Q. The estate agent I’m considering buying with has requested my proof of financial position, but I’m hesitant to share that information until my offer is accepted. Is it necessary to provide this information beforehand?
A. It is correct for the agent to request evidence of your financial position. According to The Property Ombudsman’s Code of Conduct, agents must verify the source and availability of a prospective buyer’s funds and communicate this to the seller. Failure to do so would violate the Code, potentially leading to valid complaints from the seller if the sale encounters financial issues later on.
While you’re not obligated to disclose this information, if you choose not to, the agent would need to inform their client that your financial status remains unconfirmed. Ultimately, the decision to accept any offers lies with the seller. However, the agent would be neglecting their responsibilities if they didn’t advise on the best course of action. For instance, if the seller were to consider your offer, the agent might suggest continuing to actively market the property until your Proof of Financial Position is clarified.
Understandably, you might prefer not to reveal such details at this early stage of negotiations. Nevertheless, progress in the sale is likely contingent upon it unless both parties agree to proceed under specific conditions, as mentioned above
For further guidance on purchasing a property, please contact us at post@crauctions.co.uk or call 0117 946 49 49.
