This is my third most requested podcast! Listen to “Property Sourcing” to find out the process for getting compliant and understanding all the steps you will have to take to really make your decision to be the best property sourcer / investment agent as you can!
*Here is the process summarised below; but listen to the full podcast (https://anchor.fm/the-nc-podcast) to get a proper picture of the steps you need to take:
–The process for property sourcing compliance is to set up a business for property sourcing. Ask your accountant to do this.
–Then you need to register with HMRC that you are a property sourcer, you are classed as an Estate Agent, so you MUST set up as one via HMRC.
–Next up make sure you have an appropriate complaint handling process in place with a property redress scheme such as The Property Ombudsman, as this falls under the requirements of the Estate Agents Act 1979.
–A really good guide for Complaints Handling is the RICS Complaints Handling, 1st edition: https://www.rics.org/uk/upholding-professional-standards/sector-standards/valuation/complaints-handling-1st-edition/
–You MUST read the Estate Agents Act 1979 – http://www.legislation.gov.uk/ukpga/1979/38
–Also read Real Estate Agency and Brokerage 3rd edition – The section on acting for the buyer: https://www.rics.org/uk/upholding-professional-standards/sector-standards/real-estate/real-estate-agency-and-brokerage/
–Once that’s set up you then need to register your business with the ICO to make sure you are data protection compliant and register with the anti money laundering scheme https://www.gov.uk/anti-money-laundering-registration and then make sure you take out the necessary professional indemnity insurance and public liability insurance, which an insurance broker will be able to advise you on, I use A-On for my business.
Here are some important timestamps to lead you through the podcast:
>>[2.25] Property sourcer = investment agent
>>[4.49] Compliance: How to be compliant property sourcer? 1. Set up an estate agency business (ask your accountant to do this); 2. HMRC- Register with them ; 3. Listen here to find out how else to be compliant
>>[7.25] Must read the Estate Agents Act 1979. No excuses! Don’t try to take short cuts and get a summary of the document. Read the whole thing!
>>[8.35] RICS’ Real Estate Agency and Brokerage 3rd Edition. Download and read this! Make it part of your handbook as an investment agent
>>[9.14] Find out here who else you need to register with and get insurance for. NB!
>>[11.09] Handling clients’ money correctly. RICS has over the past month made some new regulations. Find out what they are and always stay up to date with any new changes.
>>[12.58] Double- dipping! What is this? When someone takes money from both the seller and the buyer. It is extremely unethical. Decide who you are acting for and charge that person accordingly.
>>[14.35] Where are you going to find the property? Not on Right Move. Rather: network with people, talk to locals, chat to your neighbours (and your neighbours neighbours!), speak to people at work… In other words, be proactive.
>>[18.27] Introduction Fees (or Affiliate/ Referral Fees). Not the same as property sourcing. Hear about a great example here.
>>[21.22] Take the time to do the things I chatted about in the podcast properly. Growing a business, making money – this definitely doesn’t happen overnight!
Here is the full podcast: “Property Sourcing”.
Please have a listen and let me know which steps have been easy to complete and which you need any extra explanation on.
Let me know in the comments section how you enjoyed this podcast, and which parts you found easy/ difficult to get through.