New AML Property Laws 2026 - Perth Buyer & Seller Guide
What your real estate agent is now legally required to ask you.
A simple guide to Australia's new AML/CTF real estate laws 2026 - what Perth buyers and sellers need to know before 1 July 2026.
From 1 July 2026, the way property is bought and sold in Australia changes permanently. New Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws, known as Tranche 2, extend to the real estate sector for the first time. That means your agent is now legally required to verify your identity, understand your ownership structure, and in some cases ask where your money is coming from - before they can list your home or help you purchase one.
If that sounds more involved than what you're used to, don't worry. At Halyn Property, we've been preparing for these changes so the process stays as smooth as possible. This post explains exactly what's changing, what it means for you, and what you'll need to have ready.
BACKGROUND
What is AML/CTF and why does it apply to real estate now?
Anti-Money Laundering and Counter-Terrorism Financing laws have applied to Australian banks and financial institutions for nearly two decades. Property, however, has historically been a gap - and a well-documented one. Real estate has long been identified internationally as a high-risk sector for money laundering, largely because large sums can move through property transactions with relatively little scrutiny.
The Tranche 2 reforms close that gap. From 1 July 2026, real estate agents, buyer's agents, conveyancers, and lawyers involved in property transactions are classified as 'reporting entities' - the same legal category as banks. That comes with real obligations: identity verification, due diligence, record keeping, and mandatory reporting of suspicious activity to AUSTRAC (Australia's financial intelligence agency).
This isn't about treating buyers and sellers as suspects. It's about bringing Australian property in line with global standards and ensuring the market is transparent, fair, and protected.
WHAT'S CHANGING
The three core checks every agent must now complete
Regardless of whether you're buying or selling, your agent must now complete three categories of checks before providing services:
– Identity checks. Your identity must be verified against a government-issued photo ID - not just collected.
– Ownership checks. If a company or trust is involved, agents must establish who actually owns or controls that entity.
– Source of funds checks. In some cases - particularly for higher-value transactions or complex structures - you may be asked how you're funding the purchase or where your overall wealth comes from.
These aren't discretionary. They're legal requirements that apply to every agency in Australia from 1 July 2026.
FOR SELLERS
Selling your property? Here's the new process.
The most important thing to know if you're selling: your due diligence checks must be completed before your property can be advertised.
Your agent will need to collect and verify the following:
– Photo ID - driver's license or passport
– Confirmation of your current residential address
– Proof of property ownership - a rates notice or title document works well
– If selling via a trust or company, additional entity documents will be required (see below)
The practical implication: if you're thinking of listing in July or August, get ahead of this now. Bring your documents to your appraisal appointment and we can complete the checks at the same time. There's no reason this should slow down your campaign - it just needs to happen first.
FOR BUYERS
Buying a property? Here's what to expect.
For buyers, checks typically happen once you're ready to make an offer, or in some cases earlier, such as at open home registration for higher-value properties. Your agent will work through these with you before or at the time of submitting your offer.
You'll be asked to provide:
– Photo ID - driver's license or passport
– Confirmation of your current address
– Your reason for purchasing - owner-occupier, investment, or other
– Source of funds - how you're financing the purchase (savings, home loan, equity release, gift, inheritance)
– For larger or more complex transactions, source of wealth information may also be requested
None of this prevents a transaction from proceeding. It's simply a new step in the process and completing it early means there are no surprises after your offer is accepted.
FOR TRUST & COMPANY BUYERS AND SELLERS
Buying or selling through a trust or company? Extra checks apply.
If you're transacting through a family trust, self-managed super fund, company, or any other entity structure, additional verification is required. This is because the law requires agents to identify the real people behind the structure - not just the entity on the contract.
In addition to standard identity checks, you'll need to provide:
– Photo ID for all directors, trustees, or beneficial owners
– Company or trust registration documents - ABN/ACN, trust deed, or company extract
– Confirmation of who ultimately owns or controls the entity
– Source of funds documentation will typically be required for these transactions
If you regularly transact through a trust or company structure, we'd recommend reaching out to us before you're ready to list or make an offer. Getting the documentation together early - particularly for more complex structures makes the process significantly smoother for everyone.
WHAT THIS MEANS FOR YOUR TRANSACTION
Does this change the process significantly?
No, the checks are straightforward and your agent will guide you through them. The key differences are:
– Sellers: checks happen before listing, not at the end of the process
– Buyers: you may be asked about source of funds as part of the offer process
– Trust/company clients: expect more documentation and a longer lead time
Please note: transactions won't be delayed because of these checks - unless documentation isn't ready. That's why we're proactively having this conversation with all of our clients now, ahead of the 1 July start date.
FAQ
Will these checks delay my settlement?
Not if you're prepared. The checks themselves are quick - in most cases it's a matter of providing your ID and answering a few straightforward questions. Where delays can occur is when documentation isn't ready, particularly for sellers who need to complete checks before listing, or for buyers and sellers transacting through a trust or company where more documents are involved.
The simplest way to avoid any hold-up is to have your documents ready before you need them. If you're thinking of selling, bring your ID and proof of ownership to your appraisal. If you're buying through a trust or company, reach out to us before you start making offers. Get ahead of it early and it won't slow you down at all.
FROM THE HALYN TEAM
We're ready. And we'll make it easy for you.
These changes are new for everyone. If you're unsure what applies to your situation - whether you're thinking of selling, buying, or transacting through a trust or company simply get in touch with our team before 1 July and we'll walk you through it!