LandlordZONE

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Aug, 2014

Wednesday

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  1. #1

    Default Question about regulations in BMV property sourcing

    I just wondered if any of you would be able to help me with a query I have.

    I'm not an investor myself, my involvence in the property market in the past has purely been at a property sourcing level. I would generate BMV leads for investors and sell them for a price per lead depending on the potential value of the lead.

    Now this was all back in the day of sell and rent back not being regulated and before the recession hitting everyone. Eventually, as investors struggled to get mortgages and advertising for the properties became more and more regulated, I stopped generating these leads. I also had a baby, so stopped working for a while. Basically I've been out of 'the scene' for a few years now!

    So my question is; can somebody please give me an idea what regulations stand today in this market? Is it ok to advertise that you can 'buy property quickly/within 28 days', so long as you don't offer a sell and rent back service?

    Is it ok to say you are able to pass details on to regulated companies if a visitor is interested in sell and rent back? Or is that a complete no no?

    Are there any other new regulations I should be aware of before getting back into the BMV lead market? Obviously I will need an information commissioners license, but do I need to think of anything else to be perfectly legal and legit?

    All help very gratefully appreciated!

  2. #2
    Join Date
    Nov 2012
    Posts
    472

    Default

    I think it is ok to advertise still but not to rent back to people.

  3. #3

    Default

    Thanks for the advice, and also to David for pm'ing me, I tried to send a pm back to thank you, but not allowed as i'm a new member

  4. #4
    Join Date
    Jan 2010
    Location
    West Midlands
    Posts
    412

    Default

    No problem - I hope the forum link was useful
    CFA

  5. #5
    Join Date
    Jan 2011
    Posts
    1,415

    Default

    Quote Originally Posted by hech123 View Post
    I think it is ok to advertise still but not to rent back to people.
    Does this mean: you can buy a property at BMV (distressed sale), but you are not 'allowed' to then rent it back to the sellers?

  6. #6
    Join Date
    Jan 2010
    Location
    West Midlands
    Posts
    412

    Default

    Claymore - Only businesses that have full FSA approval can undertake sale and rent back (SARB) arrangements and it would be foolish of anyone looking to buy property to make any mention of it or even get involved in referring the distressed vendor to someone who does - it is a minefield.

    Advertising to buy property quickly and coming to an arrangement with a 'motivated' vendor is no problem whatsoever - it is when that 'motivated' seller might be more accurately described as a 'distressed' seller that things tend to get a little more involved and can go awry.
    CFA

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