At PWC Realty, we work closely with Perth investors and property owners who hold real estate through family and discretionary trusts. For many, trusts are a smart way to manage risk, protect assets and structure long-term wealth.
However, with Australia preparing to roll out AML/CTF Tranche 2 reforms under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, PWC Realty is alerting our clients, that the real estate, finance and settlement representatives will be required, by law, to ask and conduct what would be considered invasive questions & requests under previous normal conditions of doing business in this industry.
Specifically this relates to property purchased in Trusts and what is now coming to light is the frequency that the whereabouts and details of the Trust Deed have been forgotten, misplaced, or never received in the first place, in the circumstances of inheritance. This will cause major hold ups to the settlement of property let alone bringing a property to market.
Why This Matters for Property Owners in Perth & WA
The proposed Tranche 2 reforms will expand compliance obligations to more professionals involved in property, finance and advisory services. This means deeper verification of ownership and control structures, especially where trusts are involved.
In practical terms, professionals facilitating property transactions may be required to:
- Confirm the legal existence of trust
- Verify the identities of trustees and other key parties
- Understand who holds control powers
- Determine the ultimate beneficial ownership (UBO)
- Source clear records supporting how that conclusion was reached
If a trust deed, including all variations, cannot be produced, it may slow down or complicate property transactions.
For sellers, buyers and investors across Perth and rural Western Australia, as well as the whole of Australia; this is more than an administrative detail. It can impact timing, approvals and settlement confidence.
What Is a Trust Deed and Why Is It So Important?
A trust deed is the legal document that establishes trust and sets out:
- Who the trustee is
- Who the beneficiaries are
- Who has the power to appoint or remove the trustee
- How income and capital can be distributed
- What amendment powers exist
In many family trusts, control doesn’t always sit where people assume. For example, an appointor may have the power to remove and replace a trustee. Without reviewing the actual deed, it can be difficult to determine who ultimately controls the trust.
Under the evolving AML/CTF framework, that level of clarity will become increasingly important.
The Common Issue: Missing or Incomplete Documentation
We are aware that many trusts were established years, sometimes decades ago. Over time:
- Original deeds may be misplaced
- Variations may not be stored with the main document
- Changes of trustee may not be consolidated
- Corporate trustee constitutions may be outdated
- Signed execution pages may be separated from the deed
Often, clients believe their accountant or former adviser holds the documentation, only to discover that records are incomplete.
This becomes stressful when a property transaction is already underway.
How This Could Affect a Property Transaction
From a real estate perspective, documentation gaps can potentially lead to:
- Delays in contract exchange or settlement
- Extended due diligence periods
- Requests for additional verification
- Increased scrutiny from lenders or advisers
- Unnecessary transaction risk
In a competitive Perth property market, timing matters. No vendor or buyer wants an avoidable compliance issue disrupting momentum.
Being proactive now can prevent frustration later.
Practical Steps Property Owners Can Take Now
If you hold property in a trust structure, consider taking these steps well before listing, refinancing or acquiring new property:
1. Locate the Original Trust Deed
Ensure you have a complete copy of the executed trust deed, including signatures.
2. Gather All Variations and Amendments
Collect any deeds of variation, changes of trustee, changes of appointor or supplemental documents.
3. Confirm Corporate Trustee Records
If a company acts as trustee, ensure the company constitution and ASIC records are up to date.
4. Store Documents Securely and Accessibly
Maintain both physical and digital copies so documents can be produced promptly when required.
5. Seek Professional Advice if Documents Are Missing
If something cannot be located, speak with a qualified legal professional sooner rather than later about potential reconstruction options.
Taking these steps now reduces risk and protects your ability to transact smoothly when opportunity arises.
Why We’re Sharing This Now
At PWC Realty, our role extends beyond listing and selling property. We are committed to helping Perth property owners stay informed, prepared and protected.
Regulatory change of this scale does not happen overnight, but once implemented, expectations shift quickly. Preparing early demonstrates professionalism, reduces stress and safeguards your investment strategy.
If you’re considering selling, purchasing or restructuring property held in a trust, it’s worth confirming your documentation is complete before entering the market.
Peace of Mind Starts with Preparation
Trust structures remain a valuable and widely used vehicle for holding property in Western Australia. The key is to ensure your paperwork matches your structure.
Don’t wait until you’re under contract to discover a missing deed.
If you’d like to discuss your property plans or ensure your upcoming transaction runs smoothly, our experienced Perth team is here to help.
📞 Contact Jo Lindo today at 0429 092 110 for a confidential property consultation and ensure your next move is compliant, confident and seamless.
Frequently Asked Questions
1. What is AML/CTF Tranche 2?
AML/CTF Tranche 2 refers to proposed reforms that expand Australia’s anti-money laundering and counter-terrorism financing laws to additional professions involved in financial and property transactions.
2. Why does a trust deed matter in a property sale?
The trust deed confirms who controls the trust and who is authorised to act. If it cannot be produced, professionals may not be able to complete required due diligence.
3. Will this affect all trust property owners in Perth?
If your property is held in a trust, you may be asked to provide documentation confirming ownership and control when entering certain transactions.
4. What if I cannot find my original trust deed?
You should speak with a qualified legal adviser as soon as possible. Reconstructing documentation can take time and may delay property dealings.
5. Should I review my trust documents before listing my property?
Yes. Reviewing documentation early helps avoid settlement delays and ensures a smoother transaction process.