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There's been a bit of noise lately around compliance, especially after the recent communications from the Property Practitioners Regulatory Authority (PPRA) and the Legal Practice Council (LPC). Most of that focus has been on conveyancing relationships… but it naturally spills over into how we handle mortgage origination referrals too.

So it's a good moment to just reset the basics and make sure everyone's aligned.

What Section 58 actually says (in plain terms)

Under Property Practitioners Act Section 58(1)(b), property practitioners can't force or pressure a client to use a specific service provider. That's really the core of it.

The intention is simple… protect the buyer's freedom of choice, especially in situations where they're paying for a service.

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Where bond origination fits into this

This is where things are a bit different. With bond origination, the client isn't paying for the service at all.

A bond originator steps in to:

  • submit to multiple banks
  • structure the application properly
  • negotiate rates
  • manage the process end to end

…and the bank pays for that service, not the client.

So from a consumer perspective, it's support at no cost. That's why it's generally seen as a value-add rather than a "referred paid service" in the traditional sense.

The key thing agents need to get right

Even though it's a free service, the principle of choice still applies. So when you recommend a bond originator, the messaging matters. A lot.

Clients should always clearly understand:

  • They are under no obligation to use the recommended originator
  • They are free to go directly to a bank or use someone else
  • They won't be charged anything for using an originator
  • The originator is paid by the bank once the loan is registered

That's it. No grey area if this is communicated properly.

What about referral commissions?

This is usually where people pause, so it's worth unpacking it properly. A referral commission isn't about the client being "sent" somewhere. It's really about recognising the effort the agent has already put in to build the relationship and bring that buyer into the process.

From the originator's side, accessing a client like that would normally require significant marketing spend… online campaigns, networking, time on the ground, all of it. The referral essentially replaces that effort. So the commission is, in simple terms, a payment in lieu of marketing. It's acknowledging that the agent has already done the work to connect the buyer with the right professionals. Importantly, this doesn't change anything for the client. They're not paying for it, and it doesn't impact their loan terms or outcomes.

As always, the key is transparency and making sure the client's choice and best interests remain front and centre.

Why this actually benefits the client

When it's done properly, this setup genuinely improves the buying experience. Clients get:

  • access to multiple banks instead of one
  • better chances of approval
  • often better rates through negotiation
  • someone actively managing the process

And they don't pay for any of it. So long as the client has full visibility and choice, it's a win all around.

The Phoenix Bonds approach

At Phoenix Bonds, we keep things pretty simple. We don't rely on contracts, exclusivity agreements, or service level agreements to hold relationships in place. There's no obligation tying anyone to us. People work with us because they want to, not because they have to.

Our view is that the service should be the reason clients and partners come back. If the experience is good, if the communication is clear, if the outcome is strong… that's what builds the relationship. Not paperwork. So whether someone is referred to us, has used us before, or is coming back again, the expectation is always the same. We earn the business each time.

In a way, our service is the only "contract" we believe in.

Final thought

Most compliance issues don't come from bad intent… they come from poor communication. If the client understands they have a choice, knows there's no cost, and feels supported rather than directed, you're exactly where you need to be. And that's really the goal here… keep it transparent, keep it client-first, and everything else falls into place.