Australians preparing to buy or sell property should expect a simple new identity verification step that will be no more complicated than opening a bank account.

The changes are part of the Federal Government's expanded Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime, which took effect on 1 July and now applies to real estate agencies.

Under the new requirements, real estate agents will be required to verify the identity of property sellers and successful purchasers using either a driver’s license or a passport and by asking a small number of standard questions about the transaction, such as the reason for the sale or purchase.

According to Chris Nicholl, Chief Executive Officer of Raine & Horne, the vast majority of Australians will already have everything they need to complete the process.

"There's no reason for buyers or sellers to be concerned. These changes are simply another layer of protection being put in place by the government to make it more difficult for criminals and criminal enterprises from using property transactions to launder money,” Chris explained.

"Most people will already have the required identification with them at all times, such as a driver's licence. In most cases, the verification process takes only a matter of minutes.

“Your agent can do this in your living room while signing the agency agreement, or it can be done by SMS or email.”

It’s fair to expect some consumers may initially assume the new requirements will create additional complexity when buying or selling property. However, Chris allays concerns, saying, "In reality, it's a very straightforward process.

"I'd liken it to opening a bank account,” he said.

“Banks have been required to verify the identity of customers for many years, and now real estate agents are being required to do the same.”

For vendors and purchasers who own property through trusts or company structures, additional documentation may be required to verify the underlying ownership structure.

"Where a property is owned through a trust, agents will need a copy of the trust deed so the ownership structure can be understood and the relevant parties identified," Chris explained.

"Our preferred AML supplier, FirstAML, has a simple process for this to occur and identify the relevant parties with ease.”

Chris Nicholl also said the practical experience of buying and selling property would remain largely unchanged.

"The process shouldn't feel any different to a pre-1 July 2026 transaction – there is just a little more detail to complete when listing your property for sale,” he said.

“For the purchaser, they will simply need to complete the same ID process as a vendor and answer a few simple standard questions about the purchase, most of which a good agent will be asking them already.”

For more information about the new AML/CTF requirements and how they may affect your next property transaction, speak to your local Raine & Horne agent.