New Property Verification Laws: What Buyers, Sellers and Owners Should Know

Why property clients may be asked for more information.

Property is one of the most significant financial transactions many people will ever make. Because of the value involved, property transactions can attract closer regulatory attention.

The new requirements are designed to help real estate businesses understand who they are acting for, who is involved in a transaction, and whether there are any risks that need further review.

This does not mean there is anything unusual about your transaction. It simply means that additional checks are now part of the property process.

We understand this adds another step.

We know these checks add a step to what is already a significant process, and we apologise for any inconvenience.

The process is mandated by law and is not something we can waive. However, we are doing everything we can to make it quick, simple and as unobtrusive as possible.

Providing the required information early can help prevent delays to key milestones, including agency appointment, exchange, settlement or the continuation of a relevant service.

What this means for sellers.

If you are selling a residential or commercial property, you may be asked to provide identification and verification details before or during the agency appointment and sales process.

This may include confirming your identity, your authority to sell the property and, where relevant, the structure of the ownership.

For example, if the property is owned by a company, trust, self-managed super fund or another legal entity, further information may be required to confirm who ultimately owns or controls that entity.

Where verification is required, we may not be able to proceed with the relevant service until the required checks are complete. Early cooperation helps reduce the risk of delays.

What this means for buyers.

If you are purchasing a property, you may be asked to provide identification and supporting information once you are the successful purchaser, or when it becomes reasonably expected that the transaction will proceed.

Verification must be completed before the relevant transaction process can continue. Providing documents promptly can help avoid delays to contract progression, exchange or settlement.

This may include photo identification, confirmation of how the purchase is being funded and whether the purchase is being made personally or through a company, trust or other structure.

In some circumstances, additional information may be requested about the source of funds or source of wealth. This may apply where a transaction is more complex, involves an entity structure or requires further review under the new obligations.

What this means for companies, trusts and other ownership structures.

Property ownership is not always straightforward. Many residential and commercial properties are held through companies, trusts, partnerships, self-managed super funds or other structures.

Where this applies, the verification process may go beyond the person signing the documents.

Additional details may be needed to identify directors, trustees, beneficiaries, beneficial owners or authorised representatives. This helps confirm who is behind the transaction and who has authority to act.

While this may add an extra step, it is part of a broader industry requirement and is intended to support a more transparent property market.

Ongoing verification may be required.

In some circumstances, verification is not limited to the start of a transaction or relationship.

We may need to request updated information periodically during our relationship with a client. This may occur where details change, where documents expire, where a transaction changes in nature or where additional checks are required under the AML/CTF regime.

If updated information is needed, the Shead Property team will explain what is required and why.

Does this affect leasing and property management?

The main focus of the new real estate AML/CTF obligations is the sale, purchase or transfer of real estate.

In most everyday cases, standard residential leasing, commercial leasing and property management will not be affected in the same way as sales transactions.

However, certain long-term or ownership-like interests may still require consideration. For example, AUSTRAC’s guidance refers to leasehold interests of more than 30 years as part of the broader real estate definition.

For most landlords, tenants and property management clients, the day-to-day process is unlikely to change significantly. Where any additional information is required, the Shead Property team will guide you through it clearly.

Protecting your information.

We understand that providing personal or financial information can feel sensitive.

Any information requested as part of this process will be handled carefully and in line with privacy, security and record-keeping obligations. The purpose of these checks is not to make the property process harder. It is to help meet legal requirements and protect the integrity of property transactions.

Staying alert to scams.

Shead Property will request verification documents through our secure verification platform here.

We will never ask you to send identification documents or bank details through unsolicited text messages, unexpected email links or informal channels.

If you receive a request that seems unusual, please do not click on links or send documents until you have confirmed the request with our office directly using our official contact details.

How you can prepare.

If you are planning to buy or sell property, it may help to have key information ready early.

This may include current photo identification, ownership details, company or trust documents where relevant, proof of authority to act and information about how the transaction will be funded.

Preparing these details in advance can help reduce delays and keep the process moving smoothly.