Real estate
AML/CTF for real estate agents: checking buyers and sellers
If your agency brokers the sale, purchase or transfer of real estate, you provide a designated service. Both sides of the deal can be your customers.
AUSTRAC's real estate guidance treats brokering a sale, purchase or transfer of real estate as a designated service. A key difference from what many agents expect: both the seller and the buyer are your customers for AML/CTF purposes, even when you only represent one of them.
Timing matters because it decides when customer due diligence is due. AUSTRAC explains that a selling agent usually starts providing the service to the seller when the brokerage or agency agreement is signed. For the buyer on that deal, the service usually starts at the accepted offer and signed contract stage. For a buyer's agent the pattern is reversed: the client becomes a customer on the signed agreement, and the other side typically on the signed sale contract.
There are rules about when checks can be delayed and some exemptions. Those rules are detailed, so read AUSTRAC's guidance rather than relying on a rule of thumb. We do not set out time limits here.
Some property developers who sell without an independent agent are also captured. Private or incidental sales are not automatically captured. Property management on its own is not automatically brokerage.
Scope
What is and isn't usually in scope.
Services that can be designated services
- Brokering the sale, purchase or transfer of real estate for a seller
- Acting as a buyer's agent on a purchase
- Certain developers selling real estate without an independent agent
Not automatically captured
- Property management on its own, which is not automatically brokerage
- Private or incidental sales, which are not automatically captured
Check AUSTRAC's real estate guidance for delays, exemptions and edge cases before deciding how to treat a deal. Not sure? Try the readiness checker.
Example workflow
A practical onboarding sequence.
- 1
Know the service trigger and the CDD deadline
The signed agency agreement (seller) and the accepted offer and signed contract (buyer) are when AUSTRAC says the service usually starts. Initial CDD should generally be completed before that point, unless the actual delayed CDD conditions in AUSTRAC guidance apply.
- 2
Collect seller details early
Send your seller an InvestPass link during the appraisal or listing stage so checks are complete before the agency agreement is signed. If the seller is a company or trust, run an entity check and add each beneficial owner.
- 3
Prepare buyer checks before contract
Ask likely buyers for details as offers firm up, so their checks are complete before the contract is signed, unless delayed CDD conditions apply. Check any person acting on their behalf, and their authority.
- 4
Look at ownership and control
For entities, identify anyone who ultimately owns 25% or more or otherwise controls the entity.
- 5
Act on PEP and sanctions results
Escalate any potential sanctions match before going further. Apply enhanced due diligence where required.
- 6
Watch for red flags
Unexplained third party funds, rushed timelines or reluctance to provide ID should go to your compliance officer.
- 7
Keep the record with the property file
Store the report reference and your notes. CDD records are generally kept for 7 years after the relationship ends or the last occasional transaction.
This is an example only. Adapt it to your own AML/CTF policies.
Identity check vs program
A check is one step, not the whole job.
An InvestPass check helps with one part of customer due diligence: verifying identity and gathering ownership details. It does not by itself make you compliant. You still need your ML/TF risk assessment, AML/CTF policies, a compliance officer, PEP and sanctions handling, ongoing due diligence, reporting and record keeping. AUSTRAC states that a digital identity check alone is not full AML/CTF compliance.
When to check
Moments that usually need a check.
- Taking on a new vendor or listing
- A buyer, or the person behind a buying entity, you have not dealt with before
- A company or trust is buying or selling
- Something about a deal feels unusual
Individual check
ID, face match and AML screening for a vendor or buyer, done on their phone.
Company check
ASIC details, directors and owners for a company on title or buying.
Trust check
Trust deed, trustee and the people who control or benefit from the trust.
Good to know
Tips for your team.
- Send the link as soon as the agency agreement is signed so checks are less likely to hold up the sale.
- Keep the report reference with the property file.
General information only, not legal advice. Check your own obligations with AUSTRAC guidance or a qualified adviser.
Pricing
Pay per check. No monthly fee.
Individual Verification
FeaturedIndicative, to be confirmed
$20per person · GST included
Identity and AML screening for one person.
- Identity verification
- ID document and liveness
- PEP, sanctions and watchlists
- Risk assessment
Entity Verification
Indicative, to be confirmed
$40per entity · GST included
Company, trust or SMSF verification.
- ABN / ACN and business details
- Directors, trustees and shareholders
- Trust deed collection
- Entity screening
Beneficial Owner Verification
Indicative, to be confirmed
$20per owner · GST included
Each beneficial owner of an entity: owns 25% or more, or otherwise controls it.
- Identity verification
- PEP and sanctions screening
- Linked to the entity report
Indicative, to be confirmed. Prices in AUD, GST included.
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