Buyers Agent Agreement Template for Australia

It sets out the terms on which a licensed buyers' agent is engaged to search for, evaluate, and purchase property on behalf of a client. It covers the scope of the search (property type, location, budget), the agent's fee and how it is calculated, the duration of the engagement, the agent's authority to act (including whether they can exchange contracts), and any exclusivity arrangements.

Yes. Buyers' agents must hold a real estate licence or a buyer's agent licence in the state or territory where they operate. Licence requirements and names vary by state. In NSW, the Property and Stock Agents Act 2002 applies; in Victoria, the Estate Agents Act 1980. Engaging an unlicensed agent is an offence, and the agreement may be unenforceable. Always verify the agent's licence before signing.

Fees are typically either a fixed flat fee or a percentage of the purchase price (commonly 1 to 3 per cent). Some agents charge a search retainer plus a success fee on settlement. The agreement must clearly state the fee structure and when each component is payable. Any fee arrangement should also address whether the agent receives commissions or other benefits from third parties such as vendors or developers, which must be disclosed.

Buyers' agents have a fiduciary duty to act in the client's best interest and must disclose any actual or potential conflict of interest. This includes referral arrangements with developers, rebates from property management services, or acting as a vendor's agent in another transaction. State licensing legislation typically requires written disclosure of any financial relationship that could affect the agent's independent advice.

Only if the agreement expressly grants that authority. The agreement should specify whether the agent has a limited mandate (to find and negotiate but not exchange) or a broader authority (including executing contracts for sale). Most buyers' agent agreements require the client to attend or be separately represented for the exchange of contracts, particularly for private sales. At auction, the agent can generally bid and sign under auction authority.

If the agreement includes an exclusivity clause, the agent may be entitled to their full fee even if the client purchases a property they found independently. The agreement should clearly define what the exclusivity covers. Some agreements limit exclusivity to introductions made by the agent, while others cover any property purchased within the defined search criteria during the term. Read this clause carefully before signing.

The agreement should state the notice period required to terminate and what fees are payable on early termination. Some agreements allow termination for cause (for example, where the agent has not provided satisfactory service) without penalty. If the agent has already introduced a property that you subsequently purchase, a commission may remain payable even after termination. Fair Trading in each state can assist with disputes.

In some states, consumers have cooling-off rights for service agreements, but the specific rules vary. NSW, for example, provides a short cooling-off period for agency agreements under the Property and Stock Agents Act 2002. Commercial buyers' agent agreements between sophisticated parties may not carry the same cooling-off protections. Check the legislation in your state and ensure the agreement discloses your rights clearly.