Buyers Agent Red Flags
Twelve warning signs to watch for, from undisclosed commissions to hollow off-market claims.
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Verification guide
How to verify a buyers agent
A methodical, four-layer check to confirm your agent is fully licenced, insured, independently verified, and working exclusively for you.
Find a Verified AgentThe industry has low barriers, so verification is not optional
Australia's property industry is regulated, but not impenetrable. Licensing requirements vary by state, professional standards are voluntary, and the term "buyers agent" can be used loosely. An estimated 12% of people presenting themselves as buyers agents hold an inadequate licence or none at all.
Verification takes less than 15 minutes total. This guide walks you through every check, from the state licence register to insurance certificates, so you hire with complete confidence.
0%
Inadequately licenced
of practitioners nationally
0
State & territory registers
all free to search publicly
0 min
Time to verify
all four credential layers
0
Verification layers
licence, insurance, exclusivity, references
The Trust Stack - build from the base up
Every layer reinforces the one below it. A missing base layer makes the entire stack unreliable.
Start at the base
No licence means no legal authority to act as your agent. This is a binary check: they either hold a current full licence or they do not. Everything above it is irrelevant if the foundation is missing.
PI insurance is your safety net
If your agent makes a negligent error in their professional advice, PI insurance is how you recover losses. Without it, that risk sits entirely with you.
Exclusivity closes the conflict loop
An agent who also works with sellers or takes developer commissions has a conflict of interest, even if their licence is spotless. Confirm in writing they work exclusively for buyers.
The six-step verification process
Run every step before signing an engagement agreement. Each check takes 2–5 minutes.
Step 01
Gather agent details
Collect the agent's full legal name, agency name, and licence number. A legitimate agent will provide these immediately on request.
Ask for their licence number upfront. Hesitation here is itself a signal.
Step 02
Check the state licence register
Search your state or territory's public register to confirm the licence exists, is current, and is a full licence rather than a restricted certificate of registration.
Check the licence class, issue date, expiry, and any conditions or suspensions.
Step 03
Confirm independent verification
Cross-check the agent against an independent verification register such as buyersagents.com.au. A verified listing means licence, insurance, and exclusivity have been checked by a third party rather than self-reported.
Not every great agent is listed yet, but a verified listing is a strong quality signal.
Step 04
Request PI insurance certificate
Ask for a current Certificate of Currency for their professional indemnity insurance. Verify the insured name matches the agent or agency and the expiry date is future.
Minimum $2M per claim is the industry-accepted standard. Anything less is a risk you carry.
Step 05
Confirm exclusivity in writing
The engagement agreement must explicitly state they take no commissions, referral fees, or kickbacks from any party other than you.
Ask: "Do you ever refer clients to specific lenders or inspectors for a fee?" A clean answer is no.
Step 06
Green-light and proceed
All four credential layers confirmed, agreement reviewed by a solicitor if needed, and you are ready to engage. Keep copies of all verification documents.
File the licence printout, insurance certificate, and signed agreement together.
Understanding the credential stack
Five distinct trust layers, each independent, each necessary. A weakness at any level compromises the layers above it.
01
Real estate licence
non-negotiableFull licence required, not a certificate of registration. Issued by state regulator. Publicly verifiable in minutes.
02
Professional indemnity insurance
non-negotiableCurrent Certificate of Currency, minimum $2M. Protects you if the agent makes a professional error.
03
Independent verification
strongly recommendedListed on a verified directory such as buyersagents.com.au. Signals that licence, insurance, and exclusivity have been checked by a third party.
04
Buyer exclusivity
non-negotiableWritten confirmation of no seller commissions, referral fees, or vendor kickbacks. Eliminates conflicts of interest.
05
References & case studies
recommendedRecent clients in your target market. Ask for names and follow up directly. Testimonials on a website are not a substitute.
State-by-state licence registers
All eight Australian states and territories maintain free public licence registers. Search by agent name or licence number. Do this before signing anything.
NSW
NSW Fair Trading
Real Estate Agent Licence
Search by name or licence number. Full licence (Class 1 or 2) required for independent practice.
VIC
Consumer Affairs Victoria
Estate Agent Licence
Verify agent and agency licence. Check for any conditions or suspensions on the registration.
