Queensland Real Estate Commission Laws Explained

If you’re selling property in Queensland, the question of “what commission do I pay my agent, and when?” comes up quickly.

Queensland’s framework is designed to protect both sellers and agents by making commissions transparent, negotiable and clearly documented. The rules aren’t there to trip you up - they exist to ensure everyone knows the deal from day one.

In this guide, we’ll unpack how real estate commissions work in Queensland, what must go into the agent’s appointment (Form 6), when an agent can legally claim commission, and how consumer law shapes what agents can (and can’t) say about fees and marketing. We’ll finish with negotiation tips and the common pitfalls to avoid, so you can sign with confidence.

By the end, you’ll know what to look for before you appoint an agent, how to avoid double-commission risks, and the simple steps that keep you compliant and in control throughout your sale.

How Do Real Estate Commissions Work In Queensland?

There is no government cap on real estate commission in Queensland. Your commission rate is negotiable and must be agreed in writing before the agent starts work.

Commission is commonly expressed as a percentage of the sale price (sometimes tiered) or a fixed dollar amount. Your Form 6 should clearly state the rate and specify whether GST is included or excluded. It should also set out exactly when the commission becomes payable (for example, on unconditional contract or at settlement).

Queensland agents must be formally appointed in writing before they are entitled to sell your property or charge commission. This is done using the prescribed Appointment of Property Agent (Form 6) under the Property Occupations Act 2014 (Qld). Without a valid appointment, an agent cannot legally claim commission for a sale.

It’s also common to agree marketing expenses separately. Your appointment should itemise the marketing you’ve approved, the cost, who pays, and whether those costs are payable even if the property doesn’t sell. If the agent receives any rebate, discount or commission connected to those expenses (for example, from a portal or publisher), the appointment must disclose the amount or the method for calculating it.

Because an agent acts on your behalf, you’re entering into an agency–principal relationship. In practice, that means your agent has certain authorities and duties - and you have rights to transparency and fair dealing. If anything is unclear, ask the agent to adjust the Form 6 before you sign.

What Does The Law Require In A Form 6 Appointment?

The Form 6 is the foundation of the commission relationship between you (the “principal”) and your agent. It must be in writing and signed before the agent starts providing services. Getting this document right is the best way to avoid disputes later.

Key elements you should see in a Form 6

• Type of appointment: Open listing, sole agency or exclusive agency. In an exclusive agency, the agent is typically entitled to the commission if the property sells during the exclusive period - even if you find the buyer yourself.
• Start and end dates: The period of the appointment must be stated. For residential property sales, any exclusive or sole agency appointment is subject to a statutory maximum of 90 days. If you want to continue beyond this, it must be renewed in writing.
• Commission: The rate (percentage or dollar amount), whether GST is included or excluded, and how the commission is calculated (including any tiered structure).
• When commission is earned: The specific trigger that entitles the agent to commission (for example, when an unconditional contract is formed, at settlement, or another clearly defined milestone).
• Expenses and rebates: Marketing or advertising you approve, the total cost, when those costs are payable, and any rebates or discounts the agent receives in relation to those expenses including the amount or calculation method.
• Warnings and authorisations: The Form 6 includes required warnings (particularly about the effect of exclusive appointments) and any authorisations for the agent to undertake specific activities on your behalf.

The appointment sets the boundaries of the agent’s authority and your obligations. If you want to understand the broader principles that apply to this relationship, it helps to know the general law of agency in Australia. In short, agents must act in your best interests and within their authority, and the Form 6 defines what that authority is.

When Can An Agent Legally Claim Commission?

Whether an agent can claim commission in Queensland depends on the terms of the Form 6 and the circumstances surrounding the sale.

1) A valid appointment must be in place

An agent needs a properly completed and signed Form 6 before performing the services. If there was no valid appointment at the relevant time, the agent cannot legally charge commission - even if a sale occurs.

2) The agreed “trigger” must happen

Your Form 6 should set out the exact event that “earns” the commission. This could be on formation of an unconditional contract, on settlement, or another clear milestone. Be sure you understand the timing - this can matter a lot if a contract collapses before settlement.

