A deal packaging agreement (also known as a property sourcing agreement or finders fee agreement) is the legal contract between a property sourcer and an investor. The sourcer agrees to identify and present off-market or on-market property deals that meet the investor's criteria, and in return the investor agrees to pay a success fee upon legal completion of any purchase.
Deal packaging has grown significantly as a business model in the UK property market. Sourcers add value by identifying below-market-value properties, motivated sellers, probate sales, or auction lots that an investor might not find independently. The investor benefits from a curated deal flow without having to spend time searching and negotiating; the sourcer earns a fee — typically £2,000–£5,000 per deal — for their work.
Despite its prevalence, deal packaging is one of the least legally documented activities in property. Many sourcers operate on informal terms or a one-page email agreement, leaving both parties exposed. A properly drafted deal packaging agreement protects the sourcer's fee, defines the investor's obligations, and avoids disputes about what was agreed when a deal completes.
This template covers BTL, HMO, SA, and flip strategies. It includes both exclusive and non-exclusive variants and is suitable for all UK jurisdictions.
What does a deal packaging agreement cover?
- Success fee on legal completion only — the fee is payable only when contracts exchange and completion occurs; no fee is payable if the deal falls through, protecting the investor from paying for uncompleted deals
- Investor criteria schedule — a schedule defining the investor's requirements (area, price range, strategy, minimum yield, condition) so both parties agree what "a deal" means before the sourcer starts work
- Exclusive and non-exclusive options — exclusive: the investor agrees not to use other sourcers during the term; non-exclusive: the investor may work with multiple sourcers simultaneously (standard variant)
- 12-month circumvention protection — if the investor completes on an introduced property within 12 months of introduction, the full fee is payable even if the sourcer was not used to negotiate the deal
- AML compliance acknowledgement — both parties confirm they are complying with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, including identity verification obligations
- No FCA-regulated advice clause — the agreement confirms that the sourcer is not providing regulated financial advice, investment advice, or mortgage advice; the investor is making their own investment decisions
- Six-month initial term with 30-day rolling notice — protects the sourcer's time investment while giving the investor a reasonable exit if the sourcer is not performing
Exclusive vs non-exclusive deal sourcing
| Term | Exclusive | Non-Exclusive |
|---|---|---|
| Other sourcers | Investor may not use other sourcers during term | Investor may work with multiple sourcers |
| Sourcer obligation | Higher — sourcer commits to active deal flow | Standard — best efforts basis |
| Fee premium | Sometimes lower fee in exchange for exclusivity | Standard market fee |
| Best for | High-volume investors building a pipeline quickly | Investors starting out or testing a sourcer |
| Circumvention | Applies — investor cannot go direct to vendor | Applies — investor cannot go direct to vendor |
Most deal packaging agreements operate on a non-exclusive basis — the investor can work with multiple sourcers simultaneously, and the first sourcer to introduce a deal that the investor buys earns the fee for that deal.
Is deal packaging regulated by the FCA?
Property deal packaging — finding and introducing properties to investors for a fee — is not inherently regulated by the Financial Conduct Authority (FCA). The FCA regulates specified financial activities under the Financial Services and Markets Act 2000 (FSMA 2000). Simply sourcing property deals and charging a finders fee does not fall within the FCA's regulatory perimeter.
However, the boundary can be crossed if a sourcer:
- Recommends specific mortgages or financing products (regulated mortgage advice)
- Manages an investment scheme or collective investment vehicle on behalf of investors
- Provides regulated investment advice about property as a financial instrument
- Carries out estate agency activity without the correct authorisation
The Property Ombudsman (TPO) and the National Association of Property Buyers (NAPB) provide guidance on professional standards for property sourcers. While membership is voluntary, it provides a complaints framework and signals professionalism to investors.
The deal packaging agreement template includes a clear no-FCA-advice clause, which helps establish that the relationship is one of property introduction only, not financial advice or regulated investment management.
If you are unsure whether your activities require FCA authorisation, seek advice from a solicitor or the FCA's perimeter guidance at fca.org.uk.
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Get the free deal packaging agreement template
Download the full Deal Packaging & Property Sourcing Agreement PDF — suitable for BTL, HMO, SA, and flip strategies. Includes both exclusive and non-exclusive variants, success fee schedule, AML acknowledgement, and circumvention protection.
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Deal Packaging Agreement FAQs
What is a deal packaging agreement?
A deal packaging agreement (also called a property sourcing agreement or finders fee agreement) is a legal contract between a property sourcer and an investor. The sourcer agrees to find and present investment properties meeting the investor's specified criteria, and the investor agrees to pay a success fee on legal completion. The agreement sets out the fee amount, the property criteria, exclusivity terms, and a circumvention clause to prevent the investor from going around the sourcer to deal directly with the vendor.
Is deal packaging regulated by the FCA?
Property deal packaging (sourcing and introducing properties for a fee) is not inherently FCA-regulated activity. However, if the sourcer provides regulated investment advice — recommending specific financial products, advising on mortgages, or managing investments — they would need FCA authorisation. The Property Ombudsman Code of Practice and the National Association of Property Buyers provide guidance for sourcers. A well-drafted deal packaging agreement includes a clause confirming that no FCA-regulated advice is provided and that the fee is a sourcing fee only.
What is a circumvention clause in a deal packaging agreement?
A circumvention clause (also called a non-circumvention clause) prevents an investor from bypassing the sourcer to deal directly with the vendor or agent, thereby avoiding the agreed fee. The clause typically applies for a defined period (commonly 12 months) after the sourcer introduces the property. If the investor completes a purchase on an introduced property during this period, the full fee becomes payable even if they did not use the sourcer to negotiate the deal.
Legal disclaimer
This template is provided by PropertyAlert (Eightfinity Ltd) for general guidance only. It does not constitute legal advice. The parties are strongly recommended to seek independent legal advice from a qualified solicitor before signing. Laws and regulations affecting property deal sourcing, AML compliance, and FCA perimeter may change. PropertyAlert (Eightfinity Ltd) accepts no liability for any loss, claim, or dispute arising from use of this document. This template does not constitute FCA-regulated advice.
Related tools
- Buy-to-Let Calculator — analyse BTL deals you are sourcing before presenting to investors
- Property ROI Calculator — calculate cash-on-cash return, ROI, and equity growth for any deal
- R2R HMO Agreement Template — if you are sourcing R2R deals, get the operator agreement too
- SA Operator Agreement Template — template for SA short-let operators