From 1 July 2026, new federal legislation will change how property sales are conducted across Australia. Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regulations will require real estate agents to verify the identity of buyers and sellers as part of the sale process.
These requirements apply to every agency in the country. Banks and financial institutions have operated under similar frameworks for many years. From 1 July, real estate will be subject to the same standard.
A mandatory step, not an extra one
Customer Due Diligence (CDD) will become a required part of every property sale. This means 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. If the property is being bought or sold through a company or trust, documentation confirming the beneficial owners of that entity will also be required.
These checks do not apply to leasing transactions.
Where it fits in your transaction
For sellers, the process begins when you sign a listing agreement. Identity verification must be completed before your property can be marketed.
For buyers, the checks are generally triggered once an offer has been accepted and a contract has been signed.
What to have ready
For most clients, the process is straightforward once the right documents are on hand.
Individuals will generally need a current Australian or foreign passport, Australian driver’s licence, or proof of age card. A Medicare card, birth certificate, citizenship certificate, or concession card may also be accepted in some cases.
Trusts will need to provide the Trust Deed, along with identity documents for key position holders and beneficial owners.
Companies will need to provide company details and identity documentation for every person who owns or controls 25 per cent or more of the entity.
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.
If you’ve sold with us before
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.
This means the same process applies to all clients, whether it is your first transaction with us or your tenth. These requirements are set by legislation and cannot be waived, even for existing or repeat clients.
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. Our focus remains on making your property journey as smooth and seamless as possible.
Getting you ready before July
New compliance requirements can feel unfamiliar, and that is understandable. Our role is to make the process as simple and straightforward as possible.
Before 1 July 2026, we will explain exactly what is required, when documents need to be provided, and what to expect at each stage of the transaction. For most clients, once the required information is submitted, the process is quick and seamless.
All information provided is handled securely and in accordance with Australian privacy laws.
While these requirements are new to the real estate industry, they are now a standard part of property transactions across Australia. Our team is preparing well in advance to ensure buyers and sellers can navigate the process with confidence.
To discuss how these changes may apply to your next sale or purchase, please contact the Sterling Property team.
Further information is available via the AUSTRAC website at austrac.gov.au.
If you have any questions about the upcoming changes or would simply like to understand what they may mean for your next property transaction, please feel free to contact Sterling Property Licensee, Clare Clark.
We’re here to help make the process as easy as possible.
