Money in Property Transactions: Who Handles It?

Updated: October 23, 2026

Money in a property transaction is handled by the professionals responsible for completing the sale, with the exact arrangement depending on the country and deal.

They coordinate the transfer of funds between buyer and seller and help ensure payment is made at the right stage of the transaction. Knowing who manages the money—and what each party is responsible for—can help buyers and sellers understand the process and avoid confusion.

• all 50 states and over 400 American cities Geographic coverage of the FHFA House Price Index®
• since January 1975 Start date of FHFA’s repeat-mortgage transaction information

Who should handle money in a property transaction?

General rule

The Council for Estate Agencies advises that real estate salespersons (RESs) generally should not handle money involved in a property transaction. Buyers and sellers should therefore make the payment route and recipient clear rather than assume the salesperson is the default person to collect or hold their funds. Before paying, check who is meant to receive the money and how the payment is to be made.

This distinction matters because an allowance for particular payments does not give an RES general authority to take a buyer’s funds. Treat each requested payment as a separate case: identify its purpose, recipient and payment route, then check whether it fits a category permitted by the Council’s guidance.

Limited exceptions

The Council’s guidance allows RESs to handle certain types of payments, but those exceptions are limited to the categories it identifies. For a buyer or seller, the practical first check is whether the payment in question falls within one of those categories; if it does not, do not treat the salesperson as an authorised intermediary by default.

• Payment within an allowed category: Check that the requested payment matches a category covered by the Council’s guidance, and confirm the intended recipient.
• Payment outside an allowed category: Do not assume the RES may collect or hold it; clarify the appropriate recipient and payment route before transferring funds.

How can a house-price index help put a property transfer in context?

The FHFA House Price Index® helps put a property transfer in market context by showing how single-family home values change over time; it does not explain how to send the money. The index covers single-family home values across all 50 states and over 400 American cities, using data extending back to the mid-1970s.

The Federal Housing Finance Agency describes the FHFA HPI® as a comprehensive collection of publicly available house-price indexes. Its value is in providing a broad frame for understanding changes in home values, not in assessing the details of an individual transaction.

What the index cannot verify

A house-price index cannot identify the correct recipient of a payment or prove that a particular transfer is legitimate. Those checks require transaction-specific verification: confirm payment instructions through a trusted, independently verified contact, and use the relevant transaction documents to establish who is entitled to receive the money.

How does FHFA build its repeat-transaction measure?

FHFA builds its repeat-transaction measure by reviewing sales and mortgage transactions involving the same single-family property over time. FHFA’s repeat-transaction information reviews single-family properties with mortgages purchased or securitized by Fannie Mae or Freddie Mac since January 1975.

Because the method compares transactions for the same property, it tracks price movement across successive sales rather than treating one sale as a complete picture. The mortgage records it covers are limited to loans purchased or securitized by Fannie Mae or Freddie Mac.

What the measure covers

FHFA’s measure describes housing-market data: it uses repeat transactions to assess how property prices change over time. It is separate from the conveyance payment process, which concerns how money is handled when ownership transfers.

What does the FHFA Purchase-Only Index measure?

The FHFA Purchase-Only Index measures home-price movements using prices from sales transactions represented in mortgage data obtained from the Enterprises. It is a measure of purchase prices, not a record of every payment made during a property deal.

FHFA’s quarterly Purchase-Only Indexes are the standard indexes reported in its quarterly news releases. They help readers understand changes in home prices over time; they do not show who handled a deposit, closing funds or another payment in an individual transaction.

What the index does not determine

The FHFA index describes price movements, not the rules governing real estate salespersons (RESs). Use it to understand the housing market, not to decide whether an RES may handle a specific payment; check the applicable guidance for that question.

Why can a property payment need closer scrutiny?

Property payments need closer scrutiny because real-estate transactions can be used to launder money through cash sales, large purchases or nominee purchasers. A transaction’s high value, cash payment or place in the property market does not, on its own, prove that the money is lawful; those features call for careful attention to who is paying and how the funds are being transferred.

Cash purchase is not the same as approval

FinCEN distinguishes non-financed transfers of residential real property from transactions involving credit extended by a financial institution subject to anti-money-laundering requirements. That distinction describes the financing and reporting context; it does not certify the buyer, the source of the money or the transaction as legitimate.

For anyone handling a property payment, the practical point is to avoid treating the absence of a mortgage as reassurance. A cash purchase may still warrant scrutiny of the parties and payment arrangements, particularly where a nominee purchaser is involved or the transaction is unusually large.

When does the usual payment route not answer the question?

An RES exception covers only the specified payment type; it does not authorise the salesperson to handle every sum connected with a property transaction. If it is unclear whether a payment falls within an allowed category, check the Council for Estate Agencies’ guidance and the transaction’s official instructions before handing over money.

Common misreadings

A cash sale, a high-value purchase or a nominee arrangement does not, by itself, settle who is paying or receiving the funds. Establish the identities and roles of the payer and recipient, and confirm who is authorised to handle the particular payment.

• Cash sale: cash changes the payment method, not the need to identify the parties to the transfer.
• Large purchase: a high price does not establish that the payment route is permitted.
• Nominee purchaser: a nominee’s involvement does not answer who ultimately owns or benefits from the funds.
• FHFA HPI®: this house-price index tracks home-price changes; it cannot verify a buyer, beneficial owner or payment’s legitimacy.

The Council for Estate Agencies’ guidance is the relevant check for what an RES may handle, while the transaction’s official instructions can clarify where a particular payment should go. If those do not clearly identify the permitted handler and recipient, pause and confirm the route before transferring funds.

Frequently asked questions

Key takeaways

• RESs generally should not handle transaction monies; certain payment types are exceptions.
• FHFA HPI® tracks single-family home values, not transaction payments or payment authority.
• FHFA’s repeat-transaction information covers mortgages purchased or securitized by Fannie Mae or Freddie Mac since January 1975.
• Cash sales, large purchases and nominee purchasers can feature in real-estate money-laundering schemes.

Topic guide: Analysis: The Complete Guide