## Check the sourcing business
HMRC guidance identifies [property sourcing, deal packaging and investment brokering](https://www.gov.uk/hmrc-internal-manuals/economic-crime-supervision-handbook/ecsh53025) as activities that can fall within an estate agency business. It states that the business can operate entirely online and may send property details, make investment recommendations, or act between buyers, sellers, and their agents.
HMRC's sector material covers customer due diligence, records, and suspicious-activity reporting for estate agency and related businesses. Its detailed [estate agency guidance](https://www.gov.uk/hmrc-internal-manuals/anti-money-laundering-guidance-for-supervised-businesses/amlg2200) explains that for property sourcers and deal packagers, the customer relationship begins on instruction. The relationship with the other buyer or seller starts when an offer is accepted.
When another agent purports to act for a customer, the same guidance advises the estate agency business to identify and verify the agent, confirm the instruction, and check HMRC supervision registration. These are transaction-stage checks. It is advisable to record the instruction and accepted-offer points with the relevant customer-due-diligence evidence.
For residential estate agents operating in the UK, GOV.UK states that an agent must join an [approved redress scheme](https://www.gov.uk/redress-scheme-estate-agencies). The approved schemes are The Property Ombudsman and the Property Redress Scheme, which can be approached for unresolved service complaints.
## Record the transaction stage
GOV.UK advises buyers to check property value, lease length where relevant, sale inclusions, and planned inspections before making an offer. In England and Wales, an offer is [not legally binding until the exchange of contracts](https://www.gov.uk/buying-a-home/making-an-offer).
An agent or lender must disclose any referral payment received from a recommended professional, and the buyer is not obliged to use that particular firm. This disclosure should be retained with the relevant recommendation.
## Run the investor pack readiness checks
The [investor pack readiness checker](/tools/investor-pack-readiness-checker) organises review into five areas. It checks core deal numbers, records proof gaps, reviews investor-pack content, checks redactions, and requires a share or close-out step.
The investor pack readiness checker covers core deal numbers. The close-out step records a named investor, the next action, reservation details, fee payment, and the state of completion, passing, or archiving. This process keeps the calculation and the next action within the same review workflow.
The proof-gap check covers sold comparables, rent evidence, works estimates, EPC, tenure, licensing, planning, and HMO notes where relevant. Investor-pack content includes a plain-English summary, a verdict, a risk register, an assumptions table, a sourcing-fee disclosure, and disclaimers. The redaction step ensures the exact address, source URL, and private notes remain hidden until the user chooses to reveal them.
The checker produces outputs including a readiness score, details of missing proof gaps, and a verdict of Send, Needs Evidence, Renegotiate, or Kill. It is described as a screening tool, and it does not itself verify evidence, value a property, or provide legal advice.
The verdict 'Needs Evidence' is used when a required proof item is still missing. 'Renegotiate' and 'Kill' remain available options when the stored evidence does not support the proposed terms. 'Send' records readiness for sharing purposes, and is not a guarantee of performance.
## Complete the property evidence
The Bricks & Yield [due diligence checklist](/tools/due-diligence-checklist) covers seller and ownership evidence, comparables, legal prompts, condition, EPC, tenancy, finance compatibility, and document records. Its workflow prompts the user to verify ownership, review legal material with a solicitor, assess condition with an appropriate survey, and confirm finance compatibility before exchange.
The checklist also prompts the user to preserve the documents used for the review. The public tool describes itself as educational and states that it does not replace instructed legal, survey, mortgage, or accounting professionals.
In its controlled example, 20 checks are performed, resulting in 15 green, 3 amber, and 2 red items. The output pauses the deal until both red items are cleared. The amber items are then converted into conditions or price adjustments. This is an educational screen and not a substitute for instructed professional advice.
## Calculate the operating return
The [gross and net yield calculator](/tools/gross-net-yield-calculator) separates annual rent from net operating income before finance and tax. Its controlled example uses a GBP 180,000 price and GBP 18,000 annual rent, which produces a 10% gross yield.
The inputs also include 10% management fees, 5% for maintenance, GBP 600 for insurance, 5% for voids, and GBP 600 for other annual costs. The output shows GBP 4,800 in operating costs, GBP 13,200 in net rent, and a 7.33% net yield before borrowing.
This calculator does not model lender stress assumptions, finance, tax, or after-tax cash flow. Such tests should be conducted separately, and then the readiness verdict that matches the stored evidence should be used.