NEW AML/CTF RULES FOR REAL ESTATE AGENTS: WHAT SELLING AND BUYER’S AGENTS NEED TO KNOW

From 1 July 2026, selling agents and buyer’s agents across Australia will face important new obligations under the country’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.

These reforms aim to make it significantly harder for criminals to use property transactions for money laundering, terrorism financing, or other serious illegal activities.

For agents, the key message is simple:

You may need to perform AML/CTF due diligence checks on both the buyer and the seller, even if you only act for one side of the transaction.

What We Cover in This Article

Who must be checked
What do the AML/CTF checks involve
Agents do not always have to repeat each other’s checks
What if someone will not share their details
What if there is no reliance agreement
Special Condition in the Contract may assist
Agents should consider updating their terms of engagement
Buyer’s Agents should also protect their commission
Practical steps for Agents
AML/CTF made easy with MAP Lawyers

Who must be checked?

If an agent brokers the sale or purchase of real estate, AUSTRAC guidance indicates that both the buyer and seller may be treated as customers for AML/CTF purposes.

This means:

a selling agent may need to check the seller and the buyer; and
a buyer’s agent may need to check the buyer and the seller.

For buyer’s agents, checks on the buyer will usually start when the buyer signs the buyer’s agency agreement. Checks on the seller will usually become relevant once the buyer’s offer is accepted or the contract is signed.

What do the AML/CTF checks involve?

AML/CTF checks may include confirming:

who the person is;
whether they are acting for someone else;
who owns or controls a company or trust;
where money is coming from, if required;
whether there are sanctions or politically exposed person risks;
whether anything about the transaction is suspicious.

These checks are broader than ordinary verification of identity.

Agents do not always have to repeat each other’s checks

Agents may be able to rely on checks completed by another agent, solicitor, conveyancer or verification provider where they have a proper reliance agreement in place. For example, a buyer’s agent may be able to rely on the selling agent’s checks on the seller.

But reliance is not automatic. The agent relying on another person’s checks should have a proper process and written record. A simple statement like “AML has been done” is likely to be insufficient.

What if someone will not share their details?

There is an important difference between:

refusing to hand over private contact details or copies of ID; and
refusing to complete AML/CTF checks at all.

A person may have legitimate privacy reasons for not wanting their ID documents sent between agents. That does not automatically mean there is a problem.

Instead, agents should offer other options, such as:

using a secure AML verification platform;
providing a written AML confirmation;
asking the seller’s or buyer’s solicitor to confirm checks;
obtaining written consent to share limited information.

If a party refuses every reasonable AML/CTF option, the agent should escalate the matter under their AML/CTF procedures.

What if there is no reliance agreement?

If there is no reliance agreement, an agent should not assume they can rely on another agent’s checks.

The agent should:

request a reliance agreement be put in place;
ask whether the party’s solicitor or conveyancer can assist;
seek consent to limited disclosure;
complete its own checks if necessary;
keep a written record of all requests and responses.

If the agent cannot complete the required checks, the agent may need to pause work, escalate the matter internally, or stop acting on the transaction.

Special Condition in the Contract may assist

Agents and lawyers may consider adding a simple AML/CTF cooperation clause to contracts.

The clause should make it clear that both parties agree to provide information reasonably needed for AML/CTF compliance. An example is below:

AML/CTF Cooperation

1. The Buyer and Seller must provide information and documents reasonably required by any real estate agent, buyer’s agent, solicitor, conveyancer, financier, settlement agent or verification provider for AML/CTF, sanctions, fraud prevention, identity verification or related legal compliance purposes.
2. The Buyer and Seller consent to that information being collected, used and shared for those purposes with the parties’ agents, solicitors, conveyancers, financiers, settlement agents, verification providers and regulators, where required or permitted by law.
3. If the Buyer or Seller is a company, trust, partnership, superannuation fund or other entity, they must provide information reasonably required to identify the entity, its authority to enter into the contract, and the people who own or control it.
4. Information shared under this clause must be kept confidential and secure and used only for the purposes allowed by this clause or by law.
5. Nothing in this clause requires anyone to disclose whether a suspicious matter report has been, may be, or will be made.
6. AML/CTF checks do not extend the settlement date or any other contract date unless the parties agree in writing.

Agents should consider updating their terms of engagement

Agents should consider updating their appointment forms and terms of engagement.

The terms should say that the client must cooperate with AML/CTF checks and provide required information promptly.

They should also allow the agent to pause, suspend or terminate the engagement if:

the client does not provide required AML/CTF information;
the client provides false or incomplete information;
the agent cannot complete required checks;
the agent cannot rely on another person’s checks;
a counterparty refuses to complete checks;
continuing to act would breach AML/CTF laws or the agent’s AML/CTF program.

Buyer’s Agents should also protect their commission

Buyer’s agents need to think carefully about commission.

A buyer’s agent may do all required work for the buyer, but later be unable to continue because the seller refuses AML/CTF checks or no proper reliance pathway is available.

The buyer’s agent’s terms should make it clear that, if the engagement is paused or terminated for AML/CTF reasons, the buyer may still have to pay fees or commission that have already been earned.

For example, the terms could say that if the buyer enters into a contract for a property introduced, found, inspected, negotiated or facilitated by the buyer’s agent, the agreed commission remains payable even if the agent later has to stop acting for AML/CTF compliance reasons.

This should be clearly explained in the engagement terms.

Practical Steps for Agents

Before 1 July 2026, agents should:

update appointment forms and engagement terms;
add AML/CTF cooperation clauses to contracts where appropriate;
create a process for relying on another agent’s checks;
use secure verification platforms;
train staff on what to do if someone refuses checks;
keep written records of requests and refusals;
know when to pause, escalate or stop acting;
avoid telling anyone if a suspicious matter report has been or may be made.

AML/CTF Made Easy With MAP Lawyers

We’re offering Reliance Agreements that let us securely share AML/CTF checks with real estate agents, so clients only provide their information once, helping make the process more efficient, secure and client-friendly.

To find out more about entering a reliance agreement with MAP Lawyers click the link below:

Reliance Agreement With MAP Lawyers

From 1 July 2026, AML/CTF checks will become a normal part of real estate transactions.

Agents should be ready to complete checks on both buyers and sellers, use proper reliance arrangements where possible, and have clear processes for dealing with people who refuse to provide information.

Please note that the above does not constitute formal legal advice and is general in nature.

If you have any questions or concerns regarding the above, please do not hesitate to reach out.