Leading conveyancer free to talk about deposit flicking

A JUDGE has said there is “very little to be gained by silencing” Dott and Crossitt founder Jared Zak in the ongoing debate over deposit flicking.

A court ruling tossed out a bid by Agency Settlements to restrain Zak from making comments about its business model, with Zak describing it as a win for consumers.

Agency Settlements, a settlement support solution that manages deposit funds in property transactions, had sought a NSW Supreme Court injunction against Zak that would have gagged him from making comments about the lawfulness of the law firm’s business model.

The civil action was launched after Zak last month took aim at Agency Settlements in a petition critical of deposit flicking, a contentious practice where real estate agents transfer purchaser property deposits to third parties to hold on the agents’ behalf until settlement.

The practice, currently under NSW Fair Trading investigation, has sparked conveyancer and real estate industry concerns that it could be used to dodge anti-money laundering laws.

In dismissing Agency Settlements’ application on Friday, Justice James Hmelnitsky ruled that there were “many voices in the debate about the propriety of the Agency Settlements business model” and “very little is to be gained by silencing just one of those voices”.

“Although Agency Settlements has demonstrated a good arguable case that Mr Zak has contravened the Australian Consumer Law in making some of his communications about Agency Settlements, I do not consider that the balance of convenience favours the grant of interim relief,” Hmelnitsky said.

Speaking to Australian Conveyancer, Zak labelled the ruling “a great win for conveyancers”.

“We’ve stood up to a bully and had a victory and that’s great but we shouldn’t lose sight that this is first and foremost about the consumer – I do think that this is quite a dangerous thing for consumers,” he said on Tuesday.

The court win would ensure that “those who speak up on behalf of consumers can continue to raise concerns and advocate for change”, he said in an earlier statement.

Agency Settlements, which has previously said it 100 per cent stands by its legal advice and business processes, said its model had been reviewed by the NSW Supreme Court, Thompson’s Lawyers and specialist real estate legal firm Jemmeson Fisher.

“Those legal reviews have provided strong validation of Agency Settlements’ rigorous processes,” said Lucas McEntee, CEO of Riverstone Partners, owner of Agency Settlements.

“We have had open dialogue with the Office of Fair Trading since Dec 2025 and continue to do so. The vendor can choose a real estate agent or a law firm to hold the sale deposit, provided the proper checks and balances are in place,” McEntee added in a statement.

Federal financial crime regulator AUSTRAC has warned agents that they remain covered by “Tranche 2” AML/CTF laws enacted in July, despite the availability of deposit flicking.

REINSW this month alerted members to “serious concerns” with the practice, urging deposit holders to “not agree to release, transfer or direct a deposit to be paid to another party”.

AIC NSW has previously called on NSW Fair Trading to issue urgent guidance on whether deposit flicking breaches agents’ legal obligations.

The proceedings, alleging misleading and deceptive conduct by Zak, are due back in court later this month.