The definition of an estate agent is provided in Section 1 of the Estate Agents Act 1979 and basically says….
If in the course of business you introduce and/or negotiate the sale or purchase of a property or land between a seller and a buyer, whilst under instruction from one of them, then you are carrying out estate agency work.
It doesn’t matter that:
- Your agreement is only verbal
- You don’t have a website
- You don’t have a presence on the high street (shop)
- You are acting for a friend.
- You don’t produce a sales document (presentation)
- You don’t handle any cash
- You only introduce to another sourcing agent who negotiates the deal
If you work like this then you are governed by the same regulations as all estate agents!
So… “Yes” property sourcing is definitely regulated and you are at risk of serious fines if you don’t know and understand what is expected of you!There are approximately 15 pieces of Legislation and Regulation that govern our sector, you don’t need to understand these word for word, but you will need to know how each of them will affect how you operate on a day to day basis.