AML for real estate agents: who does the CDD on a listing
AML for real estate agents turns on who brokers the listing, and when each side becomes a customer. Vendor, purchaser, and buyer’s agent are not the same duty.
Quick answer
On a brokered listing, the seller’s agent starts customer due diligence on the vendor when the authority to sell is signed, and on the purchaser when the sale is expected to proceed. A buyer’s agent starts on the purchaser when the find-a-property agreement is signed, and on the vendor at that same later moment. Both parties are customers of the broking service. The conveyancer is not automatically on that list.
AML for real estate agents is this timing question. It is not a slogan, and the heading is deliberately not “AML real estate” on its own. The source is AUSTRAC’s real estate designated services guidance. AUSTRAC’s words are seller and buyer. Vendor and purchaser mean the same sides of a listing in this article. This is general information, not legal advice. The sector map is /tranche-2.
Who does the CDD, and when
Brokering the sale, purchase, or transfer of real estate, in the course of a business, is the designated service. The customer is both the seller or transferor and the buyer or transferee. The two agencies do not share one file by default. Each reporting entity applies the test to its own retainer.
A listing timeline. “Starts” means initial customer due diligence for that party becomes due, not that a contract has settled.
| Moment | Seller’s agent (the listing) | Buyer’s agent |
|---|---|---|
| Authority to sell is signed | CDD on the vendor starts. The purchaser is not a customer yet | No duty from the vendor’s authority alone |
| Agreement to find a property is signed | Still the vendor only, until a deal is expected | CDD on the purchaser starts. The vendor is not a customer yet |
| Offer accepted and the contract is signed | CDD on the purchaser starts. Both parties are customers | CDD on the vendor starts. Both parties are customers |
| Auction, and the buyer is unknown until the hammer | Initial CDD on the buyer can be delayed where doing it first would disrupt the ordinary sale. The delay is not a waiver | The same delay can apply if you are brokering. It is still not a waiver |
| Appraisal or advertising only, and you never broker | Often outside. Write down why | A search that never brokers needs its own look at the service |
AUSTRAC treats “reasonably expected to proceed” as the typical contract: the offer is accepted and the contract to buy or transfer is signed. Do not wait for settlement to open the purchaser’s file, and do not open it on the day of the first open home.
Vendor, purchaser, and the buyer’s agent
- Vendor. The listing agency that brokers the sale has the vendor as a customer from the brokerage agreement. If the vendor is a company or trust, the customer is the entity, not only the person who signed the authority.
- Purchaser. That same agency picks up the purchaser when the transaction is expected to proceed. A buyer’s agent already has the purchaser from the find-a-property agreement, and picks up the vendor at the contract.
- Both firms can hold both names. That is two duties, not a duplicate you may skip because “the other agency is doing it”. Reliance, if your program allows it, is a written arrangement. It is not a screenshot of someone else’s portal.
Who is not on the listing agency’s list
A developer selling house-and-land, off-the-plan apartments, or subdivision lots with no independent agent is a different service. The customer is the purchaser, not both parties. Do not copy that row onto a brokered listing, and do not copy the brokered “both parties” row onto an in-house sales team.
The conveyancer and the solicitor sit under professional services, not this real estate item. Their customer is the person they assist. Who is the customer? is that split. Do buyer’s agents verify the seller? is the buyer’s-agent file in detail, including when a search-only retainer may sit outside. This page is the listing timeline for both agencies. Verification of identity is still not the whole check: is AML just VOI?.
Where FreeAML fits
FreeAML does not tell you which party is your customer. The retainer and AUSTRAC’s timing do. When the program says a party must be checked, the firm suite is A$0. FreeAML emails that customer a link and verification is client-pays. Amounts are on FreeAML pricing. The day-to-day agent workflow, once you know who is in, remains AML checks for real estate agents.
📚 Related Resources
Real Estate AML Toolkit →
Complete compliance toolkit for property agents.
Real Estate AML Guide →
Everything agents need to know about Tranche 2.
Free KYC Check →
Verify customer identity in 60 seconds. Government ID + AML screening.
Free AML Program →
Board-ready AML/CTF Program template. All 10 AUSTRAC sections included.
Risk Assessment Generator →
AI-powered ML/TF risk assessment. 20-page compliant report in 5 minutes.
Free AML Training →
Online courses for staff. CPD-certified certificates included.
Frequently Asked Questions
Check the party your retainer names
The firm suite is A$0. Verification is client-pays by email. The listing timeline decides who is in.
Start an AML checkQuestions: team@freeaml.com.au