Buying or Selling Property? Here’s Why Your Agent Is Asking More Questions
Buying or Selling Property? Here’s Why Your Agent Is Asking More Questions
Understanding Australia’s new Anti-Money Laundering laws and what they mean for property owners and buyers.
If you’ve recently sold a property, purchased a home or started speaking with a real estate agent about selling, you may have noticed something different.
Your agent might be asking for additional identification, details about how you’re funding your purchase, or even information about where your money originally came from.
And understandably, you might be wondering: Why does my real estate agent need to know all of this?
The answer comes down to new Australian legislation designed to protect the property market from financial crime.
What is AML/CTF?
AML/CTF stands for Anti-Money Laundering and Counter-Terrorism Financing.
While the name sounds complicated, the purpose is relatively straightforward: to prevent criminals from using legitimate transactions, including property purchases, to disguise illegally obtained money or finance criminal activities.
For many years, Australian banks and other financial institutions have been required to conduct checks on their customers.
From 1 July 2026, these obligations expanded to include real estate agencies and certain other professionals involved in property transactions.
The changes are regulated by AUSTRAC, the Australian Government agency responsible for detecting and preventing financial crime.
Why Does This Affect Real Estate?
Property is one of the largest financial investments most Australians will ever make.
Unfortunately, the significant amounts of money involved in property transactions can also make real estate attractive to individuals attempting to conceal the proceeds of illegal activities.
The new legislation introduces additional checks to help ensure property transactions are legitimate and that the people involved can be appropriately identified.
Importantly, these requirements apply to everyday property transactions, not just those considered suspicious.
Whether you’re purchasing your first home, selling a long-held investment property or buying through a family trust, you may be required to provide additional information.
What Questions Might Your Agent Ask?
Under the new legislation, real estate agents must undertake a process known as Customer Due Diligence (CDD).
Put simply, this means verifying who you are and, where required, understanding the circumstances surrounding your transaction.
Depending on whether you’re buying or selling, you may be asked to provide:
- Proof of identity: Such as a driver’s licence or passport.
- Personal information: Including your full legal name, residential address and date of birth.
- Ownership details: Confirmation that you legally own the property you’re selling.
- Source of funds: Information about how you intend to finance your purchase.
- Source of wealth: In certain circumstances, information about how you accumulated your money or assets.
- Company or trust information: Additional documentation if you’re purchasing or selling through a company, trust or other legal structure.
The level of information required will vary depending on the transaction and the checks that need to be completed.
Why Are You Asking Where My Money Came From?
This is perhaps the question that has caused the most confusion.
You might have spent years saving for a deposit, received an inheritance, sold another property or built-up wealth through your business.
Being asked to explain this to your real estate agent can understandably feel personal, particularly when you’ve already provided financial information to your bank or mortgage broker.
However, under the new legislation, agents have their own legal responsibilities to understand and, where necessary, verify the source of funds involved in a transaction.
For example, you might be asked whether your purchase is being funded through savings, a home loan, an inheritance, a gift from family or the proceeds of another property sale.
In some circumstances, supporting documentation may also be required.
These questions do not mean your agent suspects you of doing anything wrong. They form part of the checks that regulated real estate agencies are required to undertake.
What Happens If I Don’t Provide the Information?
While we understand that providing additional personal information can feel inconvenient, these checks are a legal requirement rather than an optional agency policy.
In certain circumstances, an agent may be unable to commence or continue providing services until the required checks have been satisfactorily completed.
For sellers, this may mean providing information before your agent can begin acting on your behalf.
For buyers, certain checks may need to be completed following the exchange of contracts and before settlement, within the timeframes permitted by law.
Responding promptly to requests for information can help prevent unnecessary complications or delays.
Is My Personal Information Safe?
We recognise that providing sensitive personal and financial information requires confidence in how that information will be handled.
Real estate agencies have obligations relating to the collection, handling, storage and protection of information obtained through the AML/CTF process.
At Oxford Agency, we understand the importance of treating your personal information with care and using appropriate processes to manage compliance requirements.
What Does This Mean for You?
Ultimately, the introduction of AML/CTF legislation means there is now an additional layer of compliance involved in buying and selling property in Australia.
While the process may feel unfamiliar, the intention is to strengthen the integrity of Australia’s property market and protect it from financial crime.
We appreciate your patience and cooperation as these requirements become a normal part of property transactions.
For more information about Australia’s AML/CTF legislation, you can visit:
