Buying a house is often listed as one of the most stressful life experiences anyone can go through, right up there with getting married or suffering a bereavement. It’s not something that most of us do often, and because of this, we are often unprepared for the paperwork and identity checks we go through with the estate agents and the lawyers. One of the most unexpected parts of the process for many buyers is that their lawyer asks them to verify their identity before even starting to work for them on the legalities of buying a new home. Why do lawyers request evidence of your identity and address when you sell or buy a property? It’s all about complying with the money laundering law, and making sure your money comes from legitimate sources.

Identity Checks and Residential Conveyancing

For UK residents, acceptable evidence of identity for buying or selling properties typically includes showing one of the following original documents:

• Current signed passport
• Current UK or European Union photo-card driving licence
• Current provisional UK photo driving licence – old-style non-photo provisional licences are not acceptable
• Benefit book or letter from the Benefits Agency confirming entitlement to benefits
• Residency permit or Home Office alien registration card
• UK armed services ID card

There are other less commonly held forms of identification such as firearms certificates which can pe provided if you can’t show any of the more commonly used documents. You will also need to show the originals, not scans or photographs.

In addition, your lawyer will want to conform your current address, and this will involve showing an additional form of ID showing your name and address such as a council tax bill, bank statement, insurance certificate, utility bill or mortgage statement. There are also additional options for clients who can’t show the usual forms of ID, such as getting a sworn statement from a legal professional. If you think you might struggle to pull together the right paperwork, discuss your situation with your lawyer who should be able to give good advice on the best route for you.

Company Buyers

Another common scenario is when a company is purchasing property, either as an asset or for a member of staff to live in. This sort of transaction involves proving the identity of the company as well as the directors. Purchasers will be asked for a utility bill or bank statement in the company name, and the directors will prove their identities in the same way as private purchasers would.

Selling a Property

The other side of the property transaction is the seller, and people who are selling properties will also have to verify their identity before the sale goes through. Often, the sellers will be buying another property elsewhere, but won’t have to go through the proving identity process twice. Lawyers will want to take copies of documents presented as they have to retain these to prove that they have been complying with the money laundering rules for all of their conveyancing clients.