Buying or Selling Property After 1 July 2026? Here's Why We Now Have to Verify Your Identity
Did you know that from 1 July 2026, every conveyancer and property lawyer in Australia is legally required to verify the identity of their clients before a property transaction can proceed?
It sounds like a big change. In practice, for most of our clients, it adds a few minutes at the start of your matter. Here's what's happening and what it means for you.
Why is this happening?
Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws have applied to banks, casinos and financial institutions since 2006. Property professionals were left out of that first round. That gap is now closed.
On 29 November 2024, Parliament passed the AML/CTF Amendment Act 2024, which extends the regime to lawyers, conveyancers, accountants and real estate agents from 1 July 2026. These are known as the Tranche 2 reforms, and around 80,000 businesses across Australia are affected. You can read AUSTRAC's official explanation of the reforms on the government's own site, including its specific guidance for conveyancers and legal professionals.
Why property? Large sums change hands in a single transaction, and ownership can be hidden behind companies and trusts. That's made real estate a favourite target for money laundering. These laws make it much harder.
So this isn't a LEAD Conveyancing policy. It's federal law, it applies to every conveyancer and property lawyer in the country, and your bank has been doing the same checks for twenty years.
Haven't you always checked my ID anyway?
Yes, we have. Verification of Identity (VOI) has been part of electronic conveyancing for years, so if you've bought or sold with us before, you've already done an ID check with us.
What's new from 1 July 2026:
- The check happens under AML/CTF law, not just conveyancing rules, and AUSTRAC's guidance is clear that it must be completed before we start acting on your matter
- Companies and trusts need more detail. We're required to identify who actually owns or controls the entity, including directors, shareholders, trustees and in some cases beneficiaries
- Source of funds questions may come up. For some purchases we're required to ask where the money is coming from. That's a legal requirement, not a judgment about you
- Records are kept for seven years, as the law requires
- We must report suspicious activity to AUSTRAC, the federal regulator, where the law requires it
How we verify you: Livesign
We use Livesign, a secure identity verification and e-signing platform built for Australian legal work. It's the same tool we already use for your documents, so verification and signing happen in one place.
Here's how it works:
- We send a link to your phone or email
- You photograph your driver licence or passport
- Livesign runs a quick face scan to confirm the person holding the ID is really you
- Your identity is checked against official government document records
- When you sign your documents through Livesign, your verified identity is bound to your signature
The whole thing takes a few minutes. No printing, no office visit, no certified copies at the post office. And because your verified ID is tied directly to your signature, it's actually stronger protection for you. Nobody can sign your contract pretending to be you.
If you're buying or selling through a company or trust, we'll also ask for documents showing who owns and controls it, such as the trust deed or company constitution. We'll tell you exactly what's needed at the start, so nothing surprises you near settlement.
Frequently asked questions
Do I have to do this?
Yes. From 1 July 2026, identity verification is a legal requirement for every property transaction handled by a conveyancer or property lawyer in Australia. Without it, we can't act for you. The same applies at every firm.
I've used LEAD Conveyancing before. Do I still need to do it?
Yes. The law applies to all clients, including returning ones. If we hold current information on file the process is quick, but the check still has to be done.
Will this slow down my settlement?
No, as long as you complete the Livesign check promptly when we send it. We build it into the first step of your matter, well before it could touch any deadline. The only thing that causes delays is putting it off. When the link arrives, do it that day.
What happens to my information?
It's used for identity verification only. Livesign verifies your documents against government records without storing more than the law requires, and your information is never used for marketing. Records are kept securely for seven years as the AML/CTF Act requires.
Where can I read the law myself?
Start with AUSTRAC's reform overview. If you want the legislation itself, the AML/CTF Amendment Act 2024 is on the Federal Register of Legislation.
What if I refuse?
Then no conveyancer or lawyer in Australia can act on your sale or purchase. There's no way around it. If you have privacy concerns, call us and we'll walk you through exactly how your information is protected.
Questions? Call us on 1800 532 326. We're happy to talk it through.
