I act for a seller. What should I do if a buyer transfers purchase funds to my client account?
I’m due to complete the sale of a residential property. The buyer transferred the purchase funds directly to my firm's client account rather than to their solicitor. I think the buyer’s solicitor shared my account details. What do I need to consider?
You should ask the buyer’s solicitor how and why your client account details were released to their client.
You should also ask the buyer’s solicitor to:
- make appropriate enquiries about the source of the funds that their client transferred to your client account, and
- report to you on the outcome of those enquiries
If this is not forthcoming or if you are not satisfied, consider whether more information is required and/or whether or not you have grounds for suspicion in relation to the source of those funds, as this is unusual.
For more information, see the anti-money laundering guidance for the legal sector.
Disclaimer
While every effort has been made to ensure the accuracy of the information in this article, it does not constitute legal advice and cannot be relied upon as such. The Law Society does not accept any responsibility for liabilities arising as a result of reliance upon the information given.
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