Due diligence
How to check a property sourcer is legit
The short answer: before you pay a sourcer anything, confirm five things. They are registered with HMRC for anti-money laundering supervision, they belong to The Property Ombudsman or the Property Redress Scheme, they are on the ICO register, the business is real on Companies House, and their fee terms are in writing. Each check takes a couple of minutes on a free public register.
Most sourcers are honest and many are very good at what they do. But the rules they must follow are poorly understood, and in December 2025 the trade body NAPSA reported that around 90% of 500 sourcing firms it reviewed were operating without the registrations they need. These checks protect your money and tell you whether you would have anywhere to turn if a deal went wrong.
The five checks at a glance
| Check | The rule behind it | Where to check |
|---|---|---|
| Registered with HMRC for anti-money laundering supervision | Money Laundering Regulations 2017 | HMRC supervised business register (spreadsheet on GOV.UK) |
| Member of an approved redress scheme | Consumers, Estate Agents and Redress Act 2007 | The Property Ombudsman or the Property Redress Scheme member search |
| Registered with the ICO (data protection fee paid) | Data Protection (Charges and Information) Regulations 2018 | ICO register of fee payers |
| A real, active business you can trace | Companies Act 2006 (for limited companies) | Companies House |
| Fee terms in writing before you agree to anything | Estate Agents Act 1979, section 18 | The sourcer’s agreement or terms |
Step by step
Check HMRC anti-money laundering registration
HMRC treats property finders as estate agency businesses, and it is a criminal offence to trade as one without being registered with HMRC for anti-money laundering supervision (HMRC registration guide).
Search for the business in HMRC's supervised business register, a spreadsheet you can download from GOV.UK. Search by both the trading name and the company name, because a business can be registered under a parent company. HMRC notes there can be a short delay before new registrations appear, so if they are missing, ask the sourcer for their registration number and confirmation letter.
Check they belong to a redress scheme
Anyone doing residential estate agency work in the UK must join one of two approved schemes: The Property Ombudsman or the Property Redress Scheme. Both have a free member search. Membership matters to you because the scheme is where you complain if the sourcer lets you down, and the scheme can award compensation.
If you see a scheme logo on a website, still run the search. Logos are easy to copy.
Check the ICO register
A sourcer handles your name, contact details, proof of funds and often identity documents. Most organisations that process personal data must pay the data protection fee and appear on the ICO register. Search by business name. A missing entry is a sign the business has not thought about how it protects your information.
Check the business on Companies House
Search Companies House for the company. Look for an active status, accounts and confirmation statements filed on time, and directors whose names match the people you are dealing with. A company formed last month is not automatically a problem, but it means you should lean harder on the other checks. Sole traders will not appear here; ask for their full name and trading address instead.
Get the fee terms in writing first
Section 18 of the Estate Agents Act 1979 requires an estate agent to tell you, before you agree, when you become liable to pay, how much, and any other payments. If the terms are not given properly, the agreement may not be enforceable without a court order. Ask for the sourcing agreement before any money moves, and read when the fee is due, what happens if the purchase falls through, and whether any deposit is refundable.
Red flags
- Pressure to pay a reservation or sourcing fee today to "secure" a deal you have not seen evidence for.
- Return figures with no workings, no sold comparables and no mention that values can fall.
- No written agreement, or terms that only appear after you have paid.
- Payment requested to a personal account, or a business name that does not match the bank account.
- Reluctance to share the address or let you or your surveyor view the property before you commit.
- Deals that involve pooling your money with other investors or lending to a developer for a fixed return. Those can fall under FCA rules, and you should take independent advice.
Questions to ask before you proceed
- What is your HMRC anti-money laundering registration number?
- Which redress scheme are you a member of, and under what name?
- Can I see the sold comparables and the evidence behind the end value and rent?
- When exactly is your fee payable, and what happens to it if the purchase does not complete?
- Do you have any personal interest in this property or the seller?
- Do you hold professional indemnity insurance, and can I see the certificate?
How DealSold handles this
Every sourcer on DealSold has their HMRC registration, redress scheme membership, ICO registration and insurance checked before they can list, and again when each one is due to renew. A sourcer whose registration lapses is suspended automatically. Each profile shows a compliance badge with what was checked and when. Deal figures are calculated by the platform from the evidence and labelled with where each number came from, so you can see what is verified and what is the sourcer's estimate. See how we calculate figures.
Frequently asked questions
Do property sourcers have to be regulated?
A sourcer who introduces buyers to property for a fee is doing estate agency work. HMRC lists property finders among the businesses that must register for anti-money laundering supervision, and residential estate agents must belong to an approved redress scheme. They are not regulated by the FCA, because buying a whole property directly is not a regulated investment.
Is it illegal to source property without AML registration?
HMRC says it is a criminal offence to trade as an estate agency business without being registered, or after registration is cancelled. HMRC can take civil or criminal action.
What happens if a sourcer is not in a redress scheme?
GOV.UK says estate agents who do not join a redress scheme can be fined up to £5,000. For you, it also means there is no independent body to complain to if something goes wrong.
Should I pay a sourcing fee upfront?
Be careful. Ask exactly when the fee becomes payable, whether any of it is refundable, and where your money is held. A professional sourcer will put this in writing before you commit, as section 18 of the Estate Agents Act requires.
How much does a property sourcer charge?
For standard UK residential deals, fees of £3,000 to £5,000 are common, with larger fees on bigger or more complex deals. Whatever the amount, it should be agreed in writing before you proceed.
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How we made this guide
Written by the DealSold team from the primary sources linked above (GOV.UK, HMRC, the ICO, Companies House and the Estate Agents Act), all checked on the date shown. The NAPSA figure comes from its December 2025 review as reported by The Negotiator. This guide is general information, not legal advice. Our editorial policy.