Using a real estate agent to buy a property

A real estate agent can help you with buying a property. Real estate agents who act for the buyer are also known as a 'buyer's agent'.

A buyer's agent must hold either:

• a real estate agent's licence, or
• a certificate of registration and work under the direction of a licensed real estate agent.

You can do a licence check online or call 13 32 20.

Benefits of using a buyer's agent

A buyer's agent can help you:

• find, assess and shortlist properties meeting your search criteria
• research properties to determine a fair price
• inspect a property
• evaluate and negotiate a price on your behalf
• bid at auction
• follow up until the sale is finalised and liaise with related parties during the process
• provide objective information, advice and support
• access databases and information not readily available to the public, including increased access to properties off market
• assist with property manager selection
• eliminate stress by having one representative looking after your needs, rather than dealing with several different selling agents.

You can decide what level of service you need from your buyer's agent.

Choosing a buyer's agent

Here are some questions to consider when deciding which buyer's agent to use.

• Are they a licensed real estate agent, and if so, how long have they been licensed for?
• Do they exclusively represent only the buyer in the property purchasing transaction?
• What experience do they have in property research and negotiating prices?
• What fees are they charging and will there be fees or charges if they don’t find you a property you like?
• What are the terms and conditions of the agreement, and if you are not happy with their performance how can you end the agreement?
• How are they different from other buyer’s agents?
• Do they have a large network of contacts with selling agents?
• How often will they give you feedback?
• Do they have professional indemnity insurance as required by law?
• Do they receive any rebates, discounts, commissions or other benefits from third parties or service providers they may refer you to?
• Are they a member of an industry association? For example, the Real Estate Institute of NSW, or the Real Estate Buyers Association of Australia.

Specific rules of conduct applying to buyer's agents

Buyer’s agents are expected to follow specific rules of conduct under the Property and Stock Agents Regulation 2022 (the Regulation). These outline the professional and ethical standards the public expects them to adhere to. The rules are set out in Schedule 1 and Schedule 2, Part 1 (Division 3 and 4). A breach may result in the agent being penalised.

Aside from the obligations set out in the Regulation, buyer's agents also must comply with other laws in relation to their conduct and in carrying out their functions. This includes laws in the Property and Stock Agents Act 2002

Key information about what buyer's agents need to provide

• When signing an agency agreement, the agent is required to prepare and give you a statement of property details, signed by the agent.
• The buyer’s agent must declare any conflict of interest in representing you. The agreement must specify:
  • details known to the agent of the type of property to be purchased
  • details of any special instructions about the property to be purchased, for example a requirement for vacant possession.
• The agent must keep you informed of each stage of the negotiations of a purchase price.
• The agent is required to obtain the best possible purchase price for you.
• The agent is not to exceed the agreed purchase price in negotiations or at auction without your express written authority.
• The agent must not accept any payment for referring you to a selling agent.
• If an agent intends to pay an expression of interest deposit on your behalf, they must first inform you in writing that:
  • the vendor is not obliged to sell the property
  • you are not obliged to buy the property, and
  • the deposit is refundable if you do not enter into a contract for the property.
• The agent must not accept an expression of interest deposit unless you have given them a signed written statement that you were given the above information and understand it.
• The agent must promptly inform you if a subsequent offer is made to purchase the property.

Please see rules of conduct for property professionals for more information.

Agency agreements

When you appoint a buyer’s agent you will need to sign a buyers’ agency agreement. This sets out the services they will provide and the terms and conditions of the agreement. The terms required in agency agreements are set out in schedules 5 to 12 of the Regulation.

Do not sign the agency agreement before you understand what it means for you regarding:

• costs
• what the agent is committing to do for you.

If there is anything you don’t understand, contact NSW Fair Trading or your solicitor.

Commission, fees and expenses

Buyer’s agents may charge a fixed fee or a percentage of purchase price. You can negotiate this price as it is not set by law.

Disputes

If you have a dispute with your agent and you are unable to resolve it, you can lodge a complaint with NSW Fair Trading or call 13 32 20.

If we are unable to negotiate your matter, you can consider taking your dispute to the NSW Civil and Administrative Tribunal (NCAT). NCAT provides independent, low cost and accessible dispute resolution for consumer or tenancy disputes.

Get application forms and the fee schedule from the Tribunal's website or call 1300 006 228.