Deal Sourcing Compliance made easy.

Yes, a Deal Sourcer must be compliant with specific regulations, especially in the UK. Since sourcing property deals is considered a form of estate agency work, deal sourcers are required to comply with key regulations as described below.

Without these compliances, sourcers cannot legally operate, and it could put both them and their clients at risk.

Deal Sourcers fall under the same banner as Estate Agent, and must adhere to the Estate Agents Act 1979

When you are audited (which could be 1 - 2 or more years from when you first start, you will be asked to show ALL compliance documents and registrations from the day you first started trading (not necessarily earning money in your account). Fines will be backdated to the date you first started. 

Legal compliance for deal sourcers is all about protecting clients and keeping the property market fair. It’s not just about ticking boxes—it actually helps sourcers do their jobs better and more professionally. Here’s why it matters:

1. Client Protection: Sourcers need to be part of a Property Redress Scheme (PRS), like The Property Ombudsman (TPO) or the Property Redress Scheme. This makes sure clients have a way to resolve any disputes if things don’t go as planned, holding sourcers accountable.


2. Keeping Things Legal: Deal sourcers must register with HMRC for Anti-Money Laundering (AML) supervision. They’re required to do their homework by verifying clients’ identities and making sure there’s no funny business, like illegal funds sneaking through property transactions.


3. Data Privacy: If a sourcer collects or handles personal data, they have to be registered with the Information Commissioner’s Office (ICO) and follow data protection laws (GDPR). This ensures clients’ info is safe and handled properly.


4. Professionalism and Transparency: It’s good practice for sourcers to have Professional Indemnity Insurance to protect themselves from potential claims. On top of that, they have to be clear and honest about their services and property details to follow Consumer Protection from Unfair Trading Regulations (CPRs).

By following these rules, sourcers can legally and ethically find property deals, protect their clients, and avoid any legal trouble. Plus, it makes them more trustworthy and professional, which is a big win for everyone!

As an investor, you typically don’t need to worry about the same level of compliance as deal sourcers, but there are still a few things you should keep in mind:

1. Anti-Money Laundering (AML) Checks: Even though you're not required to register for AML supervision like a sourcer, you’ll still likely need to go through AML checks when buying a property. This is to verify your identity and ensure that your funds are legitimate. It’s something that the sourcer or the legal team involved in the transaction will handle.


2. Due Diligence: While not a legal requirement, it's good practice for you to do your own research and due diligence on the deals you're investing in. This ensures you're making informed decisions and not getting involved in any risky or non-compliant transactions.


3. Data Protection: You don’t need to register with the ICO, but you should be mindful of how you handle sensitive information if you’re working closely with sourcers or other parties.

So, while you're not bound by the same regulations as a deal sourcer, it's still important to be aware of these checks and make sure everything is done above board to protect yourself and your investment.

If you sell a property deal without being compliant, especially in the UK, you could face serious legal and financial consequences. Here’s what can happen:

1. Fines and Penalties: If you're not registered with a Property Redress Scheme (PRS), or if you haven’t followed Anti-Money Laundering (AML) regulations, you could face significant fines from authorities like HMRC or the National Trading Standards. These penalties can be quite hefty and are meant to enforce compliance.


2. Legal Action: Selling property deals without being compliant is illegal and could result in legal action. You may face lawsuits from clients, especially if the deal goes wrong or if they feel misled. Being unregistered or non-compliant also removes your ability to resolve disputes through official channels, leaving you more vulnerable to legal claims.


3. Damage to Reputation: Non-compliance can severely damage your reputation in the property market. Investors and clients prefer to work with professionals who follow the rules, and being caught operating illegally can make it hard to regain trust and credibility in the future.


4. Business Closure: Persistent non-compliance can lead to authorities shutting down your business activities. If you continue to operate without meeting legal requirements, enforcement bodies may take steps to restrict or close your operations entirely.

In short, selling property deals without being compliant is risky and can lead to legal trouble, fines, and damage to your reputation. It's essential to ensure you're following the proper regulations to avoid these problems.

All policies must have your business name attached to the documents to be fully compliant. 

Insurance & ICO, PRS and access to your AML training is provided to you within 2 days.

 You will have to complete your training while you wait for your business to be named under HMRC AMLS, which can take up to 45 days (although in most cases it is quicker). 

That's just enough time for you to get your website, cards, training and other bits out the way. 

Like the old saying goes, good things come to those who wait. 

All policies are bought on your behalf for 1 year, so we get charged accordingly. In reality, if you are deal sourcing, you don't want your policies to expire at any point. If you stop trading, you can always cancel your subscription. 

You can let us know you wish to cancel at compliance@sitefindr.co.uk, or in your portal at any time up to 3 days before your renewal date on each policy. 

We will remind you by email 30 days before your renewal is due.