The Property Ombudsman (TPO)
The [Property Ombudsman (TPO)]( https://www.tpos.co.uk/ ) scheme offers a free, impartial service for resolving disputes between consumers and property agents. If you’re buying or selling property, TPO ensures any issues are handled quickly and efficiently, keeping things out of court.
So, if you sell a deal to an investor and things don’t go as planned, TPO acts as a neutral mediator to resolve the issue and ensure the right parties are compensated. Having TPO on your side adds an extra layer of security to protect your business from disputes that might arise from the deals you’re sourcing.
Indemnity Insurance
As a property sourcer, professional indemnity insurance is essential. It’s your safety net in case a claim is ever made against you, ensuring you have the funds to cover compensation. Plus, TPO requires this insurance for you to be part of their scheme.
To sort your indemnity insurance, head over to [Insurance Desk](https://www.insurance-desk.co.uk/) and make sure to mention Jack Wicks for top-notch service. Without this insurance, a client’s claim could leave you thousands of pounds out of pocket—definitely not worth the risk.
The FCA and Anti-Money Laundering
Since property sourcers are governed by the Estate Agents Act 1974, you need to register for anti-money laundering compliance with the [Financial Conduct Authority (FCA)](https://www.fca.org.uk/). Alternatively, you can register with [HMRC](https://www.gov.uk/guidance/money-laundering-regulations-registration) if you prefer. The registration fee is only £110, and it takes just a few minutes to complete.
Data Protection
Because you’ll be handling personal information, you may need a Data Protection License before you start operating as a property sourcer. Whether you need one depends on the amount of data you’re storing and how you’re using it.
To find out if you need a license, [fill out this survey](https://ico.org.uk/for-organisations/data-protection-fee/self-assessment/) from the Information Commissioner’s Office (ICO). If you’re certain you need one, you can [register with the ICO here](https://ico.org.uk/for-organisations/data-protection-fee/).
Limited Company or Not?
While it’s not a legal requirement, setting up a limited company for your sourcing business is highly recommended. It protects your personal assets if things go wrong, ensuring you’re not personally liable.
Setting up a limited company is straightforward. Just head over to [Companies House](https://osome.com/uk/property-accountants/?ref=owfkzjgq&aff_name=Jack+Wicks&coupon=JWAccounting) and get it done for around £15. With such a low cost and minimal hassle, there’s no excuse not to do it.
