How to Verify a Buyers Agent
Licence checks, independent verification, and the full four-layer verification process.
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Warning signs guide
Buyers agent red flags
Twelve warning signs, ranked by severity, that identify a bad buyers agent before they cost you money.
Find Verified AgentsMost agents are good. Some are not. Learn the difference fast.
The buyers agent industry is growing rapidly. Most practitioners are honest professionals doing excellent work. But the combination of low barriers to entry, inconsistent state regulation, and high transaction values creates conditions where some operators cut corners, or worse, actively mislead clients.
These twelve red flags are drawn from Australian Fair Trading complaint data and industry reports. Some are immediate disqualifiers. Others warrant a harder look. All are worth knowing before you sign anything.
0%
Complaints relate to conflicts
of all buyers agent complaints
0%
Red flag rate
agents with credential gaps
0+
Average loss
when things go wrong
0
Walk-away flags
that need no second chance
Walk away immediately
Five red flags where no amount of explanation justifies proceeding. These are disqualifying. Full stop.
Serious concern
Four flags that are serious enough to pause the engagement and seek a direct, written explanation before going further.
Investigate further
Three yellow flags that are not disqualifying alone but indicate an agent you should scrutinise more carefully.
The red flag severity spectrum
Not all red flags carry the same weight. The twelve sit in three severity zones, from worth investigating, through serious concern, to disqualifying on the spot.
Investigate flags warrant a harder look. Walk-away flags need no second chance: any single one is sufficient reason to end the engagement.
The 12 red flags: deep dive
Each flag includes: what it looks like in practice, a counter-question to ask the agent, and the severity level.
Flag 01walk away
No licence or refuses to share licence number
What it looks like
They deflect, give vague answers, or claim to be "accredited" without a state-issued number.
Ask them
"What is your full licence number and which state register are you on?"
Flag 02walk away
Receives commissions from sellers or developers
What it looks like
They accept payment from the sell side. Even if disclosed, this undermines their entire mandate.
Ask them
"Does your agency receive any commissions, referral fees, or other payments from vendors or developers?"
Flag 03walk away
Acts for both buyer and seller on the same transaction
What it looks like
Dual agency is inherently conflicted. Their negotiation is compromised the moment they represent both sides.
Ask them
"Do you also list and sell properties? Can you confirm you are not the selling agent's colleague?"
Flag 04walk away
No professional indemnity insurance
What it looks like
They cannot produce a current Certificate of Currency after reasonable request.
Ask them
"Can you email me your Certificate of Currency by end of day today?"
Flag 05walk away
No ABN or no physical registered business
What it looks like
Operating without an ABN is illegal for commercial activity. It also means no GST accountability.
Ask them
"What is your ABN? I'd like to look it up on the ABN Lookup register."
Flag 06serious concern
Applies pressure to sign immediately
What it looks like
"This offer is only available today" or "I am closing my books next week" are manipulation tactics, not facts.
Ask them
"I need 48 hours to review this with my partner. Is that a problem?"
Flag 07serious concern
No written agency agreement offered
What it looks like
Written agreements are legally required before acting. Resistance to documentation is a major warning.
Ask them
"I will not proceed without a written agency agreement. Can you email that through today?"
Flag 08serious concern
Vague or hidden fee structure
What it looks like
Fees that require multiple emails to pin down are either disorganised or intentionally obscured.
Ask them
"Can you send me a written fee schedule with all inclusions and GST stated?"
Flag 09serious concern
Guarantees specific financial outcomes
What it looks like
"I guarantee I will save you $50,000" is a sales tactic. No professional can guarantee a market outcome.
Ask them
"How do you substantiate that guarantee? In writing, what exactly do you commit to?"
Flag 10investigate further
Refuses to provide client references
What it looks like
Agents with happy clients share references without hesitation. Refusal suggests a thin or unsatisfied client base.
Ask them
"Can you provide two recent clients I can call this week?"
Flag 11investigate further
Vague claims about off-market access
What it looks like
"I have great networks" without specifics (who, how, where) is a common hollow claim.
Ask them
"How many off-market properties have you presented to clients in the past 3 months? Can you describe one?"
