Buying a property is one of the most financially significant moments in an Australian’s life. But there’s a growing blind spot in how we regulate those who represent property buyers — and that blind spot is unlicensed buyer’s agents.
Every day, consumers are placing trust in individuals who appear professional, but who aren’t licensed to provide real estate services in any Australian jurisdiction. They’re negotiating deals, influencing major decisions, and collecting payment — all without the legal safeguards that come with licensing.
This matters. It undermines consumer protection, erodes public trust in the real estate profession, and places licensed professionals at a commercial disadvantage.
That’s why I’ve written a proposal to strengthen the regulation of buyer’s agents in Australia. It outlines a set of clear, practical reforms designed to close regulatory loopholes and support licensed, transparent, professional practice.
You can download the full proposal here.
But first, here’s a summary of what’s going on — and how we fix it.
What’s the Problem?
While comprehensive national data is limited, industry observers estimate that buyer’s agents are involved in 5–10% of Australian property transactions, with much higher use in competitive markets like Sydney and Melbourne.
But as demand for buyer’s agents has grown, so too has the number of unlicensed operators — some interstate, others offshore — acting outside the law. They often:
Present professionally online
Omit licensing information
Operate across state lines without regulatory clarity
Request payment via settlement without proper documentation
This activity is increasingly common in social media forums like AUS Property Investors, where individuals promote themselves as buyer’s agents without appearing on any licensing register.
Enforcement is fragmented. Each state and territory runs its own licensing system, with varying standards and levels of responsiveness. There is no national public register. No consistent way to report concerns. No clear consumer guidance.
And most buyers assume — wrongly — that anyone using the title “buyer’s agent” is licensed.
Why It Matters
This lack of regulation carries real risks:
- Consumers may be misled and have no legal recourse if things go wrong.
- Licensed professionals are undercut by those not held to the same standards.
- The profession loses credibility, making it harder to raise standards and build trust.
Worse still, with Tranche 2 Anti-Money Laundering (AML/CTF) reforms on the way, the current system leaves a dangerous enforcement gap. Real estate professionals will soon be required to verify customer identities and monitor suspicious activity. That can’t happen if key players in a transaction are invisible to regulators.
What the Proposal Recommends
The proposal includes seven key reforms that work together to deliver a stronger, more transparent framework.
1. Elevate Buyer’s Agent Status in Industry Bodies
Buyer’s agents are often treated as second-class members in industry organisations. They’re rarely featured in awards, training, or promotional content. This reform calls on REIs to make buyer’s agents visible and valued, giving individuals something to aspire to — and a reason to stay accountable.
2. Create a National Public Register of Licence Holders
A federated national register, fed by state licensing bodies, would let anyone verify an agent’s licence in seconds. It would also provide a simple way to report unlicensed activity. Other countries have similar systems — New Zealand’s REA public register and the U.S. NMLS for mortgage brokers show what’s possible.
3. Record All Agent Involvement on the Contract of Sale
If a licensed agent is acting in a transaction — whether as a seller’s agent or buyer’s agent — their details should be listed on the contract. This adds transparency and allows regulators to follow up if needed.
4. Prevent Unlicensed Activity and Support AML/CTF Compliance
Introduce what I call the “No Facilitation Rule.” Selling agents and conveyancers must take reasonable steps to confirm that any person claiming to be a buyer’s agent is licensed. If they’re not, they must advise the client that no payment is required — and report the activity. This aligns with AML/CTF obligations and helps plug enforcement gaps.
5. Legislate the Mandatory Display of Licensing Information
If you offer real estate services online, you should be required to clearly display your licence number and jurisdiction. No more anonymous Facebook profiles or vague websites. If you’re licensed, show it. If you’re not, don’t pretend you are.
6. Strengthen Government Enforcement
Governments must act on their responsibility to investigate and prosecute unlicensed operators. That includes proactive monitoring of digital platforms and co-ordination across jurisdictions. LinkedIn and Facebook shouldn’t be a safe haven for unlawful activity.
7. Raise Public Awareness
The public must be educated about the risks of unlicensed agents — and how to check credentials. A national campaign, jointly funded by governments and REIs, could go a long way toward empowering buyers.
Why These Changes Matter
Implementing these reforms would deliver meaningful benefits:
- Protecting Consumers: Buyers get advice from licensed professionals, backed by insurance, complaint pathways, and a code of conduct.
- Raising Standards: Professionals are encouraged to undertake training and engage in the industry — not operate in the shadows.
- Leveling the Playing Field: Licensed agents are no longer undercut by unregulated operators.
- Improving Enforcement: With clearer rules and reporting tools, regulators can act faster and more effectively.
- Future-Proofing the Industry: Aligning with AML/CTF Tranche 2 reforms makes the industry stronger and more resilient.
A Way Forward
None of these reforms are radical. Most are incremental, practical, and achievable with modest effort and strong leadership. The proposal recommends forming a national working group of REIs, regulators, and practitioners to prioritise and implement the changes collaboratively.
This isn’t about over-regulation. It’s about protecting buyers, supporting professionals, and lifting standards across the industry.
Final Thought
If we do nothing, the problem grows. If we act together, we can close the loopholes and build a profession that’s respected, trusted, and future-ready.
You can download the full proposal here. I’d love your thoughts.
