Introduction
Starting July 2026, you'll need to ask clients questions they've never heard before in real estate - about their ID, their money, and why they're buying. This guide gives you the exact words to make these conversations smooth, professional, and actually build trust rather than awkwardness.
Why Your Clients Will Be Confused (And That's OK)
For 30 years, buying property in Australia meant showing up with a deposit and signing contracts. Maybe flashing your licence at settlement. That's it.
Now you'll be sending verification links, asking about source of funds, and explaining why their cousin transferring them deposit money raises flags. Your clients aren't prepared for this because Australian real estate has never required it before.
The good news? Every agent in Australia faces the same challenge. The winners will be those who explain it confidently, like it's always been this way. That's what this guide teaches you.
The 5 Questions Every Client Will Ask (And How to Answer)
Question 1: "Why are you sending me this verification link?"
What they're thinking: Is this a scam? Are you trying to steal my identity?
Your answer approach: "From July, the government requires all real estate agencies to verify every client's identity - similar to when you open a bank account. This secure link takes about 90 seconds and means we can legally proceed with your purchase/sale. It's the same process Ray White, LJ Hooker, everyone's using now."
Key phrases that work:
• "Government requirement, not agency policy"
• "Same as opening a bank account"
• "Protects both of us"
• "Takes less than 2 minutes"
Question 2: "Why do you need to know where my money came from?"
What they're thinking: That's none of your business. I've never been asked this before.
Your answer approach: "It's a new requirement called 'source of funds' - basically, we need to note whether your deposit is coming from savings, loan, sale of another property, or inheritance. Just broad categories, nothing detailed. It's to prevent money laundering through property, which apparently is a bigger issue than any of us realised."
What works:
• Normalise it: "Everyone gets asked this now"
• Keep it light: "I know it feels weird, I had to do it when I bought my place too"
• Broad strokes: "We don't need bank statements, just 'savings' or 'loan' is fine"
Question 3: "I've bought five properties and never had to do this before"
What they're thinking: You're either incompetent or this agency has weird policies.
Your answer approach: "You're absolutely right - this is brand new as of July 2026. It's called Tranche 2, and real estate just joined the same rules banks have had for years. Every agency in Australia has to do this now, whether you're buying a studio in Footscray or a mansion in Toorak. The fines for not doing it start at $1.1 million, so nobody's taking chances."
Power moves:
• Acknowledge their experience
• Name-drop "Tranche 2" (sounds official)
• Mention the massive fines (explains why you're serious about it)
Question 4: "What happens with my information?"
What they're thinking: Where does this data go? Who sees it?
Your answer approach: "Your information is encrypted and stored securely for 7 years - that's the legal requirement. Only our compliance officer can access it, and it's never shared except if AUSTRAC specifically requests it, which is rare. Think of it like your tax records - stored safely but probably never looked at again."
Trust builders:
• "Same security as online banking"
• "We can't even access it once submitted"
• "Just like your accountant keeps tax records"
Question 5: "Can't we just skip this? I'm paying cash"
What they're thinking: Surely cash buyers don't need all this hassle.
Your answer approach: "Actually, cash purchases need even more documentation - that's specifically what these laws target. But don't worry, it's still straightforward. We just need to verify your ID and note that you're paying cash from savings or wherever it's from. Takes five minutes, then we're all good."
Never say:
• "That's suspicious"
• "Why are you paying cash?"
• "That raises red flags"
Always say:
• "No problem, common question"
• "Cash is fine, just different paperwork"
• "Let me walk you through it"
Turn Compliance Into Your Professional Edge
Here's what separates average agents from pros: positioning these requirements as part of your premium service, not annoying red tape.
Instead of: "Sorry, it's this annoying new government thing..."
Try: "We handle all the new compliance requirements for you, so your purchase is bulletproof."
Instead of: "I hate this too, but we have to..."
Try: "This protects you from any issues at settlement - we've seen deals fall over when this isn't done properly."
Instead of: "Bear with me while I figure this out..."
Try: "I'll guide you through each step - takes about three minutes total."
The agents crushing it post-Tranche 2 will be those who make compliance feel like premium service. Like how good restaurants made QR code ordering feel high-tech rather than annoying.
Quick Confidence Builders
The Property Comparison: "It's like building inspections - wasn't required years ago, now it's standard. Just evolution of the industry."
The Protection Angle: "This actually protects legitimate buyers like you from competing with dodgy money."
The Speed Promise: "Once you've done this initial verification, you're set for any future properties with us."
The Everyone Card: "I had to do this last week when I helped my mum buy. Even agents go through the same process."
Make the Process Invisible
The best agents won't make a big deal about Tranche 2. They'll weave it naturally into their existing process:
"Great, so we'll get the contract prepared, I'll send you a quick ID verification link - takes 90 seconds - and we'll note that your deposit is coming from the sale of your Camberwell property. Then we're ready to make the offer."
No drama. No big explanation unless asked. Just smooth, professional, normal.
With the right system (yes, like AML Assured), the client gets one link, answers three simple questions, and they're done. The smoother your system, the fewer questions you'll get.
Conclusion
Every agent in Australia will face these client questions starting July 2026. The difference between looking like an amateur versus a professional isn't avoiding the conversation - it's handling it with confidence.
Practice your answers. Keep them simple. Make it normal. And remember: the client who asks lots of questions isn't being difficult, they're being careful. That's exactly the type of client you want.
Want to make Tranche 2 invisible to your clients? Check out how AML Assured handles verification in 90 seconds flat, or join our readiness list for early access.Related Resources
Want to dive deeper into these topics? Check out our guides:
• KYC vs KYB vs CDD for Property - Understand the difference between these compliance checks • What Agents Need to Know About Tranche 2 - Complete guide to the new requirements • 5-Minute Compliance Training for Your Team - Quick training resources for your agency • Source of Funds: The Complete Guide - Everything you need to know about source of funds verification