Legal compliance is essential for any real estate agent practising in Queensland. Agents must abide by regulation enforced by the Office of Fair Trading (OFT) under the Property Occupations Act 2014 and the Agents Financial Administration Act 2014. Breaching these laws can result in serious consequences, including financial penalties, licence suspension, or permanent disqualification. Understanding and applying real estate compliance standards is the first step to building a long‑term and reputable career.
1. Trust Account Mismanagement
Trust accounts are used to hold money on behalf of clients and must be handled with care. Mishandling these funds is one of the most serious breaches in the property industry.
Common mistakes:
- Using trust funds before settlement
- Failing to reconcile the account regularly
- Not submitting annual audit reports as required
Best practice:
- Open and maintain a separate trust account through an approved financial institution
- Record deposits clearly and accurately
- Reconcile trust accounts within five business days
- Submit required audit reports on time
Meeting these requirements is essential for maintaining real estate compliance and protecting both clients and your professional standing.
2. Operating Without a Licence
Working as a real estate agent without holding the correct licence or registration is a breach of Queensland law. This includes offering services or presenting yourself as an agent before your registration is approved.
Best practice:
- Confirm that your registration or licence is active before you begin work
- Ensure your role aligns with your licence type
- Understand the scope of services you are legally allowed to offer
Staying properly licensed is a fundamental requirement for real estate professionals and a key component of real estate compliance.
3. Misleading or False Representations
Agents must not provide false, misleading, or deceptive information to clients. This includes making inaccurate claims in marketing, underquoting property prices, or exaggerating service capabilities.
Best practice:
- Use up-to-date data when advising on property prices
- Describe all listings truthfully and accurately
- Verify all claims before presenting them to buyers or sellers
Clear, honest communication helps build trust and ensures compliance with the Australian Consumer Law and Queensland advertising regulations, all of which support broader real estate compliance.
4. Mishandling Contracts and Disclosures
Real estate agents have legal obligations when preparing contracts and providing disclosures. Mistakes in documentation or failure to meet required standards can lead to cancelled sales, client complaints, or legal penalties.
Common issues:
- Incorrect buyer or seller names
- Missing cooling-off periods
- Failing to use or explain required forms (such as Form 6)
Best practice:
- Review all contracts carefully before submission
- Provide all required disclosures clearly and in writing
- Stay informed about changes to legal forms and compliance requirements
Correct handling of contracts and disclosures supports both client protection and real estate compliance.
5. Soliciting Clients Under Exclusive Agreements
Approaching property owners who are already under an exclusive agreement with another agency may breach Queensland legislation. This can damage professional relationships and lead to regulatory action.
Best practice:
- Ask every prospective client whether they are currently under an agreement with another agent
- Retain a written record of the client’s response
- Only proceed if it is confirmed that no active agreement is in place
Respecting existing agency agreements is not only ethical, but also a requirement under Queensland’s real estate laws. It is another key element of full real estate compliance.
Conclusion
New agents in Queensland face many responsibilities, but legal compliance does not need to be overwhelming. By understanding these five common pitfalls — trust accounts, licensing, representation, documentation, and client engagement— you can avoid costly mistakes and build a career based on professionalism and integrity.
Compliance forms the backbone of a successful real estate career. Since Continuing Professional Development (CPD) is now a mandatory requirement for all Queensland real estate professionals, staying compliant and up to date is essential for maintaining your licence and building your career.
QRET’s CPD Membership Program provides ongoing, practical training to keep you informed, compliant, and confident in your practice.
Learn more and join our CPD membership.
