Most conversations about sourcing fees focus on whether the deal is any good. That matters — but there is a step people skip: checking that the sourcer is a properly set-up, accountable business before you send them money.
A weak deal costs you a fee. Working with someone who is not set up correctly can cost you far more. Here is a practical checklist to run before you pay anything.
This article is general information, not legal, financial, tax, regulatory or investment advice. Requirements can change and depend on exactly how a sourcer operates, so confirm the current position and take professional advice where needed.
1. Are they registered with a redress scheme?
Property sourcing in the UK is generally treated as a form of agency work, and businesses of this type are commonly expected to belong to a government-approved redress scheme — such as The Property Ombudsman or the Property Redress Scheme.
Membership gives you somewhere to escalate a complaint if things go wrong. Ask which scheme they belong to and check the membership rather than taking it on trust. Requirements can change and depend on exactly how the sourcer operates, so confirm the current position rather than assuming.
2. Are they registered for anti-money-laundering supervision?
Businesses carrying out estate-agency-style work are typically required to register for anti-money-laundering (AML) supervision with HMRC and to carry out identity and source-of-funds checks.
A legitimate sourcer will expect to run AML checks on you — that is a good sign, not a red flag. Be cautious about anyone who wants a fee with no identity checks at all.
3. How do they handle your money?
Understand exactly what any payment is for and when it is due. If a sourcer holds client money at any point, ask how it is protected.
Be wary of pressure to pay large sums up front, to a personal account, or before you have seen a proper deal pack and contract.
4. Is there a written contract?
You should have a clear written agreement setting out what you are paying for, what is delivered, refund terms, and what happens if the deal falls through.
"It is all in the WhatsApp messages" is not a contract. Read the written agreement before you pay.
5. Do they carry professional indemnity insurance?
Many established sourcers carry professional indemnity insurance. It is not a guarantee of quality, but its presence suggests a business that takes its responsibilities seriously.
Ask what cover is in place and whether it is appropriate for the activity being carried out. Treat insurance as one supporting signal, not a substitute for your own checks.
6. Can you verify the business and the track record?
- Check the company exists and who is behind it. Companies House is a free starting point for UK limited companies.
- Look for a consistent, verifiable trading history rather than a brand-new profile with big claims.
- Ask for references or examples of completed deals — and actually follow up.
- Be sceptical of anyone leaning on urgency, guaranteed returns or "below market value" claims with nothing to back them.
7. Does the deal pack stand up on its own?
A legitimate sourcer's deal pack should let you do your own due diligence: clear figures, assumptions stated, comparables, costs and risks — not just a headline return.
If the numbers only work when you take them at face value, treat that as a warning sign. See our guides on comparing deals without relying on headline ROI and what makes a deal pack investor-ready.
The quick version
Before you pay a penny, you want to see redress scheme membership, evidence they take AML and ID checks seriously, a clear written contract, sensible payment terms, and a business you can actually verify.
A good sourcer will not be offended by these questions. They will expect them.
Why this matters on a marketplace
One reason to use a structured marketplace rather than scattered Facebook groups and WhatsApp chats is that it is easier to see who you are dealing with and to keep a record of what was agreed.
It does not remove your responsibility to do these checks — but it can make them easier to do. You should still review the sourcer, the written terms, the payment route and the deal pack before committing.
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