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:

1. an AML/CTF program that identifies and manages the business's risks
2. an appointed AML/CTF Compliance Officer
3. staff training
4. 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

- [AUSTRAC Tranche 2 guide](https://amlhive.com.au/Compliance/austrac-tranche-2-guide)
- [Real estate agency obligations](https://amlhive.com.au/Compliance/real-estate-agency-obligations)
- [AML/CTF Act overview](https://amlhive.com.au/Compliance/aml-ctf-act-overview)
- [SMR filing guide](https://amlhive.com.au/Compliance/smr-filing-guide)

## Sources

- [AUSTRAC - Real estate designated services](https://www.austrac.gov.au/new-austrac/designated-services-newly-regulated-entities/real-estate-designated-services) (accessed 10 July 2026)
- [AUSTRAC - Enrol now and meet your obligations](https://www.austrac.gov.au/enrol-now-and-meet-your-obligations) (accessed 10 July 2026)
- [AUSTRAC - AML/CTF compliance officer](https://www.austrac.gov.au/industry-and-business/obligations-and-guidance/your-amlctf-program/develop-your-amlctf-programs/step-1-establish-your-governance-framework/amlctf-compliance-officer) (accessed 10 July 2026)
- [AUSTRAC - Update to regulator statement of expectations](https://www.austrac.gov.au/update-regulator-statement-expectations-may-2026) (accessed 10 July 2026)
- [AUSTRAC - Real estate program starter kit: Getting started](https://www.austrac.gov.au/industry-and-business/obligations-and-guidance/program-starter-kits/real-estate-program-starter-kit/real-estate-program-starter-kit-getting-started) (accessed 10 July 2026)