What is seller verification?
Seller verification is the due-diligence process applied to the disposing side of a property transaction: confirming the seller's identity, that they are the legal owner or properly authorised to sell, who ultimately controls a corporate seller, and screening them against sanctions, PEP and adverse-media data before the sale proceeds.
Written by Andréas Hobbelin · Last updated
Why sellers are frequently overlooked
Because the money flows towards the seller, many firms assume AML risk sits only with the buyer. That is incorrect. A property can be used to place criminal proceeds and later to realise them, and mandate-side clients are clients. Where an agent acts for the seller, the seller is the customer for due-diligence purposes.
What to check on the seller side
- Identity, verified as for any other client.
- Legal ownership and authority to sell — title, powers of attorney, inheritance or probate documentation.
- Corporate sellers: structure, UBOs, and the authority of the signatory.
- How the property was originally acquired, where the risk profile warrants it.
- PEP, sanctions and adverse-media screening on the seller and the beneficial owners.
- Where proceeds are to be paid, and whether that destination is consistent with the seller's profile.
Higher-risk seller patterns
Patterns that usually justify enhanced due diligence include rapid resale shortly after acquisition, sales at a price materially out of line with the market, sellers acting exclusively through intermediaries with broad powers of attorney, and requests for proceeds to be paid to a third party or to an unrelated jurisdiction.
Frequently asked questions
Do I need KYC on the seller if I only represent the buyer?
Your customer is the party you act for, but relevant risk information about the counterparty still informs the transaction risk and should be recorded where you hold it.
Is a power of attorney a red flag?
Not by itself — it is common with non-resident owners. It becomes a risk indicator when it is broad, recently granted, and the principal cannot be verified independently.
Sources and further reading
Put this into practice
PropComply structures KYC/CDD once per client and shares it securely with the parties in the transaction — each keeping their own independent decision.
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