11/08/2026
DO YOU KNOW WHO IS ACTUALLY HOLDING YOUR PROPERTY DEPOSIT? đĄ
A practice known as âdeposit flickingâ has become a concern within the property and conveyancing industry.
âDeposit flickingâ involves a real estate agent transferring a purchaserâs holding deposit from the agentâs trust account to a third-party service provider, rather than continuing to hold those funds in the agentâs own regulated trust account during the settlement period.
Following the introduction of new federal Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) obligations, some agents have sought to reduce the additional administrative work and costs associated with verifying buyersâ and sellersâ identities and meeting their AML/CTF requirements and engaged third-party providers to assist with these processes.
However, outsourcing the service does not outsource the responsibility. AUSTRAC has made it clear that the agent remains responsible for ensuring those obligations are met and may remain legally liable for breaches, even where aspects of compliance are outsourced.
So, where does the recent court case come into this?
Jared Zak of Dott & Crossitt publicly raised concerns about Agency Settlementsâ third-party deposit-holding model. Agency Settlements subsequently commenced proceedings seeking to restrain Mr Zak from stating that its business model was unlawful.
On 7 August 2026, Mr Zak announced that the Supreme Court of NSW had rejected the application for restraint and ordered costs against Agency Settlements.
While this was a significant development, it was not a final ruling that the third-party deposit-holding model itself is unlawful.
The issue has prompted ongoing calls within the conveyancing industry for greater consumer protection and transparency around WHO is holding property deposits and WHERE they are being held.
If youâre selling your property, check who is nominated as the deposit holder on your Sales Agency Agreement and ask where the purchaserâs deposit will actually be held.
Ask before you sign. Know where your money is going.
The Property Xchange | Licensed Conveyancers