3) The appointment type changes the outcome

• Exclusive or sole agency: The agent is usually entitled to commission if the property sells during the exclusive period - even if you or another agent introduce the buyer. Keep an eye on the 90‑day statutory cap for residential exclusive/sole appointments and only renew in writing if you want to continue.
• Open listing: Commission is normally payable only to the agent who was the “effective cause of sale” (the agent whose actions brought about the sale). If multiple agents claim to have introduced the buyer, disputes can arise - which is why clear terms and good records matter.

4) Only one commission should be payable for the same sale

Double commission disputes often turn on whether an exclusive appointment was still in force and who was the effective cause of sale. Avoid overlapping exclusive appointments, and if you change agents, end the existing appointment in writing and start the new one after the exclusive period ends.

5) There must be a binding sale

Commission is tied to a binding contract of sale. Understanding the basics of offer and acceptance, certainty of terms and intention to create legal relations can help you assess whether a “deal” is actually done. Keep key negotiations in writing - emails, letters and signed documents form a clear trail.

Timing can also be influenced by the cooling-off regime for residential private treaty sales in Queensland. Buyers generally have a 5 business day cooling-off period (auctions are a common exception). If your Form 6 says commission is earned on an unconditional contract, be aware of when a contract becomes unconditional in light of cooling-off and special conditions. If needed, check how your contract defines what counts as a business day, and remember that cooling-off periods in Australia vary depending on the sale method and the jurisdiction.

Consumer Law And Transparency Obligations

Beyond the Property Occupations Act, the Australian Consumer Law (ACL) applies to real estate services, advertising and fee disclosures. These rules focus on fairness and transparency - which helps both sellers and agents build trust.

Misleading or deceptive conduct

Agents must not engage in misleading or deceptive conduct. This includes statements about likely sale price ranges, fee structures, rebates, “free” marketing, or what the commission covers. The prohibition is found in section 18 of the ACL, and it applies to verbal representations, written material and online advertising.

False or misleading representations

There are specific bans on false or misleading representations about price, fees, or the existence of benefits (for example, representing an advertising package as “free” if the cost is passed back to you later). These requirements sit under section 29 of the ACL.

Clear disclosure of fees, GST and rebates

Your appointment should spell out the commission rate, state whether GST is included or excluded, and clearly identify any tiers or thresholds in the calculation. If you’ve approved marketing, the appointment should list the items, total costs and payment timing. Any rebates or commissions the agent receives from third parties in connection with these costs must be disclosed (including the amount or method for calculating it).

Cooling-off periods and timelines

For residential private treaty sales in Queensland, buyers usually receive a 5 business day cooling-off period. This timing can affect when a contract becomes unconditional and, in turn, when commission is earned if your Form 6 links it to that milestone. It’s a small detail that can make a big difference to payment timing - so align the wording in your Form 6 with the way your contracts progress in practice.

Negotiation Tips, Dispute Prevention And Best Practices

The simplest way to avoid commission disputes is to negotiate clearly up front and capture those terms precisely in the Form 6. A few careful decisions before you list can save you serious headaches later.

Negotiating your commission (and documenting it properly)

• Choose the structure you’re comfortable with: Decide whether you prefer a flat fee, a simple percentage, or a tiered commission (for example, a base rate up to a threshold and a higher rate above it). Make sure the appointment states whether GST is included or excluded.
• Set the commission trigger: State exactly when the commission is earned - on an unconditional contract, at settlement, or another clear milestone. If you sell off-the-plan or use longer conditional periods, align the trigger with reality.
• Clarify what’s included vs separate: List which services are covered by the commission (for example, negotiation and open homes) and which expenses (like marketing) are separate and only payable if you’ve expressly approved them.
• Keep the exclusive period tight: For residential exclusive or sole agency appointments, the law caps the term at 90 days. Use a reasonable period and diarise the end date. If you’re happy with your agent, renew in writing.
• Insist on good record-keeping: Ask your agent to keep a record of inspections, enquiries and offers. If a buyer reappears later, those records help resolve any “effective cause of sale” questions quickly.

