For conveyancers
Property transfers without consideration, court orders and AML/CTF
A property transfer does not need a purchase price to be relevant under the AML/CTF Act. A parent transferring a home to a child, a transfer into a trust or company, and a gift between related parties can still be a table 6 item 1 transaction when a conveyancer acts for a person to advance it. Item 1 contains an exception for a transfer pursuant to, or resulting from, an order of a court or tribunal, but the exception is tied to the legal source of the transfer. A private bargain, binding financial agreement or anticipated consent order is not automatically the same thing. This guide provides a factual classification method and cautions against applying family-law or no-consideration labels as blanket exemptions.
See the conveyancers AML/CTF workspaceConsideration is not an element of the transfer service
Table 6 item 1 addresses a transaction to sell, buy or transfer real estate. AUSTRAC expressly gives no-consideration examples, so the absence of money does not remove a transfer. Preparing transfer forms, conducting title work, arranging duty or registry steps and coordinating completion can directly advance the transaction even where the parties call it a gift, internal restructure or family arrangement.
Record the property interest, current and proposed registered owner, beneficial interests, relationship, legal instrument and reason for the transfer. The funding risk may be different where no purchase money moves, but ownership, control, tax, creditor, proceeds-of-crime or concealment risks can remain. Apply customer and entity CDD based on the designated service and actual parties.
Read the court or tribunal order exception narrowly
The item 1 exception concerns a transfer pursuant to, or resulting from, a court or tribunal order. Obtain and review the sealed or authoritative order, confirm the property and parties match, and link each conveyancing step to what the order requires or produces. Do not rely solely on a client's statement that proceedings exist or that orders are expected.
The exception applies to the specified transfer service, not automatically to every other activity on the matter. Control or management of property, entity creation, nominee services or a different transaction may require separate analysis. If the work goes beyond implementing the order, classify the additional service on its own facts and keep the boundary clear in the file.
Distinguish consent orders from private agreements
Advice and drafting that help parties determine rights or seek a consent order may merely influence a future conveyance rather than directly advance a property transaction, depending on the facts. Once a court makes an order and the transfer is genuinely pursuant to or results from that order, the item 1 exception may apply to implementing the conveyance. Preserve the final order and chronology.
A binding financial agreement or private settlement deed is not itself a court or tribunal order. Drafting the agreement may or may not be item 1 depending on whether it directly advances an identifiable transfer. Conveyancing work that implements a transfer required by the private agreement can be regulated. Do not treat the family-law context as a substitute for tracing the legal source.
Confirm that the interest is real estate under the Act
The statutory definition extends beyond fee-simple home sales and includes specified long-term lease and land-use interests. AUSTRAC's current guidance distinguishes leases exceeding 30 years from shorter terms and excludes some interests, such as easements, restrictive covenants, mortgagee interests and unattached dwellings held with only a land lease. The legal interest being transferred therefore matters.
Obtain the title and instrument and classify the interest before relying on either inclusion or exclusion. Options, renewals, strata arrangements and mixed asset deals can complicate the analysis. If real estate is only one component of a broader entity or trust transfer, consider the other table 6 items rather than assuming one property conclusion resolves the whole engagement.
Create a transfer-source checklist
For every non-standard transfer, record the table item, customer, legal interest, consideration, source instrument, transaction start, activities and exception considered. Attach the order, agreement, deed or other evidence and state why the conveyance is or is not pursuant to or resulting from an order. Obtain review before substantive work where the result is uncertain.
Keep AML/CTF scope separate from other duties. A service outside item 1 may still engage trust-account, sanctions, fraud, professional-conduct or reporting issues, and another designated service may apply. Conversely, a regulated transfer does not imply wrongdoing; it means the conveyancer follows its program, completes appropriate CDD and manages the matter's actual risk.
Official sources
Use these primary AUSTRAC pages to confirm the current rules and apply them to your circumstances.
Frequently asked questions
Is a property gift outside AML/CTF because there is no payment?
No. Consideration is not required for a table 6 item 1 transfer. A conveyancer directly advancing a family gift or other no-consideration transfer can provide a designated service. Classify the property interest and activity and complete the applicable controls.
Does a binding financial agreement count as a court order?
No. A private agreement is not itself an order of a court or tribunal. Advice or drafting and the later conveyance each require a factual direct-advancement analysis. If a later court order is made, retain it and identify which work is genuinely pursuant to or resulting from it.
Does the court-order exception cover the whole legal matter?
Not automatically. It is tied to the specified transfer and statutory wording. Other property control, company, trust, nominee or transaction services may need separate classification. Record the boundary rather than marking the entire file exempt.
Put it into practice
Cassandra AML turns these obligations into a working system: designated-service decisions, customer due diligence, screening, monitoring and reporting records — hosted in Sydney, free to start.
This guide is general information for Australian professionals. It is not legal advice and does not replace the AML/CTF Act, the AML/CTF Rules or AUSTRAC guidance. Confirm your specific obligations with AUSTRAC or a qualified legal adviser. See our editorial and correction standards.