Legislation
New AML Laws for Real Estate: What Buyers and Sellers Need to Know
Australia's anti-money laundering and counter-terrorism financing laws are changing, and from 1 July 2026, real estate agencies will have new legal obligations when involved in the sale, purchase or transfer of property.
For most buyers and sellers, this will feel like a more formal identification and verification process. For real estate agencies, it means stronger systems, better record keeping, and a legal duty to understand who we are dealing with before we provide certain services.
Why the Laws Are Changing
The purpose of the reforms is to close gaps in Australia's financial system that can be exploited by organised crime. AUSTRAC has stated that real estate is commonly used for money laundering because property is valuable, can increase in value, can generate rental income, and can be used to integrate illicit funds into the legitimate economy.
These changes also bring Australia closer to international standards set by the Financial Action Task Force — the global body that sets anti-money laundering and counter-terrorism financing standards.
What Is Changing for Real Estate?
From 1 July 2026, real estate professionals — including seller's agents, buyer's agents and certain property developers — will have AML/CTF obligations when they provide designated real estate services. This includes brokering the sale, purchase or transfer of real estate.
In practical terms, real estate agencies must
- Enrol with AUSTRAC
- Have an AML/CTF program in place
- Identify and verify customers before providing the designated service
- Assess money laundering and terrorism financing risks
- Keep appropriate records
- Monitor for suspicious activity
- Report suspicious matters where required
Key Date
AUSTRAC's guidance confirms that real estate and buyer's agents must have an AML/CTF program in place before brokering the purchase, sale or transfer of real estate from 1 July 2026.
What This Means When Selling a Property
If you are selling a property, your real estate agency will need to complete customer due diligence before acting for you.
You should expect to provide
- Proof of identity
- Confirmation of your legal name and contact details
- Evidence of ownership or authority to sell
- Company or trust information, if the property is owned by an entity
- Details of any person acting on your behalf
This is not optional. It is part of the agency's legal obligation. For most individual sellers, the process should be straightforward. For companies, trusts, deceased estates, powers of attorney or overseas owners, extra checks may be required.
What This Means When Buying a Property
Buyers may also be asked to provide identification and supporting information, particularly where an agency is providing a designated service as part of the transaction.
You may be asked to confirm
- Who is buying the property
- Whether you are buying personally, through a company or trust
- Whether someone else is acting on your behalf
- Source of funds or source of wealth, where the circumstances require further checks
This does not mean you are suspected of anything. It means the agency must follow a consistent legal process.
What We Must Now Do as a Real Estate Agency
As a real estate agency, we are required to take reasonable steps to know who our customers are and to identify risks before proceeding with certain real estate services.
That includes having internal systems for
- Identity checks
- Risk assessment
- Staff training
- Record keeping
- Escalation of unusual or suspicious matters
- Ongoing monitoring where required
AUSTRAC has also made clear that real estate professionals can be the first point of contact for criminals attempting to launder money through property, which is why the sector is now being brought into the AML/CTF regime.
Will This Slow Down a Sale?
For most standard residential sales, the process should be manageable if information is provided early. The key is preparation. Sellers should expect identity checks at the start of the listing process, not at the end. Buyers should also be ready to provide information when requested.
Delays are more likely where
- Names do not match records
- Ownership is through a company or trust
- A party is overseas
- Someone is acting under authority for another person
- Funds or transaction details raise questions that need clarification
This Is About Process, Not Suspicion
"These laws are not about treating everyday buyers and sellers as criminals."
They are about making sure property transactions cannot be easily misused by organised crime, fraud, corruption, terrorism financing or other serious illegal activity.
For genuine buyers and sellers, the main change will be a more structured verification process.
For Buyers
- More formal identity verification
- Ready to confirm who is purchasing
- Provide source of funds if asked
For Sellers
- ID checks at the start of listing
- Extra steps for trusts and companies
- Provide authority to sell documentation
For Agencies
- Enrol with AUSTRAC by 1 July 2026
- AML/CTF program must be in place
- Report suspicious matters where required
Final Thoughts
The new AML legislation represents a major compliance shift for Australian real estate. For sellers and buyers, it means more formal identity checks and, in some cases, additional questions about the transaction. For real estate agencies, it means higher legal responsibility, stronger systems, and clear processes that must be followed.
At Derwent Real Estate, our approach is simple: comply with the law, protect our clients, and make the process as clear and practical as possible.