Deal Sourcing Agreements and Fees: What to Include

A written deal sourcing agreement protects you and your investor. It sets out what you'll provide, what the investor pays and when, and what happens if the deal falls through. Here's what a good one covers. Have your agreement drafted or checked by a solicitor: a template from the internet is a starting point, not the finished article.

Who the agreement is between

The agreement is between you (the sourcer) and the investor who pays your fee. Name both parties properly: your business name, company number if you have one, and the investor or their buying company. If the investor is buying as an individual rather than a business, they may count as a consumer, and extra consumer rules can apply, such as cancellation rights for contracts agreed online or by phone.

What to include

The property and your service

• The property (or a reference, if you share the address only after signing).
• What you provide: the deal pack and analysis, introduction to the seller or agent, negotiation, help through to completion, and anything extra such as refurbishment management.
• What you don't provide: make clear you're not giving financial, legal or tax advice, and that figures are estimates.

Your fee

• The amount: a fixed fee or a percentage of the purchase price, and whether VAT is added.
• When it's due: commonly a reservation deposit when the investor commits, with the balance due on exchange or completion.
• Refunds: exactly when the deposit is refundable, for example if the seller pulls out, the survey reveals a serious defect, or the property can't be bought at the agreed price, and when it isn't, for example if the investor simply changes their mind.

Protection for you

• Non-circumvention: the investor agrees not to buy the property, or deal with the seller directly, without paying your fee, for a set period.
• Confidentiality: the investor keeps the deal details to themselves and doesn't share them with other buyers.

Protection for the investor

• Their own due diligence: the investor should have their own survey, legal checks and finance advice, and the agreement should say so.
• Accuracy: you'll provide information in good faith and tell them about anything material you know.
• Complaints: how to complain, and your redress scheme membership.

The legal bits

• Your anti-money laundering checks: the investor agrees to provide ID and proof of funds.
• Data protection: how you'll use their details, with a link to your privacy notice.
• Governing law (England and Wales, Scotland or Northern Ireland), signatures and dates.

How much do deal sourcers charge?

Fees vary with the deal, the area and the work involved. Many sourcers charge a fixed fee, often a few thousand pounds, or a percentage of the purchase price, commonly in the low single figures. Higher-effort deals, such as HMO conversions or projects you'll manage, usually command more. Be upfront about your fee in the deal pack, and make sure the deal still works for the investor after paying it.

Good practice

• Agree terms before sharing full details. Send a summary first, and the address and full pack once the agreement is signed.
• Keep a record of every introduction: who you sent the deal to, when, what they said and the fee status. It's your evidence if there's ever a dispute.
• Don't promise returns. Show your workings and the risks, and let the investor decide.
• Be open with the seller that you're paid by the buyer.

How Dealcraft helps

Every introduction in Dealcraft records the investor, the date and how you sent the deal, the price you proposed, their response, a follow-up date and your fee, from not agreed through agreed and invoiced to paid. It warns you before you send the same deal to the same investor twice, and your deal packs include your fee and terms.