If you wish to run a real estate agency, it is essential to understand the different licences that you may need in your state or territory. Licensing requirements and regulatory bodies vary amongst the states and territories in Australia. You may also need to meet specific educational and training requirements before obtaining certain licences. Understanding your licensing requirements is crucial in ensuring that your real estate business is compliant and, subsequently, can run effectively. This article will set out the licences you need to run a real estate agency business in each state and territory in Australia.
New South Wales
In New South Wales, NSW Fair Trading regulates the real estate industry. To run a real estate agency as an incorporated entity in NSW, you need a corporation licence. You will be eligible for a corporation licence if:
- your business is competent, of good standing and has no conflicts of interest regarding obtaining the licence;
- each director of the company is a fit and proper person;
- the corporation, and each officer of the corporation, is not disqualified from obtaining a licence;
- at least one of the directors holds a real estate license (this person must supervise the business); and
- the corporation has paid any fees regarding the granting of the licence.
You can apply for a one, three or five year licence.
To conduct business within NSW, you must have at least one physical office within the state. Furthermore, you must appoint a licensed agent to be in charge of the office and properly supervise it. You must also appoint a different person to be in charge within each office where you carry on business. Even if you intend to run an online business in multiple states, you must still have an office in NSW with a licensed supervisor.
Victoria
In Victoria, Consumer Affairs Victoria regulates the real estate industry. To operate a real estate agency in Victoria as an incorporated entity your business must obtain an estate agent’s licence (company). Specifically, your business will need a licence to:
- deal or dispose of land for another person;
- negotiate to deal with or dispose of land for another person; and
- collect rent for other people.
Similar to NSW, to be eligible for an estate agent’s licence, your company must have an officer in effective control who holds a current individual estate agent’s licence in Victoria. An officer in effective control:
- works at the principal office address of the company;
- must regularly be at that office;
- is fully accountable for the overall day-to-day operations of the estate at all offices where the company carries on business; and
- does not need to be a director of the company.
You must have at least one physical office within Victoria and a different real estate agent in effective control at each office.
Continue reading this article below the formQueensland
In Queensland, the Queensland Office of Fair Trading regulates the real estate industry. In Queensland, you must hold a corporate real estate licence to run a business that:
- buys, sells, leases or exchanges property (or an interest in property);
- collects rent;
- manages rental properties;
- negotiates and facilitates property transactions;
- shows property to potential buyers or renters;
- inspects properties for sale or rent;
- advertises and opens property for inspection; and
- operates trust accounts.
Your business will only be eligible for a corporate licence if the person in charge is a licensed real estate agent. However, you are not required to have an office in Queensland. If you have multiple places of business, you must register all the addresses when applying for a licence.
The person in charge of the principal place of business must have a current individual real estate agent licence. This person must also appoint another licensee or registered real estate agent to be in charge at other places of business.
South Australia
In South Australia, the Consumer and Business Services regulates the real estate industry. Furthermore, your business must be registered as a ‘Land Agent’ to carry on any activity involving:
- selling land belonging to others;
- purchasing land for others;
- dealing with land on behalf of others; or
- conducting negotiations for the above purposes.
You must ensure that your business is properly managed and supervised by a registered agent. You must also ensure that a registered agent properly manages each office. As long as your agency itself holds a SA real estate licence, you do not need to have a physical office within SA.
Western Australia
The Department of Mines, Industry Regulation and Safety regulates Western Australia’s real estate industry. To operate a real estate agency in WA, your company must apply for a corporate real estate licence. Your company will be eligible if all directors and managers are:
- people of good character and repute; and
- fit for their role in a real estate business.
The directors must elect a person to be ‘in bona fide control’ of the business. This person must be a licensed real estate agent and will be in charge of the business activities.
In WA, you must have a registered office located within the state. However, this does not have to be where you conduct your business. Instead, the registered office can just be a physical address where any legal documents can be served, for example, the address of your accountants or solicitors in WA.
Tasmania
Tasmania’s real estate industry is overseen by the Consumer, Building and Occupational Services and the Property Agents Board of Tasmania. In Tasmania, you must hold a real estate licence to open a real estate agency. If at least one director of your business holds a real estate licence, you can obtain a corporate licence.
There is no requirement to have a fixed office within Tasmania. However, a licensed company will need to have a licensed director and managing agent. These can be the same person. However, the manager can only manage up to one authorised place of business.
This factsheet provides an overview of a real estate agent’s professional obligations.
Northern Territory
The Northern Territory Consumer Affairs regulates the Northern Territory’s real estate industry. In the Northern Territory, you must hold a real estate agent licence to act as an agent in the sale, purchase, exchange, leasing or disposition of land.
Your business will be eligible to hold a real estate licence where:
- it has the power to carry on business as an agent;
- all of the company’s directors and managers are fit and proper people; and
- each person nominated to act as a manager is a licensed agent.
A business manager is someone who has control of one or more of the business’ registered offices. Under the licence, they must be specified as the manager of the specific office.
There is no requirement that the registered office must be in the NT. However, you must maintain a registered office somewhere in Australia.
Australian Capital Territory (ACT)
The ACT’s real estate industry is regulated by the ACT Government’s Access Canberra. To run a real estate agency in the ACT, you must obtain a real estate agent licence. Your licensee-in-charge of your real estate business is required to hold a class 1 agent licence.
Key Takeaways
If you intend to operate a real estate agency business in Australia, you must be aware of the different licensing and regulatory requirements applicable to your business. You will need to know:
- what licence your business is required to obtain;
- who in your business must have a real estate licence; and
- whether you must have a registered office in the states or territories you wish to carry out business in.
Understanding and complying with these requirements is essential for establishing a legitimate and successful real estate business. If you engage in unlicensed trading, you may be subject to significant fines.
If you have any questions regarding what licences you must obtain as a real estate agency, 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 1300 544 755 or visit our membership page.
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