Avoiding the common pitfalls

• Double commission risk: Don’t sign overlapping exclusive appointments. If you switch agents, end the current appointment in writing and only start the new one after the exclusive period ends.
• Vague fee descriptions: Avoid generic clauses like “marketing as required”. Itemise marketing, set a budget cap and require written approval for any extra spend.
• Unclear authority: Limit the agent’s authority to what you are comfortable with (for example, obtaining quotes vs incurring spend). If you want to approve all paid advertising in advance, say so.
• Casual “OK” emails: Be careful with quick approvals by email about fee changes or appointment extensions. In the right circumstances, informal communications can be treated as binding variations. Keep formal changes in a signed amendment to the Form 6.

If you use external referrers or salespeople

Some businesses (for example, developers or investors) use third‑party introducers, buyer’s agents or referral partners to source purchasers. In those cases, a clear, written Commission Agreement sets rules for when a referrer earns a fee, avoids clashes with your listing agent’s rights, and clarifies who is paid what - and when.

Practical steps that reduce disputes

• Make your appointment watertight: Ensure the Form 6 includes all required fields, the correct property details, the full legal name(s) of the seller, and the agent’s licence details.
• Match the Form 6 and your sale process: If you usually count commission at settlement (not on contract), reflect that in the commission trigger.
• Use clear language: Avoid jargon and define any commission tiers (for example, “2% up to $1,000,000, then 2.5% on the portion above $1,000,000”). Clarity pays off.
• Keep everything in writing: Confirm key instructions and approvals by email and file them together with the Form 6. Good records are your best friend if questions arise.

Real-World Scenarios: How The Rules Apply

It helps to see how these rules play out day-to-day. Here are a few common scenarios and how the Form 6 and consumer law interact.

A private buyer approaches you during an exclusive period

If you have an exclusive appointment and a buyer you know contacts you directly, the agent is typically still entitled to the commission if the sale is completed during the exclusive period. If you want flexibility for private introductions, negotiate and document an exception in the Form 6 at the start (for example, “no commission if the buyer is ”).

The contract falls over before settlement

If your Form 6 says commission is earned “on settlement”, the agent can only claim when settlement occurs. If it says “on an unconditional contract”, the agent’s entitlement may arise once the cooling-off period has expired and all conditions are satisfied - even if settlement is later delayed. Make sure you understand which trigger you’ve chosen and the consequences if a deal collapses.

Two agents claim commission on the same buyer

With open listings, the test is often which agent was the effective cause of sale. Inspection registers, enquiry logs and offer correspondence can determine who did the real work to bring about the sale. With an exclusive appointment, timing and the exact wording of the Form 6 are key - particularly around renewals and the end date.

Advertising marketed as “free”

If an agent promotes a “free” advertising package but then recoups those costs from you in another way, that can raise issues under the ACL’s prohibitions on misleading conduct and false or misleading representations. Keep an eye on the wording of any marketing offer and ensure the Form 6 clearly states who pays and when. If in doubt, ask for it to be clarified in writing so it’s transparent and compliant with section 18 and section 29 of the ACL.

Key Takeaways

• Real estate commissions in Queensland aren’t capped by law - they’re negotiable and must be recorded in a signed Form 6 before the agent starts work.
• Your Form 6 should clearly state the commission structure, confirm whether GST is included or excluded, and set a precise trigger for when commission is earned.
• For residential property, exclusive or sole agency appointments are capped at a statutory maximum of 90 days and must be renewed in writing if you wish to continue.
• Only one commission should be payable for the same sale. Avoid overlapping exclusive appointments and keep good records to resolve “effective cause of sale” questions.
• The Australian Consumer Law requires transparent, accurate representations about fees, commissions, rebates and marketing - vague or “free” claims can breach the law.
• Clear documentation, practical negotiation and a watertight Form 6 are the best tools to prevent disputes and keep your sale moving smoothly.

If you’d like a consultation about Queensland real estate commission laws or want help reviewing your Form 6 before you sign, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.