First published in the Yorkshire Post.

You've got the deposit, secured your mortgage and had your offer accepted. Yet many buyers still hit a roadblock they didn’t expect, the need to prove, in detail, exactly where their deposit funds are coming from.

Richard Wisnia, head of new build conveyancing at Switalskis, says this can be a common, frustrating, but avoidable, cause of delay. He explains that clear documentary evidence showing not only where the funds are now (“proof of funds”) but also their origins (“source of wealth”) is essential to avoid delays in the progress of a purchase.

While homebuyers may have money for the house purchase, there is a need for greater understanding about how this should be demonstrated, a level of scrutiny which often comes as a surprise to buyers. This is for a number of reasons; conveyancers have been practically designated as “gatekeepers” under anti money laundering laws - the consequences for failing to do so can be catastrophic - but don’t always effectively communicate what is needed early or clearly enough; buyers may feel that the level of detail requested is invasive; there can be confusion in terminology used, and the search for evidence may also unexpectedly involve third parties.

“Savings”, a straightforward term, is a good example. Solicitors consider savings to be funds a buyer has built up gradually from personal income (salary, interest, rent), supported by bank statements showing regular deposits over several months. While it’s logical to consider something given to you to be yours, financial gifts from other people are not classed as savings, rather as a third-party gift. Gifts trigger further work (and usually more legal fees), and the “donor” – the person gifting the money – will be subject to the same checks as the buyer; electronic ID checks and evidence of the source of wealth, with the need to declare the gift formally in writing.

If funds came from a family business, an accountant’s letter may be needed in support. An inheritance? A solicitor’s letter, bank statements and copies of wills are all examples of the type of documents commonly requested. Donors must also sign a declaration confirming the gift is unconditional, non-repayable and doesn’t create any claim over the property. Without this, no buyer would be able to proceed to buy with a mortgage.

The quality of documents prove to be another stumbling block. Screenshots of bank statements from a mobile phone won’t be acceptable; statements should show the accountholder's name and bank logo with a period of transactions requested.

There are multiple places deposit funds can come from, and-each element requires its own paperwork. A sale that previously completed, dividends from the buyer’s own company, compensation, redundancy payments, pension drawdowns will all involve different evidential requirements.

Solicitors understand that their requests can feel personal, especially for third parties who may have bought homes decades ago with far less paperwork and don’t consider themselves directly involved. But it isn’t personal, rather a default but comprehensive process applied across the industry. It helps guard against fraudulent activity, gives lenders reassurance and maintains confidence in the integrity of conveyancing in the wider property market.

For buyers, a little preparation goes a long way. Knowing what will be examined, collecting documents in advance and warning any third-party donors about the checks involved can prevent unnecessary hold-ups. Firms like Switalskis build these conversations into early stages of a transaction. This helps buyers navigate the process with fewer surprises, avoid last minute hurdles and get to the excitement of completion without unnecessary worry.