AML/CTF Laws for Real Estate
Buying or selling a property? Here’s what you need to know about AML/CTF.
New legal requirements now apply to Australian real estate. If you are buying or selling property, you may be asked to provide information or identification that was not previously required.
Contact our teamWhy these AML/CTF checks are required
From 1 July 2026, Australian real estate agencies became subject to new anti-money laundering and counter-terrorism financing obligations under Commonwealth legislation.
These changes are designed to help protect Australia’s property market from being misused for money laundering, terrorism financing and other serious financial crime. As part of these requirements, real estate agencies must take steps to verify the identity of their clients, understand who they are acting for and, in some circumstances, ask additional questions about a transaction.
If you’re buying or selling property, you may be asked to provide information or identification that wasn’t previously required. These requests are not because there is a concern about you or your transaction. They are now part of the legal obligations that apply to real estate agencies.
Our role is to guide you through the process, explain why information is being requested, collect only what is required, and ensure your information is handled carefully in accordance with our privacy and compliance obligations.
Key date
From this date, new AML/CTF requirements became part of Australian real estate sales transactions.
- Applies to property sales transactions
- Applies to sellers and buyers
- Includes identity verification and customer due diligence
- May require additional information for companies, trusts and other entities
What the AML/CTF requirements will mean for you
If you are buying or selling property, the process may include additional checks before certain steps in the transaction can proceed.
For sellers
Before we can commence certain services connected with the sale of your property, we will need to verify your identity and confirm who owns or controls the property.
- Identity verification may be required
- Ownership and authority may need to be confirmed
- Company or trust details may be requested
- Additional checks may be required depending on the circumstances
For buyers
Buyers may also be required to complete identity checks and provide information about the nature of the purchase.
- Identity verification may be required
- Information about the purchase may be requested
- Source of funds questions may be asked where required
- Company or trust details may be requested
Why we may ask for your identification
One of the new legal requirements is for real estate agencies to verify the identity of their clients before providing certain services.
Why identification is required
Identity verification helps confirm that we are dealing with the correct person and, where applicable, that they have the authority to act on behalf of a company, trust or another individual.
These checks are now a standard part of buying and selling property in Australia and are required by law for real estate agencies.
How the process works
Depending on your circumstances, we may verify your identity in person or ask you to complete a secure electronic verification through a partner provider.
Your information, handled with care.
We understand that providing personal information is important. We collect only what is required, use secure verification systems wherever possible, and handle your information in accordance with our privacy and compliance obligations.
Where it fits in your transaction
The new AML/CTF requirements form part of the normal property sale process. While the timing differs for buyers and sellers, our team will guide you through each step and let you know when information is required.
For sellers
Before certain services connected with the sale of your property can commence, we are required to complete identity verification and customer due diligence.
- Identity verification completed
- Customer due diligence completed
- Agency Agreement prepared
- Listing activities may then commence
For buyers
The timing is slightly different for buyers. Some checks occur before a Sales Advice can be issued, while additional customer due diligence may be completed as the transaction progresses.
- Offer accepted
- Required compliance checks commence
- Unconditional exchange of contracts takes place
- ID verification is required within 28 days of exchange or three days prior to settlement
The process is simple
Most clients complete the required checks quickly. We will explain each step, answer any questions and guide you through the process.
We explain what’s required
Your agent will explain the new legal requirements and advise what information may be needed.
Identity is verified
Depending on your circumstances, identification may be verified in person or through our secure electronic verification provider.
Compliance checks are completed
Where required, customer due diligence and other legislative checks are completed before the relevant stage of the transaction can proceed.
Your transaction continues
Once the required compliance obligations have been met, your property transaction continues through the normal sales process.
What to have ready
The information required will depend on your circumstances. In many cases, only basic identification will be needed, while companies and trusts may require some additional information. For example:
Individuals
- Current government-issued photo identification
- Residential address
- Date of birth
- Contact details
Companies
- Company name and ACN
- Director details
- Details of beneficial owners
- Authority to act on behalf of the company
Trusts
- Name of the trust
- Trustee details
- Beneficiary information, where required
- Supporting trust documentation, if requested
Every transaction is different
Not every client will be asked for the same information. The level of verification depends on the ownership structure, the nature of the transaction and the requirements of the AML/CTF legislation. If additional information is needed, we will explain why it is required.
Why you may be asked about source of funds
In some circumstances, buyers may be asked questions about how a purchase is being funded. This could include savings, sale proceeds, finance approval, inheritance, business funds or another legitimate funding source.
These questions are not being asked because an agent is trying to be intrusive. They are part of the legal requirements designed to help identify and reduce the risk of financial crime in property transactions.
Existing clients may still need to complete checks
Even if we have worked with you before 1 July 2026, updated information or fresh verification may still be required. The new requirements apply to the transaction – not just the relationship.
We understand this may feel like an extra step. Our aim is to make the process as clear and straightforward as possible.
Frequently asked questions
What is AML/CTF?
AML/CTF stands for anti-money laundering and counter-terrorism financing. These laws are designed to help prevent property transactions from being misused for money laundering, terrorism financing or other serious financial crime.
Why does this now apply to real estate?
These changes are designed to help prevent criminals from using property transactions to launder money or conceal illicit funds. Banks and other financial service providers have operated under similar anti-money laundering obligations for many years. Extending these requirements to real estate agencies brings Australia more closely into line with international standards and means we are now required to complete identity verification and customer due diligence checks as part of the buying and selling process.
When did the changes start?
The new requirements apply to Australian real estate from 1 July 2026.
Why am I being asked for identification?
Real estate agents are required to verify certain information as part of their legal obligations. This may include confirming identity, ownership, authority to act and other transaction details.
Does this mean something is wrong?
No. These checks are now part of the standard compliance process for property transactions. Being asked for information does not mean there is a concern with you or your transaction – they are simply required by law.
How will my information be handled?
We handle your information securely and in accordance with Australian privacy laws. We only collect the information required by law and use it to meet our legal and AML/CTF obligations.
What happens if I do not provide the required information?
If required information is not provided, there may be limits on what services can be provided or how the transaction can progress. Our team will explain what is needed and when.
Questions? Please reach out to our team.
We’re here to help make the process clear and straightforward, and to explain what may be required as part of your property transaction. For more information about the new AML/CTF requirements, visit the AUSTRAC website.