Mythbusting: Property Sourcing
We often hear a variety of advice and statements in our sector, and this is our space to cover a number of those ‘Myths’ and help you to sort the ‘wheat from the chaff’
Ultimately we want to make sure you avoid fines, and hopefully put those myths to bed forever!
Poor advice can cost businesses. Make sure you're checking the right sources.
After working in the property sourcing and deal packaging sector for over 10 years, Tina Walsh knows that many experienced and new property sourcers and deal packagers alike, are given advice that could cost them large sums of money; leading to the loss of their business or even in extreme cases potentially bankruptcy.
This advice can come from many different places, including poor training provision from property sourcing courses or deal packaging courses; even responses to questions in FB or LinkedIn Groups as well as from well-meaning contacts or friends.
Property Sourcers are too "small fry" to get fined
It is often stated on various social media platforms that sourcing agents and deal packagers are “too small” to be of interest to the supervising bodies.
Well that statement was firmly negated recently when a property sourcing/deal packaging business was fined £6,300 for operating and failing to register for money laundering supervision with HMRC - would you want to receive that letter through the post?
We would assume not!
Myths Busted: Co-Sourcing
Co-Sourcing is commonly taught in the UK as being an option for those who can’t afford to be ‘compliant’ themselves.
Let’s take a look at the issues with this…
The vast majority of property sourcing or deal packaging agents in the UK are not compliant themselves anyway; so even if you could Co-source with them you would be at risk of failing to meet the minimum standards expected.
Any company that you could work with, sadly their registrations and insurance(s) will not cover you; why? Because their registrations and insurance are for their company and any employees only (under the strict term of ‘Employed’ from HMRC). It is very unlikely that a property sourcing or deal packaging agent would employ you as the vast majority don’t earn enough to do that; as to employ there would have to be an employment contract, they would have to set up payroll, pay tax and national insurance contributions!
The fact is you can’t Co-Source without both companies having ALL required compliance in place.
To co-source without compliance is putting yourself and your business at high risk of a severe fine and, of course, we would hope that you would all want to set up a professional property sourcing or deal packaging business!
About Tina Walsh
Renowned for being the 'Queen of Compliance' and founder of Property Sourcing Compliance (PSC) - Tina has 10+ years' industry experience is the ONLY go-to in the Property Sourcing and Deal Packaging sector to give you the right advice for your business and processes.
Taking all of that expertise, Tina has developed our training, to give you the most accurate information and process that you can apply to your business.
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