What the New AML Laws Mean for Buyers and Sellers

Last updated: June 2026

From 1 July 2026, Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regulations will require real estate agents to verify the identity of both buyers and sellers before a transaction can proceed.

These requirements apply to every agency in the country. Banking and financial services have operated under similar frameworks for years. Real estate is now subject to the same standard.

Customer Due Diligence (CDD) will become a required part of every property sale — verifying your identity, confirming you do not appear on any sanctions register, and in some cases, understanding the source of funds involved in the transaction.

These checks do not apply to leasing transactions.

Key Date

1 July 2026

AML/CTF regulations come into effect for all real estate transactions across Australia.

Applies to all property sales — residential and commercial

Does not apply to leasing transactions

Mandatory for every agency in Australia

Applies to new and existing clients equally

How It Affects You

Where It Fits in Your Transaction

The timing of identity checks differs depending on whether you are buying or selling. Here's when each process is triggered.

🏷️

For Sellers

When does it apply?

The process begins when you sign a listing agreement. Your property cannot be advertised until identity verification is complete.

Identity verification required at listing agreement stage
Property cannot be advertised until checks are complete
Beneficial ownership documentation required for trusts and companies
Source of funds may be requested for higher-value or complex transactions

🔑

For Buyers

When does it apply?

For buyers, the checks are triggered once your offer has been accepted and a contract is signed.

Checks triggered after offer accepted and contract signed
Identity verification required before settlement can proceed
Company and trust buyers require additional entity documentation
Sanctions register check conducted as part of standard process

What to Expect

The Process is Simple

Most clients complete verification in a single conversation. Here's how it works from start to finish.

We reach out

Your Sterling agent contacts you before the transaction begins to explain what's needed and answer any questions.

Before listing or contract

You provide documents

You supply the relevant identity documents — passport, driver's licence, or entity paperwork depending on your situation.

Takes 5–10 minutes

We verify

Sterling Property completes the required checks — including an automated sanctions register search — on your behalf.

Handled by our team

Transaction proceeds

Once verification is complete, your property can be listed or your purchase can proceed to settlement as normal.

No delays for most clients

Documentation

What to Have Ready

For most clients, the process is straightforward once the right documents are on hand. Select your client type below.

One or more of the following documents will be required to verify your identity:

Current Australian passport

Current foreign passport

Australian driver's licence

Proof of age card

Medicare card

Birth certificate

Australian citizenship certificate

Concession card

A combination of documents may be required. Our team will let you know exactly what is needed for your transaction.

Trusts will need to provide the following:

Trust Deed (current, complete copy)

Identity documents for the trustee(s)

Identity documents for key position holders

Details of beneficial owners of the trust

For corporate trustees, company documentation will also be required. See the Companies section for details.

Companies will need to provide the following:

Company name, ABN and ACN

Registered office address

Identity documents for all directors

Identity documents for all persons owning or controlling 25% or more of the entity

ASIC company extract (current)

Documentation for every person who owns or controls 25% or more of the entity is mandatory under the legislation.

Important Note

A Note on Source of Funds

For some transactions — particularly those involving higher values or more complex ownership structures — your agent may ask where the funds are coming from. This is a standard compliance requirement and is not a judgement on you or the deal.

All information you provide is handled securely and in accordance with Australian privacy law.

This may apply when

›The transaction involves a higher property value

›The ownership structure is complex — trust, company or multiple parties

›The source of funds is from overseas

›There are other factors that trigger enhanced due diligence

Existing Clients

What if I've Bought or Sold With Sterling Before?

The same process applies to all clients

Many of our clients have worked with us on multiple transactions over the years, and we genuinely value those long-standing relationships.

While we may already know you and have assisted you previously, the new legislation commencing 1 July 2026 requires all real estate agencies to complete identity verification and Customer Due Diligence (CDD) for every applicable property transaction.

These requirements are set by legislation and cannot be waived, even for existing or repeat clients.

We make it easy for you

The good news is that the process is straightforward, and our team will guide you through each step to ensure everything is completed quickly and efficiently.

Before 1 July 2026, we will let you know exactly what is needed, when to have it ready, and what each step involves. The process sits alongside your transaction — not in front of it.

For most clients, once the documents are in order, things move quickly. Our focus remains on making your property journey as smooth and seamless as possible.

Common Questions

Frequently Asked Questions

Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements are designed to improve transparency and reduce financial risk across Australian industries. Banking and financial services have operated under similar frameworks for years. From 1 July 2026, real estate is subject to the same standard — requiring agents to verify the identity of all parties before a transaction can proceed.

The new legislation takes effect from 1 July 2026. From that date, all real estate agencies in Australia are required to complete identity verification and Customer Due Diligence (CDD) for every applicable property sales transaction. Sterling Property is already preparing clients in advance so the process is seamless from day one.

Under the new legislation, identity verification is mandatory. For sellers, your property cannot be advertised until verification is complete. For buyers, the transaction cannot proceed to settlement without completed checks. Sterling Property's team will work with you well in advance to ensure all documentation is in order, so there is no disruption to your sale or purchase.

No. The AML/CTF requirements apply to property sales transactions only. Leasing transactions — both residential and commercial — are not subject to these new identity verification requirements under the current legislation.

Get in Touch

Questions? We're Here to Help.

New compliance requirements can feel unfamiliar, and that is understandable. Our job is to take the uncertainty out of the process.

If you have any questions about the upcoming changes — or simply want to know what they mean for your next transaction — reach out to Sterling Property Licensee, Clare Clark, directly below.

Further information is also available via the AUSTRAC website.