A challenge to a crowdfunding firm about a property company currently raising money on it has been rejected.

Trevor Mealham complained to Seedrs about iProperty, which is bidding to raise £500,000.

Mealham alleged that iProperty – a free global property listings portal which bans agents but allows developers and private sellers and landlords – is trading illegally.

He claimed it is an estate agent because its business model is to sell ancillary services such as sales boards.

He told Seedrs that iProperty “is not a passive model and must be classified as a UK estate agency”.

As such, he has told Seedrs, it should belong to a redress scheme and also be registered with HMRC for anti money laundering purposes.

However, Seedrs has told Mealham that it investigated his complaint and requested iProperty to seek legal advice.

Seedrs’ legal and financial director, Karen Kerrigan, said: “We have reviewed the advice obtained and are satisfied that it supports the legality of the iProperty business model.

“The advice confirms that as iProperty enables sellers to advertise their properties and provide buyers and sellers the means to communicate with one another, it does not fall to be categorised as an estate agent.

“Further, as the additional services featured on the iProperty site which you refer to are third-party services, and are not provided by iProperty, they do not constitute ‘estate agent ancillary services’.

“On the basis that the legal advice supports the legality of iProperty’s business as described in the Seedrs campaign and as represented on its website, we will not be upholding your complaint.”

Mealham, who copied in the Financial Ombudsman, the Property Ombudsman and Trading Standards among others on the correspondence, told Eye he felt it is now up to the official bodies to give their opinions.