A NSW property manager arranges a 12-month residential lease for a landlord. Is this an AUSTRAC real estate designated service?
Correct Answer
B) No, because leases of 30 years or less are not real estate under the Act
AUSTRAC explains that real estate for the designated services means fee simple interests, leasehold interests of more than 30 years and certain land use entitlements, and that leases of 30 years or less are excluded. Arranging an ordinary 12-month residential lease is therefore not a real estate designated service.
Why This Is the Correct Answer
The Act's definition of real estate excludes leases of 30 years or less, so a 12-month lease is outside it.
Why the Other Options Are Wrong
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A NSW agent's marketing emails recommend a mortgage broker as 'independent', but the broker pays the agent a fee for each referral. What do the rules of conduct require?
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