QLD
Office of Fair Trading
Real Estate Agent Licence
Confirm full licence, not a restricted or trainee certificate. Check current status.
WA
Consumer Protection WA
Real Estate & Business Agent Licence
REBA licence required. Confirm the agent and their agency are both registered.
SA
Consumer and Business Services
Land Agent Licence
Search the public register. Check licence class, conditions, and expiry date.
TAS
Consumer, Building & Occupational Services
Real Estate Agent Licence
Confirm licence is active and free of suspensions or disciplinary conditions.
ACT
Access Canberra
Real Estate Agent Licence
Agents Licencing Act 2003. Full licence required for independent buyer representation.
NT
NT Consumer Affairs
Agents Licence
Agents Licencing Act 2024. Verify the licence is current and unrestricted.
What a verified agent looks like
A properly credentialled buyers agent is transparent and forthcoming. They volunteer this information before you even ask.
Provides licence number without hesitation
A legitimate agent knows their licence number. They offer it proactively, or produce it within 24 hours when asked.
Hands over a current Certificate of Currency
PI insurance documentation is standard professional practice. They have it filed and can email it the same day.
Listed on an independent verification directory
Searchable on a third-party register such as buyersagents.com.au, where their licence, insurance, and exclusivity have been checked rather than self-claimed.
Engagement agreement states buyer exclusivity explicitly
The written agreement contains clear language: no vendor commissions, no referral fees, no developer incentives. Full stop.
References are real people you can call
They provide two or three recent client contacts in your target market and encourage you to reach out directly.
Verification red flags
These warning signs should stop your engagement process immediately or prompt much deeper scrutiny.
Cannot produce a licence number
Claiming to be "registered" or "accredited" without a state-issued licence number is a serious red flag. No licence number = no authority to act.
Holds only a certificate of registration
A salesperson certificate means they must work under a licensed principal. They cannot independently represent you as a buyers agent.
Cannot provide PI insurance documentation
"I have it, I just need to find it" after multiple requests is not acceptable. An active professional has this document ready.
Receives commissions or referrals from sellers or developers
Any payment from a third party creates a conflict. If they earn a referral fee from a conveyancer or broker they recommend, their advice is compromised.
Licence shows conditions, suspension, or disciplinary action
A register entry showing restrictions or prior disciplinary action is a serious warning. Understand what happened before proceeding.
Licensed vs registered vs unlicensed
Not all people calling themselves buyers agents have the same legal standing. Understand the difference before engaging anyone.
| Full Licence Holder | Certificate / Salesperson | |
|---|---|---|
| Legal authority | Full authority to represent buyers and conduct negotiations independently. | Limited. Must work under a licensed principal at all times. |
| Can operate independently | Yes. Can run their own agency and take on clients directly. | No. Cannot operate without a supervising licensee. |
| Bound by state regulator | Yes, and subject to full disciplinary action and ongoing CPD requirements. | Yes, but oversight depends on the quality of their principal. |
| PI insurance obligation | Required by most state regulators and industry bodies. Standard practice. | Typically covered under the agency's policy, not their own. |
| Who to engage | The only type you should engage as a standalone buyers agent. | Not appropriate for independent buyer representation. |
Legal authority
Full Licence Holder
Full authority to represent buyers and conduct negotiations independently.
Certificate / Salesperson
Limited. Must work under a licensed principal at all times.
Can operate independently
Full Licence Holder
Yes. Can run their own agency and take on clients directly.
Certificate / Salesperson
No. Cannot operate without a supervising licensee.
Bound by state regulator
Full Licence Holder
Yes, and subject to full disciplinary action and ongoing CPD requirements.
Certificate / Salesperson
Yes, but oversight depends on the quality of their principal.
PI insurance obligation
Full Licence Holder
Required by most state regulators and industry bodies. Standard practice.
Certificate / Salesperson
Typically covered under the agency's policy, not their own.
Who to engage
Full Licence Holder
The only type you should engage as a standalone buyers agent.
Certificate / Salesperson
Not appropriate for independent buyer representation.
For a deeper look at what to verify before signing: 30 Questions to Ask a Buyers Agent
Frequently asked questions
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