Details of the agreement
Read this section to find out what an agreement should include
Understanding the relationship between the parties, and whether the complaint has been made against the right entity are the first steps.
An agreement is usually between the sourcer and the investor; this may be on behalf of both parties and this must be fully disclosed.
A written agreement is best practice to make sure all responsibilities, conditions and fees are clear for both parties and should always be reasonable and fair.
Common practice is that agreements: • are usually between the sourcer and the investor; may be on behalf of both parties and this must be fully disclosed • give information on how the agent will source property investment opportunities and offer an appraisal of the investment, using their own market experts • require the investor to sign and pay a fixed payment for each deal. In return, the sourcer will provide the investor with details of potential property investment opportunities • will usually hold the investor responsible for doing their own due diligence• say that they are not responsible for incorrect information (but are responsible for material information) • Reference to misleading actions and omissions can be found in The Consumer Protection from Unfair Trading Regulations 2008 and Material Information - National Trading Standards• say that they are not responsible if the investor makes a loss on the investment • sometimes refer to the funds, once they have been paid, and in what circumstances they may be refundable
Just because the contract includes some, or all, of the above, does not mean these are reasonable or binding terms in all circumstances.
The sourcer is always responsible for the information they provide to investors and the material information they provide.
It is fundamentally unfair for a consumer contract to make a financial payment non-refundable in any circumstances.