What the New AML Laws Mean for Buying & Selling Property From 1 July 2026
Why Are These Changes Happening?
Property has long been a target for money laundering because of its high value and low visibility. The new AML/CTF laws aim to:
- Prevent criminals from using real estate to hide or “clean” illicit funds
- Strengthen Australia’s reputation for transparency
- Protect buyers and sellers from unknowingly being caught up in suspicious transactions
- Bring real estate into alignment with banks, accountants and other regulated sectors
For most clients, the changes will feel similar to what you already experience when opening a bank account or applying for finance - straightforward identity and source‑of‑funds checks.
What Vendors Can Expect: Step‑by‑Step
Below is a simple, clear breakdown of how the new AML requirements will apply to sellers from 1 July 2026.
1. Complete identity verification
Before your property can be listed, we must verify your identity using government‑issued documents such as a driver’s licence or passport.
2. Confirm property ownership
We will confirm you are the legal owner of the property, including checking title details and any relevant ownership structures.
3. Provide basic personal information
You’ll be asked for standard contact and background details required under AML/CTF reporting obligations.
4. Disclose beneficial owners if applicable
If the property is owned through a company, trust or SMSF, we must identify all individuals who ultimately control or benefit from the asset.
5. Proceed with listing and marketing
Once AML checks are complete, your property can be listed, marketed and sold as normal - with no delays later in the process.
What Buyers Can Expect: Step by Step
Buyers will also experience a few new requirements - all designed to ensure transparency and protect the integrity of the transaction.
1. Proceed with offer and contract
You can submit offers and sign the Contract of Sale as normal. Once the contract is signed, AML checks must be completed within the required timeframe.
2. Declare beneficial owners
If you are buying through a company, trust or SMSF, we must identify all individuals who ultimately control or benefit from the purchase.
3. Provide source of funds information
You may be asked to show where your deposit and purchase funds are coming from, such as savings, loan approvals or asset sales.
4. Complete identity verification
Buyers must complete identity verification similar to what banks require. AUSTRAC allows a short grace period for purchasers, stating that you may complete initial CDD on the buyer/transferee 28 days after the exchange of contracts, or at least 3 days before the initially agreed day for settlement (whichever is earliest). This means your deadline is brought forward to whichever of those two points comes first.
What This Means for Our Clients
For most people, the process will be quick, simple and completed digitally. The key things to know:
- Every real estate business in Australia must comply - not just us.
- Your information is handled securely and confidentially.
- These checks protect you, your transaction and the wider market.
- We’ve already integrated AML compliance into our onboarding process, so you’ll experience minimal disruption.
Our goal is to make the experience as seamless as possible while meeting all legal obligations.
In Summary
From 1 July 2026, AML/CTF compliance becomes part of everyday real estate practice. Identity checks, ownership verification and source‑of‑funds information will be standard for all buyers and sellers across Australia.
At Durrand & Co, we’re ahead of the curve - trained, prepared and ready to guide you through each step with clarity and care.