How Much Does It Cost to Get Your Property Deal Sourcing Business Fully Compliant?
If you’re already trained in property deal sourcing, the next step is ensuring your business meets the national minimum compliance standards. Compliance is not just a legal requirement, it’s the foundation of a trustworthy and professional sourcing business.
Firstly, Who Needs to be Compliant?
If you are involved in finding or packaging property deals for investors in the UK, you are legally required to be compliant as you fall under the same legislation and regulations as an estate agency business (EAB).
Property Sourcers
Individuals or companies who find and present property investment opportunities to clients.
Deal Packagers
Professionals who structure and sell property deals to an investor network.
Whether you work independently or as part of a small agency, if you handle property or land deals, you must meet all legal requirements.
What Does Compliance Cover?
To meet the national standards, you’ll need to ensure your business has:
- Data Protection & AML Training (ICO and HMRC requirements - must be adequate for property sourcing)
- PI Insurance (min £100k cover - must state property sourcing)
- Legally Required Documents (there are currently 20 you must have, including contracts, policies, and risk assessments)
- ICO registration
- Redress registration (either TPO or Property Redress)
- HMRC registration
We recommend allocating between £2,000 and £2,200 to cover the essential costs of becoming fully compliant in your first year. This includes everything you need to operate legally and confidently as a sourcing agent.
The Compliance Cost Breakdown
The cost sheet below is based on agents who have already completed property sourcing or deal packaging training and understand the process. The NAPSA training this cost is based on is our Sourcing Compliance Essentials course.
To get completely compliant, we would recommend allocating approx. £2k
The total cost will vary depending on which redress scheme you choose, your insurance provider, and how many directors or shareholders you have in your business. We can't give you a specific answer, however this guide gives you a realistic guide to the costs involved and how much total you should estimate to spend in getting your business fully compliant.
Not Sure What You Need? Try Our Compliance Calculator and Get Instant Results
Complete the short form and get an instant compliance score. Our team will then prepare a plan and steps to get your business meeting the national minimum compliance standards - including costs and timeline.
Take the first steps here to getting your sourcing business on the right side of the law.
Complete today and get a free copy of our Compliance Checklist Guide
About Us
Registered Office: Unit 4, Clitheroe Business Centre, 105 Whalley Road, Clitheroe, Lancashire, BB7 1HW
VAT Reg No. VAT Reg No: 385 4371 71
ICO Reg No: ZA804627
Registered in England: 13002455