September 4th, 2009 
Paul 
Many investors and property sourcers have arrangements with one another but do not know how to get the best out of these. Entering into a legally binding contract which we can prepare has huge advantages for all concerned !!!
Examples
We have recently successfully prepared a number of agreements regulating the relationship between the property sourcer and the property investor. One example, of an agreement we recently prepared was:
- A sourcer to find for the investor 3 properties per annum for a 3 year period
- Each property was to be 25% BMV
- Each property was to be located in a specified geographic location
In return the sourcer was to be paid a set amount at a specified time.
This is just one type of typical agreement but the agreements are flexible – you can even specify two or three bedroom houses, flats, semi detached, terraced or HMO etc etc. The agreement can be tailored to your specific needs whether you are a sourcer or an investor.
Why should an investor do this ?
A sourcer will concentrate on finding properties for you because he knows you are an investor who is committed to purchasing. It puts you ahead of the game by getting the best deals because there is less competition.
The sourcer is working for you and focusing on your needs rather than putting the same deal to hundreds of investors!
If a sourcer concentrates on working with you you will waste less time and can focus on your goals.
Eveyone’s obligations are set out in a binding contract so there is no dispute or ambiguity.
Why should a sourcer do this ?
It sets out payment terms which are protected by a legally binding contract.
It allows you to work with a core base of customers finding them properties that fit their criteria – which are set out clearly in the agreement – and which they are then commited to purchasing.
The more commited customers you have the less time wasters you have to deal with and the more money you can make.
The cost of an agreement of this kind is less than you think so please do call or email for details at info@ms-law.co.uk
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This is sound advice and shows professionalism, plus gives focus to the relationship which is always positive.
Thanks for the post
David
Thanks David.
Glad you enjoyed the post. It seems to me that Property sourcing is largely an ad hoc thing. If parties can focus it can be much more beneficial. A commited investor and good sourcer can achieve great things together if it is cordinated and focused.
HI,
As a property sourcer and packager Im delighted to see some ideas being written down, and contracts drawn, as as you highlighted there are many questions to be asked. I agree with set parameters and as a sourcer who turns over upto 10 purchases per month, it is much more streamline to have all buyers playing by the same rules.
I also agree with Paul- an investor with a good sourcer is as happy as the sourcer with a reliable buyer.
This is my first time on your blog and its great to see a pro-active Law firm attacking the market head on as oposed to many complaining about the recession and charging fewer clients higher fees.
Many Thanks Natalie and thank you for contributing to the forum. I hope you find it of interest. Contributions add to it immensely and help it take its own direction.
Our next newsletter will be out on Monday by email and some other articles will appear over the weekend and we hope these are of use to you also.
Look forward to workign with you in the future !
I believe from a previous discussion that you were also looking an using “Options” to formalise the payment of Sourcing Fees between an Investor and the Sourcer. Has there been any progress on that ?
Thanks
Yohan
Smarter Home Sales
Hi Yohan
Good to hear from you again. I am not entitely sure what you mean. If you can explain i will gladly let you have my views. Incidentally, I have recently added a post about agreements between sourcers and investors that touches on this area if you want to have a look.
Please do also bear in mind that we practice in all area of property law – not just options- and are at the forefront of each area in terms of service and understanding. If we can be of any assistance in any other areas also please do let us know.