A compliance audit from NSW Fair Trading, Consumer Affairs Victoria, the Queensland Office of Fair Trading, or another state regulator is not something most principals anticipate — but it can happen at any time. The most prepared agencies treat compliance as an ongoing record-keeping practice rather than a last-minute scramble. This checklist covers what regulators look for across every area of real estate compliance, so you can walk into any audit with confidence.
The consequences of a failed audit can be significant: improvement notices, licence conditions, civil penalties, or licence suspension. The good news is that most compliance failures are record-keeping failures — the obligation was met, but the evidence wasn't kept. This checklist is designed to close that gap.
1. Licence and CPD Records
- Current licence or certificate of registration for every person carrying out licensed functions
- CPD completion certificates for every agent — covering each CPD year in the current licence term
- Correct split between compulsory and elective CPD hours
- CPD completed with approved providers only
- Records kept for the full licence term plus three years
2. Trust Account Records
- Trust account held with an authorised deposit-taking institution
- Monthly reconciliations performed within the required timeframe (NSW: within 5 days of month end)
- Reconciliation records retained for minimum 3 years (most states require 5–7 years)
- Annual trust account audit conducted by an approved auditor
- Audit report lodged with the state regulator within the required period
- Trust account ledger per client, with all receipts and disbursements documented
- No unauthorised withdrawals or early disbursements
3. AML/CTF Compliance
- Enrolled with AUSTRAC as a reporting entity
- AML/CTF program documentation — Part A (risk assessment), Part B (employee due diligence), Part C (AML compliance officer)
- Customer due diligence records for every real property transaction
- Beneficial ownership documented for every transaction
- Suspicious matter reports (SMRs) lodged where required, with internal assessment records retained
- AML/CTF training records for all staff
- Annual AUSTRAC compliance report lodged on time
4. Policy Library and Registers
- Policies and procedures library complete and up to date
- Policies reviewed within their scheduled review period
- Staff signed off on relevant policies
- Complaints register maintained — all formal complaints logged with outcome and resolution date
- Gift register maintained — all gifts and benefits received or offered by staff
- Incident register maintained — all WHS incidents, near misses, and notifiable events
- Risk register current and reviewed regularly
5. Staff and Supervision
- All staff carrying out licensed functions hold a current licence or certificate
- Supervision arrangements documented — who supervises which certificate holders
- Nominated supervisor arrangements in place for when the LIC is absent
- Staff employment records and role descriptions current
- Induction records for all new staff
6. Sales and Property Management Compliance
- Agency agreements signed and compliant with current prescribed form
- Sales checklists completed for every property
- Marketing material approved and compliant with advertising regulations
- Vendor disclosure obligations met (s66W certificates, vendor statements, Form 1, etc. depending on state)
- Management agreements current and contain required terms
- Rent ledgers and disbursement records accurate and reconciled
How Regulators Conduct Audits
State real estate regulators conduct audits in several ways:
- Random selection — agencies are selected without warning for a compliance inspection
- Intelligence-led — triggered by a complaint from a client, staff member, or competitor
- Sector sweeps — regulators periodically conduct industry-wide checks on specific issues (e.g. trust accounting or CPD)
- Renewal audit — a detailed records check triggered when a licence renewal application is submitted
Auditors typically request records for the previous 12–36 months. The quicker you can produce complete, organised records, the better the impression you make — even if there are minor gaps.
Always audit-ready with REA Hub
REA Hub maintains your compliance records across every area on this checklist — CPD, trust accounting, AML, registers, and policies — and gives you a one-click audit pack export when a regulator comes calling.
Start free 14-day trial →This checklist is for general guidance only. Compliance obligations vary by state and change over time. Always verify current requirements with your state regulator.