How does CDD work for a regular developer client selling multiple properties over time?
KYC and KYB can be re-used for two years where the entity and directors are unchanged; PEP and sanctions re-screening runs in the background on each new property.
Where the developer is sold from the same company entity and directors are used and details haven't changed, KYC/KYBs can be re-used for 2 years. The platform confirms ABN/entity details haven't changed before re-use; otherwise the check must be done in full as well as doing re-runs PEPs/Sanctions in the background each time a property is sold.
Examples of this designated service include property developers and other businesses who sell any of the following:
- house and land packages
- apartments off the plan
- blocks of vacant land in new subdivisions.
This includes where the property developer or other business sells the real estate with their own in-house agents, sales or marketing employees rather than engaging an external agency for this work.
The developer will still need to conduct CDD on the buyer before they complete the sale.
Related articles
- Does Tranche 2 apply at contract signing or at settlement for property transactions?
- When a buyer nominates someone else to take settlement, what are the CDD obligations? Does the original buyer's CDD transfer?
- How does CDD work for an off-the-plan purchase where settlement is years away?
- For developers selling off the plan, who has the CDD obligation?