Under AUSTRAC's real estate guidance, when does a seller's agent start providing the designated service to the seller, and so need initial customer due diligence on the seller?
Correct Answer
A) When the agreement to broker the sale is signed
AUSTRAC guidance says a seller's agent starts providing a designated service to the seller when the agreement to broker the sale is signed, and to the buyer when the transaction is reasonably expected to proceed, typically when the offer is accepted and the contract is signed. Initial customer due diligence is generally required before providing the service.
Why This Is the Correct Answer
For the seller, AUSTRAC fixes the start of the designated service at the signing of the agency agreement.
Why the Other Options Are Wrong
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