Why AML Matters in Real Estate: What Every Seller Should Know
New Zealand’s real estate sector has been subject to Anti-Money Laundering (AML) laws since 2019, and understanding how this impacts you as a seller is crucial. AML isn't just financial industry jargon—it's a legal framework that could directly affect your ability to sell your property.
What Is AML?
AML (Anti-Money Laundering) laws are designed to prevent criminals from disguising illegally obtained funds as legitimate income. In real estate, this means agents must verify your identity and source of funds (if in a Trust)before you can list a property.
What Do You Need To Provide?
Expect to supply your full name, date of birth, residential address, and possibly documents like a passport or driver’s license paired with a utility bill. If you're selling on behalf of a trust or company, the requirements increase—trust deeds, company extracts, and a breakdown of ownership may be needed.
Why It's Important
Failure to complete AML checks can delay or even prevent your property from being listed. It’s not optional. If your real estate agency can’t verify your identity in line with AML/CFT (Counter Financing of Terrorism) legislation, they legally can’t act for you.
Top Tip For Sellers
Start early. As soon as you're considering selling, gather your documents. Talk to your agent about what will be needed. If a trust or company is involved, allow extra time.
AML might seem like red tape, but it's a key part of maintaining trust and integrity in New Zealand’s real estate market.