Pillar 2 · Contract of sale
A special condition that keeps the sale moving
Once a contract is signed, AML/CTF verification has to happen on both sides before settlement. A well-drafted special condition makes that a shared, orderly step — so a routine check never becomes the reason a settlement slips.
Effective 1 July 2026 · Last updated June 2026
Why a special condition?
A standard contract of sale wasn't written with AML/CTF verification in mind. Without a condition dealing with it, the parties can end up arguing about whose obligation it is, how long is reasonable, and what happens if a check isn't finished in time. A purpose-built special condition answers those questions in advance, in writing, before anyone is under settlement pressure.
What good special-condition wording covers
A mutual duty to cooperate
Both parties agree to provide the identity and verification information reasonably required for AML/CTF purposes, and to do so promptly. Because it binds both sides, no one party carries the whole burden.
Sensible timing, not a hair-trigger breach
If a check runs late, the condition provides a fair mechanism — such as a short, reasonable extension — rather than turning an ordinary verification delay into an instant default.
A clear path if verification can't be completed
Wording for the rare case where a party genuinely can't be verified, so the parties know where they stand instead of ending up in a dispute at settlement.
Risk allocated fairly
The condition is drafted to be even-handed and proportionate, so it does the job without creating an unfair advantage for one party over the other.
Consistency with the rest of the contract
Notes on how the special condition interacts with settlement, notice and default provisions, so it slots into the contract cleanly.
A word on fairness — and why drafting matters
A special condition that pushes too much risk onto one party can be challenged as an unfair contract term under the Australian Consumer Law, which may make it void and unenforceable. That's exactly why the wording in our pack is drafted to be even-handed and proportionate. Don't copy an aggressive clause off the internet — use wording that does the job and holds up.
The full drafted condition is in the pack
The points above explain what the condition needs to do. The pack gives you the actual special condition, drafted by property lawyers and ready to add to a contract, with notes on how to use it. Request it below — it's free.
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Pillar 1
Authority clauses
Set expectations and get consent before the contract is signed.
Important — please read
This page and any clauses referred to on it are general information about the AML/CTF reforms and are not legal advice. They are provided to help real estate professionals understand the upcoming changes and do not take into account your particular circumstances or any specific transaction.
The AML/CTF reforms take effect from 1 July 2026, and AUSTRAC guidance and the supporting rules are still being finalised. The obligations that apply to you, and any suggested clause wording, may change before and after that date. Always confirm the current position before relying on it. Last updated June 2026.
A special condition forms part of a binding contract. Terms that are unfair or disproportionate may be void under the unfair contract terms provisions of the Australian Consumer Law. Have any condition reviewed for your jurisdiction and the specific contract before you use it.
Reading this page, or requesting the clause pack, does not create a solicitor–client relationship or a retainer, and no duty of care is assumed until we have agreed to act for you in writing. You should obtain your own legal advice before adopting any clause in your agency agreements or contracts. See our Terms and Privacy Policy.
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