(And How We Help Sellers Navigate It Smoothly)
When selling a property, one of the most common questions is: “Why do we need to see the buyer’s proof of funds?”
This is not just a legal formality — it’s vital to protecting your sale and avoiding unnecessary delays or complications.
At London Estate Agency, we handle this process seamlessly, ensuring you only deal with serious buyers who are financially ready to proceed.
What Is Proof of Funds?
Proof of Funds (POF) is documentation that confirms a buyer has the money available to complete a property purchase.
This can include bank statements, mortgage agreements in principle, evidence of sale proceeds, or gifted deposits.
Solicitors, estate agents, and sellers use this information to verify that the buyer can afford the property they’re trying to buy.
Why Solicitors Ask for It (And Why Sellers Should Care)
Solicitors are legally obligated to comply with Anti-Money Laundering (AML) regulations.
These rules prevent using illicit or untraceable funds in property transactions. But beyond compliance, proof of funds offers sellers a critical layer of security.
Here’s Why You Want Proof of Funds Early:
✅ Avoid time-wasting buyers
✅ Speed up the transaction process
✅ Spot unrealistic offers before accepting
✅ Stay fully compliant with legal regulations
At London Estate Agency, we don’t just request this information — we verify it properly, filter unserious buyers, and ensure you don’t enter a transaction that falls through later.
What Counts as Acceptable Proof of Funds?
When we vet buyers on your behalf, we ask for clear, reliable evidence such as:
Recent bank or savings statements
A valid mortgage in principle
Completion statement from the sale of another property
Investment or pension statements (if applicable)
Gifted funds declaration and ID of the donor
Evidence of inheritance or business sale
We handle all these checks in-house, so you never have to chase documents or worry about interpreting them.
Our Role: Handling Buyer Due Diligence So You Don’t Have To
Selling your home is stressful enough without verifying a buyer’s financial standing.
That’s where our expert team comes in. As part of our Sales Management Service, we:
Vet all prospective buyers before recommending them to you
Ensure all proof of funds documents are in order
Coordinate with solicitors on your behalf
Advise you if there are any red flags with an offer
This gives you total peace of mind — you focus on your move, and we handle the admin.
How We Streamline Proof of Funds Checks
At London Estate Agency, we follow a clear and structured process to ensure that all proof of funds checks are carried out efficiently and thoroughly:
Buyer Makes an Offer
Our team begins financial due diligence as soon as a buyer submits an offer on your property.
We Request Proof of Funds (POF)
We immediately request documentation from the buyer to confirm that they have the financial means to proceed.
We Identify the Type of Funding
We determine whether the buyer is:
A cash buyer or
A mortgage buyer
We Verify the Relevant Documents
For cash buyers, we check bank or savings account statements.
For mortgage buyers, we confirm the mortgage in principle and verify proof of the deposit.
We Validate the Source of Funds
We review the documents to ensure the funds are legitimate and traceable, meeting compliance standards for anti-money laundering (AML).
We Give You the Green Light
Once we’re satisfied that the buyer is financially ready, we notify you so you can confidently move forward.
What Happens If a Buyer Doesn’t Have Valid Proof?
If a buyer can’t prove where their money is coming from or their documents raise concerns, we advise you immediately.
Our proactive checks often save sellers from weeks of wasted time.
Without proper proof, the transaction could collapse at any stage — especially during solicitor checks or before the exchange.
Our job is to make sure that never happens to you.
Why You Need a Selling Agent Who Understands Compliance
Not all estate agents are created equal. Some rush to secure offers and ignore due diligence, which backfires later. At London Estate Agency, we’ve built a reputation for:
✅ Transparent and serious buyer vetting
✅ Fast-tracked legal compliance
✅ Smooth handover to solicitors
✅ Keeping deals from falling through
We manage the sale of your property as if it were our own — protecting your interests from start to finish.
Bonus: We Also Manage Properties Post-Sale
We go beyond sales if you’re selling a tenanted property or looking to invest in a buy-to-let. Our Property Management Division handles:
Complete tenant screening and referencing
Rent collection and legal notices
Maintenance coordination
In-house Rent Protection and compliance updates
This end-to-end approach means you can sell, reinvest, or let out your home with one trusted team.
Ready to Sell? Choose London Estate Agency
When you instruct London Estate Agency, you’re choosing more than just an agent — you’re choosing a professional team that handles every detail, including proof of funds verification, buyer screening, and legal readiness.
We take care of everything:
Marketing your property to serious buyers
Vetting offers and verifying finances
Liaising with solicitors and ensuring AML compliance
Managing the whole sales progression, from offer to completion
Don’t leave your property sale to chance. Trust the experts.
Contact London Estate Agency today to book a free valuation or discuss your property sale.
Let us handle the paperwork — and bring you the best possible result.
