Before the campaign
The vendor is your customer. Identify and verify them, and the beneficial owners of any company or trust, when the agency agreement is signed. Record the purpose and rate the risk.
On the day
Record who the successful bidder is and how the deposit is paid. Follow AUSTRAC's real estate guidance on what identification is expected of the buyer when you act for the vendor. A cash deposit of AU$10,000 or more into your trust account is a threshold transaction: report within 10 business days.
Red flags at auction
- A bidder who wants to pay the deposit in cash.
- A third party paying the deposit for no clear reason.
- A buyer who will not give a name or gives details that do not match.
- Pressure to settle unusually fast, or an unusual price with no explanation.
Questions people ask
- Can we accept a cash deposit at auction?
- You can, unless your program says otherwise. If it is AU$10,000 or more you must lodge a threshold transaction report within 10 business days. Many agencies simply do not accept cash deposits and say so in their program.
This guide is general information for real estate agents, buyers agents, property managers, not legal advice. Check AUSTRAC's current guidance for your situation.