Real Estate AML/CTF: Are You Covered?
Learn how AUSTRAC's designated-service rules apply to real estate businesses, what to check before enrolment, and how to record a scope decision.
Whether AML/CTF obligations apply to a real-estate business depends on the designated service it provides. It does not depend on the business being large, small, independent, or part of a franchise.
For many agencies, the starting point is clear: AUSTRAC says that brokering the sale, purchase or transfer of real estate as part of a business is a designated service. Seller's agents, buyer's agents, and certain businesses selling real estate without an independent agent can be covered.
This guide is general information, not legal advice. Use AUSTRAC's current guidance and obtain advice where your services or a transaction are unusual.
Start with the service, not the agency label
AUSTRAC regulates a real-estate business when it provides one or more designated services with a geographical link to Australia. Its current guidance says these services include:
- brokering the sale, purchase or transfer of real estate on behalf of a buyer, seller, transferee or transferor in the course of business
- selling or transferring real estate as part of a business selling real estate where an independent real-estate agent does not broker the sale.
AUSTRAC lists seller's and buyer's agents as common examples of the first service. It gives property developers and other businesses selling house-and-land packages, off-the-plan apartments or subdivision lots without an independent agent as examples of the second.
The practical question is therefore: what service are we providing, for whom, and when does it start? Map each service line and each role in the transaction. Do not rely on the agency label or on a broad conclusion about a mixed business.
When does a real-estate designated service start?
The timing can differ between parties. AUSTRAC says a seller's agent starts providing the service to the seller when the agreement to broker the sale or transfer is signed. The service to a buyer typically starts when the buyer's offer is accepted and the contract is signed. For a buyer's agent, the service to the buyer generally starts when the agreement to find or identify a property is signed.
That timing matters because the customer, due-diligence steps and records should match the service actually being provided. Auctions and complex structures can involve specific conditions, so use AUSTRAC's detailed guidance rather than applying a simplified example to every transaction.
What is specifically outside the definition of real estate?
AUSTRAC identifies some specific exclusions from the definition of real estate. Examples include leases of 30 years or less, mortgagee interests, and dwellings not attached to land where the resident owns the dwelling but leases the land, such as some caravan parks and retirement villages.
Those are defined exclusions, not a general exemption for businesses that describe themselves as different from a sales agency. If the scope is unclear, document the actual services and the reasoning used, then seek advice appropriate to the circumstances.
If the service is covered, what should the business have in place?
AUSTRAC says that newly regulated businesses must enrol by 29 July 2026 when the reforms apply to them. Its current enrolment guidance also says businesses should have the right people, processes and controls in place, including:
- an AML/CTF program that identifies and manages the business's risks
- an appointed AML/CTF Compliance Officer
- staff training
- readiness to identify and report suspicious activity when required.
The Compliance Officer notification is a separate action. For newly regulated entities, AUSTRAC says the notification deadline is the later of 29 July 2026 or 14 days after enrolling. For example, a business that enrols on 29 July has until 12 August 2026 to notify AUSTRAC of the appointment.
AUSTRAC's expectations are risk-based. It expects businesses to understand and document the risks they face and the controls they use; it does not expect the same controls for every customer or scenario. Where AUSTRAC material does not answer a question, its guidance says businesses should form a reasonable, documented position and may seek external advice.
A practical scope record for principals
Keep a short record that captures:
| Question | Evidence to keep |
|---|---|
| Which services do we provide? | Service map, agreements and transaction workflow. |
| Who are we acting for? | Buyer, seller, transferee or transferor role. |
| When does the service begin? | Signed agreement, accepted offer or contract evidence. |
| Why do we consider a service covered or not covered? | Source checked, decision owner, date and any advice received. |
| What follows from that decision? | Enrolment, program, officer, training and reporting-readiness actions. |
This is not a substitute for a legal opinion. It is a way to make the business's reasoning visible, reviewable and easier to update if the service mix changes.
Where AMLHive fits
AMLHive helps real-estate teams organise workflow, tasks, evidence and review records across screening, KYC/KYB, CDD, AML/CTF program documentation, training and reporting templates.
It does not provide legal advice. It does not automatically lodge a report with AUSTRAC. The reporting entity remains responsible for deciding whether to lodge and for submitting through AUSTRAC Online.
Related AMLHive guides
Sources
- AUSTRAC - Real estate designated services (accessed 10 July 2026)
- AUSTRAC - Enrol now and meet your obligations (accessed 10 July 2026)
- AUSTRAC - AML/CTF compliance officer (accessed 10 July 2026)
- AUSTRAC - Update to regulator statement of expectations (accessed 10 July 2026)
- AUSTRAC - Real estate program starter kit: Getting started (accessed 10 July 2026)
Disclaimer:This article is general information only and is not legal, financial or compliance advice. Always consider your agency's specific circumstances and seek professional advice where needed.