Buying or selling a property in Australia is set to involve a more stringent verification process, with new laws coming into effect on July 1, 2026.
Known as the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) reforms, these changes will bring real estate agencies under the same compliance framework that banks and other financial institutions have been operating under for years.
But while the legislation sounds complex, the impact on most buyers and sellers will be relatively straightforward.
So let’s look at exactly what’s involved…
What will change?
Under the new rules, real estate agencies will be required to verify the identity of their clients, understand who is involved in a transaction, and carry out risk assessments on certain dealings.
For buyers and sellers, this may mean providing identification documents, confirming ownership structures if a company or trust is involved, and answering questions about the source of funds being used to purchase a property.
If that sounds familiar, that’s because it is. Most Australians have already experienced similar checks when opening a bank account, applying for a mortgage, or taking out certain financial products.
The difference is that these requirements will now form part of the real estate process itself.
Why is this happening?
Property transactions often involve large sums of money, which is one reason governments around the world have strengthened oversight of the sector.
Australia has been one of the last developed countries to extend anti-money laundering obligations to real estate professionals. The reforms are designed to reduce opportunities for criminal activity, improve transparency, and help authorities identify suspicious financial behaviour.
From July 1, agencies will be regulated by AUSTRAC, Australia’s financial intelligence agency. Real estate businesses will need to maintain compliance programs and meet strict reporting requirements.
Will it affect the buying or selling process?
For most people, the answer is no, or at least not significantly.
The buying and selling journey itself won’t change. Properties will still be listed, marketed, negotiated, and settled in the same way they are today.
What will change is the level of documentation required behind the scenes.
The easiest way to avoid delays will be to provide requested information promptly and ensure any ownership structures are clearly documented from the outset. This is particularly important for transactions involving trusts, companies, self-managed super funds, or overseas interests.
In most cases, if the paperwork is in order, the additional compliance requirements should be largely seamless.
What about privacy?
Some buyers and sellers may be wondering why agents need access to more personal information.
The reality is that agencies are now being legally required to undertake checks that were previously carried out primarily by banks and lenders. The information collected must be handled in accordance with privacy laws and is being gathered to meet regulatory obligations, not to make the transaction more difficult.
Importantly, these reforms are not about treating every buyer or seller as suspicious. They are about creating a consistent process that helps protect the integrity of Australia’s property market.
A new normal for real estate
While there will be an adjustment period for both clients and agencies, the new AML/CTF requirements are expected to become a standard part of property transactions moving forward.
For buyers and sellers, the key takeaway is simple: be prepared to provide a little more documentation than you may have in the past and expect some of those conversations to happen earlier in the process.
With the right information available from the start, most transactions should continue to progress smoothly, while benefiting from greater transparency and security across the industry.
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