X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Property-a-holics

    Deal sourcer compliance

    Following on from the thread Deal sourcers & their potential clients need to read this.

    On Thursday, at the NALS Conference in London, I spoke to the Property Ombudsman and the Chief Ombudsman of Ombudsman Services (property) to hear their views on whether deal sourcers fall under the "Estate Agents" Act and whether they need to be registered with an ombudsman scheme:



    Deal sourcers are acting as intermediaries - introducing third parties to each other to engage in a property transaction -  and are caught by the Estate Agent Act 1979 and therefore have to be a member of an independent redress scheme and hold client monies in a client money account.

    Deal sourcers will be required to have public indemnity insurance as well.

    It is also worth noting that the Office of Fair Trading is handing over power to the Trading Standards Institute which is going to have more power in tackling companies that do not meet minimum standards.

    Edit:

    Our redress partner is the Property Redress Scheme.

    1
    0
    I reviewed the various regulations on relating to marketing a couple of years ago and it was clear that marketing, irrespective of whether it was BMV, or to investors, was subject to signing up to the Property Ombudsman scheme.

    Whilst this applies to the sale of properties, there currently is no requirement for lettings, although good letting agents can voluntarily sign up to the ombudsman scheme for lettings.
    0
    0

    Thanks for commenting Glenn.

    I would like to invite all deal sourcers registered with an Ombudsman Scheme to let PT know here, on this thread.

    I know that John Paul of CastleDene has been registered for over two years.
    0
    0
    Like Glen, I looked into it in detail a few years ago and it was clear to me that if I was going to operate a legitimate property sourcing business on any scale then I would need to be registered. So I jumped through all the hoops, secured suitable PI insurance and have been registered with The Property Ombudsman and the Office of Fair Trading for several years now.
    0
    0

    Interview with Andy Foster, Policy Director of the Trading Standards Institute on the changes within Trading Standards and how TSI has more powers to tackle companies that do not conform to minimum standards.

    Filmed on location at the NALS Conference 2012 in London last week.





    0
    0
    How would one stand if the sourcer winds up the company before you get the chance to do anything about it? Other than making sure the directors were reported to the relevant bodies I guess nothing would come from if the company no longer existed.
    0
    0
    This seems to be a pretty frequent occurance Steve.

    There is not much anyone can do, other than not pay large fees up front.

    I am hoping that the more ethical & professional deal sourcers will register with an Ombudsman to distinguish themselves from the less scrupulous ones.

    Those that want to self-regulate will hopefully create more consumer confidence.
    0
    0
    @Vanessa

    If the directors are ethical and professional they will probably have a good network of satisfied customers and membership will not be an issue but I agree that it could be a good indictor of integrity. Having to pay large upfront fees should be enough of a red flag in any case; I would never do it again. Transpact appears to offer a further safety net if infactt they do as it says on the tin.

    @Daniel

    Looks to be a good way for both parties to secure their position. It would be useful to hear from any members of PT that have used them.
    0
    0
    Steve,

    Deal sourcers are required by law to be to be registered with an Ombudsman - that is clear from the interviews.

    Yes, to a degree, it is voluntary as it does not appear to be being enforced ... yet ... so let's see which deal sourcers lead by example.

    Anybody thinking of buying from a deal sourcer should insist that they will only work with a deal sourcer registered with an Ombudsman Scheme - for their own protection in case things go pear shaped.
    0
    0
    (09-10-2012 09:11 AM)vanessa warwick Wrote:  Yes, to a degree, it is voluntary as it does not appear to be being enforced ... yet ... so let's see which deal sourcers lead by example.

    Vanessa,

    What does it mean when you say it is not enforceable? One of the speakers on the video implied that Trading Standards was just too busy. I took it to mean it was enforceable but not likely to be pursued. Like the policing having the time to hand out a ticket when someone throws litter on the ground.

    Did you mean something different when you said it was unenforceable?
    0
    0

    John Corey 


    I host the London Real Estate Meet on the 2nd Tuesday of every month since 2005. If you have never been before, email me for the 'new visitor' link.

    PropertyFortress.com/Events

    Also happy to chat on the phone. Pay It Forward; my way of giving back through sharing. Click on the link: PropertyFortress.com/Ask-John to book a time. I will call you at the time you selected. Nothing to buy. Just be prepared with your questions so we can use the 20 minutes wisely.