The “Report on Title” has always been a cornerstone of client communication. However, a significant shift is occurring in how we report on one of the most sensitive areas of a transaction: Source of Funds (SoF).
The days of simply seeing a bank statement and ticking a box are over. Recent updates to industry guidance—including the 2025 Legal Sector Affinity Group (LSAG) updates and the SRA’s thematic reviews—have redefined what “good” looks like.
| Topic | Summary |
| Source of Funds | A helpful explanation to the client regarding various legal and statutory obligations relating to the source of funds. |
| Sending Balance of Funds | Detailed advice to the client about the firm’s duty to investigate the source of funds, including specific statutory obligations. |
| Source of Wealth/Funds for Deposit | With these being high-priority topics, regulators recommend that firms manage expectations by clearly and unambiguously setting out their legal obligations in this key area. |
| Gifted Deposits (Warning to Clients) | Specific paragraphs advising the client of possible adverse implications—including risks to the donor—whenever a gifted deposit is involved. |
| Requirements for Payment of Purchase Monies | Sets out the assumptions and requirements for the payment of purchase monies, while detailing the implications of failing to comply with these rules. |