New ID Verification Rules Aim to Better Protect Property Buyers and Sellers

A recent scam attempt involving a vacant block of land in Yanchep is a timely reminder that property fraud can happen to anyone and highlights why stronger identity checks are being introduced across Australia's real estate industry.

The scam involved a person falsely claiming to own a vacant property and attempting to arrange its sale while supposedly living overseas. Thankfully, settlement agents identified several warning signs and stopped the transaction before any damage was done.

While the scam was unsuccessful, it demonstrates how sophisticated property fraud has become. Criminals are increasingly targeting vacant land, investment properties, and owners who may be living interstate or overseas.

For buyers and sellers, this means identity verification is becoming more important than ever.

From 1 July 2026, new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws will require real estate agencies to carry out additional identification checks during property transactions. Buyers and sellers may be asked to provide more documentation than in the past, and agencies may need to verify information before proceeding with a sale.

Although these extra steps may add a little more paperwork, they are designed to protect consumers and reduce the risk of fraud, identity theft, and unauthorised property sales.

For sellers, the new requirements help ensure that only the rightful owner can list and sell a property. For buyers, they provide greater confidence that the person selling the property is who they claim to be.

Property owners should ensure their contact details are current and be prepared to provide identification when requested. Buyers should also expect additional verification checks throughout the purchasing process.

While no system can completely eliminate fraud, stronger identity verification measures will make it significantly harder for scammers to target Australian property owners. As the Yanchep incident shows, a few extra checks today could prevent a costly and stressful situation tomorrow.