Become a Fully Compliant Property Deal Sourcer in Just 20 Minutes with Hav Singh
Last updated: 15 Jan 2025
Meet Hav Singh
A seasoned property professional and co-founder of Sitefinder, a marketplace connecting investors with ready-made property deals. With over 12 years of experience in selling properties, brokering deals, and running multiple businesses, Hav brings invaluable insights into the compliance process for deal sourcers.
Navigating compliance is essential for any property deal sourcer in the UK. This article explores the critical compliance steps needed to operate legally, prevent risk, and establish credibility in the property industry. With Hav’s guidance, learn how to streamline the process, ensuring a swift, hassle-free way to become compliant and unlock the full potential of your property sourcing business.
Compliance requirements for property deal sourcers
Becoming compliant as a property deal sourcer might seem daunting, but it’s essential to stay within legal boundaries and build trust with your clients. Here’s a breakdown of key compliance requirements:
Anti-Money Laundering (AML) registration
Registering for AML supervision is a legal requirement for all deal sourcers. As Hav explains, “Money laundering can occur through property transactions, where illicit money is ‘cleaned’ through investments in property. By registering for AML supervision, deal sourcers contribute to preventing financial crimes, protecting the property market.” Compliance includes staying informed and maintaining AML protocols, which are essential to avoid potential legal issues.
AML policies and procedures
Policies and procedures ensure you and your team follow best practices consistently. “It might sound tedious, but documenting these processes – from reporting suspicious activity to understanding money-laundering methods – is essential for compliance,” says Hav. With Sitefinder, these processes are streamlined, allowing deal sourcers to handle the paperwork quickly and effectively.
Customer Due Diligence (CDD)
CDD, also known as Know Your Customer (KYC), involves verifying clients’ identities and ensuring they are legitimate. Hav explains, “Due diligence checks are not just good practice; they are legally required. Whether it’s verifying buyers and sellers or storing secure records, these steps build a trustworthy foundation for your sourcing business.”
Professional Indemnity (PI) Insurance
All compliant deal sourcers must have PI insurance. Unlike standard estate agents, deal sourcers need specialised coverage that protects against any potential issues with property deals. Hav notes, “You wouldn’t drive without insurance. Think of PI insurance as your professional ‘safety net,’ protecting you from potential liability.”
GDPR and Data handling
The importance of GDPR compliance cannot be overstated. “Data security is paramount in deal sourcing,” Hav says. “Handling clients’ personal information responsibly demonstrates professionalism and builds trust.” GDPR compliance includes following protocols for collecting, storing, and sharing data, ensuring client confidentiality.
“Compliance might seem overwhelming, but with the right tools and support, it’s a straightforward process that provides immense value to your business.”
Streamlining compliance with Sitefinder
Sitefinder recognises that the compliance process can be time-consuming and overwhelming. To ease the burden, Sitefinder has developed a system to simplify the steps while meeting legal standards. Here’s how their compliance solution works:
One-form registration
The Sitefinder solution starts with a single form that captures all the necessary information to begin the compliance process. “We wanted to make compliance as accessible as possible,” says Hav. “After months of refining the system, we developed a 20-minute form that covers everything. With our support, you’ll be ready to go without the usual hurdles.”
Streamlined training
Compliance training doesn’t need to be a long-winded process. Sitefinder offers a tailored two-hour training session covering essential compliance topics. “With concise training, we’ve distilled compliance essentials to empower deal sourcers without the need for excessive study time,” explains Hav. “You can now learn everything you need without unnecessary hassle.”
Automatic document completion
After filling out the initial form, Sitefinder’s system auto-completes many compliance documents, saving you significant time and reducing errors. “One of the biggest challenges with compliance is keeping track of all the documents,” Hav says. “With Sitefinder’s system, you just complete the form, and we handle the rest – from AML registration to generating template documents.”
Accountability and ongoing support
Sitefinder’s support doesn’t end with compliance registration. “We host twice-monthly accountability calls to help deal sourcers stay compliant, review deals, and address any questions they may have,” says Hav. These regular check-ins ensure that you’re keeping up with compliance requirements and maximising your sourcing efforts.
“Becoming compliant in deal sourcing is like getting insurance for your car – it's essential, legal, and protects you and your clients.”
Real-life case studies
Example 1: The Risk of Skipping Compliance
Hav shared a story of a deal sourcer who attempted to complete a deal without compliance. “This individual had invested time in deal packaging and negotiations, but because they lacked the required compliance registrations, they lost the deal – and the income from it. Compliance would have allowed them to proceed legally and avoid losing the opportunity.”
Example 2: Compliance for Long-Term Security
Hav explains that compliant deal sourcers consistently see better results. “We noticed that compliant deal sourcers on our platform close multiple deals each month. The difference is not just the compliance, but the confidence it brings. With compliance, you’re able to focus fully on deal sourcing, without concerns about legality.”
Why compliance matters beyond legalities
Compliance does more than keep you within the bounds of the law; it builds a foundation of trust and professionalism. Hav elaborates: “Being compliant gives deal sourcers a reputation boost. When investors see that you’re compliant, they’re more likely to trust your deals, leading to quicker and easier transactions.”
Building credibility – Compliance shows you’re committed to ethical practices, building credibility with clients and investors.
Expanding opportunities – By maintaining compliance, you open doors to more deals and partnerships.
Boosting client confidence – Compliance reassures clients that their interests are protected, increasing their willingness to work with you.
“With compliance in place, you can focus on what you enjoy – finding and negotiating deals – while leaving the admin to the experts.”
Actionable tips for new and experienced deal sourcers
Below are essential tips for anyone involved in property deal sourcing, whether you’re just starting or looking to improve your compliance process:
Register early for AML supervision
AML registration is the backbone of compliance. Start early to avoid any delays in your deal-sourcing activities.
Stay organised with documentation
Keep compliance documents updated and easily accessible. These include customer due diligence, risk assessments, and insurance policies.
Renew your compliance annually
Compliance is an ongoing process. Renewing your registration and training annually ensures you stay within legal boundaries.
"With Sitefinder, you’re not just filling out forms. You’re setting up your business for growth, credibility, and success in the property industry."
Summary of key takeaways
Compliance is fundamental to becoming a successful property deal sourcer. With Sitefinder’s streamlined system, the process becomes manageable, allowing you to focus on what you do best: sourcing and closing deals. Compliance safeguards your business, builds client trust, and opens opportunities for growth.
Ready to become a compliant deal sourcer and unlock more opportunities? Watch the full episode with Hav Singh on YouTube.