Flag 12investigate further
No independent verification or ongoing CPD
What it looks like
Minimal engagement with the profession (no third-party verification, no state institute, no CPD) suggests someone coasting.
Ask them
"What professional development have you completed in the last 12 months?"
Safe agent behaviour vs red flag behaviour
The clearest way to spot the difference: what a professional does versus what a problematic operator does, across six key dimensions.
| Safe Agent | Red Flag Agent | |
|---|---|---|
| Fee transparency | Provides a written fee schedule with all costs, GST, and timing clear from day one. | Vague about fees, reluctant to put them in writing, or changes the structure after signing. |
| Written agreements | Offers a written agency agreement proactively before starting any work. | Wants to start work on a handshake. "We can sort the paperwork later." |
| Vendor commissions | States clearly and in writing: zero commissions, referrals, or kickbacks from any third party. | Evasive when asked directly, or discloses conflicts buried in fine print. |
| Off-market claims | Provides specific recent examples: which agent, which suburb, which timeframe. | "Extensive networks" with no specifics, properties, or data to back it up. |
| Communication style | Regular, structured updates. Calm and clear when delivering hard news. | Overexcited when pitching, goes quiet once engaged. Defensive when questioned. |
| Insurance disclosure | Hands over a Certificate of Currency same day, unprompted. | Delays, deflects, or says insurance is "being renewed" indefinitely. |
Fee transparency
Safe Agent
Provides a written fee schedule with all costs, GST, and timing clear from day one.
Red Flag Agent
Vague about fees, reluctant to put them in writing, or changes the structure after signing.
Written agreements
Safe Agent
Offers a written agency agreement proactively before starting any work.
Red Flag Agent
Wants to start work on a handshake. "We can sort the paperwork later."
Vendor commissions
Safe Agent
States clearly and in writing: zero commissions, referrals, or kickbacks from any third party.
Red Flag Agent
Evasive when asked directly, or discloses conflicts buried in fine print.
Off-market claims
Safe Agent
Provides specific recent examples: which agent, which suburb, which timeframe.
Red Flag Agent
"Extensive networks" with no specifics, properties, or data to back it up.
Communication style
Safe Agent
Regular, structured updates. Calm and clear when delivering hard news.
Red Flag Agent
Overexcited when pitching, goes quiet once engaged. Defensive when questioned.
Insurance disclosure
Safe Agent
Hands over a Certificate of Currency same day, unprompted.
Red Flag Agent
Delays, deflects, or says insurance is "being renewed" indefinitely.
What to do when you see a red flag
Your response depends on the severity. Match the action to the flag.
Walk away
Any walk-away flag
No further discussion needed. Thank them, end the meeting, and contact another agent.
Get it in writing
Serious concerns
Request a written explanation or written documentation of what they are claiming. Verbal assurances are not enough.
Independently verify
Yellow flags
Check the state register, an independent verification directory, and ABN Lookup yourself. Do not take their word for credentials.
Call the regulator
Suspected unlicensed
Your state Fair Trading body can confirm whether a complaint has been lodged against the agent and whether their licence is in order.
Before engaging any agent, work through the full verification process: How to Verify a Buyers Agent
Must-leave vs investigate further
A quick-reference severity guide. Do not spend time investigating walk-away flags.
Must-leave red flags
No licence or refuses to confirm it
No amount of charm or references overcomes operating without a licence.
Confirmed vendor commissions
Even disclosed, this is a structural conflict that cannot be managed away.
No PI insurance after repeated requests
A professional has this document. Full stop.
Simultaneous dual agency
Representing buyer and seller in the same transaction is categorically conflicted.
No ABN or registered business entity
This is a legal requirement for commercial activity in Australia.
Investigate further: yellow flags
Not listed on a verified directory
Not disqualifying alone, but combined with other gaps it adds up.
Vague off-market claims
Ask for specifics: property examples, agent relationships, recent case studies.
Reluctant to provide references
Push back. Two references are a reasonable minimum request.
Recent business (under two years)
Not a red flag, but warrants extra credential scrutiny and more references.
No clear primary market specialisation
Generalists exist, but a jack-of-all-markets warrants a deeper process probe.
Frequently asked questions
Continue reading
Prevention is better than cure. Verify before you engage
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