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My question would have to be, was this person attempting to get a loan for the house? Because if so, I can understand where they would need financial statements and identification. But if the person walked in with the cash to buy the place, free and clear, then I don't see why it should be a problem.
It's called a proof of funds and it's used to ensure that the buyer has sufficient money to complete the transaction. It was a cash transaction and as I understand it they brought a picture of money and precious metals and a home made ID card
Right, and if the proof of funds is you say that the house cost this much money and the person pulls that much money out of their wallet or whatever and hands it to you, that's proof.