Plate 3 of 6 · The fee
Commission and marketing costs
Commission and marketing costs are two separate amounts, and in NSW, Victoria and Queensland both are written into the agreement before the agent begins. All three regulators describe the commission as something to negotiate, and Victoria requires the agent to tell the seller so before the authority is signed.
This page gives no commission rate and no estimate of marketing costs. It sets out what must be on the paper, as each regulator describes it.
General information, not legal or financial advice. The official places to check are NSW Fair Trading, Consumer Affairs Victoria and Queensland’s Office of Fair Trading.
What the paper must say about the fee
NSW
The agency agreement must state the fees or commission the seller agrees to pay, the circumstances in which the agent is entitled to payment, and how and when payment is made, such as whether the agent can deduct commission from the buyer’s deposit. It must also carry warnings where a seller might pay commission to more than one agent, or where commission is payable even if the sale is not completed.
Victoria
Every authority must include the commission and expenses agreed, stated as a dollar amount or a percentage. If a percentage is used, an example of the dollar amount it represents must be given too. The authority also carries a statement, in wording approved by Consumer Affairs Victoria, saying where a complaint about commission or expenses can be made. An agent cannot claim or sue for commission unless the authority holds everything the Estate Agents Act 1980 requires, the seller has a signed copy, and the agent said before signing that commission and expenses are negotiable. Commission may be a fixed fee, a percentage of the sale price, or both, and GST is set out separately.
Queensland
Part 7 of Form 6 records the commission including GST, with a note to the client: “The commission is negotiable. It must be written as a percentage or dollar amount.” On a sale, the form’s standard wording makes commission payable if a contract is entered into and settles. A seller can choose “Other” instead, and the form warns that the agent may then seek commission even if the contract does not settle.
Sliding scales
Some agreements change the commission with the price. NSW Fair Trading says a seller considering this should be careful, because they may end up paying significantly more than under a flat fee based on the final sale price. Consumer Affairs Victoria shows how a scale can be read two ways, using an example of its own. Its figures illustrate the reading of a scale; they are not a typical rate.
“The agent’s commission is 3.3 per cent (including GST) for a sale price less than $500,000 and 3.85 per cent (including GST) if the sale price is more than $500,000. The property sells for $585,000.”
Consumer Affairs Victoria, Selling property with or without an agent, © State of Victoria, CC BY 4.0
A seller might read that as the lower rate on the first $500,000 and the higher rate on the remaining $85,000; the agent might read it as the higher rate on the whole $585,000. Consumer Affairs Victoria’s answer is to check the dollar amount stated in the authority, and to ask the agent for worked examples at several possible sale prices.
Marketing costs
Advertising is not usually part of the commission, as Queensland’s Office of Fair Trading puts it, and Consumer Affairs Victoria calls marketing costs an amount “on top of the agent’s commission”.
| Question | NSW | Victoria | Queensland |
|---|---|---|---|
| What the seller may be asked to pay for | If the agreement sets them out: advertising, an auctioneer’s fee, cleaning, decorating or landscaping. | Marketing and advertising agreed in the authority. All expenses are negotiable and must be recorded in it. | Expenses discussed, agreed and authorised in advance. Form 6 has an authorised amount for advertising and marketing, which must be written in. |
| The limit on the charge | The agreement states the amounts, or estimated amounts, of rebates and discounts on those services, and the seller can negotiate whether to pay the full amount. | An agent must not charge more for advertising or other outgoings than the seller authorised in writing, or than the agent paid. | The agent pays from their own money or the trust account, gets a receipt, and reimburses themselves from trust for the amount on the receipt. |
| If the property does not sell | The agreement must warn if commission is payable even when a sale is not completed. | Marketing costs agreed in the authority are still payable, unless the authority is on a “no sale, no fee” basis. | The Queensland pages this guide read do not say. Money a seller pays in advance must go into the agent’s trust account. |
All three regulators suggest seeing the costs set out before agreeing to them. NSW Fair Trading suggests asking agents for a full list of fees, including advertising, promotion and administrative costs. Consumer Affairs Victoria suggests a comprehensive written marketing plan and a written schedule of advertising and other outgoings. Queensland’s Office of Fair Trading says an agent must be fully accountable for how they use a seller’s money, and suggests asking for a marketing plan showing how, when and why it will be spent.
When the commission is paid
In Victoria, the agent deducts their commission from the deposit at settlement, pays the seller the balance and gives an account for the sale.
Queensland’s two documents read differently, and both are current on its site. The Office of Fair Trading’s commissions page, last updated in October 2020, says most real estate contracts make commission payable once the sale is unconditional, so a seller still pays if the sale falls through after that date, though the agent has to leave the money in the trust account until the whole transaction is finished. That page suggests setting the buyer’s deposit at no less than the commission, and getting legal advice before signing the sale contract. Form 6, in its version effective from 1 May 2024, makes commission payable on settlement unless “Other” is chosen. What a particular appointment says is on its own Part 7.
If the amount looks wrong
In Victoria, a seller who believes the commission charged is excessive can lodge a complaint with Consumer Affairs Victoria within 28 days of receiving the agent’s account, or apply to the Victorian Civil and Administrative Tribunal. In Queensland, the Office of Fair Trading says it may be able to help where a commission is harsh or unreasonable, or does not match the agent’s first quote. The routes in each state are on When something goes wrong.