Investor warning: Is your buyer's agent properly licensed?

The Real Estate Buyers Agents Association of Australia (REBAA) is warning prospective buyers to double check that the buyer’s agent they are choosing is independent and licensed, especially when they’re considering property interstate.

REBAA president Jacque Parker said that more must be done to protect consumers from unprofessional operators.

“Often an agency can be licensed in one state but not the other and still act for purchasers of property interstate,” warned Parker.

“Every state and territory in Australia has different licensing requirements so you need to make sure that the agency you’re dealing with holds a real estate qualification for the state that you’ll be buying property in.”

If the buyer’s agency is licensed, it means that a minimum of one agent within the agency is qualified.

“Currently there is no barrier to anyone setting up and practising as a buyers’ agent in an interstate location,” she said.

She also warned about double checking the independence of your buyer’s agent, suggesting that some are working for a vendor or a developer at the same time and receiving a commission from both sides of the fence.

The question she says buyers should be asking: Are you licensed in that state and are you an exclusive buyers’ agent? Exclusive agents are those who only receive payment from the buyer.

If the answer is no, Parker says that it’s time to ask whether they’re really working in your best interest.

REBAA supplied these minimum buyer’s agents training requirements across the country:

• South Australia

Certificate IV in Property Services (real estate) to obtain registration and work as a buyers agent representative (or sales representative) for a fully licensed agent.

Full licence (Registered Land Agent) if you wish to open your own agency (buying or selling) - Complete Diploma of Property Services (Agency Management).

• New South Wales

Need to have either full real estate licence (or dedicated buyers’ agent licence)

You can’t act on behalf of another person as a buyers’ agent without the right qualifications.

• Queensland

A full real estate licence.

• Victoria

Complete Certificate IV for those wanting to run a licensed buyers’ agency, which according to the Real Estate Institute of Victoria takes about eight weeks to complete.

Must complete 12 months practical experience within three years of applying for a licence.

Note: You can check with Consumer Affairs Victoria online public register of licensed agents.

• Tasmania

Requires a full real estate agent licence to transact in property whether buying or selling.

Diploma of Property Services (agency management).

• Western Australia

Be at least 18 years old.

Be a person of good character and repute and a fit and property person to hold a licence.

Have access to sufficient assets and financial resources enabling them to comply with all the requirements of the Act.

Understand fully the duties and obligations imposed upon agents by the Act.

• Northern Territory

A full real estate licence.