An agent discovers their principal is using the property for illegal activities. The property is legitimately for sale, but continuing the agency may facilitate money laundering. What is the most appropriate course of action?
Correct Answer
C) End the agency and consider its suspicious matter reporting obligations to AUSTRAC
Since 1 July 2026, real estate agents who broker property sales are reporting entities under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and must report suspicious matters to AUSTRAC. An agent who suspects a sale may launder criminal proceeds should consider a suspicious matter report and whether to stop acting, and must not tip the vendor off.
Why This Is the Correct Answer
From 1 July 2026 real estate agents are reporting entities under the AML/CTF Act. An agent with reasonable grounds to suspect laundering should consider reporting to AUSTRAC and stop facilitating the transaction, without alerting the vendor.
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An agent discovers their principal is engaging in misleading conduct regarding property disclosures. The agent has advised against this but the principal continues. What is the agent's best course of action to protect themselves legally?
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An agent has an exclusive agency agreement that expires on Friday. On Saturday, the owner sells the property privately to a buyer who first inspected during the agency period. What is the agent's entitlement to commission?