selling your home in England to a first-time buyer: You accept their offer, and the buyer’s solicitor immediately requests the buyer’s proof of funds. The buyer provides their last 6 months of bank statements showing a £30,000 saved deposit, along with a mortgage agreement in principle for the rest of the purchase price.

Your estate agent also double-checks these documents and then marks the property as “Sold STC” (sold subject to contract). Because the buyer was prepared and handed everything over within a day or two, the solicitor can quickly move on with property searches and drafting the contract.

You, as the seller, feel relieved knowing early on that the buyer’s financing is solid – one less thing to worry about.

Now, consider a Scottish scenario: You’re selling a flat in Glasgow. A buyer makes an offer through their solicitor. Before the offer is even formally submitted, that solicitor ensures the buyer has proof of their 25% deposit and a letter from their bank offering a mortgage.

Once you accept the offer, missives are concluded within a week. Thanks to the upfront checks, there’s confidence on both sides. The sale is legally binding, and you know the buyer’s funds are lined up, allowing the transaction to progress to settlement day without hitches.

In both cases, the early proof-of-funds checks set the stage for a smoother sale. As a seller, being aware of when and how these checks happen means you can ask the right questions and stay on top of the timeline. If your buyer is proactive, great! If not, a gentle nudge via the estate agent about getting their documents in might save weeks of delay.

Sources

• Propertymark – Money Laundering Checks: Propertymark (the UK professional body for estate agents) explains when and why estate agents and solicitors ask for proof of funds, and lists examples of acceptable documents.
• Yopa – “When does a solicitor check proof of funds?” Online estate agent Yopa’s guide confirms that after an offer is accepted, buyers must promptly provide proof and source of funds, since a solicitor cannot proceed without it.*
• Urban Jungle Blog – Proof of Funds Checks: Urban Jungle highlights that solicitors usually ask for proof of funds as soon as an offer is made, to avoid delays, and outlines why these checks are legally required.
• Clark Boyle (Law Society of Scotland regulated firm) – AML Checks: Scottish solicitors emphasise that one of the first things they’ll ask a buyer is for evidence of where the purchase money comes from, in line with Law Society of Scotland rules.
• Hegarty Solicitors – Proof of Funds Guide: Conveyancing solicitors Hegarty explains the duty to verify a buyer’s source of funds to prevent fraud and money laundering, and that even if an estate agent has checked, the solicitor must do their own checks.