Major Property Law Changes Take Effect from 1 July: What Buyers and Sellers Need to Know—Sydney Auction Clearance Rate Sits at 49%

This Week’s Key Story

Australia’s property industry is preparing for one of its most significant regulatory changes in recent years. From 1 July 2026, new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) obligations will apply to real estate transactions, introducing stricter identity verification and compliance requirements for both buyers and sellers.

The reforms form part of the Federal Government’s Tranche 2 AML/CTF reforms, which extend anti-money laundering obligations to real estate professionals, lawyers, conveyancers and accountants involved in property transactions.

What Will Change?

Under the new framework, real estate agencies will be required to carry out Know Your Customer (KYC) and customer due diligence checks before proceeding with certain property transactions. These requirements are designed to strengthen the integrity of Australia’s property market and reduce the risk of money laundering and other financial crime.

For buyers and sellers, this means additional verification steps will become part of the normal transaction process.

For Property Sellers

Before a property can be marketed, agencies may need to complete identity verification and other compliance checks required under the new legislation.

Depending on the transaction, sellers may also be asked to provide similar identification documents to other professionals involved in the settlement process, such as their conveyancer or solicitor.

Many agencies are also introducing new compliance procedures and systems to meet their obligations under the legislation.

For Property Buyers

Purchasers will also be required to complete identity verification and compliance checks during the transaction process.

These checks will become another important step alongside finance approval, contract exchange and settlement. Completing the required documentation promptly may help avoid unnecessary delays later in the transaction.

Why It Matters

While the reforms are aimed at improving transparency and protecting Australia’s financial system, they also introduce additional administrative requirements for everyone involved in buying and selling property.

As with any major regulatory change, buyers and sellers should allow extra time for compliance checks and ensure identification documents are readily available when requested.

Preparing these documents early may help reduce the risk of delays as the industry adapts to the new framework.

Looking Ahead

The introduction of the AML/CTF reforms marks another significant change for Australia’s property sector. As agencies, legal professionals and financial advisers implement the new requirements, compliance will become an increasingly important part of every property transaction.

If you’re planning to buy or sell property, it’s worth speaking with your real estate agent or legal representative early to understand the new process and ensure you’re well prepared before settlement.

Last Week’s Auction Results

Sydney: A total of 812 properties were taken to auction, with results reported for 445 properties. Of these, 219 were sold, resulting in a 49% clearance rate. The total auction value reached AUD 201,807,776, with a median sale price of AUD 1,535,000.

Melbourne: A total of 775 properties were taken to auction, with results reported for 528 properties. Among them, 288 were sold, achieving a 54% clearance rate. The total auction value amounted to AUD 190,818,200, with a median sale price of AUD 906,500.