What is a Section 278 Agreement?

A Section 278 Agreement is a legal agreement between a developer and a highway authority to carry out highway works.

Source Of Funds In A Property Transaction

Where monies are to be provided to us such as for a purchase of a property, in accordance with Money Laundering Regulations, we will need to ask questions about where these funds have come from and the activity that was involved in generating those funds. This is referred to as source of funds and source of wealth.

The key point to remember is that we are looking to establish the original SOURCE of funds being used and not the mere availability of funds in a bank account.

If you have a mortgage lender, they will also require us to check some details to ensure that the information you gave them on your mortgage application is accurate and we are obligated to notify them if you are not providing all the money yourself.

Examples of sources of funds can include personal savings, pension releases, share sales and dividends, property sales, gambling winnings, investments, business ownership interests, employment income, inheritances and gifts and compensation from legal rulings.

Source of wealth relates to the economic, business or commercial activities that generated or significantly contributed your overall net worth. You will need to provide evidence of not only why you have the assets that you do, but how you came to accumulate them.

In order to complete our due diligence requirements, you will be asked to provide evidence of your source of funds and/or source of wealth.

Examples of documentary evidence we may require as to support source of funds and wealth could be as follows:-

Bank/Savings/ISA statements
Earnings/Salary
Previous property sale
Sale of shares / Investments / Dividends
Inheritance from an Estate
Divorce settlement
Rental income from a tenancy
Compensation award
Gambling/Lottery/Premium Bond win
Gifted deposits from a relative/family member
Release of pension

We are required to obtain satisfactory proof of funds in every purchase regardless of the amount or age of the source. Should you have any questions about source of funds please discuss with us at the earliest opportunity to avoid any delays in your transaction.

We will not be able to proceed with any substantial work on a transaction until these requirements have been dealt with satisfactorily.

How we can help

Sarah Rowles is a licensed conveyancer at Wollens. We have committed teams in each of our offices who will work closely with you and guide you through the property process step by step. While it may seem a streamlined process to us, we know how daunting it can be and are on hand to help, each step of the way.