Source of funds checks and property forms: a preparation guide for buyers in England and Wales

This guide was drafted with the help of an AI tool (Claude, Anthropic) and checked against the public sources listed at the end. It has not been reviewed by a solicitor. It is general information only, not legal or financial advice.

When you buy a home, your solicitor or conveyancer will usually ask where the money for the purchase comes from. For first-time buyers, and for people who have moved to the UK recently, this can feel intrusive or confusing. This guide explains what is commonly asked, why, and how you might prepare. Every firm sets its own procedures, so the exact list from your solicitor may differ.

Part 1: Source of funds and source of wealth – what solicitors usually ask for

Two terms you will hear

Source of funds means the origin of the money used for this particular purchase (HMRC; SRA).
Source of wealth means where your overall wealth comes from and how you built it up, for example from salary, a business, a property sale or an inheritance (HMRC; SRA).

Why they ask

Solicitors and conveyancers are covered by the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (often called "MLR 2017"). These require checks on clients ("customer due diligence") and scrutiny of transactions, including, where necessary, the source of funds (MLR 2017, regulation 28; HMRC).
Extra checks ("enhanced due diligence") apply in higher-risk situations, and for politically exposed persons the source of wealth and source of funds must be established (MLR 2017, regulations 33 and 35).
The Solicitors Regulation Authority (SRA) says conveyancing is identified as a high-risk area for money laundering, that firms are expected to carry out source of funds checks, and that there is no provision in MLR 2017 for waiving this requirement (SRA thematic review, November 2025).
The SRA also says bank statements should be scrutinised, not just placed on file, and that funds cannot be assumed to be legitimate just because they come from a UK bank account (SRA AML questions and answers). This is why questions can feel detailed even when your money is ordinary savings.
The estate agent may also check your identity: HMRC guidance for estate agents says checks on a buyer apply from the point the seller accepts the offer (HMRC AMLG2200). If you have a mortgage, your lender will ask for its own evidence too (MoneyHelper).

Identity and address

Firms decide which documents they accept. Examples listed in the legal sector's anti-money laundering guidance include a current signed passport or driving licence, a Home Office residence permit, a tax or utility bill, a recent bank or mortgage statement, a council or housing association tenancy agreement, and an electoral register confirmation (LSAG guidance 2025, section 6.14.5). Some firms use electronic identity checks (LSAG guidance 2025).

Bank statements: how far back?

There is no single period set in the regulations; each firm decides based on risk. Periods commonly asked for are 3 to 6 months, and some firms ask for 12 months or longer. For example, one firm asks for at least 3 months of statements, plus the same period for any account the money was transferred from (Jordans Solicitors); another firm says most solicitors request six months (Biscoes); a checking platform used by law firms says firms usually ask for between 3 and 24 months (Legl help centre). Please ask your own solicitor which period they need.

Typical evidence by type of money

These are examples drawn from regulator and supervisor guidance. Your solicitor may ask for less or more.

Savings from salary or self-employment

Statements for the account holding the money, showing it building up over time.
Evidence of income, such as payslips, a P60, an employment contract, or a bank statement showing salary payments (SRA; HMRC).
If you run a business: business accounts showing profits (HMRC).

A gift from family (gifted deposit)

A gift deed or a signed letter from the person giving the money (the donor) confirming it is a gift (SRA Q&A).
The donor's identity may need to be verified (SRA).
Evidence of where the donor's money came from, such as the donor's own bank statements: firms are expected to understand a third party's source of funds in the same way as the client's (SRA; LSAG 6.17.2.1).
If you have a mortgage, tell your lender about the gift. Lenders set their own rules; for example, one lender's requirements in the UK Finance Mortgage Lenders' Handbook ask for a letter signed by each donor stating the amount, that it is not repayable and that the donor has no interest in the property (UK Finance Lenders' Handbook – Halifax). MoneyHelper lists a gifted deposit form or declaration among the documents a lender may ask for (MoneyHelper).

Money from selling a previous home

The completion statement from the sale and a bank statement showing the money arriving (Jordans Solicitors; HMRC).

Inheritance

Estate accounts showing the inheritance, and a bank statement showing the money arriving (HMRC; Jordans Solicitors). A copy of the will or the grant of probate may also be asked for (LSAG 6.17.2.1; Biscoes).

Money from abroad

The SRA lists funds from abroad among higher-risk features, so you may be asked more questions (SRA).
Firms record the amount, the currency and the sending account details (bank, account number, name on account), and look for how the money was originally acquired (LSAG 6.17.2.1). It can help to keep the overseas statements in their original currency alongside the UK statements showing the money arriving.
Show each step if the money passed through more than one account; firms commonly ask for statements for each account the money moved through (Jordans Solicitors).
Documents in another language may need translation. The SRA mentions translating and certifying foreign-language documents where needed, and LSAG guidance suggests firms consider using a translator (SRA Q&A; LSAG 6.14.5). Ask your solicitor before paying for a professional translation, so you know which documents and what form they need.
International transfers and the checks on them can take time. It may help to ask your solicitor early when, and from which account, they would like the money to be sent.

Cash

Guidance for law firms says they should generally avoid accepting cash payments into their client account for transactions, and should establish the source of funds for any cash (LSAG guidance 2025). The SRA lists cash among higher-risk features (SRA).
If you have paid cash into your own account, keep any record of where that cash came from and be ready to explain it.

Cryptoassets

The SRA says crypto investments can be a valid, legitimate source of funds, but firms should check the original investment, the claimed profits and the transactions on the public blockchain (SRA Q&A). In practice this often means extra checks, so you may wish to gather your exchange account statements, records of what you first paid in, and the history of transfers out to your bank.

Preparing a clear, chronological "money trail" pack

Write a one-page summary. List each source (savings, gift, sale, inheritance, overseas funds), the amount, the date it arrived, and which account it is in now. Make sure the totals match the money you need.
Put documents in date order. For each source, start from where the money began and end with the account it will be sent from.
Mark large or unusual payments. Highlight or label credits that are not regular salary and add a short note for each (for example "transfer from my savings account", "gift from my mother – see letter").
Use complete statements. Ask your solicitor which format they accept (for example downloaded PDF statements or paper copies). Statements should show your name, the account details and the full period requested.
Keep money where it is, if you can. Each extra transfer between accounts is another step to evidence. If you need to move money, keep a record of why.
Answer follow-up questions promptly. The SRA expects firms to check that the documents match what the client says (SRA Q&A), so further questions are a normal part of the process.
Protect your payment. Criminals sometimes send fake emails claiming that bank details have changed. Confirm payment details by phone on a number you already trust, and consider sending a small amount first and checking it has arrived (Take Five, UK Finance).

Printable checklist

Tick only the items that apply to you, then check the list against what your solicitor actually asks for.

☐ Photo ID (for example passport or driving licence); residence permit if relevant
☐ Proof of address (for example a recent utility bill or bank statement)
☐ Bank statements for the period your solicitor asks for (commonly 3–6 months, sometimes 12 or more), for every account the money passed through
☐ Savings account statements showing how the savings built up
☐ Payslips, P60 or employment contract; business accounts if self-employed
☐ Gift: signed gift letter or deed; donor's ID; donor's bank statements; lender's own gift form if you have a mortgage
☐ Sale of a previous home: completion statement and bank statement showing the money received
☐ Inheritance: estate accounts (and will or grant of probate, if available) and bank statement showing the money received
☐ Funds from abroad: overseas statements in the original currency, transfer confirmations, UK statement showing arrival, translations if your solicitor asks
☐ Cash: any record of where the cash came from
☐ Crypto: exchange statements, record of the original purchase, transfer history to your bank
☐ Mortgage offer, if you have one
☐ One-page money trail summary with totals
☐ Solicitor's bank details confirmed by phone on a trusted number before paying

Part 2: The forms and documents, in plain language

Where each step fits

The usual order is below, although some steps overlap or happen at the same time (GOV.UK: How to buy a home; Law Society Conveyancing Protocol).

Offer accepted. The estate agent may check your identity at this point (HMRC AMLG2200).
Memorandum of Sale sent by the estate agent.
Your solicitor's ID and source of funds checks (Part 1 of this guide).
Contract pack from the seller's solicitor, usually including the TA6 and TA10 forms.
Searches, such as local authority searches, arranged by your solicitor.
Enquiries: your solicitor asks the seller's side questions about anything unclear.
Exchange of contracts: the point at which the agreement becomes legally binding, and the deposit is usually paid.
Completion: the remaining money is transferred to the seller's solicitor and you take ownership.

Memorandum of Sale

What it is: after your offer is accepted, you should receive a memorandum of sale from the estate agent setting out your offer in writing (GOV.UK).
What it commonly contains: the property address, the agreed price, the names and contact details of buyer, seller and their solicitors, whether the property is freehold or leasehold, and how the buyer is funding the purchase (for example whether a mortgage is needed or a property must be sold first) (Rightmove guide). The Property Ombudsman's code for estate agents says available information about the buyer's funding should be included in it (TPO Code of Practice, March 2026).
Is it binding? No. It is a written record of the agreed offer, not a contract, and either side can still withdraw before exchange (Rightmove guide). The legal commitment is made at exchange of contracts (GOV.UK). Please check that the details on it are correct and tell the agent if anything is wrong.

TA6 Property Information Form

What it is: a standard Law Society questionnaire about the property, used in residential sales in England and Wales (Law Society).
Who fills it in: the seller. The seller's solicitor sends it to the seller to complete and return, and it then forms part of the contract pack sent to your solicitor (Law Society Conveyancing Protocol).
Current edition: according to the Law Society, the TA6 (6th edition) (2025) must be used by Conveyancing Quality Scheme (CQS) firms for new transactions where the solicitor is instructed on or after 30 March 2026; previous editions were withdrawn, but transactions already under way may continue with an older edition. The 6th edition has 15 sections, fewer than the 5th edition (2024) (Law Society: TA6 6th edition). You may therefore still see an older edition on some purchases.
Material information: separately from the TA6, estate agents must not leave out "material information" from property listings – information an average buyer needs to make a decision, such as price, council tax band, tenure, utilities, and issues like flood risk where relevant (National Trading Standards). The Law Society has said it stopped work on a separate material information form (Law Society).
What you can do: read the seller's answers yourself, compare them with what you saw and were told, and ask your solicitor to raise enquiries about anything unclear (GOV.UK).

TA10 Fittings and Contents Form

What it is: a Law Society form in which the seller states which items are included in the sale price and which are excluded (for example curtains, light fittings, kitchen appliances, garden items). The edition listed by the Law Society is the 3rd edition (2013) (Law Society: transaction forms).
Who fills it in: the seller.
What you can do: check it against what you saw at the viewing and anything agreed with the agent; ask your solicitor about any difference before exchange.

Wales

The same steps and Law Society forms are generally used in Wales; the main difference is the tax – Land Transaction Tax, collected by the Welsh Revenue Authority, replaced Stamp Duty Land Tax in Wales from 1 April 2018 (Welsh Government).

This guide is general information for preparation. Please double-check with your solicitor or conveyancer.