What should a property sourcing fee pay for?

Start with the written scope, not the headline price

There is no single fee that tells you whether a sourcing service is good value. Ask what work the proposed fee covers, who pays it, whether tax applies, when it becomes due and what happens if the purchase does not proceed. Compare quotations for the same scope. A low headline price can omit work you expected; a higher price does not establish quality.

Separate the sourcing fee from the purchase costs

The sourcing fee is one item in the total cost of a purchase. Legal advice, surveys, finance, taxes, refurbishment and later management may be separate. Ask for a clear distinction between the firm’s fee, third-party costs and estimates. Have the relevant advisers assess costs that depend on your circumstances.

Ask what evidence you will receive

Request a sample document index with personal details removed. A useful scope explains the property information, source and date of each material statement, what checks are undertaken and which questions remain for your independent advisers. In-house comparable analysis is not an independent professional valuation. A polished presentation should make uncertainty easier to see.

Agree the payment trigger before committing

Ask precisely which event triggers the fee, whether any advance payment is refundable, how cancellation works and who handles disputes. Do not assume “completion fee” or “reservation” has the same meaning in every contract. Read the written terms and take independent advice before accepting them or sending money.

Check the firm and the limits of its service

Confirm who you are dealing with and independently check relevant registration information. HMRC’s guidance explains which estate agency activities require money laundering supervision, including property sourcing. A company number alone does not establish supervision or professional competence. No promised return removes the need for your own checks.

Where L&M stands

L&M’s HMRC AML supervision application is pending. The sourcing service is waitlist only: we do not offer or reserve a property, match an investor with a property or take a sourcing instruction through this website. An investor enquiry records interest, not a commitment or agreed fee. Any future fee and service scope must be agreed separately in writing.

Official sources

• HMRC: money laundering supervision for estate agency businesses

Sources checked 5 October 2026. Consult the current guidance and qualified advisers for your circumstances.