You may be interested in working or starting a business in buying, selling and managing residential or commercial property. Although, you should be aware that each state government governs the local agents with its licensing laws. Moreover, these laws regulate the qualification and conduct of real estate agents to ensure property buyers are protected against nefarious behaviour by real estate agents. This article will examine real estate law across each Australian state and explore whether a real estate agent needs a licence.
Key Differences Between States (Individual Real Estate Licences)
| State | Governing Legislation | Licence Duration (individual real estate licences) | Eligibility requirements (individual real estate licences) |
| New South Wales | Property and Stock Agent Act 2002 (NSW) | One, three, or five years | Individuals must prove that they: + are at least 18 years of age; + are a fit and proper person to hold a licence; + have the qualifications required for the licence or class of licence for which they are applying; + have not been previously disqualified from obtaining a real estate licence; and + have paid the relevant contribution to the Property Services Compensation Fund. |
| Victoria | Estate Agents Act 1980 (VIC) | Ongoing unless surrendered, suspended or cancelled | An individual must: + be at least 18 years old; + be of good character and a fit and proper person; + not have been disqualified from holding an Estate Agent’s Licence either in Victoria or another State or Territory; + have completed the prescribed course for qualifications or equivalent to qualifications; or + held a licence in Victoria within the last five years; andpay the prescribed fees. |
| Western Australia | Real Estate and Business Agents Act 1978 (WA) | Three years unless surrendered or cancelled | Applicants must: + be at least 18 years old; + be a person of good character and repute and a fit and proper person to hold a licence; + have access to sufficient assets and financial resources to comply with all requirements of the Real Estate and Business Agents Act 1978; and + understand fully the duties and obligations imposed upon agents by the Real Estate and Business Agents Act 1978. |
| Australian Capital Territory | Agents Act 2003 (ACT) | Up to three years | To be eligible, an individual must: + be an adult; + be suitable to be licensed as a real estate agent with regard to s27 and s27A of the Agents Act 2003 (ACT); + have successfully completed a qualification in the Property Development and Management Training Package (PRD01) or have completed 18 units from the Property Services Training Package (CPP07); and + undertake and demonstrate continued professional development through compliance with the continuing professional development guideline. |
| South Australia | Land Agents Act 1994 (SA) | One year | To be eligible, an individual must: + provide evidence of completion of the relevant qualifications; + be financially solvent; + not have been the director of a company that was wound up in the past 5 years; and + not have been convicted of an offence involving dishonesty in the past 10 years. |
| Queensland | Property Occupation Act 2014 (QLD) | One or three years | To be eligible, an individual must: + be at least 18 years old; + be a suitable person; + hold the relevant qualification; and + have a registered office in Australia. An individual will not be suitable to hold a licence if they: + are an insolvent under administration; + are currently disqualified from holding a licence or registration certificate; or + have been convicted of a serious offence within the past five years. |
| Northern Territory | Agents Licencing Act 1979 (NT) | One, three, or five years | An individual must: + obtain a police check; + be at least 18 years old; + have completed a course of competency-based training for real estate and business agents; + have prescribed qualifications and experience; and + be a fit and proper person. |
| Tasmania | Property Agents and Land Transactions Act 2016 (TAS) | One year/Annual | An individual must: + hold a Diploma of Property awarded by a registered training organisation, or another qualification the Board is satisfied is substantially equivalent; + have had two years full-time experience as a property manager or property representative during the previous five years immediately preceding the application; + be a fit and proper person of good reputation, both generally and financially; and + be prepared to undergo continuing education as specified by the Property Agents Board. |
Individual vs Corporate Real Estate Licence
Individual Licences
Across all states, individuals over the age of 18 can hold a real estate agent licence if they meet the eligibility criteria of the states they are applying in. Indeed, each state will have their own set of education requirements and requisite courses. There may also be advertising requirements as part of the application process.
Generally, particular circumstances may preclude or disqualify an individual from becoming a real estate agent. For instance:
- you have been found guilty of a particular offence (the types of offences that may affect your eligibility vary by state);
- you are insolvent or bankrupt; or
- a claim has been made against you by the state regulator.
Eligibility and education requirements will differ by state, so we recommend checking the state’s website for further information.
Corporate Licences
Companies that wish to engage in real estate sales must also obtain a corporation licence. Generally, to be eligible, a company must have an officer or director with their state’s relevant individual real estate licence. However, states differ concerning the licence requirements of company staff who engage in real estate transactions.
Continue reading this article below the formMutual Recognition
Suppose you currently hold an individual real estate licence in one state and wish to practice in another. In that case, you may be able to apply for the state authority to recognise your previous licence under the Mutual Recognition Act 1992 (Cth). You will still have to make an application to the state authority that you wish to obtain the licence. Although, you may also be subject to eligibility requirements set by the state authority.
Generally, mutual recognition provisions only apply to individual real estate licences, not company real estate ones. This means a company will need to make a new application to obtain its licence.
Key Takeaways
Always ensure that you have complied with the relevant state requirements to engage in the business of buying and selling property safely. Moreover, if you have questions regarding the eligibility requirements for obtaining a real estate licence, we recommend checking the relevant state’s websites or contacting the state authority as a first step.
If you have any questions about the legal requirements for practising real estate agents, our experienced real estate lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1800 534 315 or visit our membership page.
Frequently asked questions
Yes, both individuals and companies will need licences for each state that they will be buying, selling or managing property in.
You can register for real estate licences in multiple states. However, you will need to make separate applications for each state. You can have your current licence recognised by the new state. Although it is still a separate application.
We appreciate your feedback – your submission has been successfully